Mon. May 27th, 2024

Reaching the Poorest via Strengthening the Social Safety Net System in Pakistan

Supported by means of IDA’s technical help due to the fact that in 2009, Pakistan has mounted the Benazir Income Support Program (BISP), a flagship countrywide protection internet system, which is one of the biggest in South Asia. The application presently affords profits assist in the shape of predictable month-to-month money transfers of US$15 to nearly 4.8 million households (approx. 18 million people) of the poorest households for consumption smoothing as properly as investments in human capital development. Up to the existing time greater than US$ 2.9 billion has been disbursed to BISP beneficiaries out of whom 93% of beneficiaries obtain the money transfers thru technological know-how primarily based fee mechanisms (Debit Cards, Mobile Phones, Smart Cards). The application plans to attain 5.5 million households in the subsequent

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monetary year National Socio-Economic Registry (NSER).

The software has efficiently mounted a National Socio-Economic Registry (NSER) thru the use of a goal concentrated on a system, web hosting a database of greater than 27 million households (approx. 167 million people) – the first in South Asia. More than 30 federal and provincial social region packages are presently the usage of the Registry to enhance their pro-poor concentrated on performance. BISP has additionally rolled out the Co-responsibility Cash Transfers (CCT) program, linking money transfers to principal college education, which is being carried out in 32 districts in all provinces and regions. After a profitable pilot in 5 districts, enrollment system is presently underway in 24 districts. To date greater than 726,000 teenagers have been enrolled in the application out of which over 329,000 youth have taken admission in schools.

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Children of BISP beneficiaries doing their college homework.

A full-size percentage of Pakistan’s populace both lives in excessive poverty or is prone to falling into poverty due to any damaging herbal or idiosyncratic shock. Before the begin of BISP in 2008, the country’s predominant protection internet applications (i.e. Pakistan Bait-ul-Mal, and the Zakat) had constrained insurance and have been poorly targeted, as around 25 and 32 percent of assets dispensed with the aid of these packages respectively, had been going to non-poor households. Additionally, administration preparations had been inadequate, and implementation and monitoring and contrast potential have been very weak. Consequently, these applications had little effect on addressing the difficulty of poverty and vulnerability. The zone additionally confronted fragmentation of a number of federal and provincial stage initiatives due to absence of a platform or credible system, which may want to help their consolidation. The country’s spending of 0.16% of GDP on the security nets used to be additionally lowest in the region.

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Government of Pakistan launched the Benazir Income Support Program

In order to tackle the above challenges, the Government of Pakistan launched the Benazir Income Support Program (BISP) at some stage in the 2d 1/2 of 2008 as its flagship countrywide social security internet initiative. The temporary goal of the application used to be to cushion the negative have an effect on of the food, fuel, and economic disaster on the poor, however its broader goal used to be to grant a minimal earnings aid bundle to the poorest and to these who are especially susceptible to the future shocks. Since 2009, the World Bank’s Social Safety Net Project is aiding BISP in organising an goal concentrated on system, strengthening the software operations, and inserting in area manipulate and accountability mechanisms for obvious transport of offerings to the poor. This represents a shift from poorly designed and administered applications to constructing blocks of a countrywide protection internet gadget with a focal point on developing establishments and initiatives successful in handing over tangible results.

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  • Establishment of a National Socio-Economic Registry for harmonizing social safety initiatives each at the federal and provincial authorities levels. More than 30 federal and provincial groups are already the use of this registry to enhance the pro-poor orientation of a range of social area programs.
  • Empowerment of ladies through presenting them the right of entry to the National ID playing cards and making BISP repayments to women head of the beneficiary families, improving their capacity to take choices on the use of money transfers. Since the introduction of BISP, the registration of Computerized National Identity Cards (CNICs) has nearly doubled, which can doubtlessly open avenues for their socio-economic and political empowerment.
  • Improved transparency and effectivity of the software with greater than 93% of the contemporary 4.8 million beneficiaries of BISP being paid via technological know-how primarily based mechanisms, providing even the poorest female get admission to to branchless banking bills for the first time ever in their lives (more than 90% beneficiaries gather repayments inside 72 hours of disbursements).
  • Advancement of human capital improvement thru a scale up of a Co-responsibility Cash Transfers (CCT) software in 24 extra districts after a profitable pilot in 5 districts, linking money transfers to fundamental faculty schooling whilst incentivizing admission of teens of the poorest households out of which almost 50% are girls.

Promote gender equality and empower women

The World Bank supported the BISP, at the start via the Social Safety Net Technical Assistance Project (US$60 million) permitted in May 2009. Based on the profitable implementation of the project, a Restructuring with Additional Financing (US$ a hundred and fifty million) used to be accredited in March 2012, which delivered Disbursement Linked Indicators (DLIs) to incentivize overall performance on results. The SSN undertaking used to be complemented via a Bank performed Trust Fund TA being financed by means of the DFID to assist the authorities in similarly improvement of SP structures and their wider software at the federal and provincial level. The present TF used to be set up in 2013 with an allocation of £9 million until 2021.


The World Bank continues to play a lead function in donor coordination for SP and leveraged greater than US$ 1.4 billion of different donors’ funding in BISP. In 2009, the UK’s Department for International Development (DFID) authorised a World Bank-managed have faith fund to help the check segment of the Poverty Score Card and to set up the preliminary organizational and operational preparations for imposing the BISP. Following assistance from the World Bank, different donors such as the Asian Development Bank and the US Agency for International Development additionally supplied US$150 million every year to finance money transfers to beneficiaries recognized via the Poverty Scorecard concentrated on the system. The partnership between World Bank and DFID similarly endured with approval of £300 million of DFID’s eight years (2012-20) assistance to Pakistan’s National Cash Transfer application by way of the use of a frequent framework with the WB. In 2013, ADB has additionally permitted US$ 430 million with predominant share of financing going to growth of the insurance of simple money transfers to eligible families.

By M 8171

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