Pakistan: Social Safety Nets Development Policy Credit

closed

Closed

The objective of the Social Safety Nets Development Policy Credit Program is to support inclusive growth through the development and implementation of a fiscally sustainable, efficiently targeted, and well-administered national safety net system in Pakistan. The safety net system will provide the chronic and transient poor with both basic income support and access to opportunities for graduating out of poverty. Specifically, the credit will support the establishment of an appropriate policy framework for an efficient national safety net system, including the development of sound institutions for the effective implementation of the Benazir Income Support Program, the Government's new national safety net program. An effective the program can promote human capital development and contribute to inclusive economic growth in Pakistan. First, poor and vulnerable households will receive some relief to cope with adverse income effects of the recent crisis. The program will also provide basic income support to the chronic poor, consistent with the Government's redistributive goals. Second, Pakistan will have an established safety net system that can be scaled-up in response to future adverse economic or agro-climatic shocks. Third, in the long term the program can promote access to graduation strategies such as micro-finance, skill development programs, or basic health and education services that can help households accumulate human capital and eventually contribute to economic growth. The institution of an effective safety net system also allows policy makers to undertake much needed structural reform measures (e.g., reduction of subsidies) while protecting the poor and promoting dynamic efficiency.

FY17 - Social Protection

World Bank Group

Project

Government, Education