Benazir Income Support Programm (BISP) - PowerPoint Presentation

Slide1

Benazir Income Support Programm (BISP) (A Social Security and Women Empowerment Programm) Muhammad Ishaq Shinwari (MEP 12125)Ministry of CommerceGovernment of Pakistan Slide2

Chronology and Functions of Planning Machinery in PakistanChronology of Planning MachineryDevelopment Board established in 1948 in the EADPlanning Board set up in 1953. First 5 year plan prepared for 1955-60National Planning Board established in 1957

Planning Commission setup under the Chairmanship of President in 1959

Functions

Consultation with:Federal Ministries / Provincial Governments

Donors

Civil Society

Formulation of National Plan

Annual PlanFive Year PlanRolling PlanPerspective Plan (15-25 Years)Project ManagementApproval of Development ProjectsMonitoring of Major ProjectsEvaluation of on-going and completed projectsAssociation with EAD in matters of Foreign AssistanceSlide3

Planning ProcessPlanning CommissionPreparation of approach paperFormulation of technical working groups in all sectors

Preparation of sectoral chapters by working groups

Consultations

with all private bodies attached to different ministries

Consultations with all private bodies

attached to different provincial

deptt

.Sent to all Fed. Ministries and Dev. Partners for comments and inputSent to all Provincial

Govts

. for comments and input

Finance Division

(Resource Availability

)

Economic Affairs Division

(Foreign aid availability

)

Finalization of draft plan by PC and its presentation before

President/Prime Minister

Submission to National Economic Council (NEC)

Circulation of approved plan to all Provincial

Govt./

Federal Ministries for implementation

Transformation of plan into viable projects/program

Draft Five/ One Year Plan

Consultations with all Federal Ministries for input

Consultations with all Provincial

Govt.

for input

Panels of distinguished persons, academia, industry, business, planners, political activists, NGOs, Professional organizations, chambers of industries and trade

Input from technical and professional org.

(Fed/ Pro. Govt. WB, ADB, IMF etc.)

PM and his team assisted by PCSlide4

Projects AppraisalTechnical Analysis based on the technical data and information given in the PC-I form as well as the earlier experience of carrying out similar projects.Institutional/Organizational/Managerial AnalysisA whole range of issues in project preparation revolves around the institutional, organizational and managerial aspects of the project.

Social AnalysisSocial like employment opportunities and income distribution.

Commercial Analysisarrangements for marketing the output produced by the project and the arrangement for the supply of inputs needed to build and operate the project

Financial Analysisassessment of financial impact, judgment of efficient resource use, assessment of incentives, provision of a sound financing plan, coordination of financial contribution and assessment of financial management competenceSlide5

Plan/ Project Approving Bodies of the Planning Machinery1. National Economic Council (NEC) PM as Chief Executive 2. Executive Committee of National Economic Council (ECNEC)Headed by the Federal Minister of Finance/ Adviser to the Prime Minister for Finance and Economic and Planning.3. Economic Coordination Committee of the Cabinet (ECC)Headed by the Federal Minister for Finance and Federal Ministers of economic ministries as its members. It coordinates the economic policies initiated by various Divisions of the Government

4. Central Development Working Party (CDWP)

Headed by the Deputy Chairman, Planning Commission , the Secretaries of the Federal Ministries, heads of the Planning Departments of the Provincial Governments as its members. 5. Departmental Development Working Party (DDWP/DSC)

Headed by the respective Secretary/ Head of Department and includes representatives of Finance Division and concerned Technical Section in the Planning and Development Division. 6

.

