Benazir Income Support Programm BISP A Social Security

Benazir Income Support Programm (BISP) (A Social Security and Women Empowerment Programm) Muhammad Ishaq Shinwari (MEP 12125) Ministry of Commerce Government of Pakistan

Chronology and Functions of Planning Machinery in Pakistan Ø Chronology of Planning Machinery Ø Ø Ø Development Board established in Ø 1948 in the EAD Ø Planning Board set up in 1953. First 5 year plan prepared for 1955 -60 Ø National Planning Board established in 1957 Functions Consultation with: Federal Ministries / Provincial Governments Ø Donors Ø Civil Society Ø Formulation of National Plan Ø Ø Annual Plan Five Year Plan Rolling Plan Perspective Plan (15 -25 Years) Ø Project Management Ø Approval of Development Projects Ø Planning Commission setup under Ø Monitoring of Major Projects the Chairmanship of President in Ø Evaluation of on-going and completed 1959 projects Ø Association with EAD in matters of Foreign Assistance

Planning Process Consultations with all private bodies attached to different ministries Consultations with all Federal Ministries for input Sent to all Fed. Ministries and Dev. Partners for comments and input Finance Division (Resource Availability) Panels of distinguished persons, academia, industry, business, planners, political activists, NGOs, Professional organizations, chambers of industries and trade Planning Commission • Preparation of approach paper Consultations with all private bodies attached to different provincial deptt. • Formulation of technical working groups in all sectors • Preparation of sectoral chapters by working groups Draft Five/ One Year Plan Finalization of draft plan by PC and its presentation before President/Prime Minister Submission to National Economic Council (NEC) Circulation of approved plan to all Provincial Govt. / Federal Ministries for implementation Transformation of plan into viable projects/program Consultations with all Provincial Govt. for input Sent to all Provincial Govts. for comments and input Economic Affairs Division (Foreign aid availability) Input from technical and professional org. (Fed/ Pro. Govt. WB, ADB, IMF etc. ) PM and his team assisted by PC

Projects Appraisal Ø Technical Analysis Ø based on the technical data and information given in the PC-I form as well as the earlier experience of carrying out similar projects. Ø Institutional/Organizational/Managerial Analysis Ø A whole range of issues in project preparation revolves around the institutional, organizational and managerial aspects of the project. Ø Social Analysis Ø Social like employment opportunities and income distribution. Ø Commercial Analysis Ø arrangements for marketing the output produced by the project and the arrangement for the supply of inputs needed to build and operate the project Ø Financial Analysis Ø assessment of financial impact, judgment of efficient resource use, assessment of incentives, provision of a sound financing plan, coordination of financial contribution and assessment of financial management competence

Plan/ Project Approving Bodies of the Planning Machinery Ø 1. National Economic Council (NEC) Ø PM as Chief Executive Ø 2. Executive Committee of National Economic Council (ECNEC) Ø Headed by the Federal Minister of Finance/ Adviser to the Prime Minister for Finance and Economic and Planning. Ø 3. Economic Coordination Committee of the Cabinet (ECC) Ø Headed by the Federal Minister for Finance and Federal Ministers of economic ministries as its members. It coordinates the economic policies initiated by various Divisions of the Government Ø 4. Central Development Working Party (CDWP) Ø Headed by the Deputy Chairman, Planning Commission , the Secretaries of the Federal Ministries, heads of the Planning Departments of the Provincial Governments as its members. Ø 5. Departmental Development Working Party (DDWP/DSC) Ø Headed by the respective Secretary/ Head of Department and includes representatives of Finance Division and concerned Technical Section in the Planning and Development Division. Ø 6. Provincial Developing Working Party Ø headed by the Chairman, Development Board/Additional Chief Secretary (Development) and includes Secretaries of the Provincial Departments concerned with development, as its members

