A
COUNTRY REPORT
On following




General information of the country
Government and Non-government organization’ interventions related To
income generation and poverty reduction for development
Best practices concerning income generation and poverty reduction
implementations
Problems, opportunities and challenges in the interventions in the country
Income generation and Poverty Reduction for Development from 22nd February
to 19th March 2010
Prepared by
(Muhammad Saleem Jalbani)
Assistant Chief (Environment), Planning & Development Department,
Second Floor, Sindh Secretariat Building No.2, (Tuglaq House) Government of
Sindh, Karachi, Pakistan – Fax 092-21-99211922,
Phone 092-21-99217756 mobile 092-300-2772763
Email.msjalbani@yahoo.com.
Table of contents
Sr. No
1
Topics
General information of the country
2
Government
and
Non-government
organization’ interventions related To income
generation and poverty reduction for
development
3
Best practices concerning income generation
and poverty reduction implementations
4
Problems, opportunities and challenges in
those interventions in your country
2
Page No#
General information of the country
Pakistan displays some of Asia’s most magnificent landscapes as it stretches
from the Arabian Sea, its southern border, to some of the world’s most
spectacular mountain ranges in the north. Pakistan is also home to sites that
date back to word’s earliest settlements rivaling those of ancient Egypt and
Mesopotamia.
Location
Located in South Asia, Pakistan shares an eastern border with India and a northeastern border with China. Iran makes up the country’s south-west border, and
Afghanistan runes along its western and northern edge. The Arabian Sea is
Pakistan’s southern boundary with 1,064 km of coastline.
The country has a total area of 796,095 sq km and is nearly four times the size of
the United Kingdom. From Gwadar Bay in it’s south-eastern corner, the country
extends more than 1,800 km to the Khunjerab Pass on China’s border.



Basic facts
Land & People
History
BASIC FACTS
Official Name
Father
Nation
of
Islamic Republic of Pakistan
the
National Poet
Head
State
of
Head
Government
Capital
Quaid-i-Azam Muhammad Ali Jinnah (1876-1948)
Allama Muhammad Iqbal (1877-1938)
the
of
Asif Ali Zardari, President
Syed Yousaf Raza Gilani, Prime Minister
Islamabad
Area
796,095 Sq. km.
Density per sq meter is
215
Total
3
Punjab
205,344 Sq. km.
Sindh
140,914 Sq. km.
North West Frontier Province
74,521 Sq. km.
Balochistan
347,190 Sq. km.
Federally
Areas
Administered
Tribal
Islamabad (Capital)
Population
Administrative
Setup
27,220 Sq. km.
906 Sq. km.
163.9 million (UN-2007)-life expectancy 65 yrs male and 66 yrs
female –growth rate is 1.8%
Pakistan is divided into four provinces viz., North West Frontier
Province (NWFP), Punjab, Sindh and Balochistan. The tribal
belt adjoining NWFP is managed by the Federal Government
and is named FATA i.e., Federally Administered Tribal Areas.
Azad Kashmir and Northern Areas have their own respective
political and administrative machinery, yet certain of their
subjects are taken care of by the Federal Government
through the Ministry of Kashmir Affairs and Northern Areas.
Provinces of Pakistan are further divided into Divisions and
Districts
Divisions
Districts
NWFP
7
24
Punjab
8
34
Sindh
5
21
Balochistan
6
22
While FATA consist of 13 Areas/Agencies and Azad Kashmir
and Northern Areas have 7 and 5 Districts respectively.
Religion
95% Muslims, 5% others.
Annual
Per US $ 1046 (PES-2008-09) increase 2.5% in 2008-09 against
capita income 3.4% in 2007-08
GDP
6.1% as compared to robust growth 8.3% in 2007 (economic
Survey of Pakistan 2008-09-GDP grew 2008-09 against 4.1% in
last year .
Currency
Pak. Rupee.
Imports
Industrial equipment, chemicals, vehicles, steel, iron ore,
petroleum, edible oil, pulses, tea.
Exports
Cotton, textile goods, rice, leather items carpets, sports
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goods, handi-crafts, fish and fish prep. and fruit
Languages
Urdu (National) and English (Official)
Literacy rate
55% PES -2008-09
Government
Parliamentary form
Parliament
Parliament consists of two Houses i.e., the Senate (Upper
House) and the National Assembly (Lower House).
