On 13 August 2025, Institute for Inclusive Finance and Development (InM) was awarded the Partner Recognition Award by Water.org at the Bangladesh WaterCredit Forum 2025 for its outstanding contribution in advancing the WCAD model through its partner organisations (POs)  in Bangladesh. On behalf of InM, Dr. Farhana Nargis, Research Fellow, received the award. InM in partnership with Water.org has been implementing the WCAD model through its POs since 2021. By 2025, this impactful collaboration has transformed lives of about one million people across Bangladesh through access to safe water and improved sanitation facilities.

This Policy Brief features the major findings of the   Bangladesh Poverty Watch Report 2024: Climate Change and Poverty Nexus prepared by InM in collaboration with the Center for Inclusive Development Dialogue (CIDD) published in May 2025. The focused analysis of the intricate relationship, particularly in the climate-vulnerable regions of the country, highlights the impact of climate-induced hazards on livelihoods and poverty. The emerging policy priorities and the challenges faced by the affected communities are highlighted in the Policy Brief. Bangladesh continues to remain acutely susceptible to the impacts of climate change. Extreme weather events such as rising temperatures, droughts, cyclones, floods, riverbank erosion, salinity intrusion, and sea level rise endanger the lives and livelihoods of millions. These threats are deeply interconnected with the country’s existing challenges of poverty, inequality, and environmental degradation, forming a complex and potentially devastating nexus. In response, Bangladesh has undertaken several national initiatives, notably the National Adaptation Plan of Action (NAPA) and the Bangladesh Climate Change Strategy and Action Plan (BCCSAP). These strategies emphasise an integrated development approach that incorporates climate change management and promotes a transition towards a low-carbon economy. The Policy Brief identifies three critical pathways through which climate change exacerbates poverty and inequality:

• Increased exposure to climate-related hazards;
• Greater susceptibility to climate-induced damage; and
• Weakened capacity to recover and adapt.

These impacts are further shaped by structural socioeconomic disparities and governance inefficiencies. In Bangladesh, greenhouse gas (GHG) intensive activities predominantly benefit affluent groups who are better able to insulate themselves from climate impacts through greater access to protection and adaptation measures. In contrast, poorer and marginalised communities remain disproportionately exposed and vulnerable, often excluded from the benefits of climate interventions. This reinforces a vicious cycle in which climate change further deepens poverty, food insecurity, and social inequality. To reverse this cycle, climate resilience must be placed at the centre of Bangladesh’s development agenda. The analysis advocates for a transformative approach that targets marginalised and intersectional groups through policies that simultaneously address poverty reduction, inequality, and climate resilience. This requires inclusive and climate-sensitive planning, effective institutional coordination, and the empowerment of local initiatives. In Bangladesh, the approach to deal with climate change, poverty and inequality needs to cover five strategic elements:

• Inclusive and poverty/inequality sensitive climate adaptation.
• Climate-sensitive poverty/inequality reduction initiatives.
• Maximum exploitation of cross-cutting and sectoral synergies.
• Desired coherence and coordination within and among relevant institutions.
•  Strengthening and supporting local initiatives.

These programmes need to be underpinned by tools such as integrated vulnerability assessments, resilience monitoring, and poverty/climate adaptation toolkits. It is vital to outline clear implementation pathways that take both short- and long-term dimensions into account, operating at national and sub-national levels, and adaptable over time. Policy actions are required to prioritise interventions based on the severity of climate impacts and their anticipated effectiveness—particularly in climate hotspots such as coastal regions, floodplains, haors, islands, and riverbank erosion zones. Strong community participation, inter-agency coordination, and robust monitoring and evaluation mechanisms are essential to ensure that interventions are both effective and equitable. Additionally, evidence-based policymaking must be supported by comprehensive data on poverty, inequality, climate change, and environmental trends. International cooperation also plays a crucial role. Addressing the climate crisis requires urgent global mitigation efforts. Low-income, climate-vulnerable countries like Bangladesh need international support through mechanisms such as the Loss and Damage Fund (LDF), as proposed at COP28. If properly implemented at the grassroots level, the LDF could become a vital instrument for achieving climate justice. Moreover, high-emission countries must take responsibility for reducing GHGs through development-friendly solutions and assist vulnerable nations in enhancing social protection, sustainable livelihoods, and resilience-building. Bangladesh has a valuable opportunity to build long-term climate resilience and reduce the immediate impacts of climate change on poverty and inequality through inclusive, forward-looking policies. Investments that may involve high initial costs—such as renewable energy, infrastructure, urban transport, and ecosystem restoration—are essential to avoid locking into carbon-intensive development paths. The Policy Brief conveys a clear: poverty reduction, inequality mitigation, and climate action cannot be pursued in isolation. They are intrinsically linked and must be addressed through a unified, integrated framework. With strategic policies, effective coordination, and sustained global support, Bangladesh can move from a vicious cycle of vulnerability to a virtuous cycle of resilience and inclusive development. At the completion of the three-year study on ‘Comprehensive Rural Finance’ which is supported by the Bangladesh Bank (central bank), InM has prepared a total of 22 analytical and survey reports, policy papers/policy briefs, and background reports for Bangladesh Bank and relevant policy makers. These reports cover various aspects of the dynamics of rural finance as well as policy issues and recommendations for promoting access to and use of financial services by rural households and enterprises, using both field survey data/and secondary information on the country’s rural financial system. These reports are expected to assist Bangladesh Bank and other policy makers in designing future strategies and policies for ensuring inclusive rural transformation and fostering the country’s inclusive and sustainable development.

