Bangladesh Economic Review 2024

CHAPTER THIRTEEN
POVERTY ALLEVIATION

Inclusive growth-supportive policies, strategies, and extensive social security programmes can play a vital role
in poverty alleviation. According to the ‘Household Income and Expenditure Survey (HIES) 2022’, ' the current
poverty rate in the country is 18.7 percent and the extreme poverty rate is 5.6 percent. It is noteworthy that,
according to the HIES 2016, the poverty and extreme poverty rates were 24.3 percent and 12.9 percent,
respectively. The 2022 survey indicates a slight increase in national monthly income compared to expenditure
and consumption. On the other hand, the Gini coefficient increased to 0.499 percent in 2022 from 0.482 percent
in 2016. Alongside poverty reduction, the government continues its comprehensive efforts to reduce income
inequality, guided by the Sustainable Development Goals (SDGs) and other planning documents. Our globally
recognised success in poverty reduction strategies includes expanding the social safety net for those at risk of
poverty, providing financial incentives, encouraging small savings, implementing effective disaster risk
reduction programmes, and building resilience against the impacts of climate change. Various government and
private institutions, autonomous bodies, and microfinance organisations implement a wide range of activities,
including providing micro credits, to achieve poverty reduction goals. In addition, social safety initiatives such
as old-age allowances, allowances for widows and abandoned women, and allowances for distressed women
have been introduced for the welfare of the poor population. In the revised budget of FY 2023-24, the allocation
for the social security sector was Tk. 1,21,240.00 crore. The allocation is Tk 1,36,026.00 crore in FY 2024-25.
This allocation is 17.06 percent of the total budget and 2.5 percent of GDP.

Poverty Situation in Bangladesh of Basic Needs (CBN) method. Poverty lines

under the CBN method, therefore, represent the
Poverty alleviation is one of the major indications
minimum per capita expenditure that a person
of the socio-economic development of a state and
needs to be able to afford to meet his basic needs.
society. Collective measures have been taken to
Two poverty lines (upper poverty line and lower
reduce poverty from Bangladesh. According to
poverty line) are estimated in CBN method. Head
Household Income and Expenditure Survey
Count Rate (HCR) is the fundamental component
(HIES) 2016, poverty rate declined to 24.3 percent
of CBN method. HCR is the important measure
in 2016, which was 40.0 percent in 2005.
that estimates the percentage of individuals living
According to the 'Household Income and
below the poverty line. The estimates of Head
Expenditure Survey (HIES) 2022', the current
Count Rate of HIES 2022 and previous rounds for
poverty rate in the country is 18.7 percent and the
upper and lower poverty lines are given in table
extreme poverty rate is 5.6 percent.
13.1 and figure 13.1.
The official methodology used in Bangladesh to
estimate the poverty numbers is based on the Cost

Table 13.1: Trends in Poverty Reduction

Head Count Rate (HCR)

Poverty line HIES 2022 HIES 2016 HIES 2010 HIES 2005 HIES 2000

Using upper poverty line 18.7 24.3 31.5 40 48.9

Using lower poverty line 5.6 12.9 17.6 25.1 34.3
Source: BBS, HIES 2022

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Figure 13.1: Trends in poverty reduction

60
48.9
50
40
40 34.3
31.5
25.1
(%)

30 24.3
17.6 18.7
20
12.9

10 5.6

0
H IES 2 0 0 0 HIE S 2 0 05 HIES 2010 HIE S 2 01 6 HIES 2022

Poverty Extreme Poverty

Source: BBS, HIES 2022.

Trends of Poverty income poverty at the national level decreased by

7.2 percentage points (from 31.5% to 24.3%)
According to HIES 2022, income poverty at the
during the period 2010-16. The annual compound
national level decreased by 5.6 percentage points
rate of poverty reduction during the same period
(from 24.3% to 18.7%) during the period 2016-22
was 4.23 percent. The trends of income poverty
as measured by the upper poverty line. The
are depicted in Table 13.2 and figure 13.2.
compound rate of poverty reduction during this
period averaged 4.27 percent. On the other hand,

Table 13.2: Trend of Income Poverty (using the upper poverty line)

Annual Change Annual Change Annual Change

2022 2016 (%) 2010 (%) 2005 (%)
(2016 to 2022) (2010 to 2016) (2005 to 2010)

Head Count Index

National 18.7 24.3 -4.27 31.5 -4.23 40.0 -4.67
Urban 14.7 18.9 -4.10 21.3 -1.97 28.4 -5.59
Rural 20.5 26.4 -4.13 35.2 -4.68 43.8 -4.28
Poverty Gap

National 3.8 5.0 -4.47 6.5 -4.28 9.0 -6.30

Urban 2.9 3.9 -4.82 4.3 -1.61 6.5 -7.93
Rural 4.2 5.4 -4.10 7.4 -5.12 9.8 -5.46
Squared Poverty Gap

National 1.2 1.5 -3.65 2.0 -4.68 2.9 -7.16

Urban 0.9 1.2 -4.68 1.3 -1.33 2.1 -9.15
Rural 1.3 1.7 -4.37 2.2 -4.21 3.1 -6.63
Source: BBS, HIES 2022

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Figure 13.2: Trend of Income Poverty

(National, Urban and Rural Areas)

43.8
40
35.2
31.5
28.4
26.4
24.3
(%)

21.3 20.5
18.9 18.7
14.7

2005 2010 2016 2022

National Urban Rural

Source: BBS, HIES-2022

Household Income, Expenditure and 1995-96 to 2022 have been provided in Table
Consumption 13.3.
The statistics of household nominal income,
expenditure and consumption from the surveys

Table 13.3: Monthly Household Nominal Income, Expenditure and Consumption Expenditure by
Residence
(in Taka)

Average monthly
Average monthly Average monthly
Year of Survey Residence Consumption
Income Expenditure
Expenditure

National 32422 31500 30603

2022 Rural 26163 26842 26207
Urban 45757 41424 39971
National 15988 15715 15420
2016 Rural 13398 14156 13868
Urban 22600 19697 19383
National 11479 11200 11003
2010 Rural 9648 9612 9436
Urban 16475 15531 15276

National 7203 6134 5964

2005 Rural 6095 5319 5165
Urban 10463 8533 8315

National 5842 4881 4537

2000
Rural 4816 4257 3879

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Average monthly
Average monthly Average monthly
Year of Survey Residence Consumption
Income Expenditure
Expenditure

Urban 9878 7337 7125

National 4366 4096 4026

1995-96 Rural 3658 3473 3426

Urban 7973 7274 7084

Source: BBS, HIES 2022.

