Chapter 16

Social Protection

consumption, reduced public spending,

16.1 Introduction especially on social services and development
Pakistan is one of the few developing nations projects, and the gradual elimination of
that clearly outlines social security as a subsidies. These measures limit economic
fundamental right of every citizen in its opportunities, increase the cost of living, and
constitution. According to Article 38 of the further lower the living standards of the
Constitution of the Islamic Republic of Pakistan, impoverished population.
the state must ensure social security, housing,
clothing, food, healthcare, and education for all The UNDP’s World Economic Situation and
citizens without discrimination based on caste, Prospects 2024 report states that despite policy
race, creed, or gender. uncertainties and monetary tightening, the global
economy showed unexpected resilience in 2023,
Social protection is crucial in building a more thanks to strong labor markets and easing
robust, fairer, and prosperous society. It acts as a inflation. However, conflicts and climate-related
safety net against poverty, unemployment, shocks persist, hindering sustainable
illness, and other vulnerabilities. Promoting development progress. The report also highlights
inclusivity and sustainable development some challenges that affect the debt-laden global
enhances social cohesion, reduces inequality, economy, such as elevated borrowing costs and
and empowers individuals to break the cycle of tightened credit conditions, which necessitate
poverty. It also stabilizes economies, fosters increased investment and comprehensive social
resilience, and ensures equity for all. Social protection measures to mitigate the impacts on
protection is essential for paving the way toward vulnerable populations.
a brighter future by promoting poverty
reduction, equity, and societal inclusivity. 16.2 UNDP’s Human Development Report

Pakistan faces several economic and human According to the Human Development Report
development challenges, such as inflation, rising (HDR) 2023/2024 titled "Breaking the
electricity and gas prices, severe climate Gridlock: Reimagining Cooperation in a
disruptions, and inadequate public funds to Polarized World," Pakistan falls under the 'low'
address development and climate adaptation human development category. In 2022,
needs. These problems hinder economic growth, Pakistan's Human Development Index (HDI)
innovation, and investment opportunities. value was 0.54, ranking 161 out of 192 countries
Children from low-income families often have to worldwide. By 2023, Pakistan has dropped three
choose between education and employment, places to 164 due to persistent social, economic,
leading to illiteracy and limited prospects. and political pressures, including
Furthermore, the repeated IMF programs’ macroeconomic challenges and the effects of the
structural adjustment measures aimed at 2022 floods. The report highlights a widening
stabilizing the economy, including significant human development gap, reversing the two-
reductions in fiscal and current account deficits, decade trend of diminishing inequalities
have resulted in increased taxes, particularly on between wealthy and poorer nations. This

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gridlock hinders human development, amplifies (129th), Maldives (87th), Nepal (146th), and
polarization, and reduces trust in people and Bhutan (125th). Afghanistan trails behind at
institutions worldwide, particularly regarding 182nd place. The report also provides the annual
collective action on climate change, average HDI growth and trend between 1990-
digitalization, poverty, and inequality. 2022, which can be seen in Fig-16.1 and Fig-
16.2, respectively. Looking at specific
The report highlights that Switzerland is ranked
indicators, Pakistan has a life expectancy at birth
first in human development, with Norway and
of 66.4 years, with expected years of schooling
Iceland following closely in second and third
at 7.9 and a gross per capita national income
place. However, within the South Asian region,
(2017 PPP) of $5,374. These statistics are
Pakistan's HDI ranking is lower than that of
detailed in Table 16.1 below.
India (134th), Sri Lanka (78th), Bangladesh

Table-16.1: Human Development Index and its Components

Country/ HDI Human Average Life Expected Mean Years Gross National Inequality-
Region Rank Development
Annual HDI Expectancy Years of of Schooling Income (GNI) adjusted Human
Index (HDI)
Growth (%) at Birth Schooling (years) per capita Development Index
Value (2022)
[1990-2022] (years) (years) (2017 PPP $) (2010-2022)
SDG-3 SDG-4.3 SDG-4.4 SDG-8.5 Gini-coefficient
World - 0.739 0.65 72.0 13.0 8.7 17,254 -
South Asia - 0.641 1.15 68.4 11.9 6.6 6,972 -
Sri Lanka 78 0.780 0.62 76.6 13.6 11.2 11,899 37.7
Iran 78 0.780 0.76 74.6 14.1 10.7 14,770 40.9
China 75 0.788 1.55 78.6 15.2 8.1 18,025 37.1
Maldives 87 0.762 - 80.8 12.2 7.8 18,847 29.3
Bhutan 125 0.681 - 72.2 13.1 5.8 10,625 28.5
Bangladesh 129 0.670 1.63 73.7 11.9 7.4 6,511 31.8
India 134 0.644 1.24 67.7 12.6 6.6 6,951 34.2
Nepal 146 0.601 1.32 70.5 12.6 4.5 4,026 32.8
Pakistan 164 0.540 0.99 66.4 7.9 4.4 5,374 29.6
Afghanistan 182 0.462 1.53 62.9 10.7 2.5 1,335 -
Source: UNDP Human Development Report-2023/2024

Fig-16.1: Average Annual HDI Growth Fig 16.2: HDI regional trends, 1990-2022
1990-2022 (%)
0.9
1.8 1.63
1.55 1.53 0.8
1.6
1.32
1.4 1.24 0.7
1.15
1.2
0.99
0.6
1.0
0.76
0.8 0.65 0.62 0.5
0.6
0.4 World South Asia
0.4 Sri Lanka Iran
China Maldives
0.2 0.3 Bhutan Bangladesh
India Nepal
0.0 Pakistan Afghanistan
0.2
1990 2000 2010 2015 2019 2020 2021 2022

Box-1: 2024 UNDP’s Regional Human Development Report

The 2024 UNDP Regional Human Development Report for Asia-Pacific provides an in-depth assessment of
human development in the region, recognizing substantial economic growth and poverty reduction. However,
it emphasizes the unequal distribution of benefits, persistent income and wealth gaps, gender biases, and
extensive informal economies. The report also underscores environmental challenges, including significant
carbon emissions and biodiversity loss.
Millions of people in Asia and the Pacific live under precarious conditions, facing multiple threats to their
security—social, political, or environmental. South and Southeast Asian countries grapple with political

