zia benazir income support
TRANSCRIPT
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Regional Workshop on Social Assistance & Conditional Cash Transfers
ADB Headquarters, Manila, 23 to 24 July 2009Presentation by
Omer Bin Zia, Director / Deputy Secretary
Benazir Income Support Programme
Government of Pakistan
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Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views orpolicies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not
guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminologyused may not necessarily be consistent with ADB official terms.
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Sequence of Presentation Economic & Demographic Context
Cash Transfers Basics
BISP Objectives & Coverage
Original Design of BISP
Reformed Design of BISP
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2005-2007
Inflation: over 10% Food Inflation: 13-15%
2007-2008 Oil price shock, inflation rate doubled
Purchasing power since 2005 ~ halved
Inflation in 2008-2009 was above 20%
Urgent need for direct and speedy relief
Economic Context
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Pakistans Demographic Profile
All 4 provinces, including FATA, AJK, FANA & ICT
Households 25 mPopulation 166 m
Assumed Poverty Line: 33%
Bottom 33% Bottom 20% Bottom 10%
Households 8.2 m 5.0 m 2.5 m
Population 55.0 m 33.2 m 17 m
Source: Pakistan Economic Survey, 2007-08; adjusted for AJK & FANA population
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Complements other social protection instruments
and services like health, education etc.
Confers dignity and choice.
Lower transaction cost and higher value to
beneficiaries than in-kind support. Impacts short term food security and long term
alleviation of poverty.
BISP can serve as a mechanism to deliver cashassistance in times of natural disasters/ crisis in
affected areas.
Why Cash Transfer?
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Musts for Cash Transfers Be timely
Temporary so as not to create dependency
Not too large, so as not to jeopardize workincentives or have an inflationary effect
Must end as livelihood bounces back
Careful attention to design and implementation
Careful monitoring and evaluation
Eligibility criteria to be predefined, transparent,easy to explain and simple to administer
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A measure to compensate low income families for
reduction of purchasing power. A cash grant of Rs. 2000/ every alternate month.
Only one benefit per family.
Empowering Women: Only female recipients:Female head of family or adult female member of
the family can be a recipient.
BISP Objectives
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BISP Coverage Allocation for 2008-09: Rs 34 bn (US$ 425 m)
~ 0.3% of GDP Target coverage (3.5 million families) ~ 15% of the
population
Allocation for 2009-10: Rs.70 bn (US$ 875 m) Target beneficiary families for 2009-10: 5 million
Plans over the medium term to extend coverage to 7
million families by 2010-2011
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Organizational Structure A Federal Programme
An autonomous organization A high powered Management Board
A Programme Implementation Unit at Federal level
- Operations Department- Finance and Accounting Department
- Administration Department
Provincial Offices
Divisional Offices
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Original Design of BISP
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Separation of Functions Functional Separation for Transparency and
Efficiency
BISP Parliamentarians NADRA Pakistan Post
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Targeting - 1 Eligibility Criteria
Monthly income less than Rs. 6000 No family member in government service
Possession of no or less than 3 acres of agricultural
land or up to 3 marlas residential property
Possession of Computerized National Identity Card
Should not be beneficiary of other support programmes
Should not have an account with a foreign bank
Should not possess a passport or an Overseas Pakistani
identity card
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Targeting - 2 Identification of applicants / recipients through
democratically elected Parliamentarians. Equal number of forms distributed to each
Parliamentarian
Attestation by local level representatives ofParliamentarians and Union Councilors
Screening / Verification of basic criteria through
checks with National Database & RegistrationAuthority (NADRA)
Cost effective & quick targeting process
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Benefits Level A cash grant of Rs. 2000/ every alternate
month.
Rs. 1000 = 20% increase in income forfamily earning Rs. 5000/ pm
At prevalent prices Rs. 1000 payout is sufficientto finance 20-25 days flour needs of a family
with 5-6 individuals
Rs. 1000/ pm not a labor disincentive onlywomen family member is recipient
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Payment Mechanism Postal Money Orders of Rs. 2000 every
alternate month through Pakistan Post
Accessibility and Affordability main advantages
System also Reliable and Safe
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Monitoring of Payments
Internal monitoring mechanisms of Pakistan PostDepartment
External Monitoring through BISP Provincial andRegional Offices
Pakistan Post reports monthly (electronically) toBISP on payments, with list/addresses of housesand name of postman making the delivery
Eligibility and Payment status available on BISPwebsite www.bisp.gov.pk
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Special Initiatives of BISP Emergency Relief Package launched for:
Internally Dislocated Persons (IDPs) from
Federally Administered Tribal Areas and Swat
due to Operations against terrorists Earthquake affected districts of Baluchistan
province
Victims of bomb blasts and terrorism
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Reformed Design of BISP
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Separation of Functions Functional Separation for Transparency and
Efficiency maintained in reformed design:
BISP Poverty Scorecard
Survey by PartnerOrganizations
NADRA Smart Card &
Pakistan Post
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BISP Reform Plan
Test Phase of Poverty Scorecard Survey
Nationwide Rollout of Survey
Phased transition of benefits to families
identified through PMT based targeting Expansion / addition of complementary
programmes
Graduation / Exit Strategy
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Test Phase Survey- Improved Targeting
Poverty Scorecard adopted
Three survey organizations
Approximate number of households: 2.5million
NADRA to handle the:
Data entry, validation and verification
Apply Proxy Means Testing formula through an
MIS
A cut off score to be decided by governmentbased on the pilot results and funds availability
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Test Phase Survey- Improved Targeting
Survey of households in 16 districts in all 4
provinces and AJK/NA Districts selected on the basis of poverty level,
presence of survey organization, accessibility
and law & order situation Process evaluation and spot check consultants
appointed to ensure the quality
Formulation of transition strategy forbeneficiaries
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Test Phase -Implementation Status
Enumeration / data collection Completed in 5 districts in June 2009 by 1st partner
To be completed by end-July 2009 in 5 districts by 2nd
partner
To be completed by mid-August 2009 in 6 districts by 3rd
partner
Data Entry, Validation / Verification and CaseManagement MIS being developed by NADRA
Data processing completion expected by end-August
Payments in pilot districts under new targeting tostart from September 2009
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Management Information System
Targeting and Eligibility
Grievance Redressal/ Case Management
Payments & Financial Reconciliation
Monitoring and Evaluation
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Graduation / Exit Strategy
Discussions initiated with Development
Partners:
Vocational Training / Skills Development
Micro-Finance / Income Generating Projects
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Challenges Vulnerable economy
Law and Order
Political commitment
Social accountability
Institutional capacity
BISPs capacity to handle a nationwide rollout andsubsequent operations
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Thank you
References:
1. Dr. Mukhtar Ahmad, Director General (Operations) BISP.
2. Grosh, M., Ninno, C., Tesliuc, E. & Ouerghi, A. (2008), The Designand Implementation of Effective Safety Nets: For Protection &
Promotion The World Bank, Washington, D.C.
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