 On the other hand, consumption expenditure

The Table 13.3 expresses that,
at the national level in 1995-96 was Tk. 4,026.
 Household nominal income, expenditure and In 2016, it increased to Tk. 15,420 and in
consumption expenditure have been increased 2022, the average consumption expenditure
gradually. per household has increased to Tk. 30,603.
 In 1995-96, the monthly household nominal  In a general analysis it is found that there has
income was Tk. 4,366; which boosted up 3.66 been a slight increase in income compared to
times and rose to Tk. 15,988 in 2016. In the expenditure and consumption at the national
new survey of 2022, it has increased to Tk. level from 1995-96 to 2022.
32,422.
Deciles Distribution of Income and Gini Co-
 Expenditure and consumption expenditure efficient
also increased along with income. In 1995-96,
According to the surveys conducted in 2022 and
the per capita monthly expenditure at the
2016, the ratio of income by deciles groups and
national level was Tk. 4,096, in 2016 this
Gini co-efficient in rural and urban areas are
expenditure was Tk. 15,715. In 2022, it
presented in Table 13.4.
increased to Tk. 31,500.

Table 13.4: Percentage Distribution of Income According to Households in Groups (Deciles) and
Gini Co-efficient

2022 2016
Household Income Group National Rural Urban National Rural Urban
100.00 100.00 100.00 100.00 100.00 100.00
Lower 5% 0.37 0.37 0.48 0.23 0.25 0.27
Decile-1 1.31 1.41 1.45 1.02 1.06 1.17
Decile-2 2.86 3.17 2.61 2.83 2.99 3.04
Decile-3 3.88 4.40 3.41 4.05 4.36 4.1
Decile-4 4.82 5.49 4.17 5.13 5.52 5.00
Decile-5 5.81 6.62 5.06 6.28 6.58 6.15
Decile-6 6.92 7.85 6.12 7.48 7.89 6.88
Decile-7 8.36 9.32 7.55 9.06 9.52 8.44
Decile-8 10.49 11.49 9.87 11.25 11.80 10.4
Decile-9 14.62 15.32 14.52 14.86 15.51 13.47
Decile-10 40.92 34.95 45.23 38.09 34.78 41.37
Top 5% 30.04 24.22 33.48 27.82 24.19 32.09
Gini Co-efficient 0.499 0.446 0.539 0.482 0.454 0.498

Source: BBS, HIES 2022

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other hand, during the same period, the

Through a common analysis of Table 13.4, it is
income of the highest 5 percent of households
observed that-
increased by 2.22 percent.
 Compared to 2016, both reductions and
 The Gini coefficient was 0.458 in 2010, and it
increases in income distribution have occurred
increased to 0.482 in 2016. According to
across different deciles of households at the
HIES 2022, the Gini coefficient has risen
national level in 2022. According to HIES,
further to 0.499.
2022, households in deciles 1-5 represent half
of the country's population, but their  In 2022, the Gini Co-efficient in rural areas
combined income accounts for only 18.68 decreased slightly (0.454 in 2016 and slightly
percent of the national income. In contrast, decreased to 0.446 in 2022). On the other
according to the 2016 survey, the income of hand, in urban areas, the Gini Co-efficient
these 5 deciles accounted for 19.27 percent of increased to 0.539 in 2022 from 0.498 in the
the national income. 2016 survey.
 The percentage share of income of the lowest Deciles Distribution of Consumption and Gini
5 percent households has slightly increased in Co-efficient
2022 compared to 2016. In 2016, their income The Table 13.5 points out deciles’ distribution of
was 0.23 percent of the national income, consumption of HIES 2022 and 2016 by residence
which rose to 0.37 percent in 2022. On the for the surveys.
Table 13.5: Deciles Distribution of Consumption by Residence and Gini Co-efficient
2022 2016
Household Expenditure Group
National Rural Urban National Rural Urban
Total/ Deciles
100.00 100.00 100.00 100.00 100.00 100.00
Decile-1 3.47 3.87 3.25 3.7 4.00 3.44
Decile-2
4.75 5.21 4.50 4.94 5.28 4.75
Decile-3
5.65 6.17 5.39 5.80 6.14 5.67
Decile-4
6.56 7.04 6.24 6.64 6.96 6.55
Decile-5 7.50 8.02 7.11 7.51 7.81 7.51
Decile-6
8.54 9.07 8.21 8.54 8.79 8.60
Decile-7
9.86 10.32 9.60 9.84 9.94 10.07
Decile-8 11.68 12.08 11.53 11.59 11.58 11.91
Decile-9 14.63 14.61 15.24 14.61 14.15 15.26
Decile-10 27.37 23.63 28.93 26.83 25.35 26.23
Gini Co-efficient 0.334 0.291 0.356 0.324 0.300 0.330
Source: BBS, HIES 2022.
expenditure for households in other deciles
Table 13.5 discloses that,
has slightly increased compared to 2016.
 The consumption expenditure of households However, the extent of these increases and
in deciles 1 to 5 has slightly decreased in 2022 decreases is very minimal.
compared to 2016. The consumption
expenditure of households in decile 6 has
remained unchanged. Consumption

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 During the same period, the Gini coefficient 2016, it has increased somewhat in the 2022
has slightly increased (0.324 in 2016 and rose survey (It was 0.338 in 2010, slightly
to 0.334 in 2022). decreased to 0.330 in 2016, and then increased
to 0.356 in 2022).
 In 2022 the Gini Co-efficient in rural areas
decreased slightly (in 2016 it was 0.300, in Poverty rates in 8 Divisions
2022 it decreased slightly to 0.291). The head count ratio of incidence of poverty in
 On the other hand, although the Gini eight administrative divisions using Cost of Basic
coefficient in urban areas slightly decreased in Needs (CBN) method is described in Table 13.6.

