BISP - steps for poverty alleviation

The present government has been taking many positive steps to correct the fiscal and external imbalances with a view to restoring macroeconomic stability, which is vital for sustaining higher economic growth, job creation and poverty alleviation. Needless to say, stabilising the economy and protecting the poor and the vulnerable segments of the society from the effects of price adjustment posses serious challenges to the newly elected government.
But there is an increasing realisation that this policy is bound to have satisfactory results for the economy in the long-run. Therefore, as a strategy, the present administration has been making difficult decisions but simultaneously strenuous efforts are underway to mitigate the suffering of the people. The Benazir Income Support Programme, already launched, is the outcome of the vision of Mohtarma Benazir Bhutto Shaheed. It has seen the light of the day on account of active patronage of President Asif Ali Zardari and strong support of Prime Minister Syed Yousuf Raza Gilani.
The Benazir Income Support Programme is intended to compensate economically vulnerable families for the erosion that their purchasing power has suffered. The BISP offers one thousand rupees per month to each of 3-4 to 4-5 million families covering about 14 percent to 15 percent of the population in the lowest income bracket. The budget 2008-09 approved by the Parliament earmarked an amount of Rs 34 billion for the implementation of BISP. The government claims that the original targeted level of allocation for this program was Rs 50 billion.
However, due to budget constraints it has been reduced to Rs 34 billions which would be increased depending upon the availability of funds. The administrative cost of the scheme would be 1-2 percent of the total cost of the scheme. This is the first-ever programme in the country that would directly benefit the oppressed poor. Another prominent feature of BISP is that its target recipients are women. This is a key step in economic empowerment of women, which would enable them to be an important member of their family, they would have a say in key decisions taken by the head of the family and their voice would be heard. The recommendation of the parliamentarians would be kept in consideration in identifying the vulnerable sections of the society.
Apart from being the largest direct cash grant scheme in the country's history, a distinguishing feature of the Programme is that it is free from any element of political partisanship. All members of Parliament, irrespective of party affiliation, have been provided equal opportunity to recommend deserving families, based on specified criteria. Disbursement will be made through Pakistan Post, delivered by postal Money Order at the recipient address, so that they do not have to incur any cost in obtaining the amount.
The government wanted to target more families but due to budgetary constraints it was not possible immediately. But it would arrange finances from other sources, so that maximum number of deserving families could be brought under the scheme. If rational and long-term decisions are taken and internal and external sources are mobilised, there is every likelihood that this scheme would meet success. For this purpose, various stakeholders in micro-finance, bankers, policy makers and international organisations can be approached to chalk out a suitable strategy.
This programme is the first ever step for poverty alleviation. Other programmes such as People's Work Programme and Human Resources Development Projects would be initiated in the times to come to lessen the price-hike burden. There is no doubt that the food security has emerged as a major challenge in many developing economies including Pakistan. This is why, specifically in rural households, people spend 60 percent to 80 percent of their income on food. So provision of this relief is the main objective of BISP.
Keeping in view the efforts made by the Government to provide relief to the people, all possible fair and transparent actions should be taken for the success of this programme. The Government machinery must be active to implement the programme at an appropriate pace. The government needs appreciation for the efforts being put in for eradication of poverty. BISP is the first step in right direction. As promised, the PPP government has launched a war against inflation, unemployment and poverty for the sake of the country's poor and as a first step to fulfil its promise of providing Roti, Kapra aur Makan (food, shelter and clothing) to the poor people.