Building A Unified Social Protection System To Reduce Poverty In Pakistan – The Friday Times

Building a Unified Social Protection System to Reduce Poverty in Pakistan

Introduction

Article 38 of Pakistan’s Constitution mandates the state to provide social security, food, housing, healthcare, and education to all citizens without discrimination. Despite this constitutional commitment, socio-economic disparities and ineffective public policy implementation have left a significant portion of the population unable to access these fundamental rights. Currently, approximately 24–30% of Pakistan’s population lives below the poverty line, with multidimensional poverty affecting between 40 and 44% of the population.

Current Social Protection Spending and Challenges

Pakistan’s combined federal and provincial annual expenditure on social protection is approximately PKR 1.1 trillion, less than 1% of the country’s Gross Domestic Product (GDP). This spending includes around PKR 400 billion in untargeted subsidies for food, fuel, and electricity. The majority of social protection funds are allocated through unconditional cash transfers under the Benazir Income Support Programme (BISP). Compared to neighboring South Asian countries such as Bangladesh, Nepal, and Sri Lanka, Pakistan’s social protection spending as a percentage of GDP is significantly lower.

Need for Integration and Institutionalization of Social Protection

To enhance the effectiveness of social protection, Pakistan must integrate and institutionalize the currently fragmented and politically personalized programs under a national social protection policy framework. Key steps include:

1. Streamlining the Socio-Economic Registry: The National Socio-Economic Registry (NSER), maintained by BISP, requires modernization to support protection programs beyond income support. Provinces should develop their own registries with enhanced data sets to complement the NSER, as demonstrated by Punjab during the COVID-19 crisis.
2. Developing a National Social Protection Policy Framework: This framework should establish a unified vision, objectives, protocols between federal and provincial governments, and administrative thresholds for both peacetime and disaster-response initiatives.
3. Provincial Leadership: In accordance with the Eighteenth Amendment, provinces must take leadership roles in social protection programs. Provincial social protection authorities, such as Punjab’s, should coordinate efforts across all provinces, Gilgit-Baltistan, and Azad Kashmir.

Fragmentation and Overlapping Programs

Pakistan currently operates multiple overlapping social protection initiatives at both federal and provincial levels, including:

• Benazir Income Support Programme (BISP)
• Pakistan Bait-ul-Mal
• Pakistan Poverty Alleviation Fund
• Zakat programs

This patchwork approach reflects ad hoc and reactive responses, resulting in inefficiencies and duplication of efforts. The absence of a national policy framework has led to a devolved and disjointed social protection landscape.

Financing and Expanding Social Protection

Pakistan faces significant challenges in financing pensions and preventing poverty. To address these issues, the following measures are recommended:

• Encourage public–private partnerships to expand contributory unemployment insurance for low-income populations.
• Introduce crop and livestock insurance, particularly in flood-prone areas, to build community resilience and reduce government relief liabilities.
• Subsidize pension plans for low-income workers through tax rebates and other incentives.

Establishing a Social Protection Floor

It is imperative to prioritize tangible impact and accountability by defining a social protection floor that guarantees a minimum package of social security services to targeted populations throughout life-cycle events. The lack of such a nationally defined floor has resulted in fragmented and overlapping programs rather than a unified system of benefits and services.

Social Protection as an Investment in Human Development

The social protection agenda should be institutionalized through the lens of investment in human development rather than charity or welfare. Well-designed and efficiently implemented social protection programs:

• Support vulnerable groups to remain above poverty lines.
• Act as economic stabilizers during crises such as recessions, pandemics, or natural disasters.
• Prevent economic downturns by maintaining aggregate demand.

Key Opportunities for Pakistan

Two immediate gains from an institutionalized social protection system include:

1. Enrolling approximately 25 million out-of-school children aged 5–15 years into education, addressing the second-highest global number of out-of-school children.
2. Mitigating rapid population growth, currently at 2.40% annually, through household-level incentives promoting child education and smaller family sizes.

Alignment with Sustainable Development Goals (SDGs)

Strengthening Pakistan’s social protection system directly contributes to several United Nations Sustainable Development Goals:

• SDG 1: No Poverty – By reducing poverty levels through targeted social security programs.
• SDG 2: Zero Hunger – Through food security initiatives and subsidies.
• SDG 3: Good Health and Well-being – Via healthcare access and insurance schemes.
• SDG 4: Quality Education – By bringing millions of out-of-school children into formal education.
• SDG 8: Decent Work and Economic Growth – Through unemployment insurance and economic stabilization.
• SDG 10: Reduced Inequalities – By ensuring equitable access to social protection services.
• SDG 13: Climate Action – Through resilience-building insurance for flood-prone communities.

Conclusion

Pakistan’s path to sustainable development requires a unified, well-funded, and efficiently managed social protection system aligned with the Sustainable Development Goals. Institutionalizing social protection as a human development investment will not only alleviate poverty and vulnerability but also foster economic stability and social equity across the nation.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty – The article discusses poverty levels in Pakistan, social protection spending, and poverty alleviation programs.
2. SDG 2: Zero Hunger – References to food subsidies and social security related to food access.
3. SDG 3: Good Health and Well-being – Mentions healthcare as a fundamental right and part of social protection.
4. SDG 4: Quality Education – Highlights the issue of 25 million out-of-school children aged 5–15 years.
5. SDG 5: Gender Equality – Implied through social protection and education access for all citizens without discrimination.
6. SDG 8: Decent Work and Economic Growth – Discusses unemployment insurance, pensions, and economic stabilizers.
7. SDG 10: Reduced Inequalities – Addresses socio-economic disparities and the need for equitable social protection.
8. SDG 13: Climate Action – Mentions crop and livestock insurance in flood-prone areas to build resilience.

2. Specific Targets Under Those SDGs Identified

1. SDG 1: No Poverty
   • Target 1.3: Implement nationally appropriate social protection systems and measures for all.
   • Target 1.4: Ensure equal rights to economic resources and access to basic services.
2. SDG 2: Zero Hunger
   • Target 2.1: End hunger and ensure access to safe, nutritious, and sufficient food.
3. SDG 3: Good Health and Well-being
   • Target 3.8: Achieve universal health coverage, including financial risk protection.
4. SDG 4: Quality Education
   • Target 4.1: Ensure all children complete free, equitable and quality primary and secondary education.
   • Target 4.5: Eliminate gender disparities and ensure equal access to education.
5. SDG 5: Gender Equality
   • Target 5.1: End all forms of discrimination against women and girls.
6. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all.
   • Target 8.8: Protect labour rights and promote safe working environments.
7. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote social, economic and political inclusion for all.
8. SDG 13: Climate Action
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards.

3. Indicators Mentioned or Implied to Measure Progress

1. Percentage of population below poverty line – The article states 24–30% below poverty levels and 40–44% multidimensional poverty.
2. Social protection spending as a percentage of GDP – Currently less than 1% in Pakistan, compared to other South Asian countries.
3. Coverage of social protection programs – Number of beneficiaries under programs like Benazir Income Support Programme, Pakistan Bait-ul-Mal, etc.
4. Number of out-of-school children aged 5–15 years – Approximately 25 million children out of school.
5. Unemployment insurance coverage – Implied through discussion of contributory unemployment insurance for low-income populations.
6. Access to healthcare and education services – Implied through references to constitutional rights and social protection services.
7. Implementation of national social protection policy framework – Implied by the need for integrated registries and coordinated programs.
8. Resilience indicators related to climate risks – Crop and livestock insurance coverage in flood-prone areas.

4. Table: SDGs, Targets and Indicators

Source: thefridaytimes.com