Pathways to prosperity for extremely poor people

Md. Fazlul Kader, Acting Managing Director, PKSF

The theme of this year's International Day for the Eradication of Poverty is 'Ending Social and Institutional Maltreatment: Acting Together for Just, Peaceful, and Inclusive Societies'. Although there has been significant progress in eradicating extreme poverty, inequality continues to rise globally. While studies indicate a reduction in the number of people living below the poverty or the extreme poverty lines, questions around the vulnerability and potential escape from poverty for these people remain.

According to a World Food Programme report published in 2024, around 30 percent of Bangladeshis experience food insecurity, with this figure rising to 36 percent among low-income groups. This highlights the challenge of defining an income threshold that accurately reflects an escape from extreme poverty. Discrepancies in income threshold criteria have led to the development of various composite indicators, but still we want the poor to come out of poverty sustainably.

PKSF started its journey in 1990 with the Rural Microcredit programme with the sole objective of giving the rural poor people the financial means to find gainful employment opportunities. Initially having targeted the rural enterprising poor, we realised that poverty is highly diverse in nature, especially with growing criticism for not addressing the ultra-poor. PKSF has implemented seven projects supported by different development partners, focusing on the extremely poor people. PKSF in 2002 launched the 'Financial Services for the Poorest (FSP)' project supported by the World Bank to more effectively render its services to the extremely poor. This demonstrated the creditworthiness of the ultra-poor, dispelling the myth that they were non-creditworthy.

Building on the success of the FSP, PKSF initiated the Ultra Poor Program (UPP) in 2004 in collaboration with the Government of Bangladesh. Two years later, we started the Programmed Initiatives for Monga Eradication (PRIME) project, a landmark project specifically designed to address the seasonal extreme poverty faced by communities in northern Bangladesh. In this project we specially incorporated primary healthcare services with livelihood opportunities to tackle income erosion. From 2007 to 2011, PKSF further enhanced its efforts through the Microfinance Support Intervention for FSVGD and UP Beneficiaries Project, aimed at ensuring food security and improving living conditions for extremely poor households. Subsequently, the EU-funded UPP-Ujjibito project was implemented from 2013 to 2019, directly serving 3,25,000 extremely poor households. In 2019, with lessons learned from various extreme-poverty projects, PKSF undertook a multi-dimensional initiative titled 'Pathways to Prosperity for Extremely Poor People (PPEPP)', funded by the FCDO and the EU. Since 2022, this project  is being supported by the EU which has not only been a key development partner but also has supported PKSF to bring about effective, project-related changes. We adopted a push-pull strategy, which involves pushing people through interventions to strengthen their human capacity, enabling them to undertake larger ventures in alignment with market forces.

Learning from our previous projects helps  guide our policy and programmatic actions. Additionally, it motivates the government and other multilateral bodies to adopt effective programme approaches. Eradicating extreme poverty is not achievable through ad-hoc projects; it is a long-term commitment requiring sustainable interventions so that people can progress consistently and achieve lasting prosperity.

Meher Nigar Bhuiyan, Programme Manager, Resilient Livelihoods, Delegation of the European Union to Bangladesh

The EU-funded project supports 860,000 people in climate-vulnerable areas of Bangladesh, helping them transition out of extreme poverty by connecting them with mainstream development and economic opportunities. Such partnerships allow us to contribute directly to improving lives, providing resilient livelihood options and a more secure future.

It is inspiring to witness how small grants and loans, alongside other interventions of the project, are making a genuine difference in people's lives. Despite challenges like salinity ingress, tidal surges, floods, and cyclones, beneficiaries are successfully rearing livestock, cultivating vegetables, and practising fish farming.

The 'Prosperity Houses'— one of the interventions of this project—serve as an outstanding example of how diverse livelihood options can flourish, inspiring the broader community. It is heartwarming to see the smiles on people's faces as they share success stories that are direct outcomes of the project's impact. They not only take pride in their achievements but are also enthusiastic about helping their neighbours replicate their success.

Our focus is on strengthening partnerships between the EU, PKSF, and local governments, all working together to tackle poverty and end social exclusion.

