BISP presentation

BISP
BENAZIR INCOME SUPPORT PROGRAMME
Government of Pakistan

www.bisp.gov.pk
1

BISP
Background
Commitment
• To realize the dream of making Pakistan a
welfare state.
• Poverty Alleviation and women empowerment.
Conviction
• War against terrorism and poverty which breeds
extremism.
2

BISP
Vision, Mission & Objectives

 Meeting the targets set by
Millennium Development Goals:
 Establishment of largest &
transparent Social Safety Net.

 Eradication of extreme & chronic
poverty
 Empowerment of women

3

LAUNCHING OF BISP

• BISP launched in July 2008.
• Remarkable progress in short time.
• Relief to 4 million families.
• Relief to Internally Displaced Persons (IDPs – Swat
& FATA).
• Relief to flood affectees.
• Relief to Bombs Blast/Terrorism Victims.
• Rs. 7 billion disbursed so far to BISP beneficiaries.

4

RECOGNITION

• August 2010 – Both Houses of Parliament
unanimously approved the BISP Act 2010 due to
transparency, integrity and efficiency of BISP.
• BISP now leading Social Safety Net Authority.
• International recognition due to technology based &
transparent system.
• President WB, UN Secretary General, US
Government, UK Government, ADB have
appreciated and provided financial and technical
support to BISP.
5

ESTABLISHMENT-BISP

Regional Head Quarters 6
Divisional Directorates 35
Tehsil Offices 550
* Complaints redressing and monitoring offices, establishment under process .

6

CASH GRANTS
 To compensate marginalized and low income
families.
 A cash grant of Rs.2,000/- every alternate month.
Beneficiaries: 4 million families.
Total Cash Grant Disbursements: more than Rs.70
Billion.
Scientific Targeting based on POVERTY
SCORECARD SURVEY.
Payment through Money Orders, Mobile Banking &
Smart Card.
 Target: 5 - 7 million families by June 2011. 8

IMPROVED TARGETING
POVERTY SCORECARD SURVEY
First time ever in Pakistan, a Proxy Means Testing based POVERTY
SCORECARD SURVEY is being conducted in the entire country to
improve targeting and have an objective assessment of the poverty.
Pilot phase of this survey was done in 16 districts from all over
Pakistan.
Nationwide Survey has also been completed in Baluchistan, AJK, and
Gilgit Baltistan. In total 60% of the country has been surveyed.
Data entry is simultaneously going on in NADRA.

Approximately 1 million families have already been identified in 38
districts whose data entry has been completed.
Nationwide Survey is planned to be completed by June 2011.
9

PAYMENT MECHANISMS
Transparency is the keystone of BISP’s functions. Initial mode of
payment was through money orders. Now BISP is planning to
modernize the payment mechanism by introducing technology
based solutions through BENAZIR SMART CARDS / BRANCHLESS
BANKING.
For cash grant payments, transition from manual payments (money
orders ) to BENAZIR SMART CARD has started in selected districts
(Mirpurkhas, Sanghar, Mianwali, and Multan).
Approximately 174,000 beneficiaries have already received BENAZIR
SMART CARDS.
Mobile Phone Banking has also been started in selected districts
(Larkana, Layyah, Barkhan, and Batagram).
More than 32,000 mobile phones have already been distributed in pilot
districts free of cost.
10

DISBURSEMENT THROUGH MONEY
ORDERS

1. Initially, Benazir Income Support Programme was distributing its
funds through Money Orders.
2. A large number of complaints:
• Non-payment
• Late payment
• Demand of bakhsheesh
• Delivery of Money Orders at the Post Office rather
than door-steps etc.
1. Pakistan Post could not put in place a viable mechanism to
address the complaints expeditiously.
2. The data not reconciled well in time. Results in outstanding
amounts with the Pakistan Post.
11