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unrest, conflicts, and significant economic hurdles. The high levels of human insecurity and unmet aspirations
can potentially lead to a volatile and combustible situation, making it even harder to achieve cohesive human
development.
Despite significant progress in reducing monetary poverty, around 185 million people remain extremely poor
in absolute terms, earning less than $2.15 per day. Even more are living in relative poverty, with around 1.0
billion classified as 'societally poor,' living on less than half the median income. Another essential measure is
the Multidimensional Poverty Index (MPI), which considers deprivations of education, health, and living
standards. Asia and the Pacific region have around 500 million people who are multi-dimensionally deprived,
which is half the world's total. Out of these, 400 million people are in South Asia.
Pakistan has been praised for its innovative approaches to development challenges. This was demonstrated
through its effective handling of last year's floods, credited mainly to utilizing UNDP-supported flood
mitigation infrastructure. Additionally, Pakistan's integration of fintech and agri-tech in agriculture has been
recognized for its potential to enhance production, uplift the livelihoods of small-scale farmers, and drive
economic growth. Pakistan has also taken legislative measures to protect migrant domestic workers,
underscoring its commitment to equitable labor conditions. The report also examines the possibility of export-
led growth to tackle economic crises and manage significant debt burdens. Moreover, adopting action plans
for human rights and business underscores a deliberate effort to align business practices with international
human rights standards. While taking lessons learned into account, Pakistan is encouraged to anticipate the
multifaceted impacts of the climate crisis on health and social cohesion.

The UNDP report recognizes the progress made in the long term but also highlights persistent disparities and
widespread disruption. It urges new directions to enhance human development as millions across Asia and
the Pacific face precarious lives due to economic, environmental, social, and political threats. UNDP's index
of perceived human insecurity reveals high levels in several South and Southeast Asian countries, especially
those contending with conflict, unrest, or economic
challenges. Index of Perceived Human Insecurity, 2010-2016 & 2017-2020
Country 2010-2016 2017-2020
According to the report, some countries in the Australia 0.22 0.28
Asia-Pacific region experienced increased Japan 0.46 0.43
insecurity in the second half of the 2010s. These Malaysia 0.60 0.66
New Zealand 0.22 0.19
countries, such as Malaysia, Pakistan, and the Pakistan 0.63 0.66
Philippines, already have high levels of insecurity. Philippines 0.66 0.67
Meanwhile, countries like Japan, the Republic of Singapore 0.30 0.31
Korea, and New Zealand, which had lower levels Korea (Republic of) 0.33 0.26
of insecurity, saw a decrease in insecurity. This Thailand 0.47 0.51
resulted in a significant divergence in the region. Source: 2024 UNDP’s Regional Human Development Report

16.3 Tracking the Pro-Poor Expenditures of GDP in 2018-19, 7.9% in 2019-20, 7.6% in
2020-21, and 8.4% in 2021-22. In 2022-23, the
The expenditures within the Poverty Reduction
total expenditures in these sectors reached Rs
Strategy Paper (PRSP) have continued to rise
6,199.7 billion, which was 7.4% of GDP. These
across 14 sectors, indicating a strong
figures demonstrate the government's
commitment to prioritizing public spending
unwavering dedication to implementing a
aimed at helping the underprivileged. As per the
sustainable plan to alleviate poverty, as shown in
data in Fig-16.3, the expenditures stood at 7.1%
Table 16.2 below:

Table 16.2: PRSP Budgetary Expenditures by Sector Rs million

Sectors 2018-19 2019-20 2020-21 2021-22 2022-23*
Roads, Highways & Bridges 400,623 342,689 327,971 518,928 569,304
Environment / Water Supply and Sanitation 45,186 70,337 64,783 119,017 124,381
Education 868,022 901,013 802,226 1,101,654 1,251,055
Health 421,778 505,411 586,270 919,418 843,179

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Pakistan Economic Survey 2023-24

Table 16.2: PRSP Budgetary Expenditures by Sector Rs million

Sectors 2018-19 2019-20 2020-21 2021-22 2022-23*
Population Planning 14,328 11,381 11,257 17,968 16,925
Social Security & Welfare** 173,443 280,258 225,278 418,591 610,036
Natural Calamities & Other Disasters 20,933 72,353 89,138 130,043 393,940
Agriculture 256,697 377,093 327,286 388,678 496,613
Land Reclamation 2,538 2,418 3,054 4,666 6,690
Rural Development 11,958 29,738 49,703 68,110 65,971
Subsidies 387,092 635,816 1,184,070 1,252,935 1,110,765
Low Cost Housing 704 1,766 2,242 1,780 2,008
Justice Administration 65,937 72,737 79,866 95,207 110,435
Law and Order 430,063 457,487 480,187 593,176 598,375
Total 3,099,302 3,760,497 4,263,331 5,630,171 6,199,677
Total as % age of GDP (2015-2016 base) 7.1 7.9 7.6 8.4 7.4
*: Provisional
**: Social Security & Welfare includes the expenditure of BISP, SDGs, and PBM.
Source: External Finance Wing, Ministry of Finance

Fig-16.3: Pro-Poor Expenditures

6199.68
6600
5630.17
5800

5000
Rs. Billion

4263.33

4200 3760.50

3167.92 3099.30
3027.42
3400
2694.58
2274.63
2600 1934.18
1913.29

1800

1000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

goals aligned with the Sustainable Development

16.4 Social Safety Programmes Goals (SDGs), including eradicating extreme
Social safety net programs are essential for and chronic poverty and empowering women.
reducing poverty among the impoverished and BISP has a nationwide presence, with its
vulnerable. Our poverty alleviation strategy headquarters in Islamabad and 16 zonal offices
includes several vital initiatives, such as the in all regions and provinces. Additionally, 154
Benazir Income Support Programme (BISP) and district offices and 257 sub-divisional/Tehsil
Pakistan Bait-ul-Mal (PBM), along with non- offices are spread nationwide.
budgetary measures like Zakat, the Employees
Old-Age Benefit Institution (EOBI), the BISP is implementing the following major
Workers Welfare Fund (WWF), and the Pakistan programs;
Poverty Alleviation Fund (PPAF). Additionally, a. National Socio-Economic Registry (NSER):
specialized financial institutions offer In February 2023, the NSER underwent a
microfinance services to those facing economic significant transformation. Thanks to the
disadvantages. implementation of the Multiple-Entry-Localized
I. Benazir Income Support Programme: BISP Access (MELA) approach, it evolved from a
is an unconditional cash transfer program with a static registry into a dynamic one. This change
targeted approach focusing on impoverished has elevated the registry's status to that of a
women. The program aims to achieve long-term national asset. The data hosted by NSER carries

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profound implications for Pakistan's social around 1,700 beneficiaries.