Table 13.6: Division wise Incidence of Poverty (HCR) by CBN Method (in percentage)

Divisions 2022 2016

Using the Upper Poverty Line

Total Rural Urban Total Rural Urban
Dhaka 17.9 21.7 14.3 16.0 19.2 12.5
Sylhet 17.4 18.1 14.4 16.2 15.6 19.5
Chattogram 15.8 17.9 11.3 18.4 19.4 15.9
Barishal 26.9 28.4 21.3 26.5 25.7 30.4
Khulna 14.8 16.2 9.9 27.5 27.3 28.3
Rajshahi 16.7 17.2 14.9 28.9 30.6 22.5
Mymensing 24.2 26.2 16.0 32.8 32.9 32.0
Rangpur 24.8 23.6 29.9 47.2 48.2 41.5
Using the Lower Poverty Line
Dhaka 2.8 1.9 3.7 7.2 10.7 3.3
Chattogram 5.1 6.3 2.3 8.7 9.6 6.5
Sylhet 4.6 5.2 1.3 11.5 11.8 9.5
Khulna 2.9 2.8 3.1 12.4 13.1 10.0
Rajshahi 6.7 8.0 2.5 14.2 15.2 10.7
Barishal 11.8 13.1 6.7 14.5 14.9 12.2
Mymensing 10.0 10.3 8.5 17.6 18.3 13.8
Rangpur 10.0 10.3 8.7 30.5 31.3 26.3
Source: BBS, HIES 2022.

 According to both the upper poverty line and

Table 13.6 indicates that,
the lower poverty line, Barisal division has the
 According to the upper poverty line, the highest overall poverty rate.
poverty rate in Dhaka, Sylhet, and Barisal
 According to the upper poverty line, in 2022,
divisions has increased compared to 2016.
the poverty rate in urban areas was lower than
However, according to the lower poverty line,
rural areas across all divisions. However,
the overall poverty rate in all divisions of the
according to the lower poverty line, the
country has decreased in 2022 compared to
poverty rate in urban areas was higher than
2016.
rural areas in Dhaka and Khulna divisions.

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 The poverty reduction rate is the highest in the towards achieving the Sustainable Development
Rangpur division. Goals (SDGs).
Universal Pension Scheme
Sustainable Development Goals (SDGs) and
Bangladesh The introduction of the universal pension scheme
is an important addition to inclusive development
The United Nations has announced the strategies. To ensure sustainable and well-
Sustainable Development Goals (SDGs) for the organised social security, the universal pension
period 2016-2030. SDGs have been announced scheme was inaugurated on August 17, 2023. ‘The
with 17 goals and 169 targets and 241 indicators Universal Pension Management Act, 2023’ has
to be implemented within the stipulated time. The already been passed and the National Pension
Government of Bangladesh is firmly committed to Authority has been established and has started its
achieve the Sustainable Development Goals activities. The Universal Pension Management
(SDGs) announced by the United Nations. While System has been developed based on a fully IT
implementing the SDGs, the universality and platform. Following are the different schemes
integrated-multidimensional natures of SDGs under universal pension:
have been taken into consideration. Innovative
and knowledge-based initiatives are applied, and  Probash (for expatriate Bangladeshi
the highest priorities are given to the extreme- citizens)
vulnerable poor communities. A whole-of-society  Progati (for officers/employees of
approach has been adopted for implementing privately-owned/private institutions)
SDGs.
 Shurokha (for self-employed citizens)
Reviewing the progress of SDGs indicates that
 Shomota (for extremely poor self-
Bangladesh has already achieved considerable
employed citizens)
progress in certain areas. According to the report
of HIES 2022, the poverty rate in the country is Key features of the universal pension
currently 18.7 percent and the extreme poverty
• Beneficiaries aged 18 to 50 will receive lifelong
rate is 5.6 percent. Bangladesh has already made
pension benefits until the age of 60, and
significant progress in reducing maternal
beneficiaries aged above 50 will receive lifelong
mortality. The maternal mortality rate per
pension benefits upon paying contributions for a
1,00,000 live births decreased from 197 in 2014 to
minimum of 10 years. Any Bangladeshi worker
136 in 2023. The under-5 child mortality rate also
working or residing abroad can also participate in
dropped from 38 per 1,000 live births in 2014 to
this scheme.
33 in 2023. Considerable progress has been made
in expanding gender- and region-based education • If a pensioner dies before reaching the age of 75,
in Bangladesh. The enrollment rate at the primary the pensioner's nominee will be entitled to the
level (including pre-primary) reached 97.76 pension for the remaining period until the age of
percent in 2023. According to the Global Gender 75.
Gap Report 2024 published by the World • If a contributor dies before paying contributions
Economic Forum, Bangladesh ranks 99th out of for at least 10 years, the deposited amount along
146 countries globally and is ahead of all other with profit will be returned to their nominee.
countries in South Asia. Based on the data
available so far, Bangladesh is on the right track

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On-going Social Safety-net Programmes Access and Retention through Harmonised

Stipend Programme (HSP); Honorarium for the
Social safety net programmes are meant to provide
Heroic Freedom Fighters; Employment
temporary protection and assistance to people who
Generation Programmes for the Poorest (EGPP);
are unemployed or otherwise need economic
Ashrayan-2; Vulnerable Women Benefit (VWB);
assistance. The government has been continuing
Food for Work (FFW) etc.
the social safety net programmes with a view to
alleviating poverty through the improvement of In FY 2023-24 a total of Tk. 1,21,240.00 crore was
socio-economic condition of the ultra-poor. Some allocated for social safety net programmes. The
important social security programmes are- Old age allocation is 16.97 percent of the revised budget
Allowance Programme; Allowance for the and 2.52 percent of GDP of the same fiscal year.
Widow, Deserted and Destitute Women; For FY 2024-25 a total of Tk. 1,36,026 crore has
Allowance for the Physically Challenged Persons; been allocated for social safety net programmes
Improvement for the livelihood for Bede, Hijra which is 17.06 percent of the national budget and
and Disadvantaged Communities; Mother and 2.5 percent of GDP. At present 140 social safety
Child Benefit Programme (MCBP);Student net programmes under 7 functional categories are
Stipend for Primary Education Level; Improving ongoing which are shown in table 13.7.