We must consider the cost-effectiveness of poverty reduction efforts and the building of resilient livelihoods. Additionally, we are making progress with initiatives aimed at alleviating poverty among ethnic minority communities in North Bengal. Establishing a supportive market hub for the products of targeted poor communities is crucial, and PKSF has already made headway in this regard. Ultimately, we need to recognise that a three-year project offering short-term grant support cannot fully eradicate poverty. A more effective, sustainable approach is required.

Rubaiyath Sarwar, Managing Director, Innovision Consulting Private Ltd. (Keynote Presentation)

The Pathways to Prosperity for Extremely Poor People-European Union (PPEPP-EU) project seeks to eradicate extreme poverty in Bangladesh through targeted interventions based on extensive data collected over the years.

According to the latest Household Income and Expenditure Survey (HIES), Bangladesh has made notable progress in reducing poverty over the past decade, with the extreme poverty rate officially now at 5.6%. However, this success is marred by rising inequality. The  Gini index has risen by 1.1 points. This strain is attributed to weakened private consumption growth and high inflation, according to the World Bank. Despite the overall decline in poverty, it is crucial to determine whether households involved in programmes like PPEPP-EU are better prepared to manage these economic pressures.

Preliminary findings suggest that PPEPP-EU households show greater resilience to inflationary pressures. For example, families of four to five members can consume around BDT 200 worth of food from their own production, helping them weather market fluctuations. They also have improved access to social protection services and local government, facilitating better access to social stipends. Their dignity, social standing, and community engagement have strengthened, with diversified income sources and a more secure asset base, which significantly reduces the likelihood of intergenerational poverty.

This project aims to support livelihoods and income generation (aligned with Sustainable Development Goals 1, 2 and 13), improve nutrition, particularly for women and children (Goals 2 and 5), and enhance access to social and nutrition-sensitive agricultural services within the target communities (Goal 2).

PPEPP-EU adopts a multidimensional approach to poverty alleviation, reaching diverse groups across varied geographic areas through set of tailored interventions. This programme supports households reliant on wage labour, those who are landless or live on government land, and uses flexible targeting criteria drawn from lessons learned in the PRIME project. The average monthly income of targeted households is approximately BDT 2045 (USD 17.11), and they typically reside in thatched or tin-roofed homes with only one earning member.`

The project specifically selects households that are female-headed, reliant on child labour, facing consumption rationing, or have members with disabilities. This nuanced approach seeks to improve the financial, human, social, physical, and natural capital of diverse and vulnerable groups through livelihood, nutrition, and community support, and by addressing women's empowerment, disability inclusion, and climate risk. PPEPP-EU provides flexible microcredit, grants, and technical assistance to support households in creating and sustaining pathways out of poverty.

Acknowledging the varied conditions among households, PPEPP-EU classifies them into three groups—vulnerable, transient, and progressive—and offers tailored interventions for each. Vulnerable households face multiple risks, including climatic and health shocks. Transient households have potential but lack financial resources or technical knowledge, while progressive households have resources but need help accessing markets and technical expertise. The interventions—push (project-driven support), pull (market-driven resilience-building), and protect (safety nets and government services)—are designed to meet these specific needs.

PPEPP-EU's flexibility allows it to tailor support based on household needs and regional contexts, offering beneficiaries various combinations of grants, microcredit, and technical assistance. The programme also includes emergency assistance and nutrition-specific services, reflecting a comprehensive approach to poverty alleviation that has yielded significant progress.

Recent data shows impressive results: the number of vulnerable households have fallen from 16% in 2021 to 1%, of transient households decreased from 73% to 38%, and of progressive households increased from 10% to 61% by 2023. The project has expanded households' income sources from 9.3% to 28.5%, improved savings, and enhanced food security. There have also been notable improvements in women's economic empowerment, support for people with disabilities, and access to social safety nets.

Over a four-year period, households receive loans and grants in Year 1, reinvest returns in land and livestock in Year 2, take additional loans for IGAs in Year 3, and by Year 4 achieve self-sufficiency, enhanced nutrition, improved climate resilience, and elevated social status.

