BISP must not spread itself too thin: Hafeez

MUSHTAQ GHUMMAN

ISLAMABAD: Finance Minister, Dr Abdul Hafeez Shaikh has reportedly expressed serious concerns over increasing reliance on foreign borrowing and excessive proliferation of the much-talked about Benazir Income Support Program (BISP), official sources told Business Recorder.

"Attorney General of Pakistan and Ministry of Law and Justice will give their legal opinion about the legitimacy of BISP in future, which is being implemented with the support of World Bank, USAID and Asian Development Bank (ADB)," the sources added.

This is the crux of discussion on the BISP by the Federal Cabinet, in its meeting held on March 22, 2012.

Chairperson BISP Farzana Raja briefed the cabinet about various aspects of this pro-poor government initiative, including international recognition, cash transfers to the poorest of the poor, national poverty scorecard survey, poverty data analysis, Pakistan poverty picture, cash grants and alternate payment mechanisms, Benazir debit card, graduation strategy, Waseela-e-Haq, Waseela-e-Rozgar, Waseela-e-Sehet (health insurance, life insurance), Waseela-e-Taleem, donor support (donor assistance), monitoring based transparency and impact of BISP.

The main features include:(i) BISP's transparency, objectivity and technology based operations has earned trust and appreciation of international financial institutions, multilateral forums and donor agencies;(ii) NPSC Survey has been completed in all districts except in 3 districts of Balochistan, which is in progress and 30% already completed;(iii ) Out of the estimated 27 million households in the country, almost 99% of the households have been surveyed in all provinces, including AJK and Gilgit Baltistan.

Official documents reveal that survey completed in three agencies (Kyber, Kurrum and Bajur) and is in progress in another two (Orakzai and Mohmand) and more than 90% of data entry has been completed through NADRA and remaining is expected to be completed by mid May 2012;(iv) Each family is given Rs.1000/- per month cash grant and more than 6 million families are currently the beneficiaries of the programme. This are paid through Money Orders, Mobile Banking and Smart Card ;(v) total cash grant disbursements since 2008 is Rs.103 billion;(vi) long term interest free financial assistance of Rs. 300,000 alongwith training and counseling is given to randomly selected beneficiaries for small businesses through Waseela-e-Haq;(vii) demand-driven, free of cost technical and vocational training is offered to one individual per beneficiary family through Waseela-eRozgar;(viii) improve access to health services and reducing income loss of the already marginalized due to health related expenditure like full hospitalization, pregnancy care, diagnostic tests, and accident compensation for earning members of the family to maximum limit of Rs. 25,000/- per family per year through Waseela-e-Sehet (Health Insurance) scheme;(ix) life insurance of Rs. 100,000 provided to the bread earner of every beneficiary family through State Life Insurance Corporation (SLIC) and approximately 2.2 million beneficiary families have already been provided life insurance through Waseela-e-Sehet;(x) transfers of Rs.200/- month per child (5-12 years) upto three children in a family to maximum five years through Waseela-e-Taleem with the partnership of Provincial and regional Governments;(xi) World Bank funded Social Safety Net Technical Assistance upto $ 60.00 million;(xii) USAID's support for cash grants upto US$ 160.00 million ($ 75 million expected to be released soon) and ;(xiii) Asian Development Bank's support for cash grants of $150 million.

It was further informed that the level of support being provided through BISP is minimal and has been designed to supplement income from a job, never replace it.

After the presentation, the following points and reservation  were raised by the Cabinet members

A- BISP was the largest poverty program of its nature undertaken. The program itself has gained wide acclamation internationally and women are recognized as leading beneficiaries. The program is responsible for heralding of a silent revolution in the poverty stricken households in the country.

B- Excessive proliferation of the Program need to be avoided and core areas should be focused on. The programme must not spread itself too thin.

C- Reliance of foreign borrowing which shall create future liability on the nation through acquisition of loans needs to be curtailed.

D- Sustainability of the program must be ensured beyond the tenure of the current Government.

E- In view of the situation in the post offices where more transparency is required, it would be appropriate to give lists of the beneficiaries in the constituencies to the concerned MNAs.

F- Due to the success of the Benazir Debit Card Scheme, it would be appropriate if the Prime Minister and the Chairperson of the BISP would personally present the cards in every District to beneficiaries. This would ensure a big turnout and gain political advantage for the Government.

G- In view of the large number of unemployed graduates (youth), it would be appropriate to consider them as beneficiaries of the BISP. This would provide the required support for unemployed youth.

H- Out of 6 million minority families, it was proposed that a quota of 5% may be accommodated in the Program and in the Pakistan Bait-ul-Maal.

After a debate on the program, Prime Minister Syed Yousuf Raza Gilani, directed that it is  important to focus on the core issues rather than spreading the program in various directions, as pointed out by the Finance Minister and analysis should be carried out after achieving the first target before moving on to the next one.

He further directed that the services offered by the Pakistan Postal Service should further be improved.

The Attorney General and Law & Justice Division will give advice on the establishment of preserving the program for future and ensuring its sustainability.

Special Assistant to the Prime Minister (Ms. Shahnaz Wazir Ali), BISP, Ministries of Interior, Information and Broadcasting have been directed to devise a mechanism for the promotion of the program and creating awareness in the public of its purported benefits through media.