Introduction

The Tenth Five-Year Plan (2003-2008) adopted by the government has identified poverty alleviation as its overall objective. Hence, poverty reduction strategy has been regarded as the main basis of the Tenth Plan. The four major pillars of the Plan are: broad-based and sustainable economic development, social development, targeted programmes and good governance, which is also known as Poverty Reduction Strategy Paper (PRSP).

The failure of past efforts to sufficiently ameliorate the situation of the lower strata of the society living below the poverty line is a well known fact. With this fact in view, the Poverty Alleviation Fund (PAF) envisages to develop and implement programmes that address the issues and problems of the lower rung of the society, by involving the poor and the disadvantaged groups themselves as partners in such efforts.

Justifying the necessity and the rationale of the Fund as a separate entity, the PAF Ordinance 2060, in its preamble, states: "With the active participation of the poor and the marginalized groups of the society, the Fund shall run various poverty alleviation programmes and shall provide necessary assistance and funds to organizations involved in similar works."

Vision
PAF envisions a democratic, just, equitable and sustainable Nepalese society.

Mission
The purpose and an overriding mission goal of PAF will be to reduce extreme forms of poverty from programme districts.