The government has evolved a strategy for reduction of poverty to bring about qualitative change in the life of country's poor masses. For implementation of the 'Perspective Plan' many steps are being taken to reduce poverty and improve social indicators, official sources said here on Friday. Poverty reduction for improvement in quality of life of the poor may be carried out through Employment Generation and Creation of Physical Assets for the poor. The rising unemployment rate necessitated immediate measures to address the issue of unemployment.
The government's efforts have been intensified further and Khushhal Pakistan Program, Khushhali Bank and other similar programs have been strengthened to support existing system and create additional, job and income opportunities for the poor.
The Khushhal Pakistan program is an important public sector initiative to provide employment and additional income opportunities to the poor. The Program provides essential infrastructure in rural and low-income urban areas by building farm to market roads, rehabilitating water supply schemes, repairs to existing schools, small rural roads, streets, drains and storm channels in villages.
Moreover, the scheme will be directed towards lining of watercourses, de-silting canals, and providing civic amenities in towns, municipal committees, and metropolitan corporations.
Communities are empowered to identify projects and implement them under a participatory approach. The Programme is one of the important government initiatives to provide employment and additional income opportunities to the poor. It will be enhanced progressively as capacity building takes place.
As a matter of urgent priority, the government had designed a micro-finance policy in June 2000 to develop a pro-poor financial system to address the widespread lack of access to affordable micro finance. The policy emphasises sustainable micro-finance and encourages private sector entry into micro-finance to ensure innovation and flexibility.
Legal, supervisory, and regulatory arrangements were instituted to mainstream the attributes of the micro finance policy.
These arrangements have twin objectives, first to ensure an orderly development of the micro-finance sector and second, to protect the financial assets of the poor.
NGOs and their sponsors can now graduate into micro-finance banks and provide a full range of services to the poor.
State Bank of Pakistan has established a Micro Finance Support Division to provide supervisory oversight and developmental support.
State Bank of Pakistan and Khushhali Bank have joined hands to establish a Human Development Institute to enhance the supply of skilled human resources for micro finance.
Micro Finance Social Development, Fund has been created to ensure sustained and assured investment in building social capital for developing the demand side of the micro finance market.
These funds are expected to support capacity building of community based organisation in terms of social awareness and selection and management of income generating activities, developing 'skills and providing basic' literacy training to leaders of community organisations in community management skills and providing training to women in rural communities to enhance their' leadership quality and participation in social and financial services.
These interventions will strengthen the community organisations, which serve as a delivery point for financial and social services, promotes social and economic vitality.
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