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UNCLAS SECTION 01 OF 03 ISLAMABAD 000422 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON EFIN EAID PGOV PREL SOCI PK
SUBJECT: WORLD BANK GIVES HIGH MARKS TO GOP "SCORECARD" APPROACH TO 
BENAZIR BHUTTO FUND 
 
REF: 08 Islamabad 3606 
 
¶1. (SBU) Summary and Recommendation: World Bank point person for the 
Benazir Income Support Program (BISP) Iftikhar Malik told EconOff 
February 12 that President Zardari had signed off on revisions to 
the BISP "distributions via parliamentary political networks" on 
January 22.  Pilot programs for the new, needs-based "scorecard" 
system will be implemented by respected NGOs and will begin by the 
end of February.  The "scorecard" system, with comprehensive World 
Bank support, will expand countrywide by the end of 2009.  While 
implementation is key to even the best outlined program's success, 
the Bank's full involvement and ability to build on its existing 
eight months of work on Pakistan's social safety net make us 
somewhat more optimistic about BISP's prospects.  Post recommends 
the USG recognize GOP efforts by showing support for BISP at the 
upcoming Donor's Conference.  We further recommend Department 
discuss with the World Bank a possible phased delivery of any USG 
monies, so as not to overwhelm this nascent structure and to ensure 
best use of our funds.  End Summary and Recommendation. 
 
--------------------- 
Implementation So Far 
--------------------- 
 
¶2. (SBU) In a February 12 meeting, World Bank focal point for the 
Benazir Income Support Program (BISP) Iftikhar Malik expressed 
satisfaction with steps the GOP has taken to address concerns with 
the program's initial approach (reftel).  Launched in September 
2008, BISP was intended to target initially 3.5 million of 
Pakistan's poorest at a cost of approximately $426 million, rising 
to five million beneficiaries in 2010 (at a cost of roughly $814 
million).  Each member of Parliament was issued forms with which to 
identify and sign up 8000 women in his or her district by January 
¶31.  The National Database and Registry Authority (NADRA) was tasked 
with assembling a database of program participants and applying 
rudimentary checks to ensure participants' qualifications for the 
program. 
 
¶3. (SBU) Malik said the deadline for submitting registrations forms 
had been extended until the end of February due to the slow 
submission of forms: as of February 6, only 1.2 million had been 
received.  Malik noted that Parliamentarians had no staff or support 
mechanism with which to identify program participants, so they were 
relying on their political networks.  Of the 700,000 forms that 
NADRA has checked thus far, approximately 200,000 had been rejected 
-- further decreasing the chance the GOP would reach its target of 
3.5 million recipients this year, and significantly reducing the 
projected $426 million cost to the GOP for this first year of the 
program.  BISP staff report that administrative costs, including 
payment to NADRA for its services, account for only five percent of 
the BISP budget. 
 
¶4. (SBU) Because it lacks access to comprehensive data on program 
nominees, NADRA instead looks at some obvious but unconventional 
indicators to which it does have access in making its 
determinations.  For example, applicants holding machine readable 
passports, which NADRA interprets as indicating recent or planned 
travel abroad, were disallowed as being too wealthy, as were those 
who have bank accounts in an international bank (which presumably 
require minimum balances or payments in order to maintain). 
 
------------------------- 
Modifications Coming Soon 
------------------------- 
 
¶5. (SBU) Malik went on to describe what he termed positive 
developments in BISP implementation, foremost of which was President 
Zardari's approval January 22 of a "scorecard" approach to BISP that 
will be phased in to replace the Parliamentarian distribution 
network.  The GOP has also developed and adopted a detailed 
implementation plan, the test phase of which will be underway by the 
end of February.  The program retains its original focus on women 
recipients. 
 