The Senate is a permanent legislative body and symbolises a
process of continuity in the national affairs. It consists of 100
members. The four Provincial Assemblies, Federally
Administered Tribal Areas and Federal Capital form its
electoral college.
The National Assembly has a total membership of 342
elected through adult suffrage (272 general seats, 60
women seats and 10 non-Muslim seats).
Pakistan
National Flag
Dark green with a white vertical bar, a white crescent and a
five-pointed star in the middle. The Flag symbolizes Pakistan's
profound commitment to Islam, the Islamic world and the
rights of religious minorities.
National Anthem Approved in August, 1954
Verses Composed by: Abdul Asar Hafeez Jullundhri
Tune Composed by: Ahmed G. Chagla
Duration: 80 seconds
State Emblem
The State Emblem consists of:
1. The crescent and star which are symbols of Islam
2. The shield in the centre shows four major crops
3. Wreath surrounding the shield represents cultural heritage
and
4. Scroll contains Quaid's motto: Unity Faith, Discipline
Pakistan's
Official Map
Drawn by Mian Mahmood Alam Suhrawardy (1920-1999)
National Flower
Jasmine.
National Tree
Deodar (Cedrus Deodara).
National Animal Markhor.
National Bird
Chakor (Red-legged partridge)
Flora
Pine, Oak, Poplar, Deodar, Maple, Mulberry
Fauna
The Pheasant, Leopard, Deer, Ibex, Chinkara, Black buck,
Neelgai, Markhor, Marco-Polo sheep, Green turtles, River &
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Sea fish, Crocodile, Waterfowls
Popular games
Cricket, Hockey, Football, Squash.
Tourist's resorts
Murree, Quetta, Hunza, Ziarat, Swat, Kaghan, Chitral and
Gilgit
Archaeological
sites
Moenjo Daro, Harappa, Taxila, Kot Diji, Mehr Garh, Takht
Bhai.
Major Cities
Islamabad, Karachi, Lahore, Peshawar, Quetta, Rawalpindi,
Hyderabad, Faisalabad, Multan and Sialkot
Major Crops
Cotton, Wheat, Rice and Sugarcane
Agricultural
Growth Rate
7.5% in 2004-05
Total
area
22.94 million hectares
Industry
Energy
cropped
Textiles, Cement, Fertiliser, Steel, Sugar, Electric Goods,
Shipbuilding
Major sources
Electricity (Hydel, Thermal, Nuclear) Oil,
Coal, and Liquid Petroleum Gas
Power Generating
19,389 MW
Capacity
Health
Hospitals
916
Dispensaries
4,600
Basic Health Units (BHUs)
5,301
Maternity & Child Health Centres
906
Rural Health Centres (RHCs)
552
Tuberculosis (TB) Centres
289
Hospital Beds
99,908
Doctors (registered)
113,206
Dentists (registered)
6,127
Nurses (registered
48,446
Paramedics
23,559
Lady Health Workers
6,741
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Education
Primary Schools
155,000
Middle Schools
28,728
High Schools
16,100
Secondary Vocational Institutions 636
Arts & Science Colleges
1,066
Professional Colleges
382
Universities
51
Transport
& Total length of
259, 758 km
Communication roads
Pakistan
Railway
7,791 km
network
Locomotives
580
Railway stations
781
Pakistan
Covers 38 international and 24 domestic
International
stations with a fleet of 49 planes.
Airlines
8 (Islamabad, Karachi, Lahore, Quetta,
Major Airports
Peshawar, Multan, Faisalabad and
Gwadar)
Seaports
2 (Karachi and Bin Qasim) Gwadar
deep sear port is under construction
Fish Harbours-Cum3 (Minora, Gawadar, and Keti Bandar)
Mini Ports
International
Communications Post Offices
12,170
Telephone connections 5,052,000
Public Call Offices
217,597
Telegraph offices
299
Internet Connections 2 million
Mobile Phones
10,542,641
Employment
Total Labour force
Employed Labour Force
Agriculture Sector
Manufacturing & Mining sector
Construction
Trade
Transport
Others
7
46.84 million
43.22 million
18.60 million
5.96 million
2.52 million
6.39 million
2.48 million
6.98 million
Media
Print Media (In accordance with Central Media List)
Dailies
540
Weeklies
444
Fortnightlies
55
Monthlies
268
News Agencies
Official
APP
PPI, NNI, On Line
Private
and Sana.
Electronic Media
Five TV centers at Islamabad, Lahore, Peshawar,
TV CentersQuetta and Karachi covering 88.58% population
and 49 re-broadcasting stations.
