Ministry cautions against diverting funds to BISP

ISLAMABAD: The finance ministry has cautioned the government against diverting funds from social safety programmes to the Benazir Income Support Programme whose impact on the poor is yet to be felt.

The ministry in its mid-year review of the Poverty Reduction Strategy stated that cash transfers and benefits through Zakat, Pakistan Bait-ul-Maal and Employees Old-age Benefit Institution declined during July-December of the last fiscal year as funds were moved to the BISP.

“There is a need to give serious thought while diverting funds to programmes whose results and impact on the poor and vulnerable are yet to be seen,” recommended the ministry.

It said provision of financial resources for social safety nets can only be possible with a significant shift in taxation.

The report is another blow to the BISP, as according to the government’s own survey 60 per cent beneficiaries of the programme’s cash transfers in 16 districts were not very poor. International donors have already objected to the distribution of billions of rupees through selection of people by elected politicians.

During the last financial year ended June 30, the BISP Secretariat could only disburse Rs40 billion among the poor despite an allocation of Rs70 billion due to capacity constraints.

The issue needs immediate government attention as other social safety programmes can perform much better due to their established networks across the country.

The finance ministry’s report revealed that in six months of 2009-10 Zakat distribution decreased by around 50 per cent as compared to the same period of last year. In July to December 2009, the government gave Rs769 million in Zakat as compared to Rs1.5 billion in the corresponding period of last year.

During the period, the number of beneficiaries also fell by 25 per cent to 404,124, said the report.

Besides, Pakistan Bait-ul-Maal (PBM) disbursed Rs1.2 billion among the poor during July-December as compared to Rs2.5 billion, showing a massive decline of 53 per cent. People who benefited from the programme declined by around 66 per cent.

“The main reason of the substantial fall in disbursement and number of beneficiaries of the Bait-ul-Maal programme was its flagship Food Support Programme (FSP), which has been merged into the Benazir Income Support Programme.”

The report said only 1.9 million pregnant women got coverage under the immunisation programme, which is three per cent more than last year.

Published in The Express Tribune, July 14^th, 2010.