SFD's third phase, originally planned to run from 2004–08, was extended to 2010 to synchronize with the government’s third Five-Year Plan for Economic and Social Development and Poverty Reduction (2006–10). To outline the SFD role within this extension, SFD developed a Mid-Term Vision (2006–10) to meet the evolving challenges of alleviating poverty. The Mid-Term Vision encompasses many themes:

empowering communities and promoting local development, expanding and enhancing economic activities, strengthening local and national institutions and partnerships, and creating synergies and increasing efficiency within and outside the SFD.