Pakistan 4 channels (PTV-I, PTV-II (PTV World), PTV-III & PTV
Television National
Total 25, Home services in 19
languages. External Services
Public:
cover 81 countries in 15
languages
Radio stations 22.
Pakistan
Electronic
Media
Regulatory Authority has so far
awarded
72
FM
Radio
broadcast licenses including
nine (9) specialized subject
licenses for universities. Fifteen
(15) licenses have been granted
for the establishment of Satellite
TV Channels. Nine Satellite TV
channels have started their
operation.
Radio
Stations
Private:
Cable
900
Operators
Banks
Central Bank
Nationalized
Scheduled Banks
Specialized Banks
Private
Banks
State Bank of Pakistan
First Woman Bank Ltd.
National Bank of Pakistan
Zari Taraqiati Bank (ZTBL)
Industrial Development Bank of
Pakistan
Punjab Provincial Cooperative Bank
Ltd
ScheduledAskari Commercial Bank Limited
Bank Al-Falah Limited
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Bolan Bank Limited
Faysal Bank Limited
Bank Al-Habib Limited
Metropolitan Bank Limited
KASB Commercial Bank Limited
Prime Commercial Bank Limited
PICIC Commercial Bank Limited
Soneri Bank Limited
Union Bank Limited
Meezan Bank Limited
Saudi-Pak Commercial Bank Limited
Crescent Commercial Bank Limited
Dawood Bank Limited
NDLC-IFIC Bank Limited (NIB)
Allied Bank of Pakistan Limited
United Bank Limited
Habib Bank Limited
SME Banks
ABN Amro Bank N.V
Albaraka Islamic Bank BSC (EC)
American Expresss Bank Limited
Bank of Tokyo Mitsubishi Limited
Citibank N.A
Deutsche Bank A.G.
Habib Bank A.G. Zurich
Hong Kong & Shanghai Banking Corp
Limited
Oman International Bank S.O.A.G
Rupali Bank Limited
Standard Chartered Bank Limited
Pakistan
Industrial
Credit
and
Investment Corp. Limited
Pak Kuwait Investment Company (Pvt)
Limited
Pak Libya Holding Company (Pvt)
Limited
Pak-Oman Investment Company (Pvt)
Limited
Saudi Pak Industrial and Agricultural
Investment Company (Pvt) Limited
Crescent Investment Bank Limited
First International Investment Bank
Limited
Atlas Investment Bank Limited
Foreign Banks
Development
Financial Institutions
Investment Banks
9
Security Investment Bank Limited
Fidelity Investment Bank Limited
Prudential Investment Bank Limited
Islamic Investment Bank Limited
Asset Investment Bank Limited
Al-Towfeek Investment Bank Limited
Jahangir Siddiqui Investment Bank
Limited
Franklin Investment Bank Limited
Orix Investment Bank (Pak) Limited
Famous
Height World Rating
Mountain Peaks K-2 (Chagori)
8616 m2nd
Nanga Parbat 8125 m 8th
Gasherbrum-I
8068 m 11th
Broad Peak
8065 m 12th
Gasherbrum-II
8047 m 14th
Gasherbrum-III 7952 m 15th
Gasherbrum-IV 7925 m 16th
Disteghil Sar
7885 m 20th
Kunyang Kish
7852 m 22nd
Masherbrum (NE)7821 m 24th
Rakaposhi
7788 m 27th
Batura I
7785 m 28th
Kanjut Sar
7760 m 29th
Saltoro Kangri
7742 m 33rd
Trivor
7720 m 36th
Tirich Mir
7708 m 41st
Famous
Location
Province
Mountain Passes The Khyber Pass NWFP
The Kurram Pass FATA
The Tochi Pass
FATA
The Gomal Pass NWFP
The Bolan Pass
Balochistan
The Lowari Pass Chitral (NWFP)
The Khunjrab Pass Northern Areas
Rivers
Length
2,896 km
825 km
1,242 km
901 km
The Indus
Jhelum
Chenab
Ravi
Sutlej
1,551 km
Beas (tributary of Sutlej)398 km
10
Length
Siachin75 km
Famous Glaciers
Batura 55 km
Baltoro 65 km
Deserts
Name Location/Province
Thar
Sindh
Cholistan Punjab
Thal
Punjab
Lakes
Name
Location/Province
Manchar
Sindh
Keenjar
Sindh
Hanna
Balochistan
Saif-ul-MalukNWFP
Satpara
Northern Areas
Kachura
Northern Areas
Major Dams
Name
Location/Province
Mangla Dam Punjab
Tarbela Dam NWFP
Warsak Dam NWFP
Economic Rationale / Perspective
Having reached macro economic stability in the first five years of the new
millennium the GoP is now looking at second-generation economic reforms to
trigger economic growth and reduce poverty. It is realized that the policy
interventions implemented during the last five years, though essential, are not
sufficient to foster broad based economic growth. Nonetheless, the fiscal space
created as a result of the strict financial discipline enforced in past few yea rs
provides GoP with an opportunity to invest in supporting private sector led
economic growth initiatives. This growth, if well distributed amongst various
geographical regions and social population groups, may address the three
main economic challenges faced by Pakistan today, i.e.
