Ehsaas Emergency Cash Program: Financial Relief During Crisis

The Ehsaas Emergency Cash Program was launched in April 2020 by the Government of Pakistan to provide immediate financial relief to millions of vulnerable families affected by the economic hardships caused by the COVID-19 pandemic. This initiative, a part of the broader Ehsaas social protection framework, aimed to mitigate the negative economic impact of the pandemic, particularly for low-income households, daily wage earners, and those facing job loss or income disruptions.

With a total allocation of PKR 203 billion, the Ehsaas Emergency Cash Program is considered one of the largest cash transfer initiatives in Pakistan’s history. It provided immediate cash assistance to approximately 15 million families, benefiting over 100 million people—almost half of the country’s population. This article will explore the background, objectives, implementation, impact, and challenges of the Ehsaas Emergency Cash Program, shedding light on its significance during one of the most challenging periods in Pakistan’s modern history.

1. Background and Need for the Program

The COVID-19 pandemic created an unprecedented global crisis, disrupting economies and healthcare systems worldwide. In Pakistan, the pandemic had a particularly harsh effect on the country’s informal workforce, which accounts for a significant portion of the labor market. The government-imposed lockdowns and restrictions to control the spread of the virus led to widespread job losses, especially for daily wage workers, small businesses, and low-income households.

The Ehsaas Emergency Cash Program was launched as a rapid response to the socio-economic challenges brought on by the pandemic. Recognizing the urgent need for immediate support, Prime Minister Imran Khan’s government acted swiftly to roll out a financial aid package that could provide direct relief to the poorest segments of society. The program was part of the government’s broader Ehsaas initiative, which already had mechanisms in place to support vulnerable populations, making it easier to implement large-scale cash transfers.

2. Objectives of the Ehsaas Emergency Cash Program

The main objective of the Ehsaas Emergency Cash Program was to provide immediate financial assistance to low-income families who were severely affected by the economic fallout of the pandemic. The specific objectives of the program were:

a. Alleviate Immediate Financial Hardship

The core goal of the program was to provide a one-time cash grant of PKR 12,000 to low-income families. This financial assistance was designed to help families meet their essential needs, such as purchasing food, medicines, and paying for utilities, during the lockdown period.

b. Support Vulnerable Workers and Daily Wage Earners

The program focused on providing relief to those who were most impacted by the lockdowns, particularly daily wage earners and informal workers who had lost their livelihoods. This group included laborers, domestic workers, small shopkeepers, and others who did not have access to formal social safety nets or unemployment insurance.

c. Expand Social Safety Net Coverage

A key objective of the program was to expand the coverage of existing social safety nets. The Ehsaas Emergency Cash Program sought to reach people who were not already benefiting from regular social protection programs like the Ehsaas Kafalat Program. By extending coverage to previously unregistered beneficiaries, the program aimed to ensure that no vulnerable group was left behind.

d. Ensure Transparent and Efficient Distribution

Transparency and accountability were central to the design and implementation of the program. The government aimed to ensure that the funds reached the intended beneficiaries in a timely and efficient manner, minimizing the risk of corruption and leakages. This was achieved through the use of digital technologies and a biometric verification system.

3. Implementation of the Ehsaas Emergency Cash Program

The implementation of the Ehsaas Emergency Cash Program was an impressive feat of logistics, technology, and coordination. The government leveraged the existing Ehsaas infrastructure, including its National Socio-Economic Registry (NSER) and digital payment systems, to ensure the swift disbursement of cash grants to millions of families.

a. Targeting and Eligibility

The first step in the implementation process was identifying the beneficiaries. The government used the NSER database, which classifies households based on their poverty level, to identify eligible families. In addition to the NSER, an SMS-based registration system was introduced to allow people to apply for the program. This system helped reach informal workers and daily wage earners who were not part of the NSER.

