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Poverty Reduction is one of the highest priority programs in Bangladesh, like all over the world. In order to successfully manage this program, the "Rural Poverty Alleviation Foundation (PDBF)" was established by the government of the People's Republic of Bangladesh in November 1999, through the law passed in the parliament. PDBF is a composite, self-governed, non-profit, self-reliant, non-banking financial institution.

PDBF is the successive achievement of Rural Poor Program of RD-2 RDP, RD-12 and Rural Bittoheen Program. Which were implemented by Bangladesh Rural Development Board (BRDB) with the financial assistance from Canadian International Development Agency (CIDA) it is the first government sector program for the rural disadvantage people which have been transformed into a permanent self-supporting and self-governed micro-finance institution.

 The microfinance movement, however, has shown that there is a thriving market among the poor when financial products cater to their specific needs. The poor are a quite active group in any economy. PDBF has shown that their needs can be met while at the same time making the providing institution profitable as well. PDBF operates microfinance loan along with Small Enterprise Loan (SELP) to enhance economic capacity of the rural disadvantaged peoples.