MICROFINANCE PAPER WRAP-UP: “Women’s Access to Cash Transfers in Light of COVID-19;” by Shelby Bourgault, Megan O’Donnell; published by Centre for Global Development

This paper analyzes the efficacy of various cash-transfer programs created by the Pakistani government and their ability to reach low-income women and promote economic gender equality. Prior to the COVID-19 pandemic, the Pakistani-government was in the process of building out multiple cash transfer schemes targeted at women, including the Kafaalat program which seeks to promote economic empowerment by helping women access bank accounts, digital payments, mobile phones and “graduation” programs to transition women and their families out of poverty. As of March 2020, 4.5 million people were participating in Kafaalat.

Under the Ehsaas Emergency Cash Program, which is intended to counter the effects of COVID-19 on both male and female citizens, each participating family can receive PKR 12,000 (USD 75) through a network of biometrically enabled cashpoints. This funding is intended to cover the cost of food for four months. With an initial budget of USD 900 million, the program is expected to reach 80 million individuals in 12 million families. Recipients can register for and receive transfers through the following channels: (1) the web-based Ehsaas Labour Portal; (2) SMS messaging; (3) district governments; (4) previously existing cash-assistance schemes; and (5) the National Socio-Economic Registry.

The authors identify several limitations preventing the Ehsaas Emergency Cash Program from creating the desired impact. First, the cash transfer amounts to the equivalent of USD 0.09 per day per person, when divided among the average Pakistani household size of 6.7 people. This is well below USD 2.60, the World Bank’s estimated cost for one day of food for one person among the poorest 40 percent of the Pakistan’s population. The second limitation is that the program requires access to both a mobile phone and a national identification card, which only 25 percent of poor women in Pakistan have, compared to 68 percent of poor men.

Based on the findings, the authors recommend that the government boost investment in efforts to get women access to: (1) mobile phones; (2) national identification documents; (3) financial services; and (4) training in literacy, numeracy, technology and personal finance.

By Madigan Ruch, Research Associate

This is a summary of a paper published by Shelby Bourgault and Megan O’Donnell; published by the Centre for Global Development; June 2020; 9 pages; available at https://www.cgdev.org/sites/default/files/womens-access-cash-transfers-light-covid-19.pdf

Additional Resources

Centre for Global Development homepage
https://www.cgdev.org/

Ehsaas Emergency Cash Program homepage
https://www.pass.gov.pk/Detailf90ce1f7-083a-4d85-b3e8-60f75ba0d788

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