Poverty;
Job creation; and
Rural development
Pakistan has one of the largest cohorts of young people in its history. The census
of 1998 counted 56 million children under the age of 15. There were another 13
million adolescents between the ages of 15 and 19, and 11 million youth aged
between 20 to 24 years. In other words, in 1998 children, the very young and the
youth accounted for 62 million of the total population.
According to these figures, about 21.3 percent of Pakistan's population fell
between the age group of 20 to 24 years, with the government assessing that in
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2005, Pakistan's youth population was around 55 million. About 52 percent of
these were male and 48 percent females of which 64 percent lived in rural and
36 percent in urban areas, while 38 percent were males and 63 percent females
were illiterate.
It is a great tragedy that the vast amount of youth energies has never been put
to proper use. They have not been given any participation in any sphere of life.
They have never made partners in the development of the country. Young
people are experiencing isolation, vulnerability, powerlessness and idleness (due
to lack of free time activities). Their disadvantages derive them from lack of
access to interrelated dimensions, such as:

Economic (assets leading to income generation).

Social (access to information, social capital, free-time activities, cultural
expression, educational opportunities, care and mentoring in youth
friendly venues).

Participation in decision making (empowerment, governance). On this
basis, it appears that youth inclusion policies would be more effective if
these different dimensions are combined, rather than having fragmented
sectoral interventions. Institutional neglect and cultural biases constitute
major barriers that prevent youth access to the above-indicated assets.
Young people who are subject to poverty, unemployment, lack of access to
social opportunities and lack of support are at high risk to both themselves and
society as a whole. Lack of engagement and lack of connection makes it less
likely that young people will become contributing and self-sufficient adults. It will
ultimately threaten our future.
The youth of Pakistan are caught in a multitude of problems like unemployment,
poverty, remorselessness, social taboos, drugs, guns and politics. It is unfortunate
that the youth are trapped in a culture marked by guns, violence and drugs. All
this has resulted in an unstable economy, a shattered confidence of foreign
investors, lawlessness and a break up of the social fabric
In Pakistan like many other countries, the perspective of poverty alleviation has
changed in the recent years. A comprehensive reformation of what is labeled
as “Social Safety Nets” is being put into practice, concerning a radical lessening
of subsidies and public expenditure, and a rising role of other actors in poverty
alleviation, in particular international organizations, local authorities and
associations. In recent years different organizations and government agencies
are tactfully playing the figures up or down that go with their vested concern.
12
And the question of the number of Pakistanis living below the poverty line has
merely become an abstract for them.
According to the Planning Commission of Pakistan, 35 percent of population
lives below the poverty line. While the official survey claims it to be 22.3 percent.
The unofficial survey conducted by the Centre for Research and Security states
“70 per cent of the population is living just over, just on or just below the poverty
line as defined at an income of $2 per day.”
In Pakistan the poor people have been divided into three categories i.e.
transitory poor, chronic poor and extremely poor. The Centre for Research on
Poverty and Income Distribution (CRPID), recently conducted a survey,
according to which 63 per cent of the poor in Pakistan fall in the category of
transitory poor, 32 percent in the category of chronic poor, while 5 per cent lie in
the category of extremely poor. The standard definition of transitory poor given
by the State Bank of Pakistan (SBP) is those people who live below the poverty
line for most of the time, but not always during a defined period is called as
transitory poor. Similarly the populations that subsist below the poverty line are
known as chronic and extremely poor respectively. These two groups are always
below the poverty line, all the time during a defined period.