Table 13.7: Allocation Pattern of Social Safety-net Programmes and Social Empowerment
(In Crore Taka)
Function (Category) No. of 2023-24(Revised) 2024-25(Budget)
Programmes
Social Assistance 54 37808.07 49871.62
Labour Market Programme 34 4731.12 6214.39
Social Insurance 3 38870.45 45558.32
General Subsidies 4 30801.2 25155.45
Community Development 23 3374.92 4552.86
Social Care Service 16 4056.7 3376.43
Technical Assistance 6 1328.6 1296.57
Total 140 121240 136026
Source: Finance Division

Some important programmes under the overall receives a monthly allowance of Tk. 600. In FY
social safety-net programmes are described in 2024-25 Tk.4,350.97 crore has been allocated for
brief below: this programme.
Old Age Allowance Programme: This Allowance for the Widow, Deserted and
programme was introduced with a view to support Destitute Women: This programme aims to
livelihood of the elderly people (65 years in case protect and empower the poor, risky and
of men and 62 years for women) and enhance their disadvantaged women of the country. Initially,
status in the family and society. At the outset 5 under this programme, 4.03 lakh women received
men and 5 women per ward were paid Tk. 100. Tk. 100 as monthly allowance. The number of
The number of beneficiaries and allowance rate beneficiaries has been increased to 25.75 lakh in
has been increased gradually. In FY 2023-24, the FY 2023-24 and everyone is receiving Tk. 550 per
total allocation for this programme was Tk. month. Total Allocation for this programme was
4,205.96 crore, and the number of beneficiaries Tk. 1711.40 crore for FY 2023-24. In FY 2024-25
was 58.01 lakh. Presently each beneficiary Tk.1844.32 crore has been allocated for this
programme.

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Allowances for the Physically Challenged and girls of the poor families with a view to
Persons: This programme was introduced with a increasing the access and reduce the drop out in
view to raise the social status of persons with the secondary level. An amount of Tk. 2196.70
disability and to ensure their equal rights. Initially, crore was allocated for 60 lakh beneficiaries in FY
1.04 lakh disabled individuals were provided an 2023-24. Tk. 2617.24 crore is allocated in FY
allowance of Tk. 200 each per month under this 2024-25.
programme. In FY 2023-24, the number of
Honorarium for the Heroic Freedom Fighters:
beneficiaries was 29.00 lakh, and presently the
monthly allowance is Tk. 850. Total Allocation Various initiative has been taken for the
for this programme was 2978.71 crore for FY development and welfare of the heroic freedom
2023-24. In FY 2024-25 Tk. 3,321.77 crore has fighters and their families. This also help to ensure
been allocated for this programme. financial and social status and ensure their
respectable position in the society. In the revised
Improvement of the Livelihood for Bede, Hijra budget of FY 2023-24, there was an allocation of
and Disadvantaged community: This Tk. 4,680.00 crore for freedom fighter honorarium
programme has adopted to improve the socio- allowance. In FY 2024-25 Tk. 4728.00 crore is
economic condition of the Bede, Hijra and various allocated for this programme.
backward communities. The programmes aim to
Programmes under Food Assistance
alleviate discrimination against the disadvantaged
communities and to bring them in to the Food Friendly Programme: Under this
mainstream of the society. An amount of Tk. programme, ultra-poor families living at the union
90.22 crore has been allocated for 3.26 lakh level (with priority given to widows, elderly
beneficiary in FY 2024-25. The amount was Tk. women, female-headed households, and low-
84.49 crore in FY 2023-24 for this programme. income destitute family heads) are enlisted. Every
year, during the five months of job scarcity, 30 kg
Mother and Child Benefit Program (MCBP): of rice per month is distributed to the enlisted
The MCBP was introduced by the ministry of families at a rate of Tk. 15 per kg. In FY 2023-24,
Women and Children Affairs in July 2019 by 7.29 lakh metric tonnes (MT) of rice have been
combining the rural based Maternity Allowances distributed under this programme.
Programme and urban-based Lactating Mother Open Market Sale -OMS (open for everyone
Allowance programme. An amount of Tk.1313.44 and TCB): This programme has been launched to
crore was allocated for15.05 lakh beneficiaries in ensure the food security of the low-income people.
FY 2023-24. The amount allocated in FY 2024-25 Under this programme, food items (rice and flour)
is Tk. 1622.75 crore. are sold at subsidised rates which are lower than
Student Stipend for Primary Education Level: the market prices. A total of 1.92 lakh MT of rice
The main objective of this programme is to and 2.53 lakh MT of flour have been distributed
incentivise the extremely poor children for their through this programme in FY 2023-24. To
school enrollment. In FY 2023-24, an amount of control the price of rice in the market and make
Tk. 2371.99 crore was allocated for 116.00 lakh food accessible to low-income people, rice is
beneficiaries. Allocation for this programme in being distributed to poor families holding TCB
FY 2024-25 is Tk. 1,785.00 crore. cards along with other TCB products. In FY 2023-
24, approximately 5.30 lakh MT of rice have been
Improving Access and Retention through
distributed through OMS (TCB).
Harmonised Stipend Programme (HSP): This
programme has been introduced for both the boys

