Micro Economics

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 Names ihtisham Ahmad ,Haseeb , Naeem, Talha
 Roll no # 2355, 2323,2375,2397
 Topic Role of social safety nets in eradicate of
poverty BISP
 Submitted too Mam saima
 Department B. COM
 Title Macro economics
 Semester 2nd
TABLE OF CONTENTS
Name Roll no Topic Page no
Ihtisham
Ahmad
2355 Social safety
BISP
2-3
Haseeb
Raza
2323 Pm launchBISP
graduation
3-4
M. Naem 2375 BenazirIncome
Supportin
peshwar
4-5
M. TALHA 2397 BISPcash
transfer
program
household
6-7

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 INTRODUCTION :
The Benazir Income Support Program (BISP) is a federal unconditional cash transfer
poverty reduction program in Pakistan. Launched in July 2008, it is the largest single
social safety net program in the country with nearly Rs. 90 billion distributed to 5.4
million beneficiaries in 2016.Poverty is denial of choices and opportunities and a
violation of human dignity. It is a condition in which a person or a community lacks the
basic needs required for the maintenance of a minimum standard of living. Generally,
deprivation from food, safe drinking water, shelter and access to education & health
care services is called poverty. However, poverty is a relative phenomenon and
comprises of many dimensions. It also encompasses inadequate physical security, lack of
voice, and insufficient capacity and opportunity to better one’s life. In short, poverty is
viewed as consequences of the poor not earning enough money and therefore not being
able to acquire enough food or assets to reach an acceptable standard of living.
I. History
The Benazir Income Support Programmed was established in 2008 by Yousaf
Raza Gillani who took the advice of President Asif Ali Zardari. The program’s
name is a tribute to former Prime Minister and widow of President Zardari,
Benazir Bhutto, who was assassinated in 2007.BISP is currently the largest aid
program in Pakistan and the government’s third largest budgetary allocation.
BISP spending accounts for .3% of Pakistan’s GDP.The Benazir Income Support
Programmed is planning to launch a new initiative that encourages human
capital development through a conditional cash transfer. The Waseela-e-Taleem
initiative will condition cash payments on primary school enrolment for the
children of eligible families. On 18 June 2017, BISP launched an e-commerce
platform for its beneficiaries.
II. Program structure
The Benazir Income Support Program has been implemented in the provinces of
Punjab, Sindh, Baluchistan, and Khyber-Pakhtonnkhwa. The program also
operates in the federally administered regions of Azad Jammu and Kashmir, and
the Islamabad Capital Territory. In its first year of operation, recipients of BISP
cash transfers were identified and selected by Parliamentarians through a
process of recommendation. Each Parliamentarian received 8,000 forms to
distribute throughout his or her constituency. Selected individuals underwent an
eligibility verification process through the National Database and Registration
Authority. A final list of eligible families was generated and sent to the postal
service. Funds were disbursed from the Treasury directly to the postal service
and then delivered to the female head of eligible households.BISP also provides
Role of social saftey nets eridicate program by BISP

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cash payments for emergency relief efforts. These payments are similar to the
payments received by low-income families.
III. Benefits
Eligible families receive cash payments of 4834 quarterly. This amount increases
the purchasing power for families earning approximately RS 5,000 each month
by 20%. Most low-income families spend 50–70% of total income on food alone.
According to BISP, the cash payment of RS 3,000 every two months, or RS 1,500
each month, will allow a family of 5–6 to purchase 20–25 days worth of
flour.Internal monitoring systems are being developed to track deliveries and
payment amounts to eligible families. Another mechanism to address corruption
and political favouritism is being considered that would allow a neutral third
party.
 PM launches BISP Graduation program , Endowment Fund;
announces PKR 1 Billion
On the occasion, the Prime Minister also unveiled the plaques for the BISP Endowment
Fund and BISP Graduation Program. Addressing the ceremony, the Prime Minister said
that the government takes pride in the program that has seen an increase in allocation
and cash transfers by over 50 percent. He said that the budget was allotted the program
was kept large as the government believed in helping rid the country of poverty. The
Prime Minister said the graduation program under which the most deserving of the
beneficiaries were being paid lump sum Direct Cash to help stand on their feet by
launching their business would play a key role in alleviating poverty. He also appreciated
the second intervention of graduation model i.e. Business Incubation for Self-
Employment (BISE) for playing a key role in community led poverty eradication. He was
appreciative of the program and said that any social net that was catering to the poorest
of the poor was vital for any society. He spoke high of the philanthropists and
development partners who were making the programme a success and playing their part
in supporting the government. He said he had high hopes from the beneficiaries as well
as they would contribute in the progress and prosperity of the country. Mr. Abbasi said
he believed that the allocations for the programme need to be further increased and
should target efforts to eradicate poverty in the next five years. He expressed the hope
that the next government would continue to expand the programme and keep its focus
on the Graduation Programme besides taking measures for expanding its volume and
scope. He also lauded the role of Chairperson of BISP Marvi Memon and her team for
their dedicated efforts in making the programme a success. She recalled Prime Minister
Abbasi last speech wherein he hoped that the programme ends after eliminating
poverty from the country and said till the achievement of that goal the BISP would
continue to reach out to the poorest of the poor with complete dedication. She said the
BISP has funds of Rs 121 billion.
 Prime Minister releases the Policy Statement on Ehsaas April 08, 2019

