A national consultation titled "Microfinance Sector Consultations on the National Budget 2025-26" was held on Monday at the BRAC Centre in Mohakhali, Dhaka. Photo: Collected

DHAKA, May 21, 2025 (BSS) - INAFI Bangladesh has organized a national consultation titled "Microfinance Sector Consultations on National Budget 2025-26" where the microfinance sector leaders call for supportive budgetary policies in FY26.

The event convened leaders from Bangladesh's microfinance sector to articulate collective expectations for the upcoming national budget.

Held on May 19 at the BRAC Centre, Mohakhali in the capital, the consultation was attended by Professor Dr. Mohammed Helal Uddin, Executive Vice Chairman (EVC) of the Microcredit Regulatory Authority (MRA), as the chief guest. 

The 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, said a press release today. 

The event was chaired by Mohammad Muslim Chowdhury, Chairman of INAFI and Sonali Bank PLC, and a former Finance Secretary and 12th Comptroller and Auditor General of Bangladesh.

Emranul Huq Chowdhury, Vice Chairman of INAFI Bangladesh, delivered the keynote presentation outlining major policy and financial expectations of the sector.

"The microfinance sector plays a vital role in financial inclusion and poverty alleviation," he said adding a revolving fund of at least Taka 100 billion is essential for sustaining operations.

Besides, he said simplified tax policies will enable to reach more people with fewer administrative burdens.

The microfinance sector called for the establishment of a Taka 100 billion revolving Micro Loan Fund to ensure sustainable financing, along with the simplification of complex tax provisions introduced in the Finance Bill 2024. 

Sector leaders urged the government to allocate grant funding for essential social development programs, particularly in light of declining donor support. 

They also emphasized the 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.

Md. Mosharrof Hossain, Treasurer of INAFI Bangladesh, outlined key advocacy priorities and regulatory challenges faced by MFIs.

"We are actively lobbying for reforms to ensure that MFIs can operate sustainably. This includes addressing VAT complexities, easing access to bank loans, and amending the MRA Act to reflect the evolving realities of the sector," he added.

While speaking as the chief guest, 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," he said.

Helal advocated for greater access to finance for underserved communities and highlighted a practical funding strategy.

While speaking as special guests, 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," he added.

Saleh said the government's support -- through enabling policies and budget allocations -- can help maintain this balance.

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 the key to delivering greater impact."

Dr. Humaira Islam, Executive Director of Shakti Foundation, called for flexibility in regulations to meet evolving needs.

"The sector needs dynamic policies that reflect current realities. We urge the government to be open to innovations that improve outreach and reduce financing gaps, especially for women and marginalized groups."

In his concluding remarks, 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. Budgetary policies should reflect our joint commitment to serving the most vulnerable." he added.

The consultation concluded with a strong consensus on the need for coordinated government-sector engagement, proactive policy reform, and a supportive national budget to unlock the full potential of microfinance as a driver of inclusive growth.