THE largest distribution of direct cash assistance to the poor and unemployed began on Thursday as 4m people out of a total of 12m eligible recipients received the go-ahead to report to the nearest distribution point and collect Rs12, 000. As the distribution gathers pace, it is hoped that it will play a significant role in helping those who have been most badly hit by the ongoing lockdowns. There is no doubt that such an effort was needed urgently and the federal government should be commended for the speed with which they have made it operational. Perhaps it should also be borne in mind that this is the first such cash assistance being distributed through the Ehsaas channel, with more likely to become necessary next month, and perhaps again the month after that. A few important concerns continue to linger, though. First is the paucity of distribution points. Across the country, 17,000 points have been set up using the networks of two banks. This is far too small a number for an exercise of this scale. If done properly, the number should be more than 10 times this much. One result of this was seen in the massive crowds that formed outside the distribution points. Inside the premises, where the distribution was being carried out, it seemed that many places properly enforced the social-distancing protocols, but the entire effort appeared to be futile when people were forced to congregate in large crowds crammed tightly together outside the premises, as they waited for their turn to be let in. The purpose of cash assistance for the poor is defeated — in fact, reversed — if the beneficiaries are exposed to the hazards of contagion in the course of collection.

The government should urgently reverse its earlier decision to shut out the telecom companies from the disbursement of these funds, since mobile operators can multiply the number of distribution points manifold. They may charge a fee for their service, but banks make money by simply holding Ehsaas funds for a few days — and that money is made from the government’s account, in any case, since it is the government that the banks are lending primarily to these days. The second important concern is targeting. It is clear that the initial list of eligible beneficiaries has been drawn up in a terrible hurry, but there is still time in which to tighten the criteria.

Published in Dawn, April 11th, 2020