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“I am pleased to release my policy statement on #Ehsaas, my priority poverty reduction
program with its 4 focus areas and 115 policy actions to reduce inequality, invest in
people, and lift lagging districts” he tweeted. Ehsaas’ poverty reduction strategy is
articulated in four pillars and it currently embodies 115 policy actions, which may be
expanded as the process of consultations on the program further widen. The four pillars
include: addressing elite capture and making the government system work to create
equality; safety nets for disadvantaged segments of the population; jobs and livelihoods;
and human capital development. This extensive agenda is meant to drive the
governments entire might in the pursuit of the objectives of equality and human
development. Earlier during the launch of the program on March 27th, the Prime
Minister had outlined that his inspiration for Ehsaas comes from the welfare model of
Riasat-e-Madina. The manner in which he links this inspiration with today’s realities of
the country are outlined in his statement “Ehsaas is about the creation of a ‘welfare
state’ by countering elite capture and leveraging 21st century tools—such as using data
and technology to create precision safety nets; promoting financial inclusion and access
to digital services; supporting the economic empowerment of women; focusing on the
central role of human capital formation for poverty eradication, economic growth and
sustainable development; and overcoming financial barriers to accessing health and
post-secondary education”.
To realize this vision the first step has already been taken. The Ministry of Poverty
Alleviation and safety nets was swiftly created after the Cabinet approval on last
Tuesday. Dr. Sania Nishtar, Chair of the Poverty Council and BISP and the architect of
the Ehsaas program has assured that implementation of Ehsaas will be “super
expedited” and a mechanism will be in place within a week to coordinate action on this
huge agenda, which entails roles of 36 federal and provincial agencies and action on 115
policy parameters. Dr Sania added that “Institutionalizing integrity and efficiency
frameworks, risk assurance and management, performance metrics, operational work
plans, are urgently needed to make institutions transparent, accountable and
responsive, which is a necessary for successful implementation of ”
 The Role of Benazir Income Support Programme in Poverty
Reduction in the villages of District Peshawar
I. INTRODUCTION
Social protection policies directly reduce poverty by protecting the poor and
contribute to their social cohesion and stability. Social protection improves the
productivity and employment of poor people, increases their incomes and links
short term coping strategies with longer term growth enhancing and poverty
reduction strategies. The state has a primary role in providing the framework for
delivering social protection. It is the duty ofevery government to give its public
each and every possible facility of life, to give them basic necessities of survival,
provide them sufficient capacities and opportunities to make their lives
prosperous.. Under the objectives; enhance financial capacities of the poor
people and their dependent family members; formulate and implement

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comprehensive policies and targeted programme for the uplift underprivileged
and vulnerable people; and to reduce poverty and promote equitable
distribution of wealth especially for low income groups. The programme start a
cash grant of Rs. 1000 per month to the females of each qualifying household
having a monthly income of less than Rs. 6000 through banks/post offices.
Allocation for the year 2009-2010 was Rs. 70 billion covered five million families,
15% of the entire population following Rs. 34 billion for the year 2008-09. For the
year 2010-2011, allocation was Rs. 90 billion with targeted coverage of 6.5
million families. The government has so far disbursed Rs. 93 billion among the
beneficiaries since the inception. Benazir Income Support Programme has
involved as an economic development approach intended to benefit low income
people of the country.
II. Justification of the Problem
Pakistan is a developing country, where a large proportion of the population is
living below the poverty line and living a miserable life. These people lack
employment opportunities, educational facilities, access to clean water,
sanitation and health care facilities etc. This deprived section of the society is
posing several problems for the government and becoming a major problem for
the government. Dealing with this critical issue, the PPP government launched
the BISP for providing some kind of relief to these poor people and for ensuring
their access to the basic needs.
III. RESEARCH METHODOLOGY
The aim of the present study is to analyze the role of Benazir Income Support
Programme (BISP) in poverty reduction in District Peshawar. For this purpose,
primary data was collected from the female beneficiaries of the two villages
Palosi and Mulozai. These areas have been selected because a large number of
people are receiving the funds here and are comparatively more vulnerable to
poverty. For the collection of the data a comprehensive questionnaire, consisting
all the important information relevant to the objectives of the study has been
designed. The data has been collected from a sample size of 50 randomly
selected females’ funds receivers of both the villages. However, the sample size
has been equally distributed between the two villages i.e. 25 respondents were
chosen from village Palosi and 25 were selected from Mulozai. Although the
government is running different programme through BISP. However, this study
has been limited only to the female beneficiaries from cash grant scheme i.e.
females who are receiving a monthly payment of 1000 rupees.
This section shows the survey results. The purpose of this section is to
descriptively present the perceptions of the female beneficiaries of the selected
villages of district Peshawar (i.e. Palosi and Mulozai) about the Cash Grant
monthly aid of the government of Pakistan Benazir Income Support Programme
(BISP). The total number of the funds receivers (respondents) was 50 which were
equally distributed between the two villages.
IV. CONCLUSION

