Country’s microfinance sector insiders have urged to develop a Tk 100 billion revolving Micro Loan Fund to ensure sustainable financing, along with the simplification of complex tax provisions introduced in the Finance Bill 2024.
They also demanded the government to allocate grant funding for essential social development programs, particularly in light of declining donor support and laid due importance of institutionalizing formal pre-budget consultations between the Ministry of Finance and microfinance institutions to ensure that policy decisions reflect on-the-ground realities and sector needs.
The demands came at a national consultation titled “Microfinance Sector Consultations on National Budget 2025–26”organized by the INAFI Bangladesh,at the BRAC Centre, Mohakhali on 19 May.
The consultation was attended by Professor Dr. Mohammed Helal Uddin, Executive Vice Chairman (EVC) of the Microcredit Regulatory Authority (MRA), as Chief Guest. Guests of Honor included Asif Saleh, Executive Director of BRAC; Md. Ariful Haque Choudhury, President of ASA; and Dr. Humaira Islam, Executive Director of Shakti Foundation for Disadvantaged Women. Mohammad Muslim Chowdhury, Chairman of INAFI and Sonali Bank PLC presided over the consultation while Emranul Huq Chowdhury, Vice Chairman of INAFI Bangladesh, delivered the keynote presentation.
In his address, Professor Dr. Mohammed Helal Uddin, Executive Vice Chairman of MRA, called on the sector to better quantify its contributions:“The microfinance sector must present its impact in measurable terms. This evidence is essential to make a stronger case for support from policy-makers and development partners.”
While addressing, Mohammad Muslim Chowdhury, Chairman of INAFI Bangladesh, stressed the need for structural engagement with the government to achieve inclusive and sustainable economic development, there must be a structured and ongoing dialogue between the government and the microfinance sector.
Asif Saleh, Executive Director of BRAC, emphasized the importance of safeguarding the social mission of MFIs.
“As we move toward financial sustainability, we must not lose sight of our social obligations. The country is at a critical stage facing a poly crisis. In this space, just like during covid times, MFIs need to play a leading role in reaching the informal sector, in climate adaptation and addressing unemployment issues by creating new jobs by providing add-on linkages”, he added.
Md. Ariful Haque Choudhury, President of ASA, stressed the urgency of collaboration:“Microfinance institutions have always complemented government efforts in poverty reduction. A well-coordinated approach between the sector and the government will be key to delivering greater impact.”
