Rs 12,000 assistance plan rolled out

As the federal government on Thursday started the two-week drive to distribute Rs 144 billion to financially support 12 million deserving families under Ehsaas Emergency Cash Programme, it is unclear whether this is in addition or within the Rs 190 billion budgeted Ehsaas Programme.

Last week, the federal cabinet earmarked Rs 200 billion to financially support the downtrodden segments of society adversely affected by lockdown measures taken to stop the spread of coronavirus. Out of these funds, Rs 144 billion is to be spent to provide Rs 12,000 each to 12 million families. The remaining Rs 56 billion have been allocated as a standby arrangement in case the number of those who are to be provided with the cash assistance exceeds the total estimated number, official sources told Business Recorder.

There is also lack of clarity whether the government has allocated Rs 200 billion under Ehsaas Emergency Cash Programme and an additional Rs 200 billion to specifically assist the labour class-while in reality the government has allocated only Rs 200 billion (not 400 billion) under Ehsaas Emergency Cash Programme which also includes helping out the labourers.

A government official privy to the matter told Business Recorder that the federal government has earmarked a total amount of Rs 200 billion to help the downtrodden segments of society including the labour class. Of the 12 million families being provided financial support, 4.5 million are those that are already being provided Rs 2000 monthly under Ehsaas Kifaalat Programme. For these people, he said, Rs 36 billion has already been allocated under Ehsaas Kifaalat programme for four months while Rs 18 billion have been additionally allocated to provide them one-time assistance of Rs 12,000 (Rs 3000 for four months) under Ehsaas Emergency Cash Programme (this includes the financial assistance under Ehsaas Kifaalat Programme).

The source denied that the entire budget of Ehsaas Programme has been spent on the Ehsaas Emergency Cash Programme. "The federal government has planned to extend supplementary grants to assist the Poverty Alleviation and Social Safety Division for the provision of funds under Ehsaas Emergency Cash Programme. The government cannot afford to utilise the whole budget of Ehsaas Programme on assisting 12 million families because the social welfare initiatives like Benazir Income Support Programme (BISP), Pakistan Bait-ul-Mal, Kifaalat Programme, Pakistan Poverty Alleviation Fund (PPAF) and several others are managed by the Poverty Alleviation and Social Safety Division. This is the main reason the supplementary grants allocated for disaster management to deal with the natural calamities are being relied upon," the source said.

Requesting anonymity, a Pakistan Tehreek-e-Insaf (PTI) senator, who is also involved in the federal government's financial matters, said spending Rs 200 billion for social welfare purposes puts tremendous pressure on the country's economy. "This explains why Prime Minister Imran Khan has appealed to international community to write off loans to developing countries like Pakistan to help them deal with the economic burden caused by the spread of COVID-19 pandemic," he said.

The source said that Pakistan is hopeful to get concessions from International Monetary fund (IMF) for the effective implementation of Ehsaas Programme. The IMF in its country report released in July last year, termed the Ehsaas Programme as Pakistan's "main poverty reduction strategy, aimed at reducing inequality, supporting the economic empowerment of women, and lifting areas where poverty is higher."

Moreover, the source said, Prime Minister Imran Khan will preside over a telethon today (Friday) as part of the federal government's push to generate funds through public donations to help those in need.