protection interventions.
▪ PM Ramzan Package 2024: The Prime
The Benazir Income Support Programme (BISP) Minister of Pakistan has announced the
has established 647 Dynamic Registration Ramzan Package 2024 to protect the poor
Centers (DRCs) throughout the country to allow and vulnerable population from the effects
citizens to register themselves in their respective of inflation and rising prices of
tehsils, making the registration process more commodities. The approved budget for the
accessible and efficient. These centers also PM Ramzan package is Rs. 2.87 billion,
address citizens' complaints, including those of which will be disbursed to 1.435 million
households that were missed during the door-to- beneficiaries at Rs. 2,000/- per beneficiary
door coverage or those needing additional through BISP’s partner banks, including
information or updating existing data due to Habib Bank Ltd. and Bank-Alfalah. As of
identified discrepancies. the reporting period (Jan-Mar 2024), Rs
1.827 billion has been disbursed to 0.913
b. Un-Conditional Cash Transfer (UCT)
million beneficiaries through BISP’s partner
Programme: BISP's primary initiative,
banks in Balochistan, AJ&K, GB, and
Unconditional Cash Transfer (UCT), also known
Islamabad.
as "Kafaalat," was launched in 2008. The
program identifies beneficiaries through the ▪ Transgender Policy:The BISP's UCT
National Socio-Economic Registry (NSER) Programme was previously limited to
survey. The Proxy Means Test (PMT) assesses providing cash assistance to ever-married
household welfare status on a scale of 0-100. women. However, the program has now
Families with a PMT score of 32 or below are been expanded to include transgender
eligible for assistance. However, households individuals. To qualify for this assistance,
with disabled members have a relaxed threshold transgender individuals must get CNICs
of 37, as decided by the BISP Board based on from NADRA that indicate their gender as
fiscal constraints. 'transgender' and undergo surveys at
designated Benazir Registration Centers.
The government has gradually increased the
PMT cut-off restrictions are relaxed for
cash grant size under Kafaalat from Rs 3,000/-
transgender applicants who complete the
per quarter to Rs 10,500/- per quarter per
survey. Once NADRA verifies the data,
beneficiary. Currently, there are approximately
transgender individuals are declared
9.4 million beneficiaries enrolled in the program.
beneficiaries and receive cash assistance
From July to March FY2024, Rs 256.3 billion
through BISP's partner banks. Currently,
has been disbursed to 9.4 million regular
221 transgender individuals receive cash
Kafaalat beneficiaries. Besides BISP Kafaalat,
assistance under Kafaalat.
other initiatives and Emergency cash Transfers
under UCT are also available, given in the ▪ Payments Related Grievance Redressal
following: System: BISP (Benazir Income Support
Programme) has recently launched an
▪ Provision of Financial Assistance to Daily
automated Payment Complaint Management
Wage workers in Chaman District: As per
System (PCMS) in all of its Tehsil, District
the directives of the Federal Government,
and Zonal Offices. This system is designed
the BISP is providing cash assistance to
to efficiently address payment-related
daily wage workers at the Chaman Border
grievances of the beneficiaries, allowing
whose livelihoods have been affected by the
them to register and resolve their complaints
border closure and implementation of the
easily. PCMS is also integrated with the
One Document Regime. The Government of
Complaint Resolution Mechanisms (CRMs)
Balochistan has identified 8,000 daily wage
of BISP's partner banks, further enhancing
workers with cash assistance of Rs. 20,000
the overall efficiency of resolving the issues.
monthly for six months. From July to March
FY2024, Rs. 29 million was disbursed to

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Pakistan Economic Survey 2023-24

▪ Financial Inclusion and Digital & payment methods such as the Benazir Smart
Financial Literacy Programme Card, Mobile Phone Banking, and Biometric
(D&FLT): BISP has launched a pilot Verification System (BVS) to increase
project, Digital and Financial Literacy efficiency and transparency. Currently, all
Training (D&FLT) for Kafaalat beneficiaries are paid through the BVS
beneficiaries, as part of its Financial system. BISP collaborated with Karandaaz
Inclusion Strategy. The curriculum and Pakistan to conduct a Beneficiary Needs
trainer and trainee manuals/methodology Assessment (BNA) Survey, which enhanced
have been developed with the support of the BVS system. The procurement process
M/S Karandaaz Pakistan. During the for hiring financial institutions to facilitate
operational phase, UNICEF and the German the transition was completed in February
Government, through GIZ, provided 2024, and the transition is expected to begin
training to 7,250 beneficiaries by March 31, in the first quarter of the next financial year.
2024. The future rollout of the program will
▪ Social Protection Accounts (SPAs): BISP
be determined based on the evaluation of the
launched the pilot phase of Social Protection
pilot phase. BISP is also creating video
Accounts (SPAs) on July 7, 2023,
tutorials with the assistance of the German
collaborating with four participating banks:
Development Cooperation.
NBP, UBL, JS, and BAFL. The pilot phase
▪ Hybrid Social Protection Scheme: BISP is covered seven districts: Sukkur, Lahore,
working on a Hybrid Social Protection Peshawar, Quetta, Sanghar, Dera Ismail
Scheme (HSPS) that combines social Khan, and North Waziristan.
assistance with risk mitigation for informal
SPAs offer beneficiaries Full Mandate
sector workers. The scheme's objective is to
Accounts, allowing for easy processing of
encourage savings for emergencies and help
bulk payments through the RAAST payment
the government provide additional support
gateway and API integrations with
during times of crisis. HSPS will offer
participating financial institutions. In the
contributory savings with matching
pilot phase, at least 500 beneficiary accounts
incentives based on successful models
were opened in each participating bank per
worldwide. The pilot phase is currently
district, and two payment tranches were
being implemented in 13 districts across
deposited into these accounts to test the
Pakistan, including AJ&K and GB.
operational model of SPAs. From July to
▪ Indexation of Cash Transfer: The Benazir March FY2024, 9,072 SPAs were opened
Income Support Programme (BISP), in for BISP beneficiaries across the four
collaboration with the Finance Division and participating banks.
the World Bank, has established a
mechanism to update cash transfers ▪ Improved Service Delivery: BISP has a
regularly. The Indexation Committee meets nationwide presence at the tehsil level to
annually to determine adjustments to the assist beneficiaries with its initiatives. It has
stipend amount under the Kafaalat set up a dedicated Call Center in
Programme based on factors such as collaboration with NTC at NTC Regional
inflation. The latest meeting, held on HQ in Islamabad. This center serves as the
January 11, 2024, resulted in a decision to primary point of contact for beneficiaries
increase the stipend by Rs. 1,750 per quarter and the public to inquire about BISP's
per beneficiary. schemes and lodge complaints via the
Interactive Voice Response (IVR) system.
▪ Designing of Beneficiary Centric The Toll-free number (0800-26477)
Payment Mechanism: Initially, the BISP operates from 08:30 a.m. to 4:30 p.m. and is
used Pakistan Post to transfer cash to staffed with 35 call agents to address
beneficiaries every quarter. However, they queries.
later decided to shift to technology-based