BENAZIR SMART CARD

• The mechanism will further strengthen the transparency
and speedy delivery to beneficiaries.
• The mechanism includes modern modes of branchless
banking systems e.g. Card to Phone, Card to Point of
sale and Phone to Phone.
• This payment mechanism (Card to Phone) has already
been implemented in the four districts (Mianwali, Multan,
Sanghar and Mirpurkhas), where the Poverty Scorecard
Survey has already been completed.
12

Continued…

• UBL, through a competitive bidding process, has
been selected as the Payment Agency.
• Main features of the system are as follow;
• The payments process handled by UBL is electronic
in its purest definition.
• Cards are sourced by and personalised by NADRA.
• Personalised cards are delivered to the appropriate
NADRA issuing office.
• Beneficiaries are authenticated - finger print match
to NADRA Automated Fingerprint Identification
System (AFIS) and cards are issued. 13

Continued…

• NADRA informs BISP when beneficiaries issued
cards. Cards are activated within 3 days.
• The card issuance information is sent by BISP to
UBL for accounts opening process.
• Beneficiary presents themselves in person to collect
cash at a UBL (OMNI) branch.
• The Smart Card is scanned using a QR infra-red bar
code scanner connected to a personal computer
(PC) that is online through an Internet connection.
14

Continued…

• First time a user presents himself to receive first
payment, the Cards PIN (printed on the PIN mailer
with the card) is changed as required by the
payment system.
• The franchisee then establishes how much money
is available.
• The franchisee then draws the full amount payable
to the beneficiary.

15

Continued…

• The beneficiary is paid in cash (normally either Rs
1000 or Rs 2000), required to sign a register of
payment with their fingerprint and is then handed
back their cards.
• After the successful pilot in 4 districts, payment
mechanism is being implemented in 12 districts
where the poverty survey was conducted during the
pilot phase.

16

Phone To Phone Delivery
System
• Another Alternate Payment System (Phone to
Phone) being launched is also a mode of branchless
banking system.
• 12 districts will be covered.
• The proposed methodology:
– BISP’s beneficiaries will be issued specially
formatted mobile phone set/SIMs.
– Payments to the beneficiaries will be made by
the payment agency, franchise or agents.

17

Continued…

– The system shall allow for payments to be made to
BISP beneficiaries that have a mobile phone and most
importantly those who do not have a mobile phone.
– BISP will create a payments schedule monthly that
lists each beneficiary’s CNIC and the amount that is to
be paid to the beneficiary by the nominated agents.
– BISP would transfer funds equal to the total of funds
to be paid to beneficiaries plus any fees to the service
provider.
18

Continued…

– The system would hold a balance due to the
beneficiary, such beneficiary being identified by
their CNIC number (and not necessarily a mobile
phone number).
– When the beneficiary presents themselves at the
payment agency’s agent, the agent must identify
the beneficiary against their CNIC card and/or
BISP card that would include a photo of the
beneficiary.
19

Continued…

– Satisfied as to the identity of the beneficiary, the
agent would make the applicable payment to the
beneficiary (per the balance held in the payment
system).
– The agent would be required to take a photo of
the beneficiary being paid and MMS such with the
beneficiary CNIC to a mobile network number
designated by BISP from time to time.

20

EMERGENCY RELIEF
PACKAGES

• BISP is also implementing an Emergency Relief
Package for Internally Displaced Persons (IDPs) of
FATA, Swat, Bajaur and South Waziristan and
earthquake affectees of Baluchistan.
– A total of Rs.28 million has been
paid to 3965 IDPs families.
– A total of Rs.34 million has been
paid to 3729 earthquake affected
families in Baluchistan.
21

Continued…

• An agreement with United Bank Limited (UBL) was signed
by BISP to pay benefits to 318,126 verified IDPs from
Swat/Malakand. A total of 120,000 cards were issued to the
IDPs. Rs. 12000 were disbursed to each IDP family from
April, 2009 to March, 2010 at the rate of Rs.1000/- per
month.
• Data on the bomb blast victims is obtained and benefits are
paid to the next of kin in case of a deceased person and the
victim in case of injury.
• A total of 720 victim families were registered and Rs.1.4
million paid up till now.
22

WASEELA-E-HAQ

Long-term interest-free financial assistance of Rs.300,000, along
with basic training & counseling, is given to randomly selected
beneficiaries for small businesses.
1- Identification 3- Necessary
of business. training required to
execute the
identified
business.