The survey also reported that the total of the non-poor (those prevailing above
the poverty line); 13 per cent are in the category of 'transitory vulnerable,' while
the 21 per cent of total non-poor are 'transitory non-poor.' This reveals an awful
situation as more and more people are falling into the poverty line causing
income inequalities, mainly because of the regressive tax structure.
National Social Protection Strategy (NSPS), drafted in 2007 by the government of
Pakistan consists of a range of social safety nets in the form of programs and
policies, social insurance plus assistance, and income transfers to poor and
vulnerable households. The NSPS also recognises that such services are vital for
achieving the Millennium Development Goals (MGDs) and for reducing poverty.
Pakistan along with other developing countries signed the MDGs in 2000 for the
welfare of the poor. Its first and foremost goal is to eradicate poverty and
hunger and to provide well being to the less fortunate citizens. But the bitter
truth is that even after more than eight years, it seems that more and more
people are being engulfed in the poverty trap.
To eradicate extreme poverty by 2025, all countries are called upon to draft a
Global Social Protection Strategy GSPS by 2010. Social protection systems have
been introduced by many countries of South Asia. The latest examples are
Afghanistan’s draft Social Protection Strategy, India’s Unorganized Sector
Workers Social Security Bill 2007 and Nepal’s Social Pension System.
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Similarly for increasing secondary school enrolment is Bangladesh’s Female
Secondary Education Program initiated in 1994. Since its introduction, the
retention rate of girl students almost doubled. These safety nets have slightly
decreased the poverty rate in South Asia, but still 400 million people are living
below the poverty line, representing 40 per cent of the world’s poor population.
Government of Pakistan has already envisaged increasing spending on the
social safety nets from 0.6 per cent to 0.9 per cent of GDP for the fiscal year
2008-09. Pakistan has a mix of direct and indirect social protection mechanisms
under the NSPS. Direct provisions comprise of Employees Old Age Benefit
schemes, zakat and Pakistan baitul maal, Workers Welfare Fund and provincial
social security benefits and microfinance schemes while indirect provisions
include minimum wage and subsidy on wheat and sugar through utility stores.
Regrettably, financial support for these safety nets has been inadequate and
irregular, which has resulted in infrequent and irregular payments, comprising
inadequate administrative arrangements, and lack of supervising and
implementation ability, thus having a limited impact on poverty.
At present the Planning Commission of Pakistan has prepared a Poverty
Reduction Strategy Paper (PRSP) 2008-2011, under which different pro-poor
programs have increased, but are still not sufficient to benefit all the people
living below the poverty line. Rs 70 billion, Rs21.60 billion, Rs32.50 billion and Rs26
billion have been allocated to the Benezir Income Support Program, the Punjab
Food Support Scheme, Pakistan baitul maal, People's Rozgar Program and the
People's Works Program respectively. These do not comprise of the low cost
housing or sasti roti provisions, which are components of the projected plan.
In addition, the non-budgetary provisions for the year are, Rs6.523 billion for
zakat, Rs7.464 billion for the Employees Old Age Benefit Institution, Rs7.975 billion
for the Workers Welfare Fund and Rs37 billion for micro-credit.
Under the NSPS, the government has already increased the total allocation for a
variety of programs. Rs70 billion has been allocated alone to The Benezir Income
Support Program, which is greater than the entire provisions for all programs of
last year. Recently, the International Monetary Fund (IMF) released a report on
Pakistan according to which "the expenditure on the social safety net will be
increased to protect the poor through both cash transfers and targeted
electricity subsidies." To organize a more complete and better-targeted social
safety net program, Pakistan also plans to work with the World Bank.
In March 2008, Prime Minister Yousuf Raza Gilani formed a 100 days agenda in
which he made assurance of employment generation with the help of a new
Employment Commission, to facilitate creation of jobs in the public and private
sectors and provision of labor laws as per requirements of the ILO International
14
Labor Organization (minimum wage of Rs6,000 per month); modifications in the
civil services regulations; development at union council level; low-cost housing;
provision of health insurance of Rs15,000-20,000 per year to the poor; and
provision of economic assistance to the sufferers of terrorist attacks. In reality,
however, like always these remained as unfulfilled promises only and not
enough effective measures were taken to achieve these goals.
Over the last three decades, these social safety programmes have failed to
create the desired impact on poverty alleviation as a result of non spending of
appropriate percentage of GDP, which needs to be improved looking at the
realistic figures. High GDP growth alone is not enough to eradicate poverty.