Provincial Developing Working Party

headed by the Chairman, Development Board/Additional Chief Secretary (Development) and includes Secretaries of the Provincial Departments concerned with development, as its members Slide6

Project Monitoring

Internal Monitoring Sponsoring Ministry

External Monitoring

Provincial P & D Dept.Projects Wing at Planning Commission

Monitoring Cells

Establishment of Planning

And Monitoring Cells in ministries

as directed by ECNEC.Monitoring MethodologyResults Based MonitoringE-connectivity through Project Monitoring and Evaluation System (PMES)Project Director 

Provincial P&D

Departments



Line Ministries



Planning Commission



Prime

Minister Secretariat



Funding AgenciesSlide7

Mission & Objectives of BISPMeeting the targets set by Millennium Development Goals:Establishment of largest & transparent Social Safety Net .Eradication of extreme & chronic povertyEmpowerment of womenBISP is model for other countries. It is based on the MDGs.

Ban Ki-moon Slide8

Background of BISPDuring 2007, other major public safety net program were the Ministry of Religious Affairs (Zakat Program); the Bait-ul-Mal (Food Support Scheme); the Employees’ Old Age Benefit Institution (social security); World Bank (2007) estimated 30 % poverty in Pakistandonor agencies assisted in the development of the National Social Protection Strategy (NSPS) 2007 BISP, a holistic social protection strategy initiated with donor agencies, ADB, World Bank and UK Department for International Development (DFID), The World Bank in extended significant technical assistance regarding the program’s design

ADB asked for quarterly progress reports on BISP implementation to be prepared by the BISP Secretariat and submitted to itSlide9

Stages of BISP Designing and Implementation Design Phase I (NADRA)2008-09 Design Phase III (poverty scorecard)

Design Phase II (MNAs)

Implementation

Phase I

(MNA forms)

Implementation

Phase II

(PMT)

NADRA

= National Database Registration

Authority;

PMT

= proxy means test.

Disqualification filters: monthly

income

less

than

Rs

. 6,000, applicant

needed to possess a CNIC,No employment in government/ semi-government authority,No machine-readable passport,

Not possessing agricultural land, No other source of income

Several classes of special beneficiaries were identified: widowed/divorced women without adult male members in the family; physically or mentally challenged person in the family; and family members suffering from a chronic disease.Slide10

Targeting Poverty Scorecard SurveyThe government sought technical assistance from the World Bank as it was using poverty scorecard for social protection in Latin AmericaFirst time ever in Pakistan, a Proxy Means Testing based POVERTY SCORECARD SURVEY was conducted in the entire country in order to improve targeting and have an objective assessment of the povertySlide11

Current BISP Program Cycle Design, management, M&E Targeting – PMT Data validation and verification

Disbursement

BISP

PPAF, PCO, RSPN

NADRA

Smart cards, PPO

The selected agencies were

The Population Census Organization

(PCO),

the Rural Support Programm Network

(RSPN)

and the Pakistan Poverty Alleviation Fund

(PPAF)Slide12

Institutional and Administrative Arrangementsa). BISP established under the Ministry of Finance with a separate Management Board b). Advisory Council to BISP includes the President and Prime Minister as its member. Operationally, the program has three departments 1. Operations Wing, responsible for the program’s design and its implementation, monitoring and grievance redressal

2. General Administration Department

; 3. Finance and Accounting Department

. Data management and monitoring of the BISP is undertaken through a comprehensive Management Information System

(MIS) that is housed centrally at NADRA in Islamabad Slide13

Separation of FunctionsTo further ensure transparency BISP has adopted following separation of functions: Slide14

Technology Based TransparencyBenazir Income Support Program is a transparent public program that is non-partisan and is designed for reducing poverty across Pakistan. The program is receiving praise and recognition in the international community. Ex President World Bank, Robert B.ZoellickPMT based Poverty Scorecard Survey using GPS.Through State of the Art NADRA Database

Smart Card/ Mobile Banking/ Branchless Banking.