Sl.no	Title	Reference No.
Analytical and Survey Report
1.	Reshaping Rural Finance in Bangladesh: Key to Building Prosperous, Equitable and Inclusive Rural Society	Study Completion Analytical Report: Summary Results and Major Recommendations
2.	Pathways To Smart and Inclusive Rural Bangladesh: Key Recommendations for Reshaping Rural Finance	Comprehensive Summary of Major Recommendations
3.	গ্রামীণ বাংলাদেশে অন্তর্ভুক্তিমূলক উন্নয়ন প্রসারে আর্থিক খাতের সমস্যা ও চ্যালেঞ্জ: ভবিষ্যত যাত্রা পথের জন্য কৌশলগত সুপারিশের সারসংক্ষেপ	Analytical Summary Report in Bangla: Major  Findings and Recommendations
4.	Bangladesh: Report of the Rural Finance Survey 2023	National Survey Report
Policy Paper and Policy Brief
1.	BANGLADESH: Review of Rural Finance System and Policy Implications	Policy Paper No. 2025-01
2.	Access to Finance: The Smart Vehicle of Empowerment for Vulnerable Communities in Bangladesh	Policy Brief No. 2025-01
3.	Dynamising Rural Enterprises in Bangladesh:  Access to Finance is the Key	Policy Paper No. 2025-02
4.	Financing Industry Based Clusters in Rural Bangladesh	Policy Paper No. 2025-03
5.	Rural Women Entrepreneurship and Access to Finance:  Challenges and Opportunities in Bangladesh	Policy Paper No. 2025-04
6.	Access to Finance of Rural Farming Households in Bangladesh:  Challenges and Opportunities	Policy Paper No. 2025-05
7.	বাংলাদেশের গ্রামীণ নারী উদ্যোক্তাঃ সফলতার পথে চ্যালেঞ্জ এবং অর্থায়নের ভুমিকা	নীতি সংক্ষেপ ২০২৫-০১
8.	বাংলাদেশে গ্রামীণ কৃষি পরিবারের অর্থায়নঃ  সুযোগ, চ্যালেঞ্জ ও সম্ভাবনা	নীতি সংক্ষেপ ২০২৫-০২
Background Report
1.	Changing Face of Rural Finance in Bangladesh:  Achievements and Future Challenges	Background Report No. 2025-01
2.	Financial Needs of Selected Marginalised and Vulnerable Communities in Bangladesh	Background Report No. 2025-02
3.	Access to Finance for Rural Entrepreneurs in Industry Based Clusters of Bangladesh	Background Report No.  2025-03
4.	Access to and Use of Financial Services by Rural Entrepreneurs in Bangladesh	Background Report No. 2025-04
5.	Access to Financial Services by Rural Women Entrepreneurs in Bangladesh	Background Report No. 2025-05
6.	An Overview on Rural Finance in Bangladesh Structure, Policies and Priorities	Background Report No. 2025-06
7.	Supply Side Analysis on Comprehensive Rural Finance	Background Report No. 2025-07
8.	Access to Finance of Farming and Non-farming Households in Rural Bangladesh	Background Report No. 2025-08
9.	Penetration of Agent Banking and Mobile Financial Services in Rural Areas of Bangladesh	Background Report No. 2025-09
10.	Regional Variation in Access to Finance by Rural Households in Bangladesh	Background Report N0. 2025-10

The 5^th meeting of the Advisory Committee of the “Comprehensive Rural Finance” study  supported by the Bangladesh Bank was held on 25 November 2024 at InM Conference Room, House: 50 (5^th Floor), Road: 8, Block: D, Niketon, Gulshan 1, Dhaka 1212. Dr. Qazi Kholiquzzaman Ahmad, Chairman of the Advisory Committee chaired the meeting which was attended by Dr. Nazma Begum, former Professor, Department of Economics, University of Dhaka; Dr. Mustafa K. Mujeri, Executive Director, Institute for Inclusive Finance and Development (InM), Mr. Helal Ahmed Chowdhury, Chairman Board of Directors, BASIC Bank Limited, Dr. Toufic Ahmad Choudhury, Director General, Bangladesh Academy for Securities Markets and Dr. Ahmed Mushtaque Raza Chowdhury Former Vice Chairperson, BRAC.

