The Asian Development Bank (ADB) has approved an additional $330 million in funding to strengthen Pakistan’s social protection programs. The funding will support the country’s federally administered programs under the ongoing Integrated Social Protection Development Program (ISPDP).
Purpose of the Additional Financing
The new funding will enhance grassroots-level social protection. It aims to help alleviate poverty, particularly among poor women and their families. The ADB’s statement emphasized that this result-based loan would empower Pakistan’s Benazir Income Support Programme (BISP) to build adaptive, climate-resilient systems.
Focus on Education and Health
One of the key goals of the program is to expand access to education. The financing will open up educational pathways for children and youth from disadvantaged families. Additionally, the program aims to improve access to health services and nutrition supplies, especially for those living in disaster-prone areas.
Reducing Intergenerational Poverty
The ADB highlighted the program’s role in improving human capital development. This is particularly important for women, who are disproportionately affected during tough economic times. The new financing will help reduce intergenerational poverty and promote better living standards for the most vulnerable groups.
Enhancing Capacity for Climate-Resilient Protection
Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, stressed that the program would strengthen institutional capacity. It will help BISP transition into a more adaptive and climate-resilient social protection system. The ADB’s involvement will increase the government’s ability to reach the poorest and most vulnerable in Pakistan.
Achievements of the ISPDP Program
The ISPDP, approved in December 2021, has already made significant strides. It includes a $600 million loan from ADB’s ordinary capital resources, a $3 million grant from the Asian Development Fund, and a $24.48 million co-financing grant from the Education Above All Foundation.
The program has already achieved positive results. It has improved access to primary and secondary education for children from low-income families. Women and adolescent girls have also benefited from better access to health services and nutrition.
Improvement in BISP’s Operations
Another key aspect of the program’s success has been strengthening BISP’s operations. There has been steady progress in improving the financial management, procurement practices, internal controls, and information management systems for BISP. These improvements have helped BISP more effectively implement cash transfer programs.
Supporting Pakistan’s Vulnerable Population
ADB’s Country Director for Pakistan, Emma Fan, praised the program’s progress. She noted that it has improved access to basic services for vulnerable populations. The new funding will further strengthen these efforts, particularly to help the poorest and most vulnerable communities across the country.
Further ADB Support for Pakistan
In addition to the $330 million financing for social protection, ADB also approved a $200 million loan. This loan will modernize Pakistan’s power distribution infrastructure. The goal is to improve the ability of distribution companies to deliver reliable electricity, supporting the country’s broader economic and social development.