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 Social Protection

c. Conditional Cash Transfer (CCT) focuses upon a 1000-day window of

Programme: opportunity to prevent malnutrition in
Pregnant & Lactating Women (PLW) and
i. Benazir Taleemi Wazaif (Education Children under two years of age within the
Programme): The Government of Pakistan
BISP Kafaalat Program households. The
is dedicated to achieving universal primary
comprehensive package of interventions is
education that aligns with the SDGs. To
being implemented through “Facilitation
address the issue of children from BISP
centres” established on the premises of
beneficiary households not attending school,
Tehsil/Taluka/District level government
the government introduced a Co-
health facilities.
Responsibility Cash Transfer in October
2012, providing additional cash per quarter The Programme aims to address stunting among
for primary education. Since July 1, 2021, PLW and their children of less than two years of
the program has been expanded to include age through the provision of additional cash of
secondary and higher secondary education, Rs 2,000/- per quarter per PLW / boy child and
gradually rolling out nationwide. The Rs 2,500/- per quarter per girl child of BISP
stipend rate of students is raised during beneficiary families. In return, mothers must
FY2024 and is given as below: commit to attending regular antenatal health
checks and awareness sessions during
Level Per Boy / Per Girl /
quarter (Rs) quarter (Rs) pregnancy, consuming Specialized Nutritious
Primary Level 2,000 2,500
Food (SNF), and taking their children for
Secondary Level 3,000 3,500
immunization and regular health checks.
Higher Secondary
Level
4,000 4,500 The primary objectives of the intervention
Bonus on Primary A one-time bonus of Rs 3,000 will
include:
Graduation to Girls be given to girls upon graduation
from primary education. ▪ To prevent stunting in children under two
years of age
▪ 4-12 years of Primary Education ▪ Improved weight gain of pregnant women
▪ 8-18 years of Secondary Education during pregnancy
▪ 13-22 years for Higher Secondary Education ▪ Reduce anemia and micronutrient
deficiencies
Achievements of Benazir Taleemi Wazaif
▪ Improved awareness of maternal and early
Programme:
child health/nutrition
Enrolment: So far, 14.8 million children have ▪ Reduced disease burden through improved
been enrolled and paid through the Benazir uptake of available health/nutrition services
Taleemi Wazaif Programme, and 2.2 million ▪ Prevent low birth weight
children were enrolled from July to March
The Nashonuma Programme is operationalized
FY2024.
in 158 districts through 545 Facilitation Centers,
Disbursement: Since the programme's including 35 mobile sites in Sindh, 2 in Punjab,
inception, Rs117 billion have been disbursed, of and 27 in KPK. Till March FY2024, Rs10.83
which Rs 36.9 billion were disbursed during billion has been paid to 1,873,557 beneficiaries
July-March FY2024. as Conditional Cash Transfers under the
Programme.
ii. Benazir Nashonuma (Health & Nutrition
Programme): Pakistan’s high rates of iii. Benazir Undergraduate Scholarship
malnutrition (40.2% stunting, 28.9% Project: The project envisages providing
underweight, and 17.7% wasting) are merit—and need-based scholarships over 4-
indicative of an ongoing child nutrition 5 years of undergraduate education,
crisis. Such levels of malnutrition rank including tuition fees and a stipend to cover
Pakistan as the second-highest-burdened living expenses, to qualified undergraduate
country in the region. The programme students from low-income families to study

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Pakistan Economic Survey 2023-24

in HEC-recognized 135 public sector Higher Kashmir and Gilgit-Baltistan. HEC is the
Education Institutions (HEIs) in all regions project's executing agency.
of Pakistan, including Azad Jammu &
Brief Details of the project
Duration: FY 2019-2020 to 2025-2026
Total Budget: Rs. 38.015 billion
Total Scholarships: 102,000
Date of Launch: September 20, 2019
Eligibility Criteria: Family income of Rs. 45,000 per month or less
Special Considerations: 50% of scholarships are reserved for females, whereas 2% are reserved for
students with different abilities.
Disciplines Covered: All academic fields are eligible, except vocational training programs
offered by TEVTAs.
Approved Degree Programs: Any regular 4-5 years undergraduate degree program (except distance
learning programs).
No. Of Participating Universities: The initiative encompasses135 public sector universities/HEIs, excluding
private and distant learning intuitions.
Scholarship Coverage: Scholarships cover tuition fees and a living allowance/stipend of Rs.
40,000 per annum.
Allocation Methodology: Scholarship slots for universities were allocated on a pro-rata basis by their
enrollment in undergraduate programs.
Phased Allocation: All the allocated scholarships have been granted in three batches. The
selected students will continue to receive support until their graduation.
Updated Status Rs 29.1 billion was disbursed till June 30, 2023. After 2021-22, the Project
is closed for new intakes, and only onboard scholarship awardees will
receive funds until they complete their degree programs.

BISP Financial Progress: grants. Year wise released and disbursement on

CCT and UCT grants are reflected in Table 16.3
Since its inception, BISP has managed to
and Fig-16.4 & Fig-16.5:
disburse Rs 2081.06 billion to UCT and CCT

Table-16.3: BISP Financial and Physical Achievements Rs billion

Year Released Funds Transfer to Cash Grants Number of
Conditional Cash Unconditional Cash Total Beneficiaries
Transfer (CCT) Transfer (UCT) (UCT+CCT) (million)
2008-09 15.32 0.04 15.81 15.85 1.76
2009-10 39.94 2.89 31.94 34.83 2.58
2010-11 34.42 5.30 29.66 34.96 3.10
2011-12 49.53 4.28 41.60 45.88 3.68
2012-13 50.10 3.17 43.30 46.47 3.75
2013-14 69.62 1.20 65.11 66.31 3.64
2014-15 91.78 0.45 88.59 89.04 5.05
2015-16 102.00 1.88 96.65 98.53 5.21
2016-17 111.50 2.27 102.10 104.37 5.46
2017-18 107.00 3.20 99.00 102.20 5.63
2018-19 116.50 4.01 104.60 108.61 5.78
2019-20 243.71 3.70 228.67 232.37 9.10
2020-21 194.29 5.57 169.40 174.97 7.06
2021-22 235.63 25.35 193.74 219.09 7.76
2022-23 412.33 61.24 332.91 394.15 9.00
2023-24* 328.96 55.97 257.47 313.44 9.30
Total 2,202.60 180.51 1,900.55 2,081.06 -
*Till 31st March, 2024
Source: Benazir Income Support Programme, Islamabad