The cost-benefit ratio of PPEPP-EU is 6.58, rising to 19 when considering the consumption value from household production, indicating that each taka invested delivers substantial returns. However, challenges remain, particularly regarding reliance on Partner Organisations and the need for sustained funding.

Looking forward, PPEPP-EU aligns with global poverty alleviation priorities, focusing on poverty, inequality, climate vulnerability, and nutrition. As poverty is a dynamic issue, it requires multi-stakeholder partnerships. The project's push-pull framework underscores the need for coordinated efforts between government and development partners to establish sustainable pathways out of poverty.

Dr Mohammed Helal Uddin, Executive Vice Chairman, Microcredit Regulatory Authority (MRA)

Microcredit faces challenges, primarily due to its heavy dependence on donor funding and limited access to national savings. Gaps in mainstream banking and among major borrowers hinder poverty reduction efforts and adversely impact the economy. Addressing these issues requires prioritising the credit-worthy extremely poor, which can support poverty alleviation and drive local economic growth.

Large microfinance institutions lend to smaller ones at 15%, or they may borrow from banks at around 15-16%. Consequently, at the stage of lending microcredit to the extremely poor, the service charge increases to 24%. We are working to address this issue. Microfinance institutions should collect savings at 10% and extend loans to the extremely poor. Ultimately, we must focus on income-generating activities—whether farm-based or non-farm—regardless of land use, to harness economic potential beyond agriculture. This shift is essential for meaningful poverty reduction.

Khursid Alam, PhD, Executive Director, Community Development Centre (CODEC)

PPEPP-EU is undeniably a comprehensive and cost-effective programme, with its core strength rooted in the people we engage—they gain respect and build confidence in their ability to contribute, which truly defines this initiative.

Another key aspect of PPEPP-EU is the formation of small groups, where we work to institutionalise these communities and amplify their voices at union, upazila, and district levels. Achieving progress requires government support, and it is essential for the government to start offering assistance in these areas.

Lastly, poverty cannot be addressed through short-term projects; it demands a sustained, long-term approach. While immediate eradication is not feasible, we must create a lasting, sustainable pathway forward.

A B M Feroz Ahmed, Livelihoods Adviser, Climate Change & Environment Team, FCDO, British High Commission, Dhaka

Bangladesh's economy is expanding, but this growth remains unevenly distributed. The gap between the top 10% and bottom 10% is widening, and poverty reduction slowed between 2010 and 2020 compared to previous trends. Poverty is not only an income issue but is also shaped by marginalisation, geographic vulnerabilities, and climate threats such as floods and cyclones.

In designing the PPEPP project, we accounted for these challenges, aiming to create a second-generation graduation model based on insights from previous efforts. Our objective was for the Bangladesh government to adopt this cost-effective and sustainable approach to poverty alleviation.

Since its 2019 launch, with continued funding from FCDO and the European Union, we have seen promising results in terms of sustainability and cost-effectiveness. Now, we need to ensure the model's long-term scalability, particularly in the face of rising climate vulnerabilities. Additionally, close collaboration with the Ministry of Finance and other stakeholders is needed to capitalise on prior learnings and expand the model nationwide.

Prof Munshi Sulaiman, Research Director, BRAC Institute of Governance and Development (BIGD), BRAC University

The keynote presentation depicts the early PPEPP-EU programme landscape and its evolution. In my view, using this to estimate impact is problematic, both methodologically and ethically.  Methodologically it would have been better to use a control group to measure the effectiveness of the programme. We understand that the current observation is based on internal results-based monitoring system. Hopefully, the project will undertake an impact evaluation using an appropriate control group. 

We need more rigorous consideration of counterfactuals, and I believe there are approaches that could help. For example, BIDS has survey data from the same period, which could allow for comparative trajectory analysis. Cross-referencing their data with the project data could yield more accurate estimates. Ideally, creating a synthetic control group by closely matching data would further strengthen the analysis.

Prof Dr Md Taufiqul Islam, Member, Governing & General Body, PKSF

The research's purpose and the methodology should always be clearly articulated to enhance transparency. The methodology section of the keynote presentation needs further clarification, in my view. If the data used here was collected from BBS, the methods for data collection and the overarching research methodology should have been explicitly stated. While numerous findings are presented, the basis for these conclusions should be clearer.

