SAFETY NET PROGRAMS IN PAKISTAN

SAFETY NET PROGRAMS IN PAKISTAN

Introduction of main Safety Net Programs Dynamics of Program Administraion Targeting, Payment, and Financing Mechanisms Institutional Model of Pakistan s National Flagship Social Protection Program (Benazir Income Support Program) Targeting Operational Model Case Management Link to Implementation and Monitoring

Federal State with 4 Provinces and 2 Regions Large Safety Net programs are Federal following the redistributive model Recent 18 th Amendment in Constitution provides greater autonomy to Provinces though Safety Nets may remain part of Part-II of the concurrent list Additional resource transfer from Federal to Provincial Governments effective July 2011, almost 60% from Federal Divisible pool will be transferred to the Provinces Higher probability of complementary programs at the provincial level, especially in the areas of graduation

Federal Vertical Programs Benazir Income Support Program (BISP) established in 2008 Pakistan Bait-ul-Mal (PBM) established in 1994 Safety Net Programs Zakat Ministry of Religious Affairs, Zakat and Ushr established in 1980 Punjab Food Support Scheme Sasti Roti Program (2008) Provincial Programs KP Bacha Khan Poverty Alleviation Program (2008)

Zakat (1980) safety nets based on the concept of wealth distribution: Federally financed (through individual and voluntary contributions), Provincially coordinated, and Locally Implemented Identification through local level Zakat committees Mainly cash assistance- payment through National Bank Pakistan Bait-ul-Mal (1990s) safety net funded through federal government s current budget: Federally administered and financed, provincially coordinated, and district level committees for targeting Implemented as a federal vertical program with institutional arrangements down to the district level Mainly cash assistance for food support and medical treatment- payment through a combination of post office money orders and cross-cheques through National Bank Currently, undergoing reforms from Cash Transfers to Social Care Services program

Benazir Income Support Program (2008) National flagship program established under an Act of Parliament- setting up a social platform for the poor and vulnerable through the concept of targeted subsidies Act as Federal Autonomous Authority under the Prime Minister s Secretariat Vertical Program through an institutional infrastructure down to sub-district (Tehsil) level Presently 3 million families as beneficiaries medium term target of reaching 7 million families (25% population) Building a national registry for the poor through poverty score card (PSC) door to door survey (already 20 million PSC forms processed) Intensive use of Information Technology (e.g. comprehensive MIS, GPS, and use of Smart Cards and mobile phones for payments) Now moving towards conditional cash transfers and other graduation programs such as skills development, life and health insurance, and employment activation programs by involving the provincial governments

Payments of Federal Transfers: Pakistan Post deliver cash through postmen Smart Cards Mobile Banking Pakistan Baitul-Mal Benazir Income Support Program Payments of Provincial Transfers Regional, District and Local Level Transfers Regional Post Offices provide cheques Zakat Chairman provide cheques with local lists / NBP Zakat Provincial Targeting Community based targeting High degree of subjectivity DCO s, Nazims, Zakat Chairman involved in selection Federal Targeting Proxy Means Testing Federally Administered Survey Beneficiary Registry consolidated and maintained at Federal Level

The Citizens Damage Compensation Program is an emergency cash transfer program that is visualized as a transitional support to help 1.6 million flood affected families during their early recovery; rehabilitation; and to jumpstart the local economy

Phase I: Emergency Cash Grants - Rs. 20,000 per family (1.6 million families) Geographic Targeting to all flood affected families (Sindh, Punjab), or combination of geographic and damaged housing (Khyber Pakhtunkhwa) Quick cash to cover basic needs, food, etc. 1.4 million families paid within 4 months Phase II: Early Recovery Cash Grants - Rs. 40,000 per family Targeting uses housing damage as proxy indicator to identify affected households Periodicity two installments of Rs. 20,000 each to an estimated 1.1 million households Payments Cash transfers through Visa enabled Debit Card (Watan Card), including Biometric Verification for beneficiaries, that are verified using the National ID Registry Database Disbursements in collaboration with 3 Commercial banks using large network of ATM machines and POS terminals in remote areas

One of the largest objectively targeted Safety Net Programs in South Asia--providing payments to female representatives of families Follows a partnership approach by separating the functions of data collection, eligibility determination, and payments Targeting heavily relies on verification through National ID registry Strong social accountability mechanisms in program administration Services to the beneficiaries through a network of 6 regional offices in all provinces, 35 divisional directorates, and 550 offices in all Tehsils

Case Management Targeting Overall Admin and Coordination Disbursement of Smart Cards /Money Orders Poverty Score Card Survey/Data Collection Data Entry and Verification Payments Beneficiary Identification

Institutional Arrangements for Targeting Beneficiary Lists 1. Logistics (Partners, Training, and Supervision) Process Evaluation Spot Checks 4. Data Entry, Verification, and eligibility determination 3. Data Collection 2. Social Mobilization and Public Information Campaign Provincial Coordination and Support (planned)

Quarterly Reviews Field Inspections Beneficiary Assessments Spot Checks Process Evaluation Quality Control Impact Evaluation BISP - Internal Monitoring Mechanisms Third Party External Monitoring and Evaluation Rigorous and Systematic Monitoring and Evaluation Systems

BISP builds the foundation for a national social protection system Started as a Federal Cash Transfer program--gradually moving towards Graduation (including CCT) where partnerships with Provinces will be crucial An emerging demand on using the PSC database for pro-poor programs (e.g. Education, Health, Youth Employment) Emergency flood response benefited from BISP experiences in, among others, setting up of MIS, payments to 1.6 million families through smart cards, and community based but technology driven grievance redressal mechanisms Strong political commitment to make it work