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Distribution of Fortified Rice: 1463.76 crore has been allocated under this
programme. The total beneficiaries under this
With the support of the World Food Programme,
programme were 97,250 families.
the distribution of Pushti Chal or fortified rice to
beneficiaries under the VGD programme began in Employment Generation Programme for the
five upazilas across three districts initially. Poorest (EGPP): The objectives of the EGPP are
Currently, the fortified rice distribution to provide short-term employment to the hard-core
programme is ongoing in 170 upazilas. poor in lean period and to develop rural
Additionally, to meet the nutritional needs of the infrastructure to enhance disaster resilience of
country's poor population, fortified rice enriched vulnerable households. In FY 2023-24, allocation
with Vitamin A, B1, B12, folic acid, iron, and zinc for this programme was Tk. 1689.00 crore and the
is being distributed under the food-friendly number of beneficiaries was 5.14 lakh.
programme. Currently, fortified rice distribution
under the food-friendly programme is ongoing in Ashrayan-2 (Poverty Alleviation and
a total of 251 upazilas. Rehabilitation) Project
Food For Work (Kabikha) and Taka For Work A total of 4,77,833 families have been
(Kabita) Programmes: rehabilitated under the supervision of Asharyan-2
project till June 2024 including 3,33,048 families
Ministry of Disaster Management and Relief is
rehabilitated by the DPP fund. In the revised
implementing the rural infrastructure
budget of FY 2023-24, an amount of Tk. 1530.03
development programme (FFW-Food
crore was allocated for this project.
grain/cash) with the purpose of creating
employment and ensuring food security for Grihayan Tahobil
the poor people in rural areas and to keep
To ensure housing facilities for the marginalised
positive impact on poverty alleviation and
disaster risk reduction. In FY 2023-24, a total population of the country, the Grihayan Tahobil
of Tk 1,514 crore had been allocated in cash activities were initiated with the initial seed
for work for the programme and 1 lakh tons of money of Tk. 50 crore. Later the seed money
rice and 1 lakh tons of wheat for food for increased to Tk. 160.50 crore in several phases.
work. Total beneficiary of this programme is Now the fund has been raised to Tk. 463.89 crore
2,50,850 families. through lending and investment. The housing
programme is being implemented by 420 selected
Vulnerable Group Feeding (VGF)
partner NGO’s all over the country. To enhance
Programme: This assistance is usually provided
the working area of Grihayan Tahobil enlistment
to the affected families in the post-disaster period
of more than 100 new partner NGO’s are under
until the livelihoods of the poor people are
process. At the beginning of Grihayan Tahobil
restored. Apart from this, fishermen refraining
loan ceiling was Tk. 20,000 per house. Present
from harvesting mother hilsa and jatka also get
ceiling is Tk. 2,50,000.00 per house. Up to June,
VGF assistance. Poor people also get VGF
2024 a total amount of Tk. 607.97 crore has been
assistance during various religious festivals. In FY
disbursed to partner NGOs and a total of 1,01,793
2023-24 total allocation under this programme
houses have already been built and 1,353 houses
was 2,01,338 MT and the total beneficiaries of this
are under construction. Approximately 5,45,730
programme were 1,00,66,900 families.
people are benefited through this housing
Test Relief (TR) programme: TR assistance is programme. At present loan recovery rate of
provided as emergency cash to poor people during Grihayan Tahobil is 94.49 percent.
calamities. In FY 2023-24, an amount of Tk.

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Poverty Alleviation Activities by Rural the country are conducting various economic
Development and Co-operative Division activities, contributing significantly to their own
economic development as well as that of the entire
A number of projects and Programmes are being
country. In Bangladesh, cooperative societies are
implemented by various departments and
organised at three levels: national, central, and
organisations of Rural Development and Co-
primary. At present the total number of registered
operative Division (RDCD) to reduce poverty and
cooperatives in the country are 1,82,071. Among
to make rural people self-dependent through
them, the number of national co-operative
micro-credit activities for increasing economic
societies are 11, the number of central co-
growth, employment and enhancing human
operatives are 1,217 and the primary association
resource development. The poverty alleviation
are 1,80,843. The total number of members of the
and social security projects of RDCD and the
cooperative societies are 1,24,30,858 people, the
activities of some organisations and foundations
share capital is about Tk.2776.01 crore, the
affiliated to the department are summarised
savings deposit amount is Tk. 20134.39 crore and
below:
the working capital is Tk. 29408.13 crore.
Comprehensive Village Development
Programme (CVDP) (3rd Phase) Bangladesh Rural Development Board (BRDB)
The project CVDP-3rd phase’ is being Bangladesh Rural Development Board (BRDB) is
implemented to reduce the level of poverty and to playing a vital role in rural development and
improve the quality of life of the people in the poverty alleviation. BRDB is mainstreaming
poverty-stricken area of rural Bangladesh. A total small, medium and marginal farmers, assetless
of 6,68,230 members of the cooperatives (both male and female of rural areas in developing
men and women) will be trained for different activities through locally organising, intensive
duration during the project period. Physical targets training and motivation, formation of own capital,
of the project are: Society formation number is asset and technology transfer, micro and SME
10,035 and number of member enrolment is credit disbursement and product-based village
14,50,000. Till June, 2024 about 9,582 societies development. BRDB has successfully completed
have been formed and 9,65,876 members have 122 projects/programmes all over the country. In
been enrolled. By this time some 5,35,194 FY 2023-24, BRDB disbursed Tk. 1,634.91 crore
members have been trained with different types of as microcredit. On the contrary, a total of Tk.
training like special training, income generating 1478.11 crore has been recovered at the same
activity training (IGA) and monthly joint-meeting period. Recovery rate is 75 percent.
and E-Learning.
Bangladesh Academy for Rural Development
Department of Co-operatives (BARD)
Cooperatives have been playing a crucial role in BARD is currently conducting research on various
increasing agricultural production, ensuring fair topics such as agricultural technology extension,
prices for farmers' production, stabilising environment and climate change, cooperative
commodity prices, creating employment loans and capital formation, rural economy,
opportunities through training and services, education and technology, rural sociology and
improving the living standards of disadvantaged demography, information technology, poverty-
and backward communities, and developing centered programme, local administration,
human resources, especially for women's women's development, and post-training impacts.
development. Cooperative societies spread across To apply research results and create sustainable