2- Counseling 4- Monitoring and
regarding choice evaluation of
of business. business. *

* Against already determined
Objectively Verifiable Indicators
(OVI’s) 23

WASEELA-E-HAQ: SALIENT FEATURES

 Offers long term interest free returnable financial
assistance through computerized balloting to randomly
selected beneficiaries.
 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.
 So far more than 14000 families have been pre-
qualified in 17 draws.
24

WASEELA-E-ROZGAR

Demand driven, free of cost, Training
Facility &
technical & vocational training Trainers
is offered to one individual
per beneficiary family.
Choice Beneficiary
Training
of or her Expenses
Training Nominee

Boarding
and
Lodging

25

WASEELA-E-ROZGAR: SALIENT FEATURES

 Domestic as well as international markets’ demand has
been ascertained through Ministry of Labour & Manpower.
 Certificate-based skills as well as in-house or product-
based training.
 BISP, through partner organizations, is providing guidance
& counseling to the trainees, training in vocational training
centres by professional trainers.
 Duration of offered training is: 4 weeks, 3-6 months and
one year.
 Training has already started in Bannu and Karak districts.
26

WASEELA-E-SEHET

• Designed to Improve access to health services
and reducing income loss of the already
marginalized due to health related expenditure.
PATIENT
WITH
BISP DESK
BENAZIR
IN EVERY
HEALTH
DESIGNATED BISP
CARD
HOSPITAL DESK

POS TERMINAL
REFERAL TO DISCHARGE
CONCERENED INVOICE
SECTION
COMPUTERIZED
DEDUCTION
FROM THE
ACCOUNT
OF USER
27

WASEELA-E-SEHET: SALIENT FEATURES
First Phase
 Life Insurance of Rs. 100,000 provided to the bread
earner of the beneficiary’s family.
 Approximately 1 million beneficiary families have been
provided life insurance.
Second Phase
 Health and Accident insurance cover will be provided
to all members of beneficiary's families.
 Maximum benefit of Rs.25000/- per family per year.
 Benazir Health Cards (Biometric cards ) will be issued
to enrolled families. 28

EMERGENCY RELIEF PACKAGE

• Addresses the urgent financial needs of
the families affected by any emergency.
 BISP reached flood affectees immediately due to
availability of a current and extensive data base.
 Financial assistance provided to:
 Victims of 2010 Floods.
 IDPs of Swat, FATA and Bajur.
 Civilian bomb blast victims.
 Earthquake affected families in Baluchistan.

29

EMERGENCY RELIEF PACKAGE

Following disbursements have been made to
the families affected by emergency.

30

SEPARATION OF FUNCTIONS

To further ensure transparency BISP has
adopted following separation of functions:

31

TECHNOLOGY BASED TRANSPARENCY

Following initiatives have been taken for the first
time in the history of Pakistan:
PMT based Poverty Scorecard
Targeting Survey using GPS.

Through State of the Art NADRA
Verification Database.

Smart Card/ Mobile Banking/
Payments Branchless Banking.

Grievance Solutions based management
Redressal information system.
32

DONOR’S SUPPORT

• Due to the transparency, objectivity and efficacy
of the programme international financial
institutions and donor agencies have shown full
trust in BISP.
• Major donors of BISP are:
 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 million.
33

BENAZIR INCOME SUPPORT PROGRAMME

Thank You

www.bisp.gov.pk

BISP MEDIA WING:11112010
34

BISP presentation

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BISP presentation