The Institute for Inclusive Finance and Development (InM), in collaboration with Water.org, organised the Kickoff and Orientation Meeting for the Year III of the WaterCredit Adoption (WCAD) Programme on October 6, 2024, at BIDA conference room, Agargaon. This meeting marks the start of the new journey towards sustainable water and sanitation solutions for the underserved. The meeting featured prominent attendees, including Dr. Md. Jashim Uddin, Additional Managing Director of PKSF, who attended as the Chief Guest and Mr. Sajid Amit, Executive Director (South Asia) and Country Director (Bangladesh) of Water.org as the Special Guest. The event was chaired by Dr. Mustafa K. Mujeri, Executive Director of InM driving the programme forward. The event brought together key stakeholders, including representatives from InM, Water.org, and eight partnering Microfinance Institutions (MFIs): BASA Foundation, DISA, IDF, PMUK, SDC, Shakti Foundation, SDS, and GUK.

Through this partnership programme InM, water.org and eight partner MFI’s are working together to empower low income households in Bangladesh by enabling them to access financial products to meet their water and sanitation needs. This innovative model integrates water and sanitation loans into the portfolios of microfinance institutions to achieve SDG-6 and national targets. After the pilot phase (July 2021 – November 2022) and the second phase (February 2023 – June 2024), the Year III of the programme started in September 2024 and will go on until August 2025. This meeting is the official launch of the new phase and an opportunity to review past achievements and set the direction for future activities.

The agenda included an orientation session, an award ceremony to recognise the best performing WCAD partners and discussions on new activities for Year III. The partners also shared their experiences and learning from previous phases and set expectations for the future.

 

The respective attendees from the partner organization includes; Ms. Rabeya Begum, Executive Director- SDS; Mr. A. K. M. Shirajul Islam, Executive Director – BASA Foundation; Mr. Md. Nizam Uddin, Deputy Executive Director – IDF; Mr. Khondaker Hamidul Islam, Director Operation – SDC; Mr. Md. Jahidul Islam, Director (MF) – SDC; Mr. Faisalur Rahman, Senior General Manager – Shakti Foundation; Ms. Sabrina Ahmed, Assistant General Manager – BASA Foundation; Mr. Md. Ziauddin Sarder, Assistant Director – GUK; Mr. Md. Golam Rabbani, MIS Officer – GUK; Mr. Khondaker Rakibuzzaman, Manager (RM & PI) – DISA; Mr. Md. Manikuzzaman Rifat, Sub Assistant Engineer – DISA; Md. Abul kalam Gazi – Coordinator (MF) – SDS and Ms. Mousumi Chakma, Programme Organiser – IDF.

 

From the Water.org, Mr. Abu Aslam, Portfolio Lead (South Asia) and Mr. Shazedul Islam, Senior Partnership Manager, were present. On the other side, from InM, Ms. Dr. Farhana Nargis, Research Fellow; Ms. Nahid Akter, Senior Research Associate; and Mr. Md. Sajjad Kabir, Programme Manager, were also present at the meeting.

