Conditional vs unconditional cash transfers: a study of poverty demographics in Pakistan

Abstract

This paper aims to provide a detailed demographic description of poverty in Pakistan with an attempt to highlight those segments of the poor who can be aided to transition out of extreme poverty through appropriate policy measures. Data are collected from the Household Integrated Economic Survey (HIES) for the years 1985-2016 and captures falling poverty, gender-wise division of the employed and unemployed, type of employment (selfemployed, unpaid workers, employers, employees) by gender, labour participation of vulnerable age groups, as well as unemployed widows. The paper discusses the effectiveness of conditional (CCT) and unconditional (UCT) cash transfer programs across the world and using data indicators, highlights the appropriate target groups in need of such intervention in Pakistan. The existing components of BISP are discussed, with policy recommendations targeted to enhance its impact by focusing UCTs on the most vulnerable segments. CCTs can be used to improve health and education outcomes; given Pakistan's lagging performance, illiteracy among youth, infant and maternal health are of particular consideration. Cash transfers can be made conditional, subject to regular health checkups for mothers and children and mandatory school attendance to improve these outcomes. The paper further suggests an extension of the program to provide short-term financial relief to the temporarily unemployed.

Impact of conditional cash transfer programmes on antenatal care service uptake in low and middle-income countries: a systematic review

“…Conditional cash transfer (CCT) programmes require beneficiaries to comply with certain conditionalities (eg, regular health check-ups) while unconditional cash transfer programmes do not set such requirements. 11 Substantial resources have been allocated to cash transfer programmes in recent years, with an estimated 718 million people receiving assistance through cash transfer programmes in 2014 alone. 12 CCTs may be a viable policy strategy to increase ANC uptake among pregnant women in LMICs.…”

Cash Transfer Programmes in Pakistan through a Child Well-Being Lens

“…Recent studies indicate that BISP's unconditional transfer has a positive impact on the school enrolment of children (Churchill et al 2021;Afzal et al 2019). However, no impact on child labour could be demonstrated in the short-term.…”

Do effective public governance and gender (in)equality matter for poverty?

“…Poverty alleviation is not just about providing food and other material things to the poor; instead, it is also about uplifting local economies (Zameer et al, 2020). Many models and innovative techniques have been tested to reduce poverty, including cash transfers; however, their effects can only be observed on the target population (Afzal et al, 2019). To date, skills development, providing credit for microenterprises and many other techniques are being practiced.…”