Effective social policy measures are required to ensure that growth is pro-poor at
the grassroots level. The usual top-down model of development has been a big
obstacle to engage the poor and marginalised segments to be an integral,
effective part of development process in the country.
Government and Non-government organization’ interventions related to income
generation and poverty reduction for development- NGOS, MICRO CREDIT, AND
POVERTY: SOME CONCEPTUAL ISSUES-Challenges and Interventions
NGOs emerged in real numbers only after the Second World War, now
dedicated to the upliftment of the poor and implicitly recognize that
government alone can never solve the problems of poverty in general and of
destitute in particular. The poor people in the developing world manage to
mobilize resources to develop their enterprises and their dwellings rather slowly
over time. Provision of credit could enable the poor to leverage their initiative,
accelerating the process of building incomes, assets and economic security.
However, conventional finance institutions seldom lend down-market to serve
the needs of low-income families and women-headed households. They are
very often denied access to credit for any purpose, making the discussion of the
level of interest rate and other terms of finance irrelevant. Therefore the
fundamental problem is not so much of unaffordable terms of loan as the lack
of access to credit itself. Successful experiences in providing finance to small
entrepreneur and producers demonstrate that the poor people, when given
access to responsive and timely financial services at market rates, repay their
loans and use the proceeds to increase their income and assets. This is not
surprising since the only realistic alternative for them is to borrow from informal
market at an interest much higher than market rates. Community banks and
grassroots savings and credit groups around the world have shown that the
micro-enterprise loans can be profitable for borrowers and for the lenders,
making micro-finance one of the most effective poverty reducing strategy It has
been argued that in most organizations designed to provide intermediary
15
services between government, or resource providers for grass-roots
development, power tends to be skewed towards the small minority that
already holds more resources (usually land). This minority uses its power to preempt, for its own use,
The bulk of scarce and valuable resources provided by governments.
Consequently, the poorest (marginal and landless people) tend to drift away
from these organizations because they have nothing to offer them. Then, the
clear message for NGO is the importance of involving poor people in the
governance and the delivery of the services for which the NGO has been
created. Poverty is lack of shelter. Poverty is being sick and not being able to see
a doctor. Poverty is not being able to go to school and not knowing how to
read. Poverty is not having a job, is fear for the future, living one day at a time.
Poverty is losing a child to illness brought about by unclean water. Poverty is
powerlessness, lack of representation and freedom.
For many people in developing countries, acute poverty means difficulty
making a living, as well as a lack of basic services in education and health. In
Pakistan, lack of access to credit, training in income-generating activities, basic
social services and infrastructure are critical factors behind the persistence of
substantial poverty, especially in under-served rural and urban areas.
The World Bank funded Pakistan Poverty Alleviation Fund Project was designed
to reduce poverty and empower the rural and urban poor in Pakistan. The
project provides access to much-needed micro credit loans and grants for
infrastructure and capacity building. As such, the PPAF project aims to help the
rural poor in Pakistan get out of a cycle of misery, and get into a virtuous cycle
of opportunities.
THE CHALLENGE
Poverty remains a serious concern in Pakistan, where the per capita gross
national income (GNI) is US$520. Poverty rates, which had fallen substantially in
the 1980s and early 1990s, started to rise again towards the end of the decade.
According to the latest figures, as measured by Pakistan’s poverty line, 32.6
percent of the population is poor. More importantly, differences in income per
capita across regions have persisted or widened as have gender gaps in
education and health.
High administrative costs and lack of collateral resources have kept traditional
financial institutions from supporting small businesses and self-employment in
poor areas. As a result, the poor must often rely on money lenders and traders
for credit – paying interest rates from 80 to 120 percent per year. Although the
government has tried to address the problem, experience in Pakistan - and
16
worldwide - has shown that autonomous, non-governmental institutions can be
more effective in reducing poverty by delivering better services to the poor.
To help poor people gain access to resources to earn an income and to
develop projects aimed at improving their lives, the Government of Pakistan
created the Pakistan Poverty Alleviation Fund (PPAF) as an autonomous body
working with local partners to provide loans, grants and technical assistance to
the poorest individuals and communities in the country. The PPAF was funded by
a US$ 90 million World Bank credit and an endowment of US$ 10 million from the
Government of Pakistan in 2000.