Dr Md Abdul Khaleque, Associate Professor, Department of Development Studies, University of Dhaka

PPEPP-EU has many essential features, including credit, grants, training, and focus on area-specific issues, making it a comprehensive project. Extreme poverty eradication is progressing slowly, and PPEPP-EU engages the lowest 35% of the population within the extremely poor category, as identified by BBS, helping them accumulate more assets. However, a major challenge is sustaining traditional poverty reduction methods, such as livestock rearing and small income-generating activities. Addressing business risks and climate risks is also critical. We should prioritise area-specific regions, like char areas, in our long-term development strategies.

Dr Mustafa K Mujeri, Executive Director, Institute for Inclusive Finance and Development (InM)

Many extremely poor households lack land access and thus rely heavily on the non-farm sector for their livelihoods. By connecting them with cottage, micro, small, and medium enterprises (CMSMEs), we can enable them to access loans, promoting sustainable livelihoods. For sustainable poverty reduction, it is crucial to ensure these groups can secure loans from microfinance institutions and banks. Among these marginalised populations are several plainland ethnic minority communities that have largely been left out of development initiatives.

When addressing the needs of these marginalised groups, it is essential to understand their unique characteristics. Our research at the Institute for Inclusive Finance & Development (InM) shows that these communities, often overlooked in mainstream development, need tailored, community-based approaches. Additionally, it is vital to distinguish between poverty and inequality, as each requires distinct policies to foster inclusive and effective poverty reduction.

Dr Md Shahid Uz Zaman, Executive Director, Eco-Social Development Organization (ESDO)

Accurate tracking of extreme poverty is essential, as is examining the methods used for data collection to identify those most in need in both the northern and the other regions of Bangladesh. Poverty must be recognised as a deep-seated psycho-social trauma manifesting in different forms. Understanding its connection to historical colonisation and planning a sustainable route out of it is essential for making meaningful progress.

While microfinance can serve as a tool for sustainability, it must be complemented by assured access to government services. This project has effectively integrated support for nutrition and health by linking vulnerable populations with existing government resources. Significant demographic, ethnic, and regional disparities persist, with our northern districts facing severe damage annually but receiving limited attention in mainstream media. Long-term and substantial investment in these regions, rather than short-term or low-cost solutions, is essential.

S. Amer Ahmed, Lead Economist and Program Leader – Bangladesh and Bhutan, The World Bank

Grassroots partner organisations play a crucial role in improving targeting and bringing service providers closer to beneficiaries. Creating a control group is also essential for verifying project outcomes. Given that overseas development assistance is either declining or stagnant globally, and considering Bangladesh's fiscal constraints, the focus must be on the sustainability and scalability of this programme.

Looking ahead, the challenge is to make the programme more cost-effective under financial pressures. One approach could involve outsourcing certain services and linking with other government services that beneficiaries can access. Identifying early on which services could be separated from the core interventions and delivered through existing government or other providers may help lower implementation costs.

Bidowra Tahmin Khan, Head of Economic Inclusion, Oxfam Bangladesh

PPEPP-EU aligns well with Oxfam's goals, especially those focused on SDGs 1, 5, and 13, covering poverty eradication, gender equality, and climate action. In the plains, for example, vulnerable populations face diverse threats, including climate shocks, necessitating customised approaches. Oxfam partners with local organisations to deliver programmes offering transferable and marketable skills, enhancing opportunities for both wage and self-employment. This strategy not only supports income generation but also strengthens community resilience by connecting individuals to market opportunities.

To ensure sustainable change, we assess community structures and target specific improvements. Oxfam collaborates with various groups, including domestic, RMG, and tea workers, both locally and globally. Access to income opportunities, grants, and loans is challenging due to the diversity of these communities, but our nuanced approach allows us to address their unique needs effectively.

Dr Muhammad Abdul Mazid, Chairman, Social Development Foundation (SDF)

To uplift the extremely poor, integrating pre-primary education is vital for sustained progress. Education fosters development that extends beyond financial stability. Our experience shows that beneficiaries often feel unattended once projects conclude.

