The government has taken a move to promote microenterprises across the country involving US$ 190 million.
The new initiative aims to promote microenterprises in different rural areas, said a senior official of Economic Relations Division.
Financial Institutions Division (FID) under the finance ministry has decided to implement a project titled 'Rural Enterprises Transformation Project-(RETP)' through Palli Karma-Sahayak Foundation (PKSF) within next six years.
The government has decided to launch RETP for transforming cluster-based microenterprises of rural areas into sustainable growth-led rural enterprises. This will help eradicate poverty through creating self and wage employment in a sustainable manner, the official added.
The project will be taken up in line with the goals and objectives of national plans and strategies, including the 7th five-year plan and national strategy for accelerated poverty reduction 2009-11 that will help in achieving Sustainable Development Goal (SDG)-2.
A total of US$ 190 million will be required for implementation of the project. FID will mobilise US$ 80 million from international development partners while the remaining fund will be provided by PKSF.
Some US$ 81 million will be provided by International Fund for Agricultural Development (IFAD) where US$ 1.0 million will be spent on promoting diaspora investment and optional usage of remittance activity.
Earlier, PKSF has successfully implemented three projects funded by IFAD. It has also implemented different projects in the country. Besides, different projects are being undertaken by PKSF.