 
ISLAMABAD 00000422  002 OF 003 
 
 
¶6. (SBU) Enlisting NGOs Pakistan Poverty Alleviation Fund (PPAF) and 
the Rural Support Network, and the Population Census Organization 
(or PCO, an office of the GOP Statistics Division) as implementing 
partners, the GOP will launch the new scorecard system as a pilot 
project by the end of February in a total of 15 districts.  Each 
organization will work in five districts: one district in each of 
the four provinces, plus one district from the northern areas. 
Malik called these organizations well-respected across the country, 
adding that the GOP and the NGOs had agreed on criteria for program 
participants with which the Bank was also comfortable.  Once these 
pilot programs are proven, implementation will gradually spread 
across the country, completely replacing the Parliamentary 
distribution system by the end of the calendar year. 
 
---------------------------------------- 
A Comprehensive, Bank-Supported Strategy 
---------------------------------------- 
 
¶7. (SBU) With Bank support, the GOP will implement what Malik called 
a comprehensive strategy ensuring that the transition from the 
Parliamentary system to the needs-based "scorecard" system goes 
smoothly.  Malik reported that the Bank is providing an initial $2.5 
million to design an operational manual so that all BISP agents and 
partners will apply criteria consistently.  Another $50-$60 million 
is to be dedicated to countrywide expansion of the program once the 
pilot projects are proven.  Finally, Malik reported that the Bank 
intends to make available some $200 million as overall budget 
support for social safety net programs.  The Bank is well-positioned 
to step up smartly on BISP, Malik said, because it has been 
previously working on poverty reduction in Pakistan.  A countrywide 
survey to identify the poor and assess overall poverty will be 
completed by December 2009. 
 
¶8. (SBU) Calling BISP a "coordinating agency," Malik said that BISP 
will outsource most of its activity to organizations best suited to 
carry out the specific task.  The NGOs and PCO will interface with 
the individuals to gather information and fill out the scorecards. 
They then pass the information to NADRA, which enters it into a 
database and applies whatever cut-off level for assistance is 
determined by the GOP.  The names of validated participants are sent 
to Pakistan Post, which distributes funds and reports back to BISP 
on any funds that remain uncollected.  BISP, working with the NGOs 
and PCO, will fix any problems experienced by designated 
participants.  As a side benefit, NADRA will use this new database 
to ensure that any program participants who do not already possess a 
national identification card (CNIC) are issued one.  BISP design 
staff confirmed February 26 that, although there had been earlier 
discussion that BISP would develop and adopt a "smart card" for 
program participants (reftel), that plan has been shelved. 
 
------------------------------ 
Coordination: An Area to Watch 
------------------------------ 
 
¶9. (SBU) Malik said the GOP is trying to ensure that the 
longstanding Bait-ul-Mal and Zakat national charity systems 
coordinate their distribution with BISP.  He described Bait-ul-Mal 
as a Federal consolidated fund, run by the Ministry of Finance and 
disbursed through the development budget of the Planning Commission. 
 Zakat is run out of the Ministry of Religion.  Malik also noted 
that Punjab province has its own $276 million program to help the 
poor.  The Bank is working with all three programs to ensure that 
people benefit from only one program at a time; Bait-ul-Mal has 
already agreed to cede its poorest clients to BISP, removing them 
from Bait-ul-Mal rolls.  Malik said the Bank will be working with 
the NGOs to provide follow-up training, microcredit or other forms 
of assistance to people as they graduate from these direct 
assistance programs. 
 
¶10. (SBU) Comment: Malik painted an extremely rosy picture of a new 
and improved Benazir Income Support Program.  The proof will 
obviously be in the implementation, however.  But the fact that the 
Bank was able to build on an existing eight-month body of work on 
Pakistan's social safety net when it stepped in to help on BISP and 
 
ISLAMABAD 00000422  003 OF 003 
 
 
that the NGOs are well-respected in their fields gives us a somewhat 
greater degree of confidence that the necessary groundwork -- and 
GOP buy-in -- is being put in place. 
 
¶11. (SBU) Comment Cont'd: Finance for BISP this year does not appear 
to be affected by GOP budget woes.  The lower-than-expected number 
of participants also makes it more likely the GOP has sufficient 
funds on hand for Pakistani FY 2009.  The FY 2010 program, however, 
is significantly more expensive and continued GOP compliance with 
IMF budgetary strictures could impinge on the government's ability 
to meet its target of five million participants -- particularly if 
oil prices again rise significantly.  End Comment. 
 
FEIERSTEIN