- By: Barrister Usman Ali , Ph.D.
Pakistan’s poverty strategy needs to evolve beyond short-term relief to long-term empowerment.
The federal government of Pakistan has presented a budget of PKR 17.573 trillion for the fiscal year 2025–26, introducing several reforms and initiatives across various sectors. Among the key proposals is a 20% increase in funding for the Benazir Income Support Programme (BISP), raising its allocation from PKR 592.48 billion to PKR 716 billion. This signals a strong commitment to social protection and poverty alleviation. Yet a deeper question persists: can poverty truly be eradicated through cash transfers alone? Or do we need a more comprehensive approach that enables people to lift themselves out of poverty?
BISP is widely regarded as one of Pakistan’s most successful social safety net programs. It has provided a lifeline for millions of women-led households, helping them meet basic needs. In regions where employment is scarce and access to public services is limited, even modest support offers the breathing space needed to survive. Consider the case of a woman with five children and an ailing husband. She uses her BISP stipend to buy flour, lentils, milk, and the occasional medicine. But every month ends with the same haunting question: “How will I manage the next one?” For families like hers, this assistance is temporary relief ,not a pathway to stability.
In districts across South Punjab, interior Sindh, and Balochistan, thousands of families depend on BISP for basic survival. Yet many remain trapped in generational poverty with no access to education, skills training, or economic opportunities. Globally, cash transfer models succeed only when integrated with broader development strategies. Brazil’s “Bolsa Família” is a leading example. Launched in 2003, it offered cash assistance to poor families on the condition that children attended school and received basic healthcare. The program didn’t just reduce poverty , it also boosted health and education outcomes. Mexico’s “Prospera” (formerly Oportunidades) followed a similar path, linking financial aid to milestones in children’s health and learning. These programs proved that poverty alleviation and human development can go hand in hand.
Bangladesh’s BRAC, the world’s largest NGO, took this further with its now-famous “Graduation Model.” Targeting ultra-poor women, BRAC combined cash assistance with income-generating assets (like a goat or sewing machine), vocational training, mentoring, and access to markets. The results were extraordinary: over 75% of recipients began earning sustainable incomes, building confidence and social status. Since its founding in 1972, BRAC has become a global benchmark in multidimensional poverty interventions.
Pakistan can and must adapt this model. With rising inflation, unemployment, and inequality, we need more than stopgap solutions. Our youth, though increasingly educated, face a shortage of meaningful work. Unconditional cash transfers alone may ease hardship but risk prolonging dependency. Real poverty eradication demands a strategy that equips people with tools to stand on their own: skills, assets, and market access.
Sadly, Pakistan still lacks a coherent, phased policy framework to transition beneficiaries from relief to self-reliance. Ideally, a BISP recipient should move through three clear stages: emergency support, social investment, and economic independence. Without a defined “exit strategy,” the program risks creating a cycle of permanent dependence , a burden on both the economy and society.
Here’s what a smarter model looks like. In the first stage, truly destitute families receive unconditional aid to meet basic needs. In the second stage, assistance is tied to social conditions , school attendance, immunization, or maternal health ,ensuring that short-term aid builds long-term capacity. The third and most crucial stage supports economic mobility through training, productive assets, microfinance, and access to local markets. When people earn consistently, they no longer rely on handouts , they contribute to growth.
Pilot programs based on this model could be launched in select districts of Sindh, Khyber Pakhtunkhwa, or Balochistan. Once refined, they can scale nationally. The recent increase in the BISP budget is welcome, but without a long-term strategy, it risks becoming a missed opportunity. Pakistan must shift its focus from survival to dignity, from dependency to agency.
The country faces a choice: do we continue handing out cash month after month, or do we help our people build lives of independence? Relief is essential , but transformation requires vision. Cash can help you survive. But to end poverty, we must invest in people’s ability to thrive.
For those excluded from BISP altogether, the government must act with equal urgency. Inflation, joblessness, and rising production costs are squeezing everyday citizens. Poverty reduction demands real economic reform: support for small and medium enterprises, skill-building for youth, and targeted tax and industrial policies. Sustainable development isn’t about handing out money , it’s about building a self-reliant society. And that future must begin with education, health, and opportunity for all.