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BISP presentation


Benazir Income Support Programme BISP presentation

Benazir Income Support Programme BISP presentation

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  • 1. BISP BENAZIR INCOME SUPPORT PROGRAMME Government of Pakistanwww.bisp.gov.pk 1
  • 2. BISPBackgroundCommitment• To realize the dream of making Pakistan a welfare state.• Poverty Alleviation and women empowerment.Conviction• War against terrorism and poverty which breeds extremism. 2
  • 3. BISPVision, Mission & Objectives  Meeting the targets set by Millennium Development Goals:  Establishment of largest & transparent Social Safety Net.  Eradication of extreme & chronic poverty  Empowerment of women 3
  • 4. LAUNCHING OF BISP• BISP launched in July 2008.• Remarkable progress in short time.• Relief to 4 million families.• Relief to Internally Displaced Persons (IDPs – Swat & FATA).• Relief to flood affectees.• Relief to Bombs Blast/Terrorism Victims.• Rs. 7 billion disbursed so far to BISP beneficiaries. 4
  • 5. RECOGNITION• August 2010 – Both Houses of Parliament unanimously approved the BISP Act 2010 due to transparency, integrity and efficiency of BISP.• BISP now leading Social Safety Net Authority.• International recognition due to technology based & transparent system.• President WB, UN Secretary General, US Government, UK Government, ADB have appreciated and provided financial and technical support to BISP. 5
  • 6. ESTABLISHMENT-BISPRegional Head Quarters 6Divisional Directorates 35Tehsil Offices 550* Complaints redressing and monitoring offices, establishment under process . 6
  • 8. CASH GRANTS  To compensate marginalized and low incomefamilies.  A cash grant of Rs.2,000/- every alternate month. Beneficiaries: 4 million families. Total Cash Grant Disbursements: more than Rs.70 Billion. Scientific Targeting based on POVERTYSCORECARD SURVEY. Payment through Money Orders, Mobile Banking & Smart Card.  Target: 5 - 7 million families by June 2011. 8
  • 9. IMPROVED TARGETING POVERTY SCORECARD SURVEYFirst time ever in Pakistan, a Proxy Means Testing based POVERTYSCORECARD SURVEY is being conducted in the entire country toimprove targeting and have an objective assessment of the poverty.Pilot phase of this survey was done in 16 districts from all over Pakistan.Nationwide Survey has also been completed in Baluchistan, AJK, andGilgit Baltistan. In total 60% of the country has been surveyed.Data entry is simultaneously going on in NADRA.Approximately 1 million families have already been identified in 38districts whose data entry has been completed.Nationwide Survey is planned to be completed by June 2011.  9
  • 10. PAYMENT MECHANISMSTransparency is the keystone of BISP’s functions. Initial mode ofpayment was through money orders. Now BISP is planning tomodernize the payment mechanism by introducing technologybased solutions through BENAZIR SMART CARDS / BRANCHLESSBANKING.For cash grant payments, transition from manual payments (moneyorders ) to BENAZIR SMART CARD has started in selected districts(Mirpurkhas, Sanghar, Mianwali, and Multan).Approximately 174,000 beneficiaries have already received BENAZIRSMART CARDS.Mobile Phone Banking has also been started in selected districts(Larkana, Layyah, Barkhan, and Batagram).More than 32,000 mobile phones have already been distributed in pilotdistricts free of cost. 10
  • 11. DISBURSEMENT THROUGH MONEY ORDERS1. Initially, Benazir Income Support Programme was distributing its funds through Money Orders.2. A large number of complaints: • Non-payment • Late payment • Demand of bakhsheesh • Delivery of Money Orders at the Post Office rather than door-steps etc.1. Pakistan Post could not put in place a viable mechanism to address the complaints expeditiously.2. The data not reconciled well in time. Results in outstanding amounts with the Pakistan Post. 11
  • 12. BENAZIR SMART CARD• The mechanism will further strengthen the transparency and speedy delivery to beneficiaries.• The mechanism includes modern modes of branchless banking systems e.g. Card to Phone, Card to Point of sale and Phone to Phone.• This payment mechanism (Card to Phone) has already been implemented in the four districts (Mianwali, Multan, Sanghar and Mirpurkhas), where the Poverty Scorecard Survey has already been completed. 12
  • 13. Continued…• UBL, through a competitive bidding process, has been selected as the Payment Agency.• Main features of the system are as follow;• The payments process handled by UBL is electronic in its purest definition.• Cards are sourced by and personalised by NADRA.• Personalised cards are delivered to the appropriate NADRA issuing office.• Beneficiaries are authenticated - finger print match to NADRA Automated Fingerprint Identification System (AFIS) and cards are issued. 13
  • 14. Continued…• NADRA informs BISP when beneficiaries issued cards. Cards are activated within 3 days.• The card issuance information is sent by BISP to UBL for accounts opening process.• Beneficiary presents themselves in person to collect cash at a UBL (OMNI) branch.• The Smart Card is scanned using a QR infra-red bar code scanner connected to a personal computer (PC) that is online through an Internet connection. 14
  • 15. Continued…• First time a user presents himself to receive first payment, the Cards PIN (printed on the PIN mailer with the card) is changed as required by the payment system.• The franchisee then establishes how much money is available.• The franchisee then draws the full amount payable to the beneficiary. 15
  • 16. Continued…• The beneficiary is paid in cash (normally either Rs 1000 or Rs 2000), required to sign a register of payment with their fingerprint and is then handed back their cards.• After the successful pilot in 4 districts, payment mechanism is being implemented in 12 districts where the poverty survey was conducted during the pilot phase. 16