Project Monitoring Internal Monitoring Sponsoring Ministry Ø External Monitoring Provincial P & D Dept. Ø Projects Wing at Planning Commission Monitoring Cells Establishment of Planning And Monitoring Cells in ministries as directed by ECNEC. Monitoring Methodology Results Based Monitoring E-connectivity through Project Monitoring and Evaluation System (PMES) Project Director Provincial P&D Departments Line Ministries Planning Commission Prime Minister Secretariat Funding Agencies

Mission & Objectives of BISP ü Meeting the targets set by Millennium Development Goals: ü Establishment of largest & transparent Social Safety Net. § Eradication of extreme & chronic poverty § Empowerment of women q BISP is model for other countries. It is based on the MDGs. Ban Ki-moon

Background of BISP Ø During 2007, other major public safety net program were the Ministry of Religious Affairs (Zakat Program); the Bait-ul-Mal (Food Support Scheme); the Employees’ Old Age Benefit Institution (social security); Ø World Bank (2007) estimated 30 % poverty in Pakistan Ø donor agencies assisted in the development of the National Social Protection Strategy (NSPS) 2007 Ø BISP, a holistic social protection strategy initiated with donor agencies, ADB, World Bank and UK Department for International Development (DFID), Ø The World Bank in extended significant technical assistance regarding the program’s design Ø ADB asked for quarterly progress reports on BISP implementation to be prepared by the BISP Secretariat and submitted to it

Stages of BISP Designing and Implementation Design Phase I (NADRA) 2008 -09 Disqualification filters: monthly income less than Rs. 6, 000, applicant needed to possess a CNIC, No employment in government/ semi-government authority, No machine-readable passport, Not possessing agricultural land, No other source of income Design Phase II (MNAs) Design Phase III (poverty scorecard) Implementation Phase I (MNA forms) Implementation Phase II (PMT) NADRA = National Database Registration Authority; PMT = proxy means test. Several classes of special beneficiaries were identified: widowed/divorced women without adult male members in the family; physically or mentally challenged person in the family; and family members suffering from a chronic disease.

Targeting Poverty Scorecard Survey The government sought technical assistance from the World Bank as it was using poverty scorecard for social protection in Latin America First time ever in Pakistan, a Proxy Means Testing based POVERTY SCORECARD SURVEY was conducted in the entire country in order to improve targeting and have an objective assessment of the poverty

Current BISP Program Cycle Design, management, M&E Targeting – PMT Data validation and verification Disbursement BISP PPAF, PCO, RSPN NADRA Smart cards, PPO The selected agencies were The Population Census Organization (PCO), the Rural Support Programm Network (RSPN) and the Pakistan Poverty Alleviation Fund (PPAF)

Institutional and Administrative Arrangements a). BISP established under the Ministry of Finance with a separate Management Board b). Advisory Council to BISP includes the President and Prime Minister as its member. Operationally, the program has three departments 1. Operations Wing, responsible for the program’s design and its implementation, monitoring and grievance redressal 2. General Administration Department; 3. Finance and Accounting Department. Data management and monitoring of the BISP is undertaken through a comprehensive Management Information System (MIS) that is housed centrally at NADRA in Islamabad

Separation of Functions To further ensure transparency BISP has adopted following separation of functions:

Technology Based Transparency Benazir Income Support Program is a transparent public program that is nonpartisan and is designed for reducing poverty across Pakistan. The program is receiving praise and recognition in the international community. Ex President World Bank, Robert B. Zoellick Targeting PMT based Poverty Scorecard Survey using GPS. Verification Through State of the Art NADRA Database Payments Smart Card/ Mobile Banking/ Branchless Banking. Grievance Redressing Solutions based management information system

Donor’s Support WB, ADB, USAID Due to the transparency, objectivity and efficacy of the program, international financial institutions and donor agencies have shown full trust in BISP. World Bank funded Social Safety Net Technical Assistance worth (US$ 60 million) USAID support for cash grants – US$ 160 million Asian Development Bank support for cash grants – US$ 150 million

