Targeting and Effectiveness of Social Safety Net Programmes: The Case of Zakat and BISP in Pakistan

Abstract

Social Safety Nets are considered a window to improve lives of the poor. In Pakistan, various SSNs are functional, both in government and private sector. The present study made a comparison of Zakat and Benazir Income Support Programme (BISP) to evaluate the effectiveness, targeting and accuracy of both the programmes on a wide range of indicators including consumption, headcount poverty, and multidimensional poverty index. Data from the latest available 2013/14 round of Household Integrated Economic Survey (HIES) is used. The analysis reveals that both the Zakat and BISP recipients are under-reported as only 0.6 percent of the household reported as recipients of Zakat and 7 percent of the household reported that they got benefit from BISP programme. A comparison on socio-demographic profile of recipients of Zakat and BISP suggests that recipient households of both the Zakat and BISP are at a disadvantageous position as compared to the non-receiver households. However, BISP beneficiaries possess more assets, i.e., livestock, land and ownership of house. Zakat has quite limited coverage as compared to BISP. Same is the case with targeting

Keywords

• Social Safety Nets
• Welfare/wellbeing
• Consumption, Poverty