UPDATE
The Pakistan Poverty Alleviation Fund (PPAF) represents an innovative model of
public private partnership. Sponsored by the Government of Pakistan and
funded by the World Bank and other leading donors the PPAF has as of now, a
resource base of US$500 million. As the lead Apex institution of the country
wholesaling funds to civil society organizations, the PPAF forms partnerships on
the basis of rigorous criteria. Before finalizing partnerships, the PPAF ensures that
the partners have well targeted community outreach programs that are
committed to enhancing the economic welfare and income of the
disadvantaged peoples.
The target population for the project is poor rural and urban communities, with
specific emphasis being placed on gender and empowerment of women.
Benefits accrue directly to the vulnerable through income generation, improved
physical and social infrastructure, and training and skill development support.
Women and girls in particular have benefited, since they bear a higher share of
the burden of poverty because of fewer economic opportunities and lower
endowment of land and other income-generating assets. Traditional
development programs have focused on women’s social development, with
little focus on the economic empowerment needed to truly improve the
situation for women. PPAF focuses on improving the lives of women by ensuring
that community projects and loans responding to their priorities, and designed
with their participation, take precedence over others. In this sense, Daiyanand
and Sughar are no exception in Nenisaar, a small village in Sindh’s Thar desert,
as the majority of the women in the village are, direct or indirect, beneficiaries of
the program.
The PPAF has also enhanced public awareness through community
participation. The experiment was so successful that there has not been any
default, and the communities are willingly contributing to the infrastructure and
training programs of the partner organizations. The timely completion of the
projects is improving the quality of life of the beneficiaries. Partner organizations
17
are engaged and have been finding their individual solutions to indigenous
problems and challenges. This creates a framework of shared values and mutual
trust, which in turn allows for partner organizations to reach new levels of
understanding and maturity.
LOOKING AHEAD
The first US$ 107m phase was completed in the year 2004. All targets and
forecasts were surpassed well before time, and the project was evaluated as
"highly satisfactory" (the highest possible ranking by the Operations and
Evaluation Department (OED) of the World Bank). As a result of the above a
second project of US$ 238 million was negotiated between the Government of
Pakistan and the World Bank in January, 2004.
As of today, PPAF is working with 56 partner organizations in 96 districts of
Pakistan. Total disbursements have crossed the Rs10 billion mark, over 40,000
new community organizations have been formed (these can transform into
Citizen Community Boards), the lowest tier of local government in Pakistan more
than 8,000 infrastructure schemes have been initiated of which 5,500 stand
completed, micro credit lending has exceeded the Rs. 6 billion figure with 100%
recoveries, and over 100,000 community members and staff of partner
organizations have participated in trainings facilitated by the PPAF. The Fund is
contributing significantly to mitigate affects of drought in Sindh and Balochistan
through preparedness programs. After the huge success of one integrated area
development program, PPAF has now planned 300 such programs across the
country. At the qualitative level PPAF has met the biggest challenge which was
to change a deeply entrenched "grant" culture towards a more pragmatic and
professional approach among the civil society organizations. Impact studies
carried out by independent observers have shown significant change in the
quality of life of PPAF beneficiaries.
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PPAF envisions itself to be the vanguard of civil society endeavors for achieving
a decisive impact on poverty by building human, social and economic capital
and moving towards a long term integrated program
Best practices concerning
implementations
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income
generation
and
poverty
reduction
Community Forestry contributes to poverty reduction while maintaining the
sustainability of the resources!
To improve farmers income through reduction in losses due to animal.
Employment and income-generating trade development strategies.
Car parking charges, Citizen Communities Boards (CCBs) for rural
development, Vocational training and micro credit/credit facilities to
vulnerable groups for income generation and poverty reduction.
Food security can reduce poverty.
Formal education and Non formal education for female.
Rural Development was an urgent Issue for poverty alleviation
and for reduction of income disparity (social instability).
•
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Problems/Challenges, opportunities and interventions in the country
Interventions
The Federal and Provincial Governments have been implementing various
reform programs aimed at encouraging growth, investment, and
employment generation. Reforms at the provincial level are specifically
aimed at improving delivery of social services like education, health, clean
drinking water, and sanitation. In June 2007, the World Bank approved a
US$350 million credit to support ongoing implementation of the Government's
Poverty Reduction Strategy. At the provincial level, the Bank approved
operations worth US$430 million for Punjab, Sindh and the North West Frontier
Province to help improve irrigation, education and human development
indicators through improvements in public finance, governance and
financial regulatory frameworks. These interventions have been successful in
bringing about concrete changes in delivery of provincial services and thus
are social and economic indicators in these provinces.