To tackle future challenges, such as climate change, a dedicated follow-up system or fund is essential for long-term sustainability. Furthermore, all meetings and communications should be accessible to those directly impacted by the programme. Technical jargon and abbreviations can exclude participants, limiting their ability to engage fully. Using simplified language will enhance community engagement and strengthen ownership. Lastly, the 2005 Paris Declaration on Aid Effectiveness emphasizes on the need for regular evaluations between donors and recipients to ensure the efficient use of taxpayers' funds and the achievement of measurable results.

Dr Monzur Hossain, Research Director, Bangladesh Institute of Development Studies

Poverty rates have declined, but estimates vary by source. BBS reported an extreme poverty rate of 6% in 2023, while a BIDS and InM study recorded it at 13% in 2020, down from 22% in 2010. Identifying the factors driving this reduction and evaluating interventions' effectiveness are essential.

Many projects address poverty, but without rigorous implementation and robust methodologies, their impact remains unclear. For example, the keynote presentation lacked proper impact analysis methods, making it difficult to assess improvements. Among the 2.5 lakh households within the extreme poverty segment showing progress, the specific factors behind this improvement remain unclear.

Our research indicates that engaging households in both farming and off-farming activities is effective in reducing poverty, with off-farm activities playing a larger role. However, cost-benefit analysis, typically used for investment projects, can be misleading in poverty eradication efforts.

Syed Abu Naser Bukhtear Ahmed, Chairman, Agrani Bank PLC

The wealthy grow wealthier while the poor get poorer, and the middle class, especially those on fixed incomes, is gradually disappearing. Their savings are dwindling, limiting their access to funds. PKSF and EU's poverty eradication programme is commendable, helping individuals in these regions achieve financial stability.

Agrani Bank PLC provides products aimed at supporting these communities. For instance, we offer employment generation projects for the rural poor, loan facilities for individuals with disabilities, and small credit programmes for women. Additional initiatives include poverty alleviation schemes, microcredit programmes, special commercial loans, and crop-intensification projects supporting marginal and small farmers. We also provide training and funding, but there is still much to be done. Many people remain unaware of these opportunities, so educating and training them remains a priority.

Dr M. A. Baqui Khalily, Professor, University of Asia Pacific

The extremely poor need not only credit but also non-financial services such as insurance, healthcare, nutrition, and savings. Individuals with multiple income sources are less vulnerable and escape poverty more quickly. PKSF's initiatives are based on accumulated knowledge, aiming for long-term impact, but a full evaluation will take at least five years. Careful monitoring is essential to track how beneficiaries integrate into open markets and build resilience.

It is important to distinguish Results-Based Monitoring (RBM) from impact assessments. RBM tracks ongoing progress, while impact assessments focus on mid- and long-term outcomes, evaluating success in areas adjacent to markets or in isolated regions, like char areas. Moving forward, integrating small and medium enterprises with wage employment is crucial. Given Bangladesh's recurrent floods, building resilient communities is essential. In this project, savings function as a form of insurance, and there is potential to further integrate this within the microfinance model. Development partners should assess programmes for sustainability and effectiveness to ensure their successful application and replication across Bangladesh.

Mohsin Ali, Executive Director, WAVE Foundation

When discussing SDGs 1, 2, and the social safety net programme, we must critically examine the recently formulated National Social Security Strategy (NSSS). Unfortunately, it is not well-aligned with practical needs and is scarcely applicable in its present form. We must thoroughly review the NSSS to ensure the best possible outcomes.

Concerning PPEPP-EU, I would stress that community validation of the project is crucial, and robust documentation is urgently required. While budgets have increased, it is important to assess if or how much that has positively affected poverty alleviation.

Monitoring remains a key concern, as state-level oversight is often inadequate and needs immediate attention.

Dewan A. H. Alamgir, Independent Consultant

It is troubling that 30 to 40 million people still live in poverty, lacking access to healthcare, nutrition, and food security. The primary cause of this is poor governance. Although reports may show a decline in poverty on paper, field observations suggest the contrary, with climate change posing an additional threat.

