2nd phase of Ehsas Emergency Cash planned

May 19, 2021

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As per the news reports, the Federal government has decided to launch the second phase of the Ehsaas Emergency Cash (EEC) program, in which the number of regular recipients will increase to 8 million by next month.

In April 2020, the federal government launched the Ehsaas Emergency Cash Program (EEC) to mitigate the impact of the coronavirus lockdown on the most vulnerable industries. Benazir Income Support Program (BISP) has been appointed to identify and disburse eligible beneficiaries.

BISP has highlighted nearly 17 million eligible families in five different categories, including regular recipients of the Kafalat Program. During Six months period starting from April-2020, a total of PKR 179.27 billion was disbursed to 14.83 million beneficiaries under EEC

Due to the third wave of Covid-19 in mid-2021, economic difficulties are mounting with the proposal to launch a second phase of the Ehsaas Emergency Cash (Eec). Thus, the formal proposal is submitted in the form of a summary for approval by the ECC and the Cabinet of Ministers.

The key elements of the second phase of the ECE will be the following:

(1) The number of permanent beneficiaries of Ehsaas Kafaalat will increase to 8 million by June 2021, thanks to a review by the National Socio-Economic Register (NSER) in accordance with the eligibility criteria for sponsorship approved by the BISP Board. All these beneficiaries will be provided with a six month tranche (January – June 2021) in the amount of Rs. 12,000 / – per recipient within the meaning of kafalat;

(2) An additional 4 million beneficiaries will be identified in the current survey using a higher eligibility threshold while remaining within the national poverty line. A one-time emergency cash aid will also be provided to these recipients of Rs 12,000 / – to the recipient. The disbursement process to these beneficiaries will begin in May 2021;

(3) Financial assistance will be provided through existing BISP partner banks (Al Falah Bank in KP, AJK & GB and Habib Bank Limited in Punjab, Baluchistan and Sindh) and

(4) Assistance will be provided through biometric point of sale (POS) and retail ATMs.), and through bank branches for recipients with thumb amputation / biometric data failures.

The existing network of the two banks will be expanded for the purpose of this payment, and special measures will be taken to ensure the safe flow of cash.

BISP has sufficient financial support to pay the beneficiaries of the regular proficiency test. For a one-time cash disbursement of emergency assistance to 4 million other recipients, the total financial impact would be around Rs. 48 billion. BISP paid out about Rs. 12 billion beneficiaries under the age of 18 are based on the ECE’s own budget for the current fiscal year, to be paid by the finance department. In addition, BISP expects to save Rs. 10 billion in expenses in the current fiscal year.

The amount of rupees. 12 billion in payments and provision of Rs. The 10 billion will enable BISP to disburse approximately 1.8 of the 4 million Ehsaas emergency cash aid recipients in the current fiscal year. Since the additional budget is Rs. To pay 2.2 out of 4 million recipients in the next fiscal year (2021-2022), 26.4 billion will be required.

It has been suggested that Rs. During the 2021-22 fiscal year, 26.4 billion could be submitted to the BISP plus the 2021-22 budget allocation to disburse 2.2 million beneficiaries. In addition, the finance unit can repay Rs. He immediately spent 12 billion BISP from his own budget.

The Finance Ministry supported the proposal to increase the number of permanent beneficiaries of the Sense of Kafalat program to eight million by June 2021 and agreed in principle to provide the necessary funding for the second phase of the Ehsas Emergency Cash , if the Cabinet decides.

Furthermore, the Finance Ministry has recommended providing Ehsas Emergency cash support to individuals / families beyond the regular Ehsas Kafalat program to maximize the overall welfare impact.