Abstract: Poverty Reduction Strategy Papers (PRSPs) are expected to be prepared by the member countries through a participatory process involving domestic stakeholders as well as external development partners, including the World Bank and the IMF. The development and implementation of poverty reduction strategies should be country-driven, results-oriented, comprehensive, prioritized, partnership-oriented and based on a long-term perspective for poverty reduction. To be updated every three years with annual progress reports, PRSPs describe the country`s macroeconomic, structural and social policies and programs over a period of three years or longer horizon to promote broad-based growth and reduce poverty, as well as associated external financing needs and major sources of financing. As a first step before preparation of a PRSP, many countries develop an Interim PRSP (I-PRSP), which is meant to outline a country’s existing poverty reduction strategy and to provide a road-map for the development of the full PRSP. In March 2003, Bangladesh produced the National Strategy for Economic growth, Poverty Reduction and Social Development, equivalent to the I-PRSP. This document outlines Bangladesh’s strategy to reduce all sorts of poverty and to achieve the Millennium Goals. The strategy was shared with development partners during 2003 and formed the basis for discussions between Government and donors at the Bangladesh Development Forum in May 2003. In late 2003, twelve Thematic groups were established by the Government to facilitate the process of moving towards the PRSP. These groups carried out consultations during 2004 with civil society, donors and others and produced the draft PRSP on 12 January 2005.