The World Bank funded Pakistan Poverty Alleviation Fund Project (PPAF) is
designed to reduce poverty and empower the rural and urban poor in
Pakistan through the provision of resources and services to the poor,
especially women. This is being achieved through an integrated approach
that includes building institutions of the poor and then providing them with
micro-credit loans; grants for small scale infrastructure projects; training and
skill development and social sector interventions. The program is impacting
over 10 million people and has mobilized over 66,000 community
organizations (COs) in 27,000 localities across 111 districts in the country. More
than 13,000 small scale village-based projects have been identified,
constructed and maintained by communities’ right across the country
benefiting nearly 6 million people. PPAF has issued 1.5 million micro-credit
loans, (average loan-size US$ 150), benefiting nearly 9 million people. Over
the last 7 years PPAF has driven the microfinance sector growth from 60,000
borrowers to more than 1.25 million active borrowers in the sector.
The World Bank is providing assistance to the Government of Pakistan in
education reforms, at both the national and the provincial level. This support
is provided through development policy operations with a strong focus on
primary and secondary education. These programs target increasing
participation of girls and children from poorer household through
interventions such as student stipends and conditional grant systems and by
working in partnership with the private sector to provide access to low cost
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quality education. Our work has a strong focus on improving the quality of
education through initiatives such as the National Education Assessment
System (NEAS), which measures student achievement and uses the findings
to address gaps in student learning. NEAS has established, piloted and
improved assessment mechanisms and instruments, which are now being
regularly administered. Already, three rounds of assessments have been
completed in the four key subjects in Grade IV (Mathematics, Language,
Science and Social Studies), and two subjects in Grade VIII (Math,
Language), while a fourth round will be undertaken this year, providing
baselines of student achievement in all four subjects. The World
Bank Authorities (TMA) in NWFP, 50 are now participating in the Project.
The government is conscious of the cost being imposed on poor families from
the sharp escalation in food prices. Many of these needs are strongly linked
and need to be addressed holistically — unless health services are improved,
the incidence of ill health will continue to rise; unless educational retention is
improved, children will never be able to exit from poverty because they will
be concentrated in low-return employment or remain unemployable. It is,
therefore, important to address primary needs via social protection, while
simultaneously focusing on the mechanisms that ensure that the exit from
absolute poverty is permanent for the majority of the vulnerable and a large
proportion of the chronically poor. The national Poverty Reduction Strategy
covers the three-year PRSP-II period of 2008-09 – 2010-11 while also providing
a framework for thinking well beyond this timeframe and is, therefore, to be
viewed as an approach to a long-term national economic strategy that has
its main focus on reduction of poverty. The sharp rise in international oil and
food prices last year and the global financial crisis not only adversely
impacted the macroeconomic indicators in Pakistan but also increased the
number of the poorest of the poor. Recognizing the urgent need to protect
the poor and the vulnerable, the Government of Pakistan (GoP) launched
the Benazir Income Support Programme (BISP) in 2008 as its main social safety
net programme. This programme would serve as a platform to provide cash
transfers to the vulnerable identified on the basis of a poverty scorecard and
would be backed by an exit strategy. This strategy includes imparting training
to one member of each vulnerable family to sustain itself. The Programme
also also envisages a workfare initiative through social mobilization. BISP
intends to cover 3.4 million families or 22.75 million people in the current year.
In the next year, the government intends to at least double the allocation for
BISP to cover 7 million families. The government would require additional
resources of US$ 3.05 billion over the next two years to sustain the above
programme.
Facts
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44% population has access to sanitation.
65% population has the access to safe drinking water .
Directed immediate support to the most vulnerable groups through the
Benazir Income Support Programme (BISP). These are small (Rs.1000 per
month per family) cash grants channeled through women to help satisfy
the most fundamental needs of vulnerable households. Currently reaching
3.5 million poor households, the scope of the programme is expected to
expand to 7.0 million households in 2009-10;
 35 million people live in rural areas- representing 80% of Pakistan’s poor.
 Poverty reduced from 33% to 23% in previous Government.
 Absolute poor is estimated 20 million.
 25% people live below the poverty line.
 Govt. is spending 0.5% on social protection as per un official figures.
Miscellaneous information/ data
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The majority of world poor live in Asia 70% of them live in rural areas
Development disparity between sectors, regions, gender. Rural
Community Development is the Direct Measures for Poverty Alleviation in
Rural Asia and for Cure of Disparity.
India has 9% annual growth.
Poverty000 rate of Indonesia is worst in Asia.
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