The targeting process ensured that the most deserving individuals, such as low-income families, widows, disabled persons, and daily wage earners, were prioritized. The program targeted four categories of beneficiaries:

1. Existing Ehsaas Kafalat beneficiaries who were already receiving financial assistance.
2. Families in the NSER database who qualified as low-income households.
3. Daily wage workers and informal sector workers who applied through the SMS system.
4. Households recommended by provincial governments as vulnerable.

b. Digital Payment and Biometric Verification

One of the most notable features of the Ehsaas Emergency Cash Program was the use of digital payment systems. Beneficiaries were required to verify their identity through biometric systems, ensuring that the payments were secure and that the funds reached the correct recipients. The government partnered with major banks to enable branchless banking and facilitate the easy withdrawal of cash at Ehsaas Payment Centers and ATMs across the country.

The program also deployed mobile registration units in remote and hard-to-reach areas, ensuring that even the most marginalized communities could access the cash assistance.

c. Coordination Between Federal and Provincial Governments

The success of the Ehsaas Emergency Cash Program was largely due to the strong coordination between federal and provincial governments. The federal government provided the overall framework and funding for the program, while provincial governments assisted in identifying beneficiaries and implementing the program at the local level.

This collaborative approach helped ensure that the program was rolled out efficiently across all provinces and regions of Pakistan, including Gilgit-Baltistan and Azad Jammu and Kashmir.

4. Impact of the Ehsaas Emergency Cash Program

The Ehsaas Emergency Cash Program had a far-reaching impact on millions of families across Pakistan. It played a critical role in mitigating the economic impact of the pandemic, providing a lifeline to those who were most affected by the crisis.

a. Financial Relief for Millions of Families

By the end of the program’s implementation phase, over 15 million families had received financial assistance. This immediate cash relief helped families meet their basic needs during the most difficult period of the pandemic. For many, the PKR 12,000 grant was the difference between having food on the table and going hungry.

b. Preventing Extreme Poverty

The program played a key role in preventing a further increase in poverty levels during the pandemic. Without this intervention, millions of families would have been pushed into extreme poverty due to job losses and income disruptions. The cash grants helped prevent this downward spiral, providing a cushion for the most vulnerable.

c. Strengthening Digital and Financial Inclusion

The Ehsaas Emergency Cash Program also contributed to Pakistan’s efforts to promote digital and financial inclusion. By using biometric verification and digital payment systems, the program introduced millions of low-income individuals to formal banking channels. This exposure to digital payments and financial services is expected to have long-term benefits for the financial inclusion of poor and marginalized communities.

d. Enhancing Trust in Government Institutions

The successful implementation of the Ehsaas Emergency Cash Program has helped enhance public trust in government institutions. The transparency, efficiency, and scale of the program demonstrated the government’s ability to deliver social protection in times of crisis. The program’s use of digital tools and its focus on transparency also helped reduce corruption and leakages, further boosting public confidence in the government’s efforts.

5. Challenges and Lessons Learned

While the Ehsaas Emergency Cash Program was largely successful, it faced several challenges that offer valuable lessons for future social protection initiatives.

a. Reaching Remote Areas

One of the main challenges was reaching beneficiaries in remote and rural areas, where access to Ehsaas Payment Centers and digital infrastructure was limited. The government addressed this by deploying mobile registration units, but more work is needed to improve access to social safety nets in these areas.

b. Addressing Gender Disparities

Although the program prioritized vulnerable groups, including women, gender disparities in access to mobile phones, digital literacy, and banking services posed challenges for female beneficiaries. Future programs need to consider more targeted interventions to ensure women have equal access to social protection initiatives.

c. Sustaining Social Protection

While the Ehsaas Emergency Cash Program provided immediate relief, it highlighted the need for a more sustainable social protection system. The pandemic exposed gaps in Pakistan’s social safety net, particularly for informal workers, and underscored the importance of building more resilient and comprehensive social protection systems for the future.

Conclusion

The Ehsaas Emergency Cash Program was a landmark initiative that provided much-needed financial relief to millions of vulnerable families during the COVID-19 pandemic. Through its focus on transparency, efficiency, and inclusion, the program helped prevent extreme poverty, supported daily wage earners, and strengthened digital financial inclusion across Pakistan. While the program faced challenges, its success offers valuable lessons for future social protection efforts in times of crisis. As Pakistan continues to build on the Ehsaas framework, the Ehsaas Emergency Cash Program will remain a shining example of how targeted cash transfers can make a significant impact in times of economic distress.