Social Safety Nets and Household Welfare: Insights from the Benazir Income Support Program in District Bhakkar

Abstract

Poverty is a complex problem that affects millions of people worldwide. Despite the various measures taken, there is still a long way to go in eradicating poverty and improving the standard of living for all. The Benazir Income Support Program (BISP) is the largest cash transfer initiative in Pakistan, designed to improve the well-being of the targeted population, thus playing a crucial role in addressing the multifaceted challenges of poverty. This quantitative study evaluated the impact of BISP on socioeconomic development in district Bhakkar. For this purpose, primary data of 320 households was collected through self-administered questionnaires across all four tehsils of district Bhakkar, namely Bhakkar, Darya Khan, Mankera, and KallurKot. The study employed Propensity Score Matching (PSM) technique to estimate Average Treatment on the Treated (ATT) effect. Results indicate a significant, positive impact of BISP cash grants on per capita monthly total expenditures, mainly on food and health expenditures, as well as a positive effect on women's employment rates. This research provides valuable insights into role of BISP in improving household welfare and socioeconomic development, offering important considerations for policymakers aiming to optimize cash transfer programs in similar contexts.