The World Bank (WB) will provide a credit worth US$150 million as additional financing for the Pakistan Social Safety Net Project aimed at supporting the expansion and strengthening the performance of Pakistan’s safety net system under the Benazir Income Support Program (BISP). The agreement was signed by Dr. Waqar Masood Khan, Secretary, Economic Affairs Division on behalf of the Government of Pakistan Rachid Benmessaoud, Country Director, on behalf of the World Bank. Muhammad Sher Khan, Secretary, Benazir Income Support Program (BISP) signed the Project Agreement on behalf of BISP here on Monday.
The objective of the project is to support the expansion and strengthen the administration and performance of Pakistan’s safety net with particular focus on the BISP as the national safety net platform. The project consists of the following parts: Under the agreement a National Targeting System would be established and Coverage for the Basic Safety Net System will be expended and Strengthening Safety Net Operations, Enhancing the Management, Accountability and Evaluation, Developing the Social Protection Policy. “The Government of Pakistan is committed to establish an effective social safety net platform for a well coordinated, effective, and efficient support to the poor families,” said Rachid Benmessaoud, World Bank Country Director for Pakistan. “The project will build on the achievements of BISP in establishing objective targeting system and use of modern technology and third party evaluations for program administration, and will provide avenues to capitalize on this foundation for benefiting the poorest population.” Focusing on results, the project would help finance costs associated with: (i) increasing coverage of basic cash grants to beneficiary families that are identified through the Poverty Scorecard; (ii) introducing co-responsibility cash transfers linked to beneficiaries’ children primary education; and (iii) strengthening operations and management systems within the BISP. The credit is from the International Development Association (IDA), the World Bank’s concessionary lending arm. It carries a 0.75% service charge and 1.25 percent interest rate 5 years of grace period and a maturity of 25 years.
