Ayesha Saba

The Asian Development Bank’s (ADB) $330 million financing signals a strong international confidence in Pakistan’s social protection programs, emphasizing the need for inclusive and climate-adaptive policies. However, experts caution that effective implementation and monitoring will be key to achieving sustainable outcomes.

Talking to WealthPK, an official who wished to remain anonymous said, Benazir Income Support Program (BISP), Pakistan’s primary social protection agency, required significant institutional upgrades to address longstanding challenges such as limited outreach, inadequate capacity, and vulnerability to climate-induced disasters. He emphasized that the additional financing will modernize BISP’s systems, ensuring adaptive delivery mechanisms that can better serve disaster-prone areas.

“Climate change disproportionately affects the poorest segments of the society. Integrating resilience within the social protection programs will ensure targeted support in normal times as well as during crises,” he said. He highlighted that this support could further expand cash transfers to the deserving households, particularly as Pakistan grapples with the economic challenges, including inflation and employment stagnation. The enhanced funding also aligns with efforts to address income inequality and improve human capital development, such as education and health outcomes among beneficiary families.

He further informed WealthPK that the conditional cash transfer program had now been extended to Balochistan, enhancing support for marginalized communities. Mobile registration vehicles have been deployed to conduct surveys in remote areas to promote inclusivity, ensuring that no eligible family remains overlooked. The newly introduced Benazir Social Protection Accounts enable women to choose their preferred banks, access checkbooks and debit cards, and switch banks when needed.

For the current fiscal year, the program’s commitments include a substantial increase in the annual budget, expanded coverage for various initiatives, and higher budgetary allocations to further strengthen poverty alleviation and social welfare efforts, the official stated. Talking with WealthPK, Dr. Imran Sheikh, a development economist, emphasized that intergenerational poverty requires a comprehensive approach that combines financial assistance with human capital development. “Cash transfers are necessary to address the immediate needs, but they must be coupled with investments in education, health, and skills development to break the cycle of poverty for future generations.

”The additional support from the ADB comes at a crucial time as Pakistan navigates economic turbulence and rising poverty levels. Social development programs like BISP offer a lifeline to millions of vulnerable families. However, he asserted that their long-term sustainability hinged on improving governance structures and ensuring accountability. By prioritizing rigorous monitoring and evaluation frameworks, BISP can evolve into a more effective and inclusive program that uplifts Pakistan’s marginalized communities.

Credit: INP-WealthPk