ISLAMABAD: The federal government, with the technical support of global development partners, on Thursday marked a significant milestone with the launch of the hybrid social protection scheme aimed to instill financial independence and a savings habit among low income groups.

The new social protection system is sort of an extension of Benazir Income Support Programme (BISP) . The initiative has been named as ‘BISP Savings Scheme’ and it will target the informal sector, often referred to as the ‘missing middle,’ lacking access to social welfare schemes.

BISP Chairperson Dr Mohammad Amjad Saqib while speaking at the launching ceremony emphasised that families benefiting from BISP and individuals with a 40 PMT (proxy means test) score, which calculates poverty levels and determines the welfare status of a household, would be eligible to participate in the scheme, catering to those traditionally underserved by social protection interventions.

Highlighting its importance, Dr Amjad said the programme’s primary objective is to inculcate a saving habit among consumers, fostering resilience during times of economic uncertainty.

The initiative encourages financial inclusion, as subscribers will open and maintain savings accounts and enables access to additional services such as micro-finance and insurance, he added.

Consumers are required to save a portion of their income in their savings accounts, with the government pledging to contribute an additional 40pc of consumer savings.

The scheme initially aims to benefit 150,000 people, he said.

Published in Dawn, December 15th, 2023