Shumaila Rifaqat, Muhammad Zaheer Khan, and Noor Rehman Khan conducted an in-depth evaluation of the Benazir Income Support Programme (BISP) in Kathmandu, Nepal, in February 2010. This analysis focuses on BISP’s effectiveness in enhancing household consumption, empowering women, and improving nutrition among the poorest families in Pakistan.
Understanding the Benazir Income Support Programme (BISP)
The Benazir Income Support Programme (BISP) is a nationwide initiative designed to provide financial aid to Pakistan’s most impoverished households. Each eligible family receives Rs. 1000 monthly, equivalent to one-fifth of the average income of those below the poverty line. BISP was introduced to mitigate the adverse effects of the financial, fuel, and food crises, as well as to support economic reforms that removed indirect subsidies.
Key Objectives of BISP
- Creating a Reliable Safety Net System: Utilizing objective targeting through Poverty Score Cards (PSCs) to ensure aid reaches those in need.
- Maintaining Household Consumption Levels: Assisting poor households in sustaining their consumption of essential goods and services.
- Empowering Women: Directing cash transfers to the female head of the family to promote gender equality and women’s empowerment.
- Establishing a Central Registry: Developing a comprehensive registry for social safety nets to streamline aid distribution.
BISP’s Implementation Timeline
BISP’s implementation occurred in several phases:
- October 2008 – March 2009: Initial cash transfers based on parliamentary identification.
- January 2010: PSC data collection commenced in 16 pilot districts.
- April 2010: New eligibility rules established for the initial districts.
- June 2010: Program rollout completed in 50 districts.
- February 2011: Nationwide rollout completed across all 129 districts.
Results Chain
The results chain framework of BISP outlines the sequence from inputs to long-term outcomes:
Inputs
- Government of Pakistan (GoP) recurrent budget
- Social Safety Net Technical Assistance (SSN TA)
- DfID Trust Fund
- Creation of BISP Department as an autonomous body
Activities
- Implementation of PSC data collection in pilot districts
- Cash disbursement to beneficiaries
- Development of alternative payment mechanisms
- Establishment of grievance redressal systems
- Development of fiduciary systems
- Setup of Management Information Systems (MIS)
Outputs
- Reduction in poverty levels
- Enhanced capacity to manage income shocks
- Increased government capacity for policy and decision-making
- Higher household expenditure on food, health, and education
- Improved nutrition among beneficiaries
Outcomes
- Number of beneficiaries receiving cash transfers
- Increased registration of women for Computerized National Identity Cards (CNIC)
- Disbursement of Rs. 30 billion in aid
- Establishment of eligibility cut-offs for beneficiaries
- Creation of a comprehensive poverty database
Long-Term Outcomes
- Sustained reduction in poverty
- Increased resilience to economic shocks
- Enhanced policy-making and decision-making capabilities
- Improved household nutrition and access to essential services
Primary Research Questions
The evaluation aimed to answer several critical questions:
- Household Consumption/Expenditures: What impact do cash transfers have on household consumption and expenditures?
- Women Empowerment: How do cash transfers affect women’s empowerment within households?
- Nutrition: What is the effect of cash transfers on household nutrition?
Outcome Indicators
The evaluation identified several key outcome indicators:
- Household Expenditure/Consumption:
- Food expenditure and consumption levels
- Education-related expenses (school fees, uniforms, books)
- Health-related expenses (doctor visits, medicines)
- Women Empowerment: The proportion of household expenditure decisions made by women.
- Nutrition: Improvements in household nutrition, including the number of meals per day, protein intake per week, and overall calorie intake.
Identification Strategy/Method
The evaluation employed a combination of quasi-experimental methods:
Methodology
- Difference-in-Differences (DD) + Regression Discontinuity: Applied at the household level within treated districts.
- DD + Matching: Conducted at the community or household level to compare eligible households in treated districts with those in control districts.
Limitations
- Local Effects: The methodology detects local effects around the cut-off, limiting external validity.
- Spillover Effects: The evaluation may not capture significant spillover effects.
Complementary Analysis
- Qualitative Methods: Focus groups and interviews in 15 pilot districts to understand the use of benefits, potential outcomes, operational bottlenecks, and beneficiary perceptions.
Sample and Data
Evaluation Scope
The evaluation excluded 15 pilot districts, Leyah, and 27 districts in Baluchistan where program implementation was complete or underway, as well as 7 districts excluded for security reasons. Analysis was conducted in 79 districts.
Sampling
Selection of treatment and control districts was consistent with the planned program rollout, ensuring balance on observable characteristics affecting outcomes. The primary sample units were communities/villages.
