Effectiveness of Benazir Income Support Program for Poverty Reduction

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Abstract

Social safety net programs, such as Benazir Income Support Program ((BISP), is one of the largest safety net programs in Pakistan. The cash transfers made under this program unlikely to significantly change the living standards of its beneficiaries. Still, the program provides some relief and has potential to expand to other areas where the beneficiaries can get more benefits. This study used primary data collected from Thatta district of Sindh province to examine the effect of BISP on poverty reduction. Three different regression models were computed and tested for structural change in social status before and after the BISP. Results showed that social status of beneficiaries became stable after BISP started and their consumption pattern also showed an increasing trend. It could be inferred that BISP helped improve welfare and decrease poverty level of BISP beneficiaries.