Pakistan Today

25% decrease in pro-poor sector spending: economic survey

–BISP beneficiaries increased from 1.7 million in FY 2009 to approximately 5.42 million at the end of March 2017.

During the six months (July-December), the government of Pakistan has spent an amount of 1017.5 billion rupees on account of pro-poor sectors through the Medium Term Expenditure Framework (MTEF) in the fiscal year 2016-2017, relatively around 25 per cent less than the fiscal year of 2015-16, in which the government has spent 2694.6 billion rupees, leaving many questions unanswered.

According to the economic survey 2016-17, expenditure on poor sectors in 2012-13 stood at 8.5 per cent of GDP. In 2013-14, these were 7.7 per cent of GDP and in 2014-15 8.3 per cent of the GDP. During 2015-16, total expenditures of these sectors were increased and reached to Rs 2,694.6.7 billion, which was 9.3 per cent of GDP.

Recognising the need to protect the poor and the vulnerable, the government has launched several social safety net programmes, including Benazir Income Support Programme (BISP).

Its long-term objectives included meeting the targets set by Sustainable Development Goals (SDGs) to eradicate extreme and chronic poverty and empowerment of women. The quarterly cash grant has been gradually enhanced by the present government from Rs 3000 per family to Rs 3600 in FY 2013-14, Rs 4500 in FY 2014-15, Rs 4700 in FY 2015-16 and Rs 4834 in FY 2016-17.

The number of beneficiaries has increased from 1.7 million in FY 2009 to approximately 5.42 million by the end of March 2017.

BISP’s annual disbursement increased from 16.0 billion in FY2009 to Rs 115 billion in FY2017. Since inception, BISP has transferred Rs 486 billion (April 21, 2017) as cash transfers. BISP is following the path of automation and 97 per cent of beneficiaries are being paid through technology based payment mechanisms.

To bring transparency, BISP has implemented biometric verification system (BVS) in 9 districts. Until December 2016, 662,077 beneficiaries received cash through biometric verification.

There are four closely associated and complementary components, including Waseela-e-Rozgar and Waseela-e-Haq (Micro-finance), Waseela-e-Sehat (Life &Health Insurance) and Waseel-e-Taleem (Primary Education).

Under Waseel-e-Taleem, this program is designed to encourage BISP beneficiary families having children in the age group of 5 to 12 years, to send their children to schools for Primary Education (and in school children to continue their education), in return for cash transfers with the long-term prospects of human capital formation to graduate out of abject poverty.

The initiative was to enrol approximately 2.0 million children in primary schools by December 2018. This involves cash transfer of Rs 250 per month paid quarterly (Rs 750 per child) for all children of each beneficiary family in the age bracket of 5-12 years in return for their compliance with the co-responsibilities of school admission and a minimum of 70 percent quarterly attendance.

The field operation of the programme was started in October, 2012. So far, over 1.3 million children have been enrolled and Rs 2.9 billion has been disbursed as stipend under WeT.

The government has also set the target for 2017-18 & 2018-19 in which successful completion of NSER and implementation of new data, implementation of biometric verification system (BVS) all over the country, expansion of Waseela-e-Taleem in 50 districts and achieving the enrollment target of 1.6 million by June 2017, integration of BISP beneficiaries in other complementary initiatives of federal and provincial governments.

Successful implementation of World Bank funded $100 million National Social Protection Project (NSPP) during 2017-2020.

 

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