264
 Social Protection

Fig-16.4: Yearly Number of Beneficiaries Fig-16.5: Yearly Cash Grants

9.3
10 9.1 9.0 450
265.4

Cash Disbursement in Rs. billion

9 7.7 400
Beneficiary Families in Million

8 313.4
350
7 300
5.5 5.6 7.1 232.4
6 5.1 5.2
250
5 3.7 3.8 3.6
5.8
200
4 3.1 219.1
2.6 150 104.4 108.6 175.0
3 89.0
1.8 100 46.5
2 35.0 98.5 102.2
50 15.9 66.3
1 45.9
0 34.8
0

2010-11

2019-20
2008-09
2009-10

2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19

2020-21
2021-22
2022-23
2023-24*
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24*
* Till 31st March, 2024 * Till 31st March, 2024

II. Pakistan Poverty Alleviation Fund disbursed, with 60 percent loans to women and
(PPAF): PPAF is continuing to support 80 percent financing extended to rural areas. The
communities by providing interest-free loans following are the key achievements under the
and enhanced access to improved infrastructure, PPAF:
energy, health, education, livelihoods, and ▪ 39,600 health, education, water, and
resilience to disasters. It has outreach in 149 infrastructure projects completed benefitted
districts across all four provinces and regions 18 million persons;
of the country.
▪ More than 440,000 credit groups and
PPAF focuses on innovation, evidence 150,800 community organizations formed;
generation, and scaling up effective models to
▪ 1,161,000 individuals (48% women)
align with Pakistan’s national development
received managerial and livelihood training;
agenda. The organization directs its efforts and
resources toward achieving specific strategic ▪ 200,300 productive assets transferred (63%
goals: assets to women) to ultra and vulnerable
poor households;
▪ Foster institutions of and for low-income
people to reduce inequalities and promote ▪ 3,215,000 interest-free loans (55% women)
inclusive governance and development. disbursed through Interest-Free Loan (IFL)
Programme;
▪ Enhance sustainable and resilient livelihood
opportunities to support households ▪ 26,000 individuals, including women and
graduating from poverty. youth trained in enterprise development
under Waseela-e-Haq National & Waseela-
▪ Address systemic deprivations that
e-Haq Sindh programmes of the BISP,
exacerbate poverty through local
facilitated in establishing their successful
infrastructure development and community
ventures; and
well-being initiatives.
▪ 39,000 persons with disabilities
▪ Strengthen organizational effectiveness by
rehabilitated.
aligning resource mobilization, people
capabilities, and partnerships to transform ▪ Approximately 1.5 million households,
into a more agile, responsive, and effective encompassing 11.3 million individuals, have
institution. benefited from PPAF’s disaster response
efforts.
Since its inception in April 2000 till March 2024,
PPAF has disbursed approximately Rs241.57 Interest-Free Loan (IFL) Programme under
billion to its Partner Organizations (POs) in 149 PPAF: Under this programme, from July 2023
districts nation wide to implement multi-sectoral to March 2024, 274,730 interest-free loans (65%
socio-economic development interventions. A loans to women) amounting to Rs 12.20 billion
total of 8.4 million microcredit loans have been (including reflows) were disbursed to borrowers.

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Pakistan Economic Survey 2023-24

From July 2019 to March 2024, 2,677,227 loans 26 partner organizations (POs) through 736
(53% loans to women) with a value of Rs 101.71 Loan Centers/Branches in around 81 districts, as
billion (including reflows) have been disbursed. shown in Table 16.4 below.
The programme is being executed nationwide by

Table 16.4: Interest-Free Loan (IFL) Progress

Sr. Particulars Progress during Cumulative Progress
# July–March FY 2024 (July 2019 to March 2024)
Men Women Total Men Women Total
1 Number of loans disbursed to
95,938 178,792 274,730 1,244,931 1,432,296 2,677,227
borrowers
2 Amount disbursed to borrowers
4.41 7.79 12.20 49.23 52.48 101.71
(Rs billion)
3 Number of Loan Centers 736
Source: Pakistan Poverty Alleviation Fund (PPAF), Islamabad

Moreover, the provincial breakdown of loans period, July-March FY2024, is also shown in
and amount disbursed during the reporting Table 16.5 below:

Table 16.5: Province/Region-wise Interest-Free Loan (IFL) Progress (July- March FY 2024)
No. of Loans Amount Disbursed (Rs million)
Province / Region Name
Male Female Total Male Female Total
AJK 249 890 1,139 14.97 58.75 73.72
Balochistan 3,074 615 3,689 208.33 33.18 241.51
Gilgit-Baltistan (GB) 217 778 995 14.51 43.06 57.57
Khyber Pakhtunkhwa 8,302 7,590 15,892 457.09 333.14 790.23
Punjab 77,342 154,728 232,070 3,338.97 6,719.38 10,058.35
Sindh 6,754 14,191 20,945 377.95 599.53 977.47
Total 95,938 178,792 274,730 4,411.81 7,787.04 12,198.84
Source: Pakistan Poverty Alleviation Fund (PPAF), Islamabad

Poverty Graduation Initiatives under PPAF: facilitates value chain connections to spur
PPAF and the United Nations High enterprise growth.
Commissioner for Refugees (UNHCR) are
jointly taking forward the Poverty Graduation Asset creation uplifts the economic and social
Approach to help low-income households climb well-being of ultra and vulnerable poor
out of poverty by providing them with livelihood households by providing income opportunities.
opportunities leading to sustainable income Skill expansion enhances their employability
generation. The following initiatives are being and entrepreneurial capacity. The organization
taken under this programme: has developed key value chains like
Embroidery/Stitching, Onion, Dates, Olives,
a) Provision of Productive Assets and Grapes, Livestock, Tomatoes, Mangoes, and
Vocational Skills Training: PPAF is Bananas.
committed to enhancing low-income
households' sustainable and resilient livelihoods During July- March FY2024, PPAF transferred
to help them escape poverty. By utilizing a 3,000 productive assets to ultra-poor and
comprehensive "Graduation" strategy, PPAF vulnerable households meeting pre-defined
offers a structured package that includes income- criteria, with over 41% allocated to women.
generating productive assets, technical and During this period, PPAF also trained 3,057
vocational training, and financial access. It also individuals to enhance income and productivity,
with 41% of trainees being women.

