Poverty Alleviation Fund (PAF) was created by Government of Nepal in 2003 to reduce extreme poverty and build an equitable and sustainable society. PAF is financed by the Government through a succession of IDA grants from the World Bank. Initially, established by an ordinance in 2003, PAF is governed by an act since 2006 as an autonomous organization.
To realize the development objective, PAF has four major programs – social mobilization, capacity building, income generating activities and infrastructure building at community level.
Revolving Fund (RF) is part of the income generating activities. For income generating activities (IGAs), PAF provides 90% grant to Community Organizations (COs) to launch activities, exclusively for the target groups. The groups or CO members borrow money from CO’s Revolving Fund in the form of loan to launch IGAs. PAF has started its implementation since 2004/2005. Further, PAF-affiliated COs and its members have also started to build federations, networks of COs, and cooperatives as higher level institutions.
As a part of IG program, COs have established Revolving Fund (RF) provided by PAF. PAF Revolving fund is the central feature of PAF Income Generating component by COs’ members. RF has been important source for the poor to easily access the loan for initiating their livelihood activities. PAF has envisioned RF as the important milestone for financial linkages.
This article is mainly focused on for the event is “Balancing Financial, Social and Human Values” in March 2017. To read the full article please click Nahakul KC – Reachining to the Poor_PAF Experience
About Author: Nahakul K.C. is Executive Director of Poverty Alleviation Fund (PAF) Nepal, an apex poverty alleviating body of the Government of Nepal. He has more than 23 years of professional experience in senior managerial positions with the government, multilateral and bilateral donor agencies, civil society and private sector on resource mobilization program management and strategy and policy formulation. He is leading one of the largest portfolio of poverty sector reaching to the poor through financial inclusion and revolving fund. He has worked with various Ministries, UNDP, DFID and I/NGOs in Afghanistan, Philippines, Nepal and Vietnam. He has done his BA in Economics and Political Science from the Tribhuvan University, Nepal. He holds a Master’s Degree in Community Development (MCD) from the College of Social Work and Community Development, University of the Philippines and Master of Public Administration (MPA) from IGNOU-Delhi, India.