  • 17. Phone To Phone Delivery System• Another Alternate Payment System (Phone to Phone) being launched is also a mode of branchless banking system.• 12 districts will be covered.• The proposed methodology: – BISP’s beneficiaries will be issued specially formatted mobile phone set/SIMs. – Payments to the beneficiaries will be made by the payment agency, franchise or agents. 17
  • 18. Continued…– The system shall allow for payments to be made to BISP beneficiaries that have a mobile phone and most importantly those who do not have a mobile phone.– BISP will create a payments schedule monthly that lists each beneficiary’s CNIC and the amount that is to be paid to the beneficiary by the nominated agents.– BISP would transfer funds equal to the total of funds to be paid to beneficiaries plus any fees to the service provider. 18
  • 19. Continued…– The system would hold a balance due to the beneficiary, such beneficiary being identified by their CNIC number (and not necessarily a mobile phone number).– When the beneficiary presents themselves at the payment agency’s agent, the agent must identify the beneficiary against their CNIC card and/or BISP card that would include a photo of the beneficiary. 19
  • 20. Continued…– Satisfied as to the identity of the beneficiary, the agent would make the applicable payment to the beneficiary (per the balance held in the payment system).– The agent would be required to take a photo of the beneficiary being paid and MMS such with the beneficiary CNIC to a mobile network number designated by BISP from time to time. 20
  • 21. EMERGENCY RELIEF PACKAGES• BISP is also implementing an Emergency Relief Package for Internally Displaced Persons (IDPs) of FATA, Swat, Bajaur and South Waziristan and earthquake affectees of Baluchistan. – A total of Rs.28 million has been paid to 3965 IDPs families. – A total of Rs.34 million has been paid to 3729 earthquake affected families in Baluchistan. 21
  • 22. Continued…• An agreement with United Bank Limited (UBL) was signed by BISP to pay benefits to 318,126 verified IDPs from Swat/Malakand. A total of 120,000 cards were issued to the IDPs. Rs. 12000 were disbursed to each IDP family from April, 2009 to March, 2010 at the rate of Rs.1000/- per month.• Data on the bomb blast victims is obtained and benefits are paid to the next of kin in case of a deceased person and the victim in case of injury.• A total of 720 victim families were registered and Rs.1.4 million paid up till now. 22
  • 23. WASEELA-E-HAQLong-term interest-free financial assistance of Rs.300,000, alongwith basic training & counseling, is given to randomly selectedbeneficiaries for small businesses. 1- Identification 3- Necessary of business. training required to execute the identified business. 2- Counseling 4- Monitoring and regarding choice evaluation of of business. business. * * Against already determined Objectively Verifiable Indicators (OVI’s) 23
  • 24. WASEELA-E-HAQ: SALIENT FEATURES Offers long term interest free returnable financial assistance through computerized balloting to randomly selected beneficiaries. Based on the premise that marginalized families have skills, which remain unutilized and untapped. Alternative to the conventional banking system, which rejects the poor classifying them non-creditable. . Based on personal trust instead of any collateral. So far more than 14000 families have been pre- qualified in 17 draws. 24
  • 25. WASEELA-E-ROZGARDemand driven, free of cost, Training Facility &technical & vocational training Trainersis offered to one individualper beneficiary family. Choice Beneficiary Training of or her Expenses Training Nominee Boarding and Lodging 25
  • 26. WASEELA-E-ROZGAR: SALIENT FEATURES Domestic as well as international markets’ demand has been ascertained through Ministry of Labour & Manpower. Certificate-based skills as well as in-house or product- based training. BISP, through partner organizations, is providing guidance & counseling to the trainees, training in vocational training centres by professional trainers. Duration of offered training is: 4 weeks, 3-6 months and one year. Training has already started in Bannu and Karak districts. 26
  • 28. WASEELA-E-SEHET: SALIENT FEATURESFirst Phase Life Insurance of Rs. 100,000 provided to the bread earner of the beneficiary’s family. Approximately 1 million beneficiary families have been provided life insurance.Second Phase Health and Accident insurance cover will be provided to all members of beneficiarys families. Maximum benefit of Rs.25000/- per family per year. Benazir Health Cards (Biometric cards ) will be issued to enrolled families. 28
  • 29. EMERGENCY RELIEF PACKAGE• Addresses the urgent financial needs of the families affected by any emergency. BISP reached flood affectees immediately due to availability of a current and extensive data base. Financial assistance provided to:  Victims of 2010 Floods.  IDPs of Swat, FATA and Bajur.  Civilian bomb blast victims.  Earthquake affected families in Baluchistan. 29
  • 30. EMERGENCY RELIEF PACKAGEFollowing disbursements have been made tothe families affected by emergency. 30
  • 31. SEPARATION OF FUNCTIONSTo further ensure transparency BISP hasadopted following separation of functions: 31
  • 32. TECHNOLOGY BASED TRANSPARENCY Following initiatives have been taken for the first time in the history of Pakistan: PMT based Poverty Scorecard Targeting Survey using GPS. Through State of the Art NADRA Verification Database. Smart Card/ Mobile Banking/ Payments Branchless Banking. Grievance Solutions based management Redressal information system. 32
  • 33. DONOR’S SUPPORT• Due to the transparency, objectivity and efficacy of the programme international financial institutions and donor agencies have shown full trust in BISP.• Major donors of BISP are: 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. 33
  • 34. BENAZIR INCOME SUPPORT PROGRAMME Thank You www.bisp.gov.pk BISP MEDIA WING:11112010 34