BISP Initiatives ØBENAZIR SMART CARDS distributed among the beneficiaries ØMobile Phone Banking has also been started in selected districts ØMobile phones distributed in pilot district free of cost. ØCash grant of Rs. 2, 000/- every alternate month ØBeneficiaries: up to 5. 5 million families ØTotal Cash Grant Disbursements: more than Rs. 70 Billion

Waseela-e-Haq (interest-free financial assistance ) Ø Long-term interest-free financial assistance of Rs. 300, 000, along with basic training & counseling, to randomly selected (computerized balloting) beneficiaries for small businesses Ø Based on the premise that marginalized families have skills, which remain unutilized and untapped Ø Alternative to the conventional banking system, which rejects the poor classifying them non-creditable. Ø Based on personal trust instead of any collateral. 3 - 1 Identification of business. 2 Counseling regarding choice of business. Necessary training required to execute the identified 4 - business. Monitoring and evaluation of

Waseela-e-Rozgar (vocational training) ( Beneficiary or her nominee Choice of training Boarding lodging facilities Demand driven free technical and vocational training offered to one individual of beneficiary family Ø Duration of training is: 4 weeks, 3 -6 months and one year Ø Certificate based skill as well as in-house or product based training Ø Domestic as well as international market demand has been ascertained through Ministry of labor and Manpower Ø Ø

Waseela-e-Sehet (Health Services) Ø to Improve access to health services and reducing income loss Ø Life Insurance of Rs. 100, 000 provided to the bread earner of the beneficiary’s family. Ø 1 million beneficiary families have been provided life insurance Ø Health and Accident insurance cover will be provided to all members of beneficiary's families Ø Maximum benefit cap of Rs. 25000/- per family per year Ø Benazir Health Cards (Biometric cards ) are COMPUTERIZED issued to DEDUCTION FROM THE enrolled families ACCOUNT OF USER

Wseela-e-Taleem (education support) • cash transfer program for the primary education of the children aged 5 -12 years (3 younger children) • BISP provide cash transfers while families agree to send and retain their children in primary schools • BISP’s data (poverty scorecard survey) shows that over 71% children of its beneficiaries have never attended a school

Impact of BISP Ø moving from general subsidies towards targeted cash grants Ø As of today, more than 27 million households have been surveyed, Ø 7. 2 million families have qualified the PSC eligibility, Ø 4. 7 million families are receiving income support in the form of monthly cash benefits of PKRs 1000 ($12)/ benefiting more than 20 million people directly Ø disbursed more than US$1 billion in the form of cash grants to 4. 7 million families, Ø empowering women by disbursing the cash only to the female Ø encouraged women to register with the NADRA for NIC

Cont. …. Ø it can potentially open avenues for women’s socio-economic and political empowerment Ø credible foundation for a national poverty registry. Spot-checks show the accuracy rate of the poverty scorecard survey as 95. 4 % Ø microfinance in the form of returnable interest-free loans up to Rs. 300, 000 to families selected through a monthly computerized random draw, for setting up of small businesses. Ø So far 41 draws held and a total of Rs. 40, 868 beneficiaries have been declared eligible. A total of Rs. 1. 8 billion have been disbursed up to March 2013 Ø payment through debit cards was initiated in April 2010, Ø presently making these electronic payments to about 800, 000 families

Cont. …. Ø issued 700, 000 Watan Cards (pre-loaded cards) under the government's poverty alleviation scheme to make flood relief payments in 2011 Ø Continuous support of the donors Ø Given the success of BISP the WB approved additional US$150 million for education initiative of the program Ø BISP is a transparent program. Ex President WB, Robert B. Zoellick Ø In the next 3 years, BISP is expected to cover about 7 million poorest families Ø The Floods Emergency Cash Transfer (FECT) Project, which supports the government’s Citizen’s Damage Compensation Program (CDCP), is reaching out to more than one million households (roughly 9. 5 million people), affected by 2010 floods

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