Kathmandu, May 26 Stakeholders have highlighted the need to reform the current modalities of the Poverty Alleviation Fund (PAF) for its effective functioning. Speaking at an interaction programme here today, Yubaraj Khatiwada, former vice chairman of National Planning Commission, said that establishment of banks and financial institutions alone does not ensure the upliftment of people living in extreme poverty and that PAF’s effective coordination with provincial and local governments is necessary to reach out to the poorest of the poor. “PAF needs to amend the target group selection process. It should select pocket areas of the poor rather than districts, as it is individual households that are affected by poverty than entire districts,” Khatiwada said. He also urged PAF to address social, geographical and other dimensions of poverty, unlike financial institutions that only try to address the financial dimensions. Similarly, Chandra Kumar Ghimire, secretary at Office of the Prime Minster and Council of Ministers, said the constitution has highly prioritised poverty alleviation programmes. “In this context, PAF could play a vital role in achieving the government’s objective of reducing poverty,” Ghimire said. He also suggested PAF to partner with federal and local governments to make its programmes more effective and reach out at the grassroots level. Vice Chairman of PAF YB Thapa informed that the Fund is discussing on different options for future strategy of the Fund, including reforming the existing operation modality and establishing a PAF Bank, among others. He also informed that PAF is currently working with 32,400 community organisations covering 60 districts.