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The study was conducted for analyzing the role of Benazir Income Support
Programme in poverty reduction in District Peshawar. For this purpose, a sample
size of 50 female beneficiaries were randomly selected from the two purposively
chosen villages namely Palosi and Muozai. The study results showed that Benazir
Income Support Programme has positive impact on the lives of the beneficiaries
and playing a key role in their poverty reduction. Although some females
complained about the corruption in the funds transferring system of the
program. Yet, majority of the respondents were found satisfied. Overall, the
results show that BISP is playing a key role in the poverty minimization of the
poor. On the basis of the results of the study it is recommended that the
government should make efforts.
 Effectiveness of Cash Transfer Programme for Household
Welfare in Pakistan: The Case of the Benazir Income
Support Programme
I. INTRODUCTION
Cash transfer programme are widely considered a ‘magic bullet’ for reducing
poverty. Whether their impact on poverty reduction is as incredible as claimed is
debatable, but they are gaining credibility as an effective safety net mechanism;
consequently, they have become an integral part of inclusive growth strategies in
many developing countries. As shown by Ali (2007), inclusive growth rests on three
basic pillars: (i) the generation of full and productive employment, (ii) capability
enhancement and skill development to broaden people’s access to economic
opportunities, and (iii) a basic level of wellbeing by providing social protection.
Safety nets are at the core the last pillar, and are provided mainly through cash
transfer. Pakistan is going through a prolonged phase of stagflation, making the
provision of social safety nets all the more important. Even during periods of high
economic growth, the ‘trickle-down effect’ did not essentially take place, making it
necessary to introduce safety nets in the overall poverty alleviation
II. THE BISP AND OTHER SAFETY NET PROGRAMMES IN PAKISTAN
“The state shall: provide for all persons employed in the service of Pakistan or
otherwise, social security by compulsory social insurance or other means; and
provide basic necessities of life, such as food, clothing, housing, education and
medical relief, for all such citizens, irrespective of sex, caste, creed or race, as are
permanently or temporarily unable Whether this commitment is fulfilled in practice
is a separate debate, but a whole range of safety net programme has been initiated
over the years. A discussion on all these initiatives is beyond the scope of this paper,
which focuses specifically on the BISP. such programme need to not only improve
their accessibility by the poor, but also devise means to encourage the poor to move
out of poverty permanently and improve social security in the larger context.
BISP Public funds Cash as Married females income from very poor
support households National Federal govt.
a. Criteria for Evaluation of Safety Net Programme

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Targeting: the extent to which a programme reaches its intended target population
rather than those who do not actually need it. Coverage. The proportion of the
target population that benefits from a programme. Administrative cost: the
proportion of the administrative cost against that used on the benefits. Accessibility.
The ease with which an eligible household can access the programme socially,
monetarily, logistically, and administratively. Adequacy: the sufficiency of the safety
net, such as a cash transfer, for it to have any positive effect. Positive incentive
effect: safety nets that provide a positive incentive not only help sustain the
programme but also serve to alleviate poverty in the larger context. Sound financing
source: safety nets with well-defined, self-reliant sources are fiscally more
sustainable than those relying on ad hoc, external sources. Independence from
other transfers: a transfer taking place under a particular programme should not
exclude other transfers, the removal of which may have net negative effects on a
household’s welfare.
b. Households Receiving Assistance in Pakistan
Before we examine the BISP’s performance against some of these criteria, let us outline
how many households are receiving any cash assistance, and their sources, in the study
sample. As reported by respondents in the PPHS 2010 (shown in Table 2), 10.7 percent
of households receive cash assistance from a variety of programme, with no major
difference in trends between urban and rural areas. Among these programme, the BISP
is the largest, covering about two thirds of the total households receiving any form of
cash transfer in rural and urban areas.
Number of Households Receiving Cash Transfers by Type and Region
Total number of households 4142 1342 2800
Households receiving cash transfers from government
BISP 285 87 198
Food Support Programme 17 5 12
Zakat 19 2 17
Bait-ul-Maal 10 3 7
Food items at subsidized rates 5 3 2