Solutions based management information system

Targeting

Verification

Payments

Grievance

Redressing Slide15

Donor’s SupportWB, ADB, USAIDDue to the transparency, objectivity and efficacy of the program, international financial institutions and donor agencies have shown full trust in BISP. World Bank funded Social Safety Net Technical Assistance worth (US$ 60 million) USAID support for cash grants – US$ 160 million

Asian Development Bank support for cash grants – US$ 150 millionSlide16

BISP InitiativesBENAZIR SMART CARDS distributed among the beneficiaries Mobile Phone Banking has also been started in selected districts Mobile phones distributed in pilot district free of cost.Cash grant of Rs.2,000/- every alternate monthBeneficiaries: up to 5.5 million familiesTotal Cash Grant Disbursements: more than Rs.70 BillionSlide17

Waseela-e-Haq (interest-free financial assistance )Long-term interest-free financial assistance of Rs.300,000, along with basic training & counseling, to randomly selected (computerized balloting) beneficiaries for small businesses

Based on the premise that marginalized families have skills, which remain unutilized and untapped

Alternative to the conventional banking system, which rejects the poor classifying them non-creditable.Based on personal trust instead of any collateral.

3- Necessary training required to execute the identified business.

4- Monitoring and evaluation of business. *

1-

Identification

of business.

2- Counseling regarding choice

of business.Slide18

Waseela-e-Rozgar (vocational training)Beneficiary or her nominee Choice of trainingBoarding lodging facilitiesDemand driven free technical and vocational training offered to one individual of beneficiary familyDuration of training is: 4 weeks, 3-6 months and one yearCertificate based skill as well as in-house or product based trainingDomestic as well as international market demand has been ascertained through Ministry of labor and ManpowerSlide19

Waseela-e-Sehet (Health Services)to Improve access to health services and reducing income lossLife Insurance of Rs. 100,000 provided to the bread earner of the beneficiary’s family.

1 million beneficiary families have been provided life insurance

Health and Accident insurance cover will be provided to all members of beneficiary's families Maximum benefit cap of Rs.25000/- per family per year

Benazir Health Cards (Biometric cards ) are issued to enrolled families

COMPUTERIZED

DEDUCTION

FROM THE

ACCOUNTOF USERSlide20

Wseela-e-Taleem (education support)cash transfer program for the primary education of the children aged 5-12 years (3 younger children)BISP provide cash transfers while families agree to send and retain their children in primary schoolsBISP’s data (poverty scorecard survey) shows that over 71% children of its beneficiaries have never attended a schoolSlide21

Impact of BISPmoving from general subsidies towards targeted cash grantsAs of today, more than 27 million households have been surveyed,7.2 million families have qualified the PSC eligibility,4.7 million families are receiving income support in the form of monthly cash benefits of PKRs 1000 ($12)/ benefiting more than 20 million people directlydisbursed more than US$1 billion in the form of cash grants to 4.7 million families, empowering women by disbursing the cash only to the femaleencouraged women to register with the NADRA for NICSlide22

Cont.….it can potentially open avenues for women’s socio-economic and political empowermentcredible foundation for a national poverty registry . Spot-checks show the accuracy rate of the poverty scorecard survey as 95.4 %microfinance in the form of returnable interest-free loans up to Rs.300,000 to families selected through a monthly computerized random draw, for setting up of small businesses. So far 41 draws held and a total of Rs.40,868 beneficiaries have been declared eligible. A total of Rs.1.8 billion have been disbursed up to March 2013 payment through debit cards was initiated in April 2010, presently making these electronic payments to about 800,000 familiesSlide23

Cont.….issued 700,000 Watan Cards (pre-loaded cards) under the government's poverty alleviation scheme to make flood relief payments in 2011Continuous support of the donorsGiven the success of BISP the WB approved additional US$150 million for education initiative of the programBISP is a transparent program. Ex President WB, Robert B.ZoellickIn the next 3 years, BISP is expected to cover about 7 million poorest families The Floods Emergency Cash Transfer (FECT) Project, which supports the government’s Citizen’s Damage Compensation Program (CDCP), is reaching out to more than one million households (roughly 9.5 million people), affected by 2010 floods Slide24

Thank You