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Bangladesh Economic Review 2024

models, a total of 16 applied research projects are employment, empowering women, and ensuring
being conducted on exhibition and extension, gender equality. The cumulative number of
institutional system improvement, and beneficiaries are 3,386,918, of which 97 percent
productivity enhancement methods. Among these, are women. Additionally, to combat the adverse
priority is given to applied research on agricultural effects of climate change, PDBF has installed
mechanisation and joint farm management, skill 63,446 solar home systems in the homes of
development of Qawmi madrasa students, distressed people in remote rural areas and 10,818
community participation in supporting rural solar-powered street lights to illuminate rural
elderly and disabled people, livelihood areas. Consequently, PDBF's rural services have
improvement of char area people through extended to nearly 170.00 lakh people. Direct and
adaptation methods, SDGs localisation, and life indirect employment opportunities have been
quality improvement of marginalized created for them.
communities. Additionally, the institution
Small Farmers Development Foundation
regularly organises training for government and
(SFDF)
private officials, public representatives,
beneficiaries of various projects, and development The main goal of SFDF is to improve the socio-
workers. In FY 2023-24, BARD has trained 4,691 economic conditions of small and marginal farmer
men and 3,650 women through 195 training families living in rural areas and to alleviate
courses. poverty. Currently, its activities are being carried
out in 200 upazila across 36 districts. Up to June
Rural Development Academy (RDA), Bogura
2024, the foundation has formed 9,741 centres at
RDA provides various types of training, conducts the village level, enrolling 272,217 men and
research and applied research, and offers women as members. Among the beneficiaries of
consultancy services to facilitate the transfer of the foundation, 94 percent are women. An amount
modern technology, enhance skills, and develop of Tk. 2,030.79 crore has been distributed as
human resources. A total of 559 researches and 49 collateral-free credit support to these members to
action research projects have been completed increase agricultural production, self-
since its inception. Besides, a total of 15 research employment, and income-generating activities.
studies have been completed in RDA from March During the same period, a total of Tk. 1,749.19
2023 to June 2024. At present, 6 ongoing action crore has been recovered through weekly
research projects are implementing by RDA in installments. The recovery rate of recoverable
various locations of Bangladesh. Under RDA loans is 96 percent.
credit, so far, a total of Tk. 178.70 crore has been
Employment Programmes of Karmasangsthan
disbursed as micro loans among 31,314 members
Bank
across 385 sub-project areas. The amount of loan
recovery is Tk. 173.58 crore, with a recovery rate The Karmasangsthan Bank was established to
of 92.57 percent. create self-employment opportunities for the
unemployed population of the country, especially
Palli Daridro Bimochon Foundation (PDBF)
educated unemployed youth. The bank provides
PDBF is working towards improving the living loans to engage the youth in productive and
standards of the rural poor, disadvantaged and income-generating activities. Currently, the bank
marginalised communities, alleviating poverty, operates through 277 branches across the country.
providing income-generating and social So far, through the financing of the bank, direct
development training, mobilising savings, and indirect employment has been created for a
creating skilled human resources and total of 38,80,085 people.

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Bangladesh Economic Review 2024

Palli Karma Sahayak Foundation (PKSF) Database (MF-NDB) as online platform. As of

June 2024, MRA has issued licenses to 898
PKSF is working to alleviate poverty and improve
institutions and already cancelled 172 license due
the quality of life for the underprivileged
to non-compliance. Currently, 726 MFIs are
population of the country through inclusive
working relentlessly by their about 26,000
activities and job creation. Considering the
branches around the country to improve the living
multidimensional nature of poverty, PKSF
standard of more than 415.5 lakh members
provides various financial and non-financial
through their microcredit and social services of
services to the ultra-poor, moderately poor, small
which 90.82 percent are women.
and marginal farmers, and small entrepreneurs for
their socio-economic development. The scope of NGO Affairs Bureau
PKSF's activities includes inclusive financing,
The number of NGOs registered with the NGO
integrated development, women's empowerment,
Affairs Bureau is 3,362 as on June 2024, of which
enterprise development, social security, and skill
3,037 are local NGOs and 325 are foreign NGOs.
development, operating under the principle of
Since its inception, NGO Affairs Bureau has got
'leaving no one behind' in society.
promised Tk.1,36,075.70 crore foreign donation
Since its inception, PKSF has been significantly and have released Tk. 1,17,757.07 crore upto June
contributing to integrating marginalised 24. NGO Affairs Bureau is coordinating NGO
communities into the mainstream by activities in various areas such as poverty
implementing diverse programmes with alleviation, hunger eradication, ensuring health
innovative initiative with utmost transparency and and education services for all, climate change,
accountability. As on June 2024, PKSF has 284 gender equality, sanitation etc.
partner organisations (POs). In FY 2023-24, PKSF
Microcredit Activities of Major NGOs
disbursed Tk. 115123.08 crore from POs to
members. Total number of members of PKSF The Non-govenment organisatons (NGOs)
stands at 199.6 lakh with approximately 91.83 execute microcredit programmes along with the
percent women. government organisations. The NGOs mainly
work for poverty alleviation, education, health,
Microcredit Programme Monitoring through
human resource development and so on. The
Microcredit Regulatory Authority (MRA)
overall microcredit activities of 7 major NGOs are
The Microcredit Regulatory Authority (MRA) described below:
was established to ensure transparency and
BRAC
accountability in the activities of Microfinance
Institutions (MFIs). The MRA oversees the BRAC is the largest NGO with its vast
microcredit sector by formulating laws and microfinance programme in Bangladesh.
regulations, issuing circulars, and conducting on- Currently, BRAC is working for poverty
site and off-site supervision. Similar to the alleviation, protection, water and sanitation
banking sector, MRA is currently working on services, health care, prevention of violence
Microfinance Credit Information Bureau (MF- against women and children, poverty elimination,
CIB) which is at its final stage. Besides, various education, legal assistance, climate change
information related to the microfinance activities programme, emergency relief programme,
of MRA licensed MFIs, Grameen Bank, other humanitarian crisis management programme
banks and various Government Institutions and (HCMP), pre-immigration services, services
Agencies are currently being collected in a during immigration, resettlement services for
specific format through Microfinance National migrant workers, social welfare and social

