How Government Funds help to reduce poverty? A case study of CIF & BISP in Sindh

Abstract

Poverty is not a new phenomenon; it is in fact a biggest challenge the world has been facing since centuries. Governments and global institutions are all set to cope with this issue by using their separate resources, but there is no immediate solution to it. Pakistan is also undergoing the same challenge and has devised various poverty reduction strategies, which are in the phase of implementation. The sensitivity of the issue can be assessed from the fact that first six targets of SDGs aim to reduce global multidimensional poverty. In this study, two major programmes, i.e. Benazir Income Support Programme (BISP), and Community Investment Fund (CIF), running in the country to alleviate poverty have been analyzed. . The study analyzes the impact of these programmes over a specific period of six years. Further, it also analyzes the utilization of funds under these programmes, the effect of those programmes in poverty reduction, and the preferences of people to use these funds. Annual income and expenditure is one of the best indicators for impact evaluation of any intervention. In this study, the status of the household, who received CIF, BISP or both has been compared. An appropriate sample size of 263 has been considered to identify the exact information. This study also highlights the different gaps in these programmes. Poverty Score Cards (PSC) are used the world over to rank households on the basis of their poverty extent. A list of beneficiaries with baseline poverty score was obtained from Sindh Rural Support Organization (SRSO) so that the results of 2015 poverty score can be assessed. The findings show that a total of 105 (40%) beneficiaries came out of the basic poverty bands and moved to the higher categories. At the end, recommendations have been given to improve these programmes and to run them efficiently. The study suggests that instead of BISP, CIF should be launched at least for the poorest among the poor.