Data Collection Plan
- Baseline Household Survey: Completed before PSC rollout in selected treatment districts to avoid announcement effects.
- Follow-up Survey: Conducted 6-8 months after the baseline survey and before program implementation in control districts.
Time Frame/Work Plan
- Qualitative Survey: April-May 2010 in 15 pilot districts.
- Questionnaire Design, Field Work Preparation, Sampling: May-June 2010.
- BISP Cash Transfer in 50 Districts: June 2010.
- Baseline Data Collection: July-August 2010.
- Data Analysis and Baseline Report: September-October 2010.
- Follow-up Survey: February 2011.
- Impact Evaluation Analysis: April-May 2011.
Sources of Financing
The evaluation was supported by the World Bank Technical Assistance to BISP on Social Safety Nets (SSN TA).
How to Apply for BISP
Applying for the BISP involves a few straightforward steps:
- Eligibility Check: Ensure you meet the eligibility criteria based on poverty levels determined by the PSC.
- Registration: Visit the nearest BISP office or designated registration centers to register. You will need to provide necessary documents, including CNICs.
- Verification: After registration, your details will be verified to confirm eligibility.
- Approval and Disbursement: Upon approval, you will begin receiving monthly cash transfers.
Key Statistics and Achievements
- Launched in 28 districts of Pakistan
- Over 3,000 BISP beneficiaries enrolled as Sales Agents
- Total Sales in 2023: PKR 224 million
- Microloans averaging PKR 10,000 – 20,000 disbursed
- Average sales of PKR 5,000-10,000 each month
Benazir Income Support Programme (BISP) – Frequently Asked Questions
1. What is the Benazir Income Support Programme (BISP)?
BISP is a nationwide initiative in Pakistan aimed at providing financial aid to the country’s most impoverished households. It helps eligible families sustain their consumption and supports economic stability by offering a monthly cash transfer of Rs. 1000.
2. Who is eligible for BISP?
Eligibility for BISP is determined using Poverty Score Cards (PSCs). Families with income levels below a certain threshold, particularly those facing extreme poverty, are eligible. The program prioritizes households where the female head of the family receives the cash transfers to promote gender equality.
3. How do I apply for BISP?
To apply for BISP, you need to:
- Ensure you meet the eligibility criteria based on poverty levels.
- Visit the nearest BISP office or registration centers with necessary documents, including CNICs.
- Undergo verification to confirm your eligibility.
- Upon approval, you will start receiving monthly cash transfers.
4. What documents are required for BISP registration?
You will need to provide identification documents, such as the Computerized National Identity Card (CNIC), proof of residence, and any other documents required by the BISP office to verify your eligibility.
5. How does BISP help in empowering women?
BISP directs cash transfers to the female head of the family, which promotes gender equality and empowers women economically and socially. This financial autonomy allows women to make household expenditure decisions and improves their status within the community.
6. What are the main objectives of BISP?
The primary objectives of BISP are:
- Creating a reliable safety net system using PSCs.
- Maintaining household consumption levels of essential goods and services.
- Empowering women by directing cash transfers to them.
- Establishing a central registry for social safety nets to streamline aid distribution.
7. How does BISP impact household consumption and expenditures?
BISP helps sustain household consumption by providing regular cash transfers that families can use for essential goods and services such as food, education, and healthcare. This support helps improve overall living conditions and economic stability.
8. What is the methodology used to evaluate BISP’s impact?
The evaluation of BISP employs quasi-experimental methods, including Difference-in-Differences (DD) combined with Regression Discontinuity and Matching. This methodology helps compare eligible households in treated districts with those in control districts to assess the program’s impact.
9. What have been some of BISP’s key achievements?
Key achievements of BISP include:
- Launch in 28 districts of Pakistan.
- Enrollment of over 3,000 BISP beneficiaries as sales agents.
- Total sales of PKR 224 million in 2023.
- Disbursement of microloans averaging PKR 10,000 – 20,000.
- Average monthly sales of PKR 5,000-10,000 by beneficiaries.
10. How does BISP improve nutrition and household well-being?
BISP’s cash transfers enable families to purchase more and better-quality food, which improves household nutrition. The increased income also allows families to afford healthcare and education, leading to better overall well-being and quality of life for the beneficiaries.
Conclusion
The Benazir Income Support Programme (BISP) is a pivotal initiative for poverty alleviation and women’s empowerment in Pakistan. Through systematic cash transfers, the program aims to sustain household consumption, improve nutrition, and empower women economically and socially. With continued evaluation and strategic improvements, BISP is poised to make a lasting impact on the lives of the most vulnerable populations in Pakistan.