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b) Small and Medium Enterprises (SMEs) Fig-16.6: Gender-wise SMEs Development

Development: Small and medium-sized (July-March FY2024)
enterprises (SMEs) in Pakistan are pivotal for
700 625
economic growth, driving technological Male

innovation, supporting larger industries and 600 Female

449
cottage industries, and fostering economic 500 Transgender

revitalization and social progress. They are vital 400

contributors to poverty reduction and national 300 210
economic expansion and are fundamental to 163
200
employment generation and social advancement. 91
1 5
100 1 1

Since 2021, PPAF has been enhancing SMEs in 0

Matching grants to SMEs accessed SMEs trained on
rural areas of Sindh and Balochistan provinces, SMEs loans as result of Business Plan
focusing on primary production, services, and linkages with FI Development and
financial literacy
value addition. From July - March FY2024, 302
matching grants were given to targeted SMEs,
with 30% allocated to women and 01 to a Financial Progress of the PPAF
transgender individual. Additionally, 169 SMEs
(3% women) were connected with financial During July-March FY2024, PPAF disbursed an
institutions, resulting in 106 SMEs (31% amount of PKR 1.99 billion to its POs for
women) obtaining loans. Moreover, 1,075 SMEs various programmes funded by donors and its
(625 men, 449 women, and 01 transgender own resources. The component-wise financial
individuals) received business planning and progress is given in Table-16.6 below:
financial literacy training.

Table 16.6: Financial Progress of PPAF (July-March FY2024) Rs million

Sr # Programme Components Amount Disbursed
1 Institutional Development/Social Mobilization (ID/SM)/Capacity Building 500.46
2 Livelihood Enhancement and Protection (LEP) 735.85
3 Water and Infrastructure (W&I) 98.19
4 Education, Health and Nutrition (EHN) 176.30
5 Interest-Free Loans (IFL) 296.39
6 Climate Change: Flood Emergency Response 187.92
Total 1,995.10
Source: Pakistan Poverty Alleviation Fund, Islamabad.

During the reporting period, 438 community vulnerable poor households. A total of 24
institutions were formed, and 1,462 community physical infrastructure sub-projects were
members (43% women) were trained under the completed, benefitting 6,227 persons (including
Institutional Development and Social 43% women). Under the education component,
Mobilization component. Similarly, under the 80 educational facilities were supported, and
Livelihood Enhancement and Protection 11,5031 students (42% of whom were girls) were
component, 3,057 individuals (41% of whom enrolled in these facilities. A total of 274,730
were women) received skills and entrepreneurial (65% loans to women) loans were disbursed
training, and 3,000 productive assets (41% assets through the IFL Programme. The highlights of
to women) were transferred to ultra and physical progress are given in Table-16.7 below:

1
Scholarship support for fee was provided to 1,838 students (31% girls) from 19 education facilities. Also Accelerated Learning Programme
was provided to 1,168 students (23% girls) from 15 supported Madrassahs.

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Pakistan Economic Survey 2023-24

Table-16.7: Physical Progress of PPAF (July-March FY2024) Numbers

Programme Components Physical Progress
Institutional Development and Social Mobilization:
Community Institutions Formed 438
Community members trainees (43% women) 1,462
Livelihoods Enhancement and Protection
Individuals received skills/entrepreneurial training (41% women) 3,057
Productive assets transferred to ultra and vulnerable poor (41% women) 3,000
Water and Infrastructure Sub-projects:
Sub-projects completed 24
Sub-project beneficiaries (43% women) 6,227
Education:
Education facilities supported 80
Students enrolled and scholarship provided (42% girls enrolled) 11,503
Health:
Health facilities supported 3
Interest-Free Loans (IFL) Programme:
Number of Interest-Free Loans (65% women) 274,730
Source: Pakistan Poverty Alleviation Fund, Islamabad.

III. Microfinance Initiatives: The microfinance industry broadly provides services

microfinance sector emerges as a critical player in three categories: micro-credit, micro-savings,
in the fight against poverty and social inequality. and micro-insurance. As shown in Table 16.8,
This sector serves over 9.0 million clients across the sector continued an upward trend. The
Pakistan to help them out of poverty. This sector micro-credit outreach witnessed a growth of 3.4
is globally acknowledged as an essential tool to percent in Micro-Credit, with Active Borrowers
reach the marginalized segments of society, increasing to 9.4 million during FY2023
allowing them to improve their livelihoods, compared to 9.1 million over the corresponding
improve the health and nutrition of their period last year. At the same time, the Gross
families, and achieve a better social standing Loan Portfolio registered 11.2 percent growth,
where otherwise, social norms would not allow reaching Rs546.6 billion during the same year.
them such social advancement. Micro-savings, on the other hand, posted a
growth of 15.7 percent under active savers
The microfinance industry in Pakistan has been increased to 108.7 million, and their savings
experiencing steady growth, with an average reached Rs596.6 billion, an increase of
increase of 1.0 to 1.5 million clients over the past 16.0percent over the corresponding year. Micro-
couple of years as Microfinance Providers insurance also remained positive, wherein the
ventured into digital finance, housing, renewable number of policyholders increased by 3.7
energy, and enterprise loans. Digital solutions percent and reached 8.6 million. Moreover, the
improve services and outreach while sum–insuredgrew2.7 percent and increased from
diversification meets community needs, Rs317 billion in 2022 to Rs325.5 billion in 2023.
fostering socioeconomic development. The

Table 16.8: Active Borrowers, Active Savers, and Active Policyholders

Details Micro-Credit Micro-Savings Micro-Insurance
Active Value Active Value Policy Sum Insured
Borrowers (Rs million) Savers (Rs million) Holders (Rs million)
2023* 9,397,888 546,612.5 108,687,815 596,618.7 8,572,031 325,522.7
2022* 9,092,247 491,262 93,957,497 514,289 8,264,513 316,948
Increase/decrease (Net) 305,641 55,350 14,730,318 82,330 307,518 8,575
Increase/Decrease (%) 3.4% 11.2% 15.7% 16.0% 3.7% 2.7%
*: Calendar Year
Source: Pakistan Microfinance Network (PMN)

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The microfinance sector in Pakistan is employment, and advancing gender equality.

committed to enhancing economic opportunities It is provided as a package through Microfinance
and fostering growth among marginalized Banks (MFBs), Microfinance Institutions
communities. Recognizing that access to (MFIs), Rural Support Programmes (RSPs), and
financial services alone is insufficient, Others, including Commercial Financial
microfinance providers (MFPs) prioritize social Institutions (CFIs) and NGOs. Table-16.9
and developmental initiatives. These include presents the cumulative number of micro-credit
expanding access to financial services, beneficiaries with outstanding loan portfolios
supporting the establishment and growth of and disbursements by loan providers up to
enterprises, alleviating poverty, generating December 2023.