The Bangladesh Poverty Watch Report 2024 represents the third edition in a series of reports jointly published by the Institute for Inclusive Finance and Development (InM) and the Center for Inclusive Development Dialogue (CIDD). This report is dedicated to amplifying the voices of marginalised groups, particularly the extremely poor and climate-vulnerable populations, ensuring their concerns are not only heard but also reflected in policy-making. The report investigates the intricate link between poverty and climate change, exploring how environmental challenges exacerbate the hardships faced by vulnerable communities. It provides an in-depth analysis of the impacts of various climate-related events, including extreme temperatures, droughts, cyclones, flash floods, riverbank erosion, salinity intrusion, and rising sea levels, on these at-risk populations. Furthermore, the Poverty Watch Report 2024 measures a Multidimensional Poverty Index (MPI) specifically tailored to different regions and populations of the study areas. This index goes beyond traditional income-based measures by capturing diverse dimensions of poverty and deprivations, such as health, education and living standards, offering a more comprehensive understanding of the issue. Through this exploration, the report highlights emerging policy priorities and the significant challenges faced by those living in poverty due to climate change in Bangladesh. It underscores the urgent need to address the intertwined issues of climate change and poverty, emphasizing the importance of targeted interventions to support the most vulnerable communities in the country. Following the successful completion of the first two phases of the WCAD programme, InM and Water.org signed an agreement on August 21, 2024, to implement the next three phases. This Agreement commences on September 1, 2024, and accomplishes on August 31, 2027. This new phase aims to expand access to small loans for impoverished households, providing affordable financing solutions to improve household water and sanitation facilities. Additionally, InM will offer climate resilience loans to those living in geographically vulnerable areas. InM is partnering with eight microfinance institutions (MFIs) for this phase, including Gram Unnayan Karma (GUK), Shariatpur Development Society (SDS), Society Development Committee (SDC), Padakhep Manabik Unnayan Kendra (PMUK), BASA Foundation, Shakti Foundation for Disadvantaged Women (SFDW), Development Initiative for Social Advancement (DISA) and Integrated Development Foundation (IDF). This phase will be implemented over three years, during which approximately 125,000 water supply and sanitation (WSS) loans are expected to be disbursed. These efforts aim to benefit around 537,500 people, leading to improved water and sanitation facilities and increased capital mobilisation. This is for information of all concerned that the Office of the Institute for Inclusive Finance and Development (InM) is located at the following address with effect from 28 July 2024:   InM Office House #50 (5th Floor), Road #8, Block-D, Niketon Gulshan-1, Dhaka-1212, Bangladesh. Telephone:+88-01729072881 Email: inm.org.bd@gmail.com / info@inm.org.bd  All mobile numbers remain unchanged. Please contact InM at the new address. We thank you profoundly for your kind support and attention.

Under the Comprehensive Rural Finance Study (CRFS), Institute for Inclusive Finance and Development (InM) organised a consultation meeting with selected department of Bangladesh Bank on 9 July 2024 at the Hamidullah Conference Room  of Bangladesh Bank. Directors and representatives from 17 corresponding departments of Bangladesh Bank such as: Agriculture Credit Department, Banking Regulation and Policy Department, Chief Economist's Unit, Credit Guarantee Department, Credit Information Bureau, Department of Financial Institutions and Markets, Department of off-site Supervision, Equity and Entrepreneurship Fund Unit, Financial Inclusion Department, Financial Stability Department, Foreign Exchange Policy Department, Monetary Policy Department, NFIS Administrative Unit, Payment Systems Department, Research Department, SME & Special Programmes Department, Sustainable Finance Department were participated in the discussion meeting. As an important component of the study, institution level analysis has been included. The objective is to understand the characteristics of current financial products and services (savings, credit, insurance, mobile financial services, agent banking etc.), their limitations in reaching the target groups as seen by the providers, and their views on how to develop appropriate, user-friendly and sustainable financial services for the excluded and under-served rural population groups and enterprises. To identify policy, regulatory and other relevant issues related to designing and delivery channels of financial services for the excluded/underserved groups in the rural areas, InM organised a series of consultation meetings during March 2024 with relevant financial institutions including IDRA, MRA, BTRC, banks/NBFIs, fintechs, PKSF, MFIs, insurance companies and associations, BPO, SME Foundation, trade bodies and associations, SDF, and other agencies. After getting their feedback, InM consolidate the findings and organised this consultation meeting with relevant departments of BB with the aim of sharing the findings and identifying different options and policies for designing sustainable financial products to the rural people.

The 4^th meeting of the Advisory Committee of the “Comprehensive Rural Finance” study supported by the Bangladesh Bank was held on 23 May 2024 at QK Ahmad Foundation, House: 50 (1st Floor),Road: 8, Block: D, Niketon, Gulshan 1, Dhaka 1212. Dr. Qazi Kholiquzzaman Ahmad, Chairman of the Advisory Committee chaired the meeting which was attended by Dr. Nazma Begum, former Professor, Department of Economics, University of Dhaka; Dr. Mustafa K. Mujeri, Executive Director, Institute for Inclusive Finance and Development (InM) and Dr. Ahmed Mushtaque Raza Chowdhury Former Vice Chairperson BRAC The meeting reviewed the progress of the study and the work plan for the next six months. During the discussion meeting, the main findings from three background reports, one policy brief, and one policy note that was produced from field survey were shared with the members. Based on the findings, advisory committee members explored different options and suggested various actions to ensure quality and relevance of the report. The members also appreciated the efforts put forward by InM to achieve the overall objectives of the study.