Reducing poverty
The recent World Bank report on the Benazir Income Support Programme (BISP) presents a mixed picture of the effectiveness of poverty alleviation programmes in Pakistan. The report acknowledges the significant positive impacts of BISP on various poverty-related indicators, such as consumption expenditure, food consumption, child nutrition security, and investments in health and education. These findings suggest that BISP has been successful in mitigating the negative impact of poverty on households and protecting them against shocks.
However, the report also highlights some critical challenges facing BISP. One of the main issues is the inadequacy of the benefit level provided by the programme. According to the report, the benefit level must be at least 15% of the average household consumption to have any significant impact on poverty. Currently, the BISP benefit level accounts for only 10% of average household consumption, indicating a gap between the programme’s goals and its actual impact. Another issue highlighted by the report is the erosion of the value of benefits over time. Between 2011 and 2019, the percentage of BISP beneficiaries below the poverty line fell from 90% to 72%. While the programme has been successful in reaching a large number of beneficiaries, there is still a significant portion of the population that remains outside the programme’s reach. Improving the targeting and coverage of BISP is essential to ensure that the programme reaches those who need it most.
A comprehensive overhaul would include indexing benefits to inflation, strengthening monitoring and evaluation, investing in human capital, and expanding social safety nets. By taking these steps, Pakistan can enhance the effectiveness of poverty alleviation programmes like BISP and move closer to its goal of reducing poverty and inequality.
Published in The Express Tribune, March 5th, 2024.
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