Table 16.9: Microcredit beneficiaries, outstanding loans portfolio, and loan disbursement up to Dec. 2023
Organization Active GLP (PKR) No. of Loans Disbursements
Borrowers disbursed (PKR)
Total for Pakistan MFN Sector 9,397,888 546,612,490,727 9,500,283 131,468,496,892
Microfinance Banks
Advans Pakistan 17,912 3,227,395,047 2,555 723,996,011
Apna Microfinance Bank 101,713 11,616,128,635 5,977 1,306,221,088
ASA Microfinance Bank 615,537 19,464,524,459 164,041 9,047,487,000
FINCA Microfinance Bank 97,561 18,759,941,626 24,927 5,970,670,211
HBL Microfinance Bank Limited 477,389 100,932,231,541 79,078 447,551,050
Khushhali Bank 525,430 73,168,651,240 68,850 12,427,102,815
Mobilink Microfinance Bank 2,340,788 66,765,937,445 6,061,641 13,925,782,932
NRSP Bank 189,671 33,480,145,455 50,553 9,010,608,333
Pak Oman Microfinance Bank 47,917 4,081,833,013 9,215 1,166,434,632
Sindh Microfinance Bank 74,177 1,899,048,104 22,413 868,715,292
Telenor Microfinance Bank Limited 1,392,076 18,577,758,481 2,201,339 14,433,204,349
U Microfinance Bank 394,219 75,184,085,040 58,890 16,057,860,741
Total 6,274,390 427,157,680,086 8,749,479 85,385,634,454
Microfinance Institutions
Agahe Pakistan 53,781 1,818,715,559 13,390 830,674,000
Akhuwat Islamic Microfinance 663,389 32,168,786,771 110,342 7,698,347,900
CSC Empowerment & Inclusion Programme 38,087 1,616,119,566 8,572 603,475,015
Damen Support Programme 103,594 4,448,660,325 27,896 2,185,915,000
FFO Support Program 29,205 981,512,313 5,595 377,433,000
JWS Pakistan 175,892 5,986,123,053 46,068 2,904,095,000
Kashf Foundation 753,951 26,429,594,353 221,949 12,070,704,851
Mojaz Support Program 28,609 1,005,675,947 1,879 191,410,000
OPD Support Program 5,144 103,395,780 954 43,810,000
Organization for Poverty Reduction &Charitable Trust 22,576 738,956,069 5,107 313,590,000
Sayya Microfinance Company 208,235 8,705,183,435 54,711 3,882,265,000
Safco Support Foundation 7,311 240,752,544 1,570 63,540,000
Shah Sachal Sami Foundation 121,952 3,765,090,954 13,368 934,410,820
Taleem Finance Company Ltd 739 430,741,360 1,234 762,680,752
Thardeep Microfinance Foundation 71,690 3,151,195,561 1,858 197,390,800
Union Bank 704.00 82,962,459 313 37,315,400
Total 2,284,859 91,673,466,049 514,806 33,097,057,538
Rural Support Programmes
National Rural Support Programe 694,103 23,060,345,604 198,794 11,130,491,700
Punjab Rural Support Programe 44,706 1,505,144,397 10,958 624,090,000
Sindh Rural Support Organization 89,214 2,587,071,207 23,867 1,111,170,200
Sarhad Rural Support Programme 7,742 226,210,800 2,255 111,575,000
Total 835,765 27,378,772,008 235,874 12,977,326,900
Others
Villagers Development Organization 1,748 32,572,584 124 8,478,000
MCB Islamic Bank 1,126 370,000,000 - -
Total 2,874 402,572,584 124 8,478,000
Source: Pakistan Microfinance Network (PMN)

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Pakistan Economic Survey 2023-24

IV. Zakat: The Zakat system ensures equitable educational assistance to needy orphans,
wealth distribution and is a preventative measure offering stipends to outstanding students who
against poverty, aiming to mitigate community cannot afford higher professional education,
inequality. Zakat funds are utilized to assist the ensuring residential accommodation and
needy, orphans, widows, disabled individuals, essential facilities for deserving individuals,
and others needing sustenance or rehabilitation. delivering free medical treatment to needy, sick
The federal government oversees the collection individuals, establishing free hospitals and
and distribution of Zakat, adhering to the rehabilitation centers for the impoverished and
approved Zakat distribution formula set by the offering financial aid to charitable institutions,
Council of Common Interests (CCI) across including educational and vocational setups.
provinces and federal territories. A total amount During FY2024, Rs 7.67 billion has been
of Rs 7,393.44 million has been distributed allocated to PBM, out of which Rs 4.32 billion is
during FY2024 as per details in Table 16.10: utilized during July-March for its following core
projects/schemes:
Table 16.10: Disbursement of Zakat
Federal Areas/ Provinces Amount (Rs million) a) Individual Financial Assistance (IFA):
Punjab 3,944.02 Through IFA, the poor, widows, needy, and
Sindh 1,630.27 orphans are supported for medical treatment of
Khyber Pakhtunkhwa 950.25
Balochistan 351.36
catastrophic diseases like cancer, surgical, heart,
Gilgit-Baltistan 96.11 and kidney and installation of Cochlear implants
ICT 181.86 for children up to age five years @ Rs 1.5 million
FATA* 239.57 each child. Education stipend to brilliant and
Total 7,393.44 poor students & general financial assistance of
*: Share of FATA released to KPK Province as approved widow and other needy segment of the society.
by CCI in its meeting held on 07-04-2021 PBM has envisioned providing wheelchairs to
Source: Ministry of Poverty Alleviation and Social Safety
every disabled person in the country and Sewing
Machines among skilled workers to empower
V. Pakistan Bait-ul-Mal (PBM): Pakistan Bait-
them to earn their livelihood. A family having
ul-Mal plays a crucial role in reducing poverty
two or more special (disabled) children has been
through targeted services for the most
declared a “special family” are being provided
vulnerable. The organization extends support to
financial assistance. An amount of Rs1.75billion
needy individuals, widows, orphans, people with
has been disbursed country-wide for the period
disabilities, and others in need, focusing on
July to March FY2024, the detail of which is
rehabilitation. This includes providing
given in Table 16.11 below:

Table 16.11: Details of Individual Financial Assistance

Amount Disbursed
S# Head Beneficiaries
(Rs million)
1. Medical Financial Assistance 6,655 1,317.3
2. Cochlear Implant 218 239.0
3. General Financial Assistance 2,635 62.2
4. Financial Assistance - Disable Persons 3,139 17.8
5. Education Financial Assistance – Deserving Students 3,412 112.9
6. Nos. of wheelchairs distributed 436 -
7. Nos. of Sewing Machines distributed 803 -
Total 17,298 1,749.2
Source: Pakistan Bait-ul-Mal, Islamabad

b). Schools for Rehabilitation of Child formal) education. Children (male and female)
Labour (SRCLs): Since 1995, PBM has between the ages of 5 and 6 are weaned away
established National Centres for Rehabilitation from hazardous labor and enrolled in these
of Child Labour countrywide for primary (non- centers, which provide free uniforms, books, and