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Bangladesh Economic Review 2024

development. Particularly the people of socially living in the slums of Dhaka, Chattogram, Khulna,
disadvantaged and small ethnic groups and the Cumilla, Bogura, Rajshahi and other major cities
poor, who live on haor and char areas are and towns. Microfinance is the core programme of
provided with various types of microfinance Shakti Foundation. Moreover, it provides service
facilities and training to upgrade their living for healthcare, business entrepreneurship and
standards. As of June 2024, the total microcredit social development of poor woman. The
disbursement and collection of the organisation foundation has cumulatively disbursed loans of
amounted to Tk. 490,890.60 crore and Tk. Tk. 22,265.81 crore and recovered Tk. 19,555.11
341,200.37 crore respectively and the number of crore till June 2024.
beneficiaries was 89 lakh out of which 88.5
TMSS
percent are women.
This organisation is a women focused organisation
ASA
which is working for alleviation of poverty,
The institution’s low cost and sustainable women empowerment through skill training and
microcredit programme has been recognised as a micro finance support, human rights and social
special model for poverty alleviation. Since its justice, advocacy and campaign, climate change
inception, ASA has disbursed a cumulative and environment, disaster preparedness activities,
amount of Tk. 382,517.57 crore upto June 2024. health and hygiene, improvement of socio-
A total of 7,013,063 members have benefited with economic status and overall livelihood
microfinance service from ASA during the FY improvement of Bangladesh. TMSS is
2023-24, nearly 90 percent of whom are women. implementing microcredit programmes to make
the poor people self-reliant through socio-
BURO Bangladesh
economic development, business expansion and
The BURO Bangladesh works to alleviate poverty productivity growth. The organisation is
in 482 upazila throughout 64 districts. In FY implementing the microfinance programme in 413
2023-24, BURO disbursed Tk. 1,471.08 crore as upazilas of 61 districts of the country. Till June,
micro loans among 26,36,650 beneficiaries, nearly 2024, TMSS has disbursed a total of Tk. 61,678.15
90 percent of them are women. crore of micro-loans among 1,75,42,238
Caritas Bagladesh beneficiaries.

Caritas is implementing various programmes to Proshika

alleviate poverty in the country. With the aim of Proshika started its journey with a view to
improving the livelihood of marginalised people removing poverty from the society. At present, it
through self-employment with loan assistance, is operating development activities in 43 districts,
Caritas Bangladesh microcredit programme is 7,928 villages and 2,146 slums of urban areas.
currently running in 86 upazilas of 30 districts of Proshika has cumulatively disbursed loans of Tk.
the country. Caritas disbursed a total of Tk. 13,459.99 crore till June 2024 among 6,55,990
7,736.63 crore of microcredit and collected Tk. beneficiaries.
7,219.10 crore of loans till June, 2024. Total
number of beneficiaries are 2,89,449. Among the
beneficiaries about 87 percent are women.
Shakti Foundation
This organisation is engaged in providing
microcredit facilities for the deprived women

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Bangladesh Economic Review 2024

Grameen Bank of rural poor women through providing

microcredit to them. In FY 2023-24, the total
Grameen Bank is a pioneering microfinance
amount of loan disbursed by Grameen Bank was
organisation founded in 1983. It was established
Tk. 3,12,734 crore. Total amount of loan
as a specialised institution with the vision to
recovered was Tk. 2,96,141 crore for the same
eradicate poverty as well as to establish economic
period. The Table 13.8 describes the microcredit
freedom and social status for the poor. It works for
activities of the Grameen Bank.
poverty declination by creating self-employment
Table 13.8: Microcredit Programmes of Grameen Bank
(in crore Tk.)
Item 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Disbursement 20789 24322 25137 17427 19548 255112 288047 312734
Recovery 18270 22560 24506 17391 21150 241346 271897 296141
Recovery Rate (%) 99 99 99 99 95 97 97 96
No. of Beneficiary 8915491 8986050 9192470 120273 9387505 9612767 10361635 10609153
Female 8609893 8689004 8893997 118825 9084765 9305432 10033102 10374835
Male 305598 297046 298473 1448 302740 307335 328533 334318
Source: Grameen bank

and 2 public sector specialised banks is presented

Microcredit Activities of Schedule Banks
in Table 13.9.
The statistics of credit disbursement and recovery
of 4 State Owned Commercial Banks (SOCBs)

Table 13.9: Status of Microcredit Disbursement of SOCBs and Public Specialised Bank
( in crore Taka)
Name of the
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Bank

Sonali Bank
Disbursement 1041.00 1127.00 1187.30 1170.21 1258.51 771.51 995.66 1051.34 1231.92 1355.39
Recovery 1244.00 1178.00 1306.08 1267.90 1378.78 818.63 905.51 1066.96 1121.33 1189.42
% of recovery 45.00 46.00 46.00 42.52 48.47 38.47 39.29 37.83 40.10 30.88
No of
229773 208432 291429 311058 157518 166229 285548 157630 8596235 165739
Beneficiaries
Agrani Bank
Disbursement 2120.50 1782.02 898.00 2748.77 3340.94 4159.00 6833.76 7619.12 7985.49 8591.68
Recovery 3051.85 3007.86 996.00 1767.85 1429.30 3530.10 5599.89 5616.01 5480.71 5210.65
% of recovery 74.00 67.00 88.00 64.31 62.00 72.11 72.78 65.05 69.94 56.29
No of
128850 92636 150139 30698 18780 23053 26023 26878 38812 32919
Beneficiaries
Janata Bank
Disbursement 751.57 744.81 751.33 751.36 753.19 733.13 724.01 750.30 760.30 760.09
Recovery 698.91 691.23 769.70 678.57 729.77 722.42 658.59 720.29 681.85 674.10
% of recovery 59 58 61 48.03 57.55 61.07 57.75 54.73 48.18 30.57

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Bangladesh Economic Review 2024

Name of the
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Bank

No of 567553
551179 553413 553187 553785 547705 547366 554092 582046 664341
Beneficiaries
Rupali Bank
Disbursement 77.69 96.84 202.34 814.65 858.76 1240.46 1593.35 1855.38 1209.26 2071.74
Recovery 90.19 122.49 182.18 475.37 843.15 1299.28 1815.2 2089.83 605.38 1026.83
% of recovery 117 126 90 58 98 105 114 113 50 50
No of 50876
15255 14886 30697 34741 35021 38323 47227 70911 80205
Beneficiaries
Bangladesh Krishi Bank
Disbursement 96.56 57.61 31.15 72.11 59.11 37.82 36.55 169.05 203.76 209.16
Recovery 106.77 52.04 21.13 66.49 67.42 31.35 31.60 165.97 162.87 195.99
% of recovery 111 53.17 67.83 92.20 114.05 82.89 86.46 98.18 79.93 93.70
No of 14327
16529 16044 7254 12080 6375 3240 2322 9916 10217
Beneficiaries
Rajshai Krishi Unnoyan Bank
Disbursement 24.32 12.63 11.10 7.59 7.67 4.90 9.53 11.68 58.52 56.73
Recovery 28.78 19.08 11.76 7.66 11.13 6.24 9.11 11.77 24.46 43.38
% of recovery 118.34 1.51 105.96 100.87 144.97 127.46 95.57 100.70 41.81 76.47
No of
4153 5538 3989 2465 1544 1603 1428 1897 6129 6601
Beneficiaries
Source: Concerned Banks.

