Since its launch in 2008, the Banazi Income Support Program (BISP) has become one of Pakistan’s largest social safety net programs. The program aims to alleviate poverty through unconditional cash transfers and has provided vital financial support to millions of families across the country. According to reports, by 2016, nearly 90 billion Pakistani rupees had been distributed under the program, benefiting 5.4 million beneficiaries.
The Benazir Income Support Program is expanding to address the increasing cost of living and economic challenges.
The background for the establishment of the Banazi Income Support Program is that since 2005, the purchasing power of Pakistani households has been affected by high inflation and rising food and oil prices. The project is named after former Pakistani Prime Minister Benazir Bhutto to pay tribute to her contribution. The program not only focuses on economic development, but also focuses on women's empowerment, disbursing cash transfers directly to female members of the household.
BISP is implemented in Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa provinces, and covers federal jurisdictions including Azad Kashmir and Islamabad. Initial beneficiary selection was through recommendations from MPs, but since 2009 the selection process has been reformed and now uses poverty scorecards to ensure fairer allocations.
Through the Poverty Scorecard, households are assessed based on a survey of their assets and expenses, ensuring that resources are allocated more effectively to households that truly need help.
Currently, BISP has expanded several special programmes, including the "Waseela-e-Haq" program for microfinance, the vocational training program "Waseela-e-Rozgar", and financial assistance for basic healthcare "Waseela-e-Sehat" project. The purpose of these initiatives is to help poor families gradually escape poverty.
According to the provisions of the scheme, eligible households can receive a cash transfer of 8,500 rupees every quarter. This amount increases the purchasing power of a household with a monthly income of about 2,800 rupees by 20%. However, critics point out that these cash amounts are not enough to lift poor families out of poverty.
“The amount of cash transfers has not effectively changed the economic situation of poor families, and in the long run, it may not fundamentally solve the poverty problem.”
Also, while BISP was designed with the right intentions in mind, the program has been plagued by accusations of corruption and political favoritism. Some reports suggest that only 50 to 60% of beneficiaries actually receive payments, raising questions about the program's transparency and efficiency.
BISP has actively explored new directions in recent years. The planned "Waseela-e-Taleem" will link cash assistance with children's education and enrollment, which will further increase people's emphasis on education. However, experts have also warned that too many conditions could dehumanize measures intended to help the most vulnerable.
“We must ensure that the social safety net truly reaches those most in need, rather than leaving them without opportunities through cumbersome procedures.”
Despite the many challenges, effective operation of BISP still has the potential to change the fate of millions of families. For this project, we should think deeply about its true effect and the value of every investment. In Pakistan, how should future poverty assistance be designed to more effectively help those in distress?