Basic rights to food, shelter, and other essentials have barely been considered. Another significant concern is the intergenerational cycle of poverty, which must be addressed. Regions like the coastal belt, the haor areas, and the Barind tract face severe poverty and need serious policy reevaluation. Persistent high inflation exacerbates the situation, pushing already vulnerable populations deeper into hardship. Considering our Muslim-majority demographic, we should explore the use of Zakat, as the poor often do not engage with the credit system.

Murshed Alam Sarker, Executive Director, People's Oriented Programme Implementation (POPI)

We know that PKSF primarily targets poverty-prone areas, yet new regions are increasingly grappling with poverty issues, particularly due to climate change. The recent floods in Noakhali illustrate this point, and we must extend our poverty reduction programmes to cover these affected regions.

As an apex implementing agency, PKSF collaborates with NGOs to execute projects and programmes, which typically span four to five years. This timeframe often limits the development of sustainable and resilient livelihoods, given our focus on long-term solutions. PKSF has gained recognition for its transparency and is frequently funded by the EU, mainly working with NGOs. However, we must acknowledge that while NGOs provide effective models, they cannot sustain nationwide efforts over time. For more effective poverty reduction, the government must play a proactive role in ensuring coordination.

Dr Sharif Ahmed Chowdhury, Project Director, PPEPP-EU Project, PKSF

Regarding the existing recommendations, I wish to underscore that we will conduct a formal midterm evaluation of the project. Our initiatives primarily serve the extremely poor, employing  strategies distinct from conventional approaches. PKSF's efforts in agriculture and microenterprise development have significantly benefited these populations, whereas the service sector remains less developed.

In response to concerns raised about intergenerational poverty, I would emphasise on the critical role of nutrition, which is a fundamental issue that cannot be overlooked.

AQM Golam Mawla, Deputy Managing Director, PKSF

The extremely poor people usually do not have a tangible income-generating activities, which severely limits the scope of using their full potential. Through our project, we have increased their engagement with the local markets at the Union level, enabling them to pursue a stable source of income.

Through coordinated efforts, we have succeeded in alleviating poverty of the targeted households to a substantial extent. It is also essential to note that various government schemes and MFI support are available for these communities. If effectively coordinated, these resources could further contribute to poverty reduction. A key concern remains: there is a need to engage all stakeholders and partners in poverty reduction efforts.

Michal Krejza, Head of Cooperation, Delegation of the European Union to Bangladesh

Poverty reduction is central to EU development policy, as Article 21 of the EU Treaty mandates fostering sustainable development with a primary focus on eradicating poverty. Despite Bangladesh's progress, extreme poverty persists, especially in the southern coastal belt, worsened by climate change. Ensuring access to essential services such as healthcare, education, food security, safe drinking water, and sanitation is therefore critical.

Skill development and job creation are crucial for poverty alleviation, particularly among the most impoverished. The EU has contributed 22 million Euros to the PPEPP project, benefiting 215,000 households. In addition, 2,200 households in the coastal and the haor areas now have access to safe water through rainwater harvesting and 17 reverse osmosis plants, thus securing potable water supplies. Our future plans include enhancing climate mitigation and adaptation. Our priorities include enhancing resilience in agriculture, promoting sustainable livelihoods, supporting small farmers, preventing climate-induced migration, and addressing climate change impact on food and nutrition security.

Mohammad Muslim Chowdhury, Chairman, Sonali Bank PLC

While leading NGOs have made substantial contributions, Bangladesh still lacks a 'big push' framework. Sustainability essentially means integration with market forces; otherwise, even five-year projects may not yield effective outcomes. Tying programmes to market dynamics can create greater self-employment opportunities.

PKSF can act as a special-purpose vehicle, but its initiatives must be recognised and legitimised at the national policy level. Over the past two decades, I have observed numerous projects come and go. The safety net programme, for example, serves as a public service but encounters challenges.

Nationally recognised NGOs frequently receive bulk credit from banks such as Sonali Bank and Agrani Bank to support their microfinance programmes. However, if institutions like PKSF establish a structured approach, NGOs can link these credits more effectively to relevant initiatives, ensuring comprehensive outcomes with proper oversight. This approach would be more sustainable, particularly if directed towards CMSMEs in rural or underserved areas.

