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Zia Benazir Income Support

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    Regional Workshop on Social Assistance & Conditional Cash Transfers

    ADB Headquarters, Manila, 23 to 24 July 2009Presentation by

    Omer Bin Zia, Director / Deputy Secretary

    Benazir Income Support Programme

    Government of Pakistan

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    Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views orpolicies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not

    guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminologyused may not necessarily be consistent with ADB official terms.

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    Sequence of Presentation Economic & Demographic Context

    Cash Transfers Basics

    BISP Objectives & Coverage

    Original Design of BISP

    Reformed Design of BISP

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    2005-2007

    Inflation: over 10% Food Inflation: 13-15%

    2007-2008 Oil price shock, inflation rate doubled

    Purchasing power since 2005 ~ halved

    Inflation in 2008-2009 was above 20%

    Urgent need for direct and speedy relief

    Economic Context

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    Pakistans Demographic Profile

    All 4 provinces, including FATA, AJK, FANA & ICT

    Households 25 mPopulation 166 m

    Assumed Poverty Line: 33%

    Bottom 33% Bottom 20% Bottom 10%

    Households 8.2 m 5.0 m 2.5 m

    Population 55.0 m 33.2 m 17 m

    Source: Pakistan Economic Survey, 2007-08; adjusted for AJK & FANA population

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    Complements other social protection instruments

    and services like health, education etc.

    Confers dignity and choice.

    Lower transaction cost and higher value to

    beneficiaries than in-kind support. Impacts short term food security and long term

    alleviation of poverty.

    BISP can serve as a mechanism to deliver cashassistance in times of natural disasters/ crisis in

    affected areas.

    Why Cash Transfer?

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    Musts for Cash Transfers Be timely

    Temporary so as not to create dependency

    Not too large, so as not to jeopardize workincentives or have an inflationary effect

    Must end as livelihood bounces back

    Careful attention to design and implementation

    Careful monitoring and evaluation

    Eligibility criteria to be predefined, transparent,easy to explain and simple to administer

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    A measure to compensate low income families for

    reduction of purchasing power. A cash grant of Rs. 2000/ every alternate month.

    Only one benefit per family.

    Empowering Women: Only female recipients:Female head of family or adult female member of

    the family can be a recipient.

    BISP Objectives

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    BISP Coverage Allocation for 2008-09: Rs 34 bn (US$ 425 m)

    ~ 0.3% of GDP Target coverage (3.5 million families) ~ 15% of the

    population

    Allocation for 2009-10: Rs.70 bn (US$ 875 m) Target beneficiary families for 2009-10: 5 million

    Plans over the medium term to extend coverage to 7

    million families by 2010-2011

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    Organizational Structure A Federal Programme

    An autonomous organization A high powered Management Board

    A Programme Implementation Unit at Federal level

    - Operations Department- Finance and Accounting Department

    - Administration Department

    Provincial Offices

    Divisional Offices

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    Original Design of BISP

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    Separation of Functions Functional Separation for Transparency and

    Efficiency

    BISP Parliamentarians NADRA Pakistan Post

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    Targeting - 1 Eligibility Criteria

    Monthly income less than Rs. 6000 No family member in government service

    Possession of no or less than 3 acres of agricultural

    land or up to 3 marlas residential property

    Possession of Computerized National Identity Card

    Should not be beneficiary of other support programmes

    Should not have an account with a foreign bank

    Should not possess a passport or an Overseas Pakistani

    identity card

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    Targeting - 2 Identification of applicants / recipients through

    democratically elected Parliamentarians. Equal number of forms distributed to each

    Parliamentarian

    Attestation by local level representatives ofParliamentarians and Union Councilors

    Screening / Verification of basic criteria through

    checks with National Database & RegistrationAuthority (NADRA)

    Cost effective & quick targeting process

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    Benefits Level A cash grant of Rs. 2000/ every alternate

    month.

    Rs. 1000 = 20% increase in income forfamily earning Rs. 5000/ pm

    At prevalent prices Rs. 1000 payout is sufficientto finance 20-25 days flour needs of a family

    with 5-6 individuals

    Rs. 1000/ pm not a labor disincentive onlywomen family member is recipient

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    Payment Mechanism Postal Money Orders of Rs. 2000 every

    alternate month through Pakistan Post

    Accessibility and Affordability main advantages

    System also Reliable and Safe

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    Monitoring of Payments

    Internal monitoring mechanisms of Pakistan PostDepartment

    External Monitoring through BISP Provincial andRegional Offices

    Pakistan Post reports monthly (electronically) toBISP on payments, with list/addresses of housesand name of postman making the delivery

    Eligibility and Payment status available on BISPwebsite www.bisp.gov.pk

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    Special Initiatives of BISP Emergency Relief Package launched for:

    Internally Dislocated Persons (IDPs) from

    Federally Administered Tribal Areas and Swat

    due to Operations against terrorists Earthquake affected districts of Baluchistan

    province

    Victims of bomb blasts and terrorism

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    Reformed Design of BISP

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    Separation of Functions Functional Separation for Transparency and

    Efficiency maintained in reformed design:

    BISP Poverty Scorecard

    Survey by PartnerOrganizations

    NADRA Smart Card &

    Pakistan Post

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    BISP Reform Plan

    Test Phase of Poverty Scorecard Survey

    Nationwide Rollout of Survey

    Phased transition of benefits to families

    identified through PMT based targeting Expansion / addition of complementary

    programmes

    Graduation / Exit Strategy

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    Test Phase Survey- Improved Targeting

    Poverty Scorecard adopted

    Three survey organizations

    Approximate number of households: 2.5million

    NADRA to handle the:

    Data entry, validation and verification

    Apply Proxy Means Testing formula through an

    MIS

    A cut off score to be decided by governmentbased on the pilot results and funds availability

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    Test Phase Survey- Improved Targeting

    Survey of households in 16 districts in all 4

    provinces and AJK/NA Districts selected on the basis of poverty level,

    presence of survey organization, accessibility

    and law & order situation Process evaluation and spot check consultants

    appointed to ensure the quality

    Formulation of transition strategy forbeneficiaries

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    Test Phase -Implementation Status

    Enumeration / data collection Completed in 5 districts in June 2009 by 1st partner

    To be completed by end-July 2009 in 5 districts by 2nd

    partner

    To be completed by mid-August 2009 in 6 districts by 3rd

    partner

    Data Entry, Validation / Verification and CaseManagement MIS being developed by NADRA

    Data processing completion expected by end-August

    Payments in pilot districts under new targeting tostart from September 2009

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    Management Information System

    Targeting and Eligibility

    Grievance Redressal/ Case Management

    Payments & Financial Reconciliation

    Monitoring and Evaluation

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    Graduation / Exit Strategy

    Discussions initiated with Development

    Partners:

    Vocational Training / Skills Development

    Micro-Finance / Income Generating Projects

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    Challenges Vulnerable economy

    Law and Order

    Political commitment

    Social accountability

    Institutional capacity

    BISPs capacity to handle a nationwide rollout andsubsequent operations

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    Thank you

    References:

    1. Dr. Mukhtar Ahmad, Director General (Operations) BISP.

    2. Grosh, M., Ninno, C., Tesliuc, E. & Ouerghi, A. (2008), The Designand Implementation of Effective Safety Nets: For Protection &

    Promotion The World Bank, Washington, D.C.

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