Increase in Financial Assistance under the Ehsaas Program: A Major Shift in October 2024

In October 2024, the Pakistani government announced a significant increase in the financial assistance provided through the Ehsaas Program, a cornerstone social protection initiative aimed at alleviating poverty and supporting the country’s most vulnerable populations. This move, which increased the payment from 12,000 PKR to 25,000 PKR per beneficiary, represents a crucial step in addressing the growing financial pressures faced by millions of Pakistani households.

Background: Understanding the Ehsaas Program

The Ehsaas Program was launched in 2019 by former Prime Minister Imran Khan as a comprehensive social welfare initiative designed to reduce poverty, provide financial aid, and improve the standard of living for low-income families across Pakistan. Its design builds upon the foundation of the Benazir Income Support Program (BISP), which has been in place since 2008. While BISP was primarily focused on providing cash transfers to poor families, the Ehsaas Program expanded these goals to encompass a broader range of support services, including education, healthcare, job creation, and nutrition.

Over the years, the Ehsaas Program has become an essential lifeline for millions of Pakistanis. As of October 2024, with the mounting pressures of inflation and rising costs of living, the program’s increase in cash disbursements from 12,000 PKR to 25,000 PKR has been met with widespread approval from beneficiaries. The increase underscores the government’s commitment to mitigating the economic hardships facing vulnerable populations.

Economic Context: Why the Increase Was Necessary

The timing of this increase coincides with a period of significant economic challenges for Pakistan. Over the past few years, the country has experienced skyrocketing inflation, with basic necessities such as food, fuel, and housing costs becoming increasingly unaffordable for the average citizen. For low-income families already struggling to make ends meet, these rising costs have led to a deterioration in living standards and increased levels of poverty.

Inflation, exacerbated by both global economic conditions and domestic fiscal challenges, has disproportionately affected the poor. A recent report indicated that inflation in Pakistan had reached double digits by mid-2024, with food inflation hitting particularly hard, leading to a sharp increase in hunger and food insecurity across the country​

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. The government’s decision to raise the disbursement amount under the Ehsaas Program was, therefore, a direct response to these economic realities.

By increasing the monthly financial assistance to 25,000 PKR, the government aims to provide greater relief to those who are struggling the most. This move not only helps families cover the costs of essential items like food and housing but also empowers them to make small investments in health, education, or livelihood improvement, which can have long-term positive impacts.

The New Registration and Disbursement Process

A significant aspect of this expansion is the streamlining of the registration and disbursement processes. The program has introduced an online portal where beneficiaries can easily register for assistance and check their eligibility status through the 8171 Ehsaas system using their CNIC (Computerized National Identity Card)​

. This system was designed to make the process more transparent and accessible, especially for people in remote or underserved areas where access to government offices may be limited.

The registration process is simple and can be completed online, minimizing the need for in-person visits to government offices. Applicants are required to provide basic personal information, including their household income and family size. Once registered, beneficiaries are informed of their eligibility and can begin receiving payments electronically. For many, this means a significant reduction in wait times and improved access to much-needed funds.

The ease of registration has allowed more people to benefit from the program, which in turn has helped widen its reach and impact across the country. In particular, this expansion has focused on reaching marginalized groups such as widows, people with disabilities, and those living in rural areas​

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Targeting Inflation-Impacted Households: The Eligibility Criteria

One of the key features of the Ehsaas Program is its robust eligibility criteria, which ensure that aid is directed toward those most in need. According to the guidelines, beneficiaries must have a poverty score of less than 40, as determined by the government’s National Socio-Economic Registry (NSER)​

. Additionally, applicants must meet several other criteria, including having an income below a certain threshold (currently set at 20,000 PKR per month), and they must not possess significant assets such as property or vehicles.

This focus on need-based criteria ensures that the program targets the poorest segments of society, including households headed by women, elderly individuals, and those with no stable source of income. The government also prioritizes families with children, ensuring that the funds can be used to support education and healthcare costs.

Broader Impact on Social Welfare

The 25,000 PKR assistance increase is part of a broader social safety net that the Pakistani government has developed to help its citizens cope with economic hardships. Besides the monthly cash transfers, the Ehsaas Program also offers other forms of support, including scholarships for students, nutrition programs for children and pregnant women, and interest-free loans for small businesses​

By providing a more comprehensive range of services, the program seeks to create a pathway out of poverty for families. Rather than just offering short-term relief, the Ehsaas initiative aims to empower recipients through education, skill development, and opportunities for economic self-sufficiency.

The increased payments also have a ripple effect on the wider economy. With more cash in hand, low-income families can spend more on goods and services, stimulating local economies, particularly in rural areas where job opportunities may be scarce. Additionally, the program helps to reduce the pressures on public healthcare and education systems by giving families the means to access private services when needed.

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Challenges and Future Prospects

While the increase in financial assistance is undoubtedly a positive step, there are challenges that the government will need to address in order to sustain and expand the Ehsaas Program. One of the main challenges is ensuring that the increased funds reach all eligible beneficiaries in a timely and efficient manner. Although the introduction of online registration has streamlined the process, there are still areas where access to digital services remains limited, particularly in rural or conflict-affected regions.

Furthermore, the government will need to secure the financial resources required to sustain the higher disbursement levels in the long term. This will likely require careful management of public funds and potentially increased borrowing or taxation, both of which could present political and economic challenges.

Looking ahead, the Ehsaas Program is expected to continue evolving to meet the changing needs of Pakistan’s population. As inflation remains a persistent challenge, further adjustments to the assistance amount may be necessary to keep pace with the rising cost of living. Additionally, the program could expand its range of services, offering more targeted support for sectors such as education, healthcare, and entrepreneurship.

Conclusion

The October 2024 increase in financial assistance under the Ehsaas Program marks a critical development in Pakistan’s ongoing efforts to combat poverty and support its most vulnerable citizens. By raising the monthly payment to 25,000 PKR and streamlining the registration process, the government has taken decisive action to provide immediate relief to those affected by economic hardships. While challenges remain, the program’s expansion represents a positive step toward building a more resilient and inclusive social safety net for the future.

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