Committee warns against using BISP Welfare Money for development projects

Islamabad: A parliamentary committee warned the government against diverting Benazir Income Support Programme funds to development projects, stating such a move would remove financial support meant for poor families.

The warning came during the 18th meeting of the Standing Committee on Poverty Alleviation and Social Safety, chaired by Mir Ghulam Ali Talpur.

The committee said BISP money must remain focused on helping poor people and protecting their basic social safety net, even after the programme’s move to a digital payment system.

The chairman strongly opposed any plan to use BISP welfare funds for public sector development programmes, saying this would put the support of poor families at risk.

The committee also turned its attention to complaints about deductions from BISP payments by Point of Sale agents.

Chairman of the committee said BISP had taken unnecessary responsibility for the deductions because the matter falls under the contractual duties of the banks working with the programme.

He said BISP should educate beneficiaries about the difference and make sure partner banks fulfil their agreements.

The committee also demanded strong action against banks found violating their contractual duties.

BISP was directed to provide all agreements signed with partner banks at the next meeting so the committee can examine their responsibilities.

The committee praised the digital transformation of BISP, describing the change from cash payments made in person to a digital wallet system as an important step forward.

The committee, however, said digital payments must not reduce the protection given to poor beneficiaries.

The Minister for Poverty Alleviation and Social Safety said his ministry was moving towards skill development and stressed the need for a National Poverty Alleviation Framework.

He also called for a central system to share information between government departments and private relief organisations. According to him, better data sharing would help make better use of limited resources, especially during natural disasters and other emergencies.

The committee supported the move from simply giving welfare support towards helping poor people become more financially independent. It said protecting the dignity and self respect of beneficiaries must remain a key part of the system.

The minister also clarified that BISP and Pakistan Bait ul Mal do not distribute Zakat funds and that their payments come from endowment funds.

He suggested increasing the number of beneficiaries by relaxing the Proxy Means Test score used to decide who qualifies for support.

The committee also said poor people and small businesses need more choices for microfinance so they can build sustainable sources of income.

The committee decided to work out a clear future plan for BISP at its next meeting, where the BISP chairperson will also attend.

Officials informed the committee that work was also continuing on skill development under directions from the Prime Minister’s Office and in cooperation with the National Vocational and Technical Training Commission.

The committee also decided to consider creating a subcommittee to examine changes needed in the BISP law so that its legal framework can support its future direction.

The committee separately reviewed the work of the Trust for Voluntary Organizations.

The organisation told the committee that it had completed 1,440 projects in rural areas of Pakistan and benefited more than 10 million people. The total cost of these projects was Rs 1.3 billion.

The organisation said it was supported by a Rs 520 million endowment from the Pakistan USA Special Development Fund created in 1988. The money is invested in commercial bank funds to generate yearly income.

The committee was also informed that the organisation works with partner agencies under a system in which it carries 30 percent of the liability while partners carry 70 percent.

The organisation checks community based groups before working with them, including a two year background review. It also requires administrative costs to remain at 15 percent or less for a group to qualify for partnership.

The committee praised the Trust for Voluntary Organizations for moving from short term relief work towards climate resilient projects, poverty graduation and sustainable livelihoods.

Its work with international and national partners has reached 269 rural tehsils.