ISLAMABAD (PEN) : The Asian Development Bank (ADB) has approved an additional $330 million loan to enhance Pakistan’s social protection infrastructure, focusing on expanding the reach and effectiveness of the Benazir Income Support Programme (BISP). This funding is part of the Integrated Social Protection Development Programme (ISPDP) and aims to support approximately 9.3 million individuals across the country.
Key Objectives of the Additional Financing
The loan agreement was formalized on December 14, 2024, by Dr. Kazim Niaz, Secretary of Economic Affairs, and Emma Fan, ADB Country Director for Pakistan. The additional financing seeks to:
– Enhance BISP’s institutional capacity to transition towards adaptive and climate-resilient social protection mechanisms.
– Improve access to education for children and adolescents from low-income families.
– Increase healthcare access, particularly for women, girls, and children in disaster-prone areas.
– Provide better access to nutritious food, especially in vulnerable communities.
ADB’s Director General for Central and West Asia, Yevgeniy Zhukov, emphasized that the programme would strengthen Pakistan’s efforts to improve human capital development and reduce intergenerational poverty, with a particular focus on women who are disproportionately affected during challenging economic conditions.
Alignment with Pakistan’s Social Protection Goals
This initiative aligns with Pakistan’s broader objectives to expand social protection systems, as outlined in the 2025 fiscal budget, which allocates additional resources to enhance the flagship social protection programme. The government’s commitment to targeted subsidy reforms and replacing cross-subsidies with direct BISP support are crucial steps to improve the efficiency and effectiveness of social safety nets in Pakistan.
Challenges and Areas for Improvement
Despite these advancements, challenges remain in policy and administrative coordination between federal and provincial governments, institutional capacity, data and delivery systems in provinces, and the limited benefit level of social protection programmes. The ADB has highlighted the need for adaptive and shock-responsive social protection, with improved data systems, financing mechanisms, and a portfolio of programmes to increase the capacity of vulnerable households to cope with and recover from disasters and climatic shocks.
This additional financing marks a significant step forward in enhancing Pakistan’s social protection systems, aiming to provide more inclusive and equitable support to its most vulnerable populations.
