Senate Committee Opposes Change to PPAF’s Numerical Structure
Islamabad (17 January 2025)
Islamabad. January 17, 2025: The Senate Standing Committee on Poverty Alleviation and Social Safety, chaired by Senator Sardar Al Haj Muhammad Umer Gorgaij, visited the BISP Headquarters and received a comprehensive briefing on the performance of the Pakistan Poverty Alleviation Fund (PPAF).
On this occasion, CEO PPAF, Nadir Gul Barech, informed that the PPAF was created to address the nation’s multifaceted poverty challenges by engaging civil society and developing and strengthening the micro-financing sector.
Primarily, he said that PPAF collaborates with the civil society to cater the basic facilities of the community like health and education.
Over the course of years, with a footprint in over 149 districts of Pakistan, PPAF has provided interest free loans to 3.2 Million beneficiaries and inculcated skill development in over 1.161 Million individuals. Likewise, PPAF has formed 150,000 community organizations and extended a helping hand to over 39,000 disabled persons.
As far as the financial operations of the organization are concerned, the Government of Pakistan has provided One Billion Rupees as an endowment fund to sustain the organization and lent around 17.56 Billion Rupees under the World Bank and IFAD projects out of which 13.24 Billion has been repaid.
Senator Aon Abbas raised concerns over the alleged rumors of PPAF being included in Government rightsizing list. He emphasized on the importance of PPAF being the only organization with nominal foothold of political intervention as the country has witnessed the downfall of profit making organizations due to political intervention. The Committee unanimously opposed any change in numerical structure of the organization and recommended that the former basic structure shall stay unchanged.
Furthermore, Senator Rubina Qaim Khani highlighted several complaints pertaining to blockage of BISP beneficiary card and the third party commission agents depriving poor masses of the due share of their stipend by keeping half of amount in lieu of withdrawal charges. She also inquired about the existing beneficiaries of BISP while urging transparency in BISP bisbursements. Departmental representative of the BISP informed that the existing number of BISP beneficiaries are around 9.3 Million families and the current number will reach 10 Million families by the end of this Financial Year. However, as per the recent survey, it has been observed that there are around 14 million families living below the poverty line and the current financial constraints have made it difficult to include all the eligible families into the programme.
The Committee strongly recommended that the Ministry provide details of budgetary allocations for all organizations under its jurisdiction, including a district-wise breakdown, with a special focus on the provinces of Balochistan and Sindh, in the next meeting.
Furthermore, the representatives from Trust Voluntary Organization (TVO) briefed the Committee on its performance, functions and budget position. It was apprised that the TVO was created in 1990 under the Special Development Fund agreement signed between the Government of Pakistan and United States of America with an endowment fund of 30 Million USD by USAID. The prime role of the organization is to strengthen the already working NGO’s and CBO’s for women in development and community building activities in rural areas of Pakistan. Importantly, TVO is a self-sufficient organization and has not received any additional funding from the Government of Pakistan in last eight years.
In attendance were Senator Rubina Qaim Khani, Senator Jan Muhammad, Senator Aon Abbas, Secretary for Ministry of Poverty Alleviation and Social Safety Mr. Naveed Ahmed Shiekh, CEO PPAF Mr. Nadir Gul Barech, Managing Director Pakistan Bait-ul-Mal Mr. Shaheen Khalid Butt and other senior officials from relevant departments of the Ministry.