Establishing market linkages and managing bulk credit flows effectively is crucial. Simply taking on one project after another does not create lasting solutions. We must avoid complacency by focusing solely on certain indicators and pursue sustainable holistic results.

Merely implementing isolated projects falls short; we need sustainable collaborations with local governments and national policies that legitimise these programmes. Without these measures, long-term sustainability will remain out of reach.

Dr. Zaidi Sattar, Chairman and Chief Executive Policy Research Institute

In our discussion, we focused on micro-level issues, overlooking important macro-level perspectives. Macro-economic policies have a major impact on national poverty reduction, as stability and growth are essential for meaningful progress. Growth is a necessary condition for poverty reduction, though not a insufficient condition; therefore, we must examine macro-level strategies, including market orientation and trade openness. Historical evidence shows that restrictive policies hinder growth and, consequently, poverty reduction. Inclusiveness in growth is vital when addressing poverty reduction.

The Gini coefficient, which measures income inequality, rose from 0.39 in 1990 to 0.50 today. Analysts warn that exceeding the 0.50 threshold signals severe income inequality, which can lead to social and political instability.

Institutional factors also play a role; as noted in Daron Acemoglu's Why Nations Fail, our colonial past continues to influence our poverty challenges. The British colonial rule impoverished the region, with Bangladesh's poverty rate peaking at 88% in 1974 during a famine.

While progress has been made—the prevalence of poverty falling from 59% in 1990 to about 18% today, according to the Bangladesh Bureau of Statistics—the accuracy of these figures is sometimes questioned. Despite challenges, PKSF's efforts have been remarkable, lifting 25 million people out of poverty over the past 25 years. Although we are no longer seen as a "basket case," there remains substantial work ahead. Institutions like PKSF are dedicated to these goals, and I am optimistic we will achieve them soon.

Zakir Ahmed Khan, Chairman, PKSF

Dr. Zaidi Sattar's observations on the interplay between micro and macro levels are essential. Poverty and inequality are distinct issues, and it is essential to avoid conflating the two. At present, we are more focused on eradicating poverty than ending inequality, as the latter presents a more complex structural challenge. This project has made significant progress, and we have noted its positive impacts.

Poverty is not simply a lack of money; it is closely connected with various political and social factors. Therefore, we must evaluate the project's outcomes with this comprehensive perspective. It should be regarded as a programme rather than a mere project, as the former encompasses a broader scope than the latter does. As Mohammad Muslim Chowdhury noted, such programmes should be steered from the top level to prevent dilution at the micro level. We acknowledge this point and will take steps to address it.

For the time being, we should focus on what we are doing now on extreme poverty eradication. We are encouraged by what PKSF has achieved so far.

Its primary goal is poverty alleviation through employment generation. PKSF maintains continuous communication with its development partners and its partner NGOs, and we are fully committed to achieving this goal.

The role of journalism in alleviating extreme poverty cannot be underestimated. Although The Daily Star is not currently operating at full capacity in this area, we are dedicated to expanding our contributions in the future. The Daily Star can play a pivotal role in influencing policy-level discussions.

I encourage PKSF to utilise The Daily Star to bring critical issues to the attention of the policymakers. A significant gap persists between implementers and policymakers, frequently exacerbated by contemporary political dynamics. Breaking this cycle is essential, especially as millions in Bangladesh continue to face poverty.

Moreover, as one of the world's most climate-vulnerable nations, Bangladesh faces immense challenges. Our achievements are at risk due to climate issues. Politics, corruption, and misallocated funds further complicate the situation, and journalism has a crucial role in addressing these concerns.

We offer our services to all stakeholders and organisations, providing quality content—interviews, roundtables, and articles—that can fuel meaningful discussions.

Tanjim Ferdous, In-charge, NGO and Foreign Missions, Business Development Team, The Daily Star ( Moderator)

This event, in line with the International Day for the Eradication of Poverty, focuses on addressing the ongoing challenges of poverty despite progress. We have discussed initiatives like PPEPP that empower communities through microcredit and technical support. Our speakers have explored targeted interventions, data-driven approaches, and long-term strategies to end poverty. Thank you for being part of this vital conversation to shape meaningful change.