Microcredit Programmes of other Commercial microcredit programmes to reduce poverty and

and Specialised Banks create self-employment opportunities. The
information of six commercial banks’ microcredit
Except the state-owned banks other commercial
programmes is described in Table 13.10.
and specialised banks are also carrying out

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Bangladesh Economic Review 2024

Table 13.10: Microcredit Programmes of other Commercial and Specialised Banks

(in crore taka)

Number of Beneficiaries Disbursement

Rate of
Commercial and Specialised (Cumulative progress
Recovery
Banks Female Male Total up to June, 2024)
(%)

Ansar-VDP Unnayan Bank 560537 600932 1161469 3996.84 95.67

National Bank Limited 130 1405 1535 828.14 65.77

Social Islami Bank Limited 14544 27616 42160 361.37 96

Uttara Bank Limited 697 4632 5329 27.86 -

Basic Bank Limited 570681 184401 755082 1360.72 130.18

Islami Bank Bangladesh PLC. 6052085 526269 6578354 47351 98.75

(cumulative)
Source: Concerned Banks.

Microcredit Programmes of Administrative

Ministries/Divisions safety net programmes to remove poverty from the
society. Small entrepreneur’s microcredit
Different microcredit programmes have been programmes of different ministriess/divisions/
implementing by different ministries, divisions departments are presented in the Table13.11.
and agencies along with various social

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 Bangladesh Economic Review 2024

Table 13.11: State of Microcredit of different Ministry/Division/Department

(in crore taka)
Ministry Department/
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
/Division Division
BRDB
Rural Disbursement 985.88 1066.73 1174.51 1252.86 1282.41 1055.30 1244.39 1363.63 1651.19 1634.91
Development Recovery 910.42 999.48 1106.12 1160.29 1241.32 1000.74 1250.46 1299.71 1593.57 1478.11
& Rate (%) 92 94 75 75 75 67 71 72 77 75
Cooperative PDBF
Division Disbursement 1090 1308 1699 1861 1949 1777 1881 2229 2038 1933
Recovery 1138 1309 1661 1991 2084 1935 2064 2174 2458 2299
Rate (%) 98 98 98 97 96 96 96 98 98 98
RDA
Disbursement 13.86 13.13 11.28 13.71 12.06 8.21 9.18 9.94 9.80 8.85
Recovery 11.46 12.65 13.04 12.89 12.50 9.74 9.62 10.38 11.01 10.02
Rate (%) 92.05 90.23 90.03 91.07 93.41 75.77 80.85 88.60 93.37 90.68
Department of Women Affairs
Disbursement 5.07 6.45 7.93 8.64 12.73 3.77 11.17 8.81 11.65 16.95
Ministry of Recovery 5.00 6.78 7.89 7.12 9.15 7.34 7.32 7.89 8.5 10.69
Women and Rate (%) 98.64 105.15 99.45 82.41 71.85 194.66 65.55 89.56 73.47 63.06
Children Jatiyo Mohila Songstha
Affairs Disbursement 3.15 2.65 4.98 3.59 3.76 3.38 3.49 3.58 3.63 2.42
Recovery 2.57 2.55 5.68 4.38 5.78 3.99 3.57 5.52 4.00 4.16
Rate (%) 82 96 114 122 154 118 103 213 118 87
* Ministry of Disbursement 5.56 7.00 7.98 8.61 9.33 9.00 7.00 7.00 8.50 8.50
Liberation Recovery 3.25 4.52 8.03 8.79 8.83 10.00 10.00 10.00 10.00 12.00
war Affairs Rate (%) 58.48 64.57 100.62 102.09 59.00 50.00 51.00 48.00 58.00 48.00
SERWTCI
Ministry of Disbursement 9.35 8.66 7.83 6.42 3.43 2.98 2.55 2.14 2.46 2.34
Industries Recovery 9.34 8.63 7.81 6.53 3.71 3.10 2.54 2.15 2.29 2.33
Rate (%) 93.00 86 71 59 51 97 56 81 99 101
Ministry of Disbursement 7.61 6.70 6.79 6.62 9.46 5.81 6.17 6.67 7.23 7.69
Land Recovery 6.2 6.09 6.39 6.25 7.2 6.00 4.57 6.00 9.28 7.7
Rate (%) 81 91 94 94 76 103 74 90 128 99.87
Ministry of Bangladesh Handloom Board
Textile and Disbursement 4.03 4.04 4.10 3.59 3.51 0.57 0.47 0.76 2.85 1.51
Jute Recovery 3.16 3.42 4.23 3.25 3.56 2.11 2.28 2.45 1.94 2.18
Rate (%) 65.65 67.89 70.25 71.16 71.86 72.63 73.49 72.03 73.23 74.75
Ministry of Dept. of Youth
Youth and Disbursement 97.34 102.65 121.97 138.81 142.94 114.94 133.62 150.98 153.08 154.21
Sports Recovery 89.73 99.29 109.94 117.16 132.91 105.08 117.44 134.29 154.66 132.40
Rate (%) 92.18 96.74 90.12 84.40 92.98 84.75 95.21 95.21 96 95.87
Cotton Development Board
Ministry of Disbursement 1.71 1.23 1.27 1.34 1.56 1.66 1.15 1.23 1.87 1.95
Agriculture Recovery 1.78 1.28 1.34 1.41 1.61 1.73 1.20 1.28 1.95 2.05
Rate (%) 103.96 104.46 104.92 104.59 103.07 104.53 104.33 104.40 104.08 104.97
Source: Concerned Division/Department.
Note: In many cases the recovery rate is over 100% as the recovery includes the previous year's uncollected accounts

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