Bangladesh Bank and Palli Karma-Sahayak Foundation (PKSF) on Wednesday signed a Tk 5,000 crore agreement to accelerate sustainable job creation by expanding access to finance for targeted microenterprises and stimulating grassroots economic activities.

The deal was signed by Nawshad Mostafa, director of BB's SME and Special Programmes Department, and PKSF Managing Director Md Fazlul Kader at the Bangladesh Bank headquarters in Dhaka.

On May 23, Bangladesh Bank announced a Tk 5,000 crore special stimulus package to support specialised interventions through PKSF aimed at accelerating employment generation across the country.

PKSF has completed preparations to implement the nationwide programme using the fund, according to officials.

The programme will focus on creating employment in the microenterprise sector by increasing access to finance for targeted businesses, along with other necessary support.

It will be implemented through three core components: financial services, business-cluster-based value chain development, and skills development for entrepreneurs.

Under the programme, PKSF aims to create 200,000 jobs in the microenterprise sector by supporting the development of promising business clusters that have emerged in different parts of the country.

The initiative is also expected to strengthen grassroots businesses by helping them access finance, develop value chains and improve entrepreneurial skills.

To meet growing demand at the grassroots level and ensure optimal use of the fund, the incentive financing will operate as a revolving fund.

This will allow the fund to be reused for financing eligible enterprises, ensuring a continuous flow of finance to the microenterprise sector.

Officials said the initiative is expected to help transform the country’s microenterprise sector into a key driver of inclusive economic growth while creating employment opportunities across the country.