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stationery. During July- March FY2024, Rs and family-based support, the program aims to
422.78 million was disbursed. comprehensively nurture orphans and widows'
physical and mental welfare, striving for a more
c). Women Empowerment Centres (WEC): inclusive society. Rs 11.34 million was
Vocational Training Centres, now called WECs, disbursed during July-March FY2024.
have been established nationwide since 1995.
WECs provide free training to widows, orphans, i). Institutional Rehabilitation for NGOs:
and poor girls in different skills (e.g., cutting, Pakistan Bait ul Mal provides grant-in-aid to
sewing, knitting, computers, embroidery, and registered NGOs with excellent track records
other trades). The trainees are provided with free aimed at institutional rehabilitation of the poor
training material. An amount of Rs 272.0 million and deserving members of society. Rs 29.73
has been utilized for July to March FY2024. million was disbursed from July to March
FY2024.
d). Pakistan Sweet Homes (PSHs): PBM has
established Sweet Homes (orphanages) for VI. Employees Old-Age Benefits Institution
orphan children, where they are provided free (EOBI): EOBI plays a vital social security role
food, nutrition, medical treatment, boarding and by paying pensions and grants to retired workers
lodging, and free education through well-reputed and their families. By April 2024, EOBI had
education institutes. During July-March 299,790 active old-age pensioners, 223,755
FY2024, Rs 645.89 million was spent. active survivor pensioners, and 6,766 active
invalidity pensioners, proliferating. On average,
e). PBM Old Homes (for Shelter Less Senior about 40,000 pensioners are added every year.
Citizens): Old homes are established for
enrolled senior citizens (above 60 years of age), Main Features of the EOBI Schemes:
where they are provided free of cost
▪ Old-age pension on attaining the age of 60
boarding/lodging, meals, and medical care. Rs
years in the case of male workers and 55
8.04 million has been utilized for the period July
years in the case of female and mine workers.
to March FY2024.
▪ Invalidity pension sustaining invalidity
f). PBM Shelter Homes: PBM, an executing affecting insured person’s earning more than
agency of Shelter Homes, mainly focuses on one-third of normal.
quality service delivery to shelter-less persons
by respectably taking care of multiple aspects, ▪ Survivors’ pension to the following in case
including health care, safe/secure living of death of insured person/pensioner:
environment, hygienic food, etc. An amount of ▪ Surviving spouse 100% pension till life, or
Rs 137.82 million was utilized during July to
▪ Surviving male children till 18 years of age,
March FY2024.
or
g). PBM Roti Sab KeLeay: PBM, an executing ▪ Surviving female children till 18 years of age
agency of Roti Sab KeLeay, has procured food or their marriage, whichever is earlier, or
vehicles to deliver food to the poorest segment
of society. During July-March, FY2024, Rs ▪ Surviving parents for five years if spouse or
28.06 million was utilized. children do not survive any insured
person/pensioner.
h). Orphans & Widows Support Program ▪ Old-Age Grant: not meeting the benchmark
(OWSP): The OWSP in Pakistan is a for old-age pension.
transformative initiative targeting orphan girls
and matriculated children from closed PBM The details of disbursed benefits during July-
Sweet Homes. Focusing on health, education, March FY2024 are shown in Table 16.12.

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Pakistan Economic Survey 2023-24

Table-16.12: Achievements of EOBI during July- March FY2024 Rs million

Pension Disbursement Type-Wise Total
Benefits Disbursement
July Aug Sep Oct Nov Dec Jan Feb Mar
Old-age Pension 2316.14 2274.03 3389.66 2703.04 2677.34 2721.69 2963.48 2726.03 2806.51 24577.9
Invalidity Pension 46.08 44.30 69.52 54.54 55.49 54.52 59.28 54.86 56.74 495.33
Survivors’ Pension 1568.05 1556.61 2290.80 1863.00 1824.64 1869.95 2099.84 1865.25 1952.73 16890.9
Old-Age Grant 68.31 67.65 87.52 71.80 53.11 49.43 58.43 50.43 62.57 569.25
Total 3998.58 3942.59 5837.50 4692.38 4610.58 4695.59 5181.03 4696.57 4878.55 42533.4
Source: Employees' Old Age Benefits Institution (EOBI), Karachi

VII. Workers Welfare Fund (WWF): The million at Rs 800,000 for each worker, covering
WWF was established under the Workers 1,060 incidents of accidents nationwide.
Welfare Fund Ordinance 1971 to take initiatives
for industrial workers by providing health, Concluding Remarks
education, and low-cost housing services. This Pakistan has taken significant steps towards
includes the provision of Marriage Grants, Death establishing social protection programs to
Grants, and Talent Scholarships, establishing alleviate poverty, improve healthcare access,
and maintaining labor Colonies, and establishing and enhance education opportunities for its
and operating Workers' Welfare Schools at citizens. Initiatives like the BISP have provided
various priority locations throughout the cash transfers to millions of vulnerable
country. households to help them escape poverty.
However, there remain considerable gaps in
The WWF derives its receipts from the following
these programs' coverage, effectiveness, and
three sources:
sustainability. Many marginalized communities
▪ An industrial establishment contributes 2% still lack adequate support, particularly in rural
of its assessable income under the WWF areas where poverty rates are high. Improving
Ordinance 1971 when it exceeds Rs infrastructure, promoting sustainable
500,000/- in an accounting year. livelihoods, and empowering marginalized
communities are crucial for reducing poverty
▪ After distribution amongst workers, the
and fostering inclusive growth. Establishing a
leftover amount is under the Companies
unified national social protection framework is
Profit Workers Participation (CPWP) Act,
essential to integrate federal and provincial
1968.
initiatives, preventing duplication and inefficient
▪ Income from investments. resource allocation.
In FY2024, from July to March, expenses of Rs With a new government in place and ambitious
1.37 billion were spent on 12,303 scholarship reform goals, Pakistan's path to prosperity
cases. Additionally, Rs 660.14 million was given necessitates substantial mobilization of climate
out as marriage grants, with each worker and SDGs funding, alongside a governance
receiving a payment of Rs 400,000, benefiting structure tailored to deliver planetary and digital
the families of 4,107 workers. In addition, the 'global public goods' efficiently.
WWF has paid out a death grant of Rs 575.5

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