The Effects of Social Protection Program on Food Consumption and Poverty in Khyber Pakhtunkhwa, Pakistan

Abstract

This study examines the effects of Unconditional Cash Transfers scheme of Benazir Income Support Program on household food consumption pattern and poverty in the District Mardan, Khyber Pakhtunkhwa, Pakistan. For this purpose, data has been collected randomly through a comprehensive questionnaire from 383 selected beneficiaries located in two villages, namely, Kot Doulat Zai and Batagram of the District Mardan. The methods of Flexible Linear Approximate Almost Ideal Demand (LA-AIDS) and poverty index have been used for the estimation of results. Firstly, investigating the impact of cash transfers on household consumption, it is found that cash transfers increased their expenditures on cereals, meat and decreased on pulses, dairy products and fruits/vegetables. Secondly, analyzing the role of cash transfers in household’s poverty reduction, the results showed that household consumption shortfall reduced from 21% to 14% and their consumption deprivation poverty decreased from 42% to 31%. These findings suggest that the Unconditional Cash Transfers scheme is affecting the household consumption pattern and has reduced their poverty. Hence, further increase in the amount of cash transfers, formulation and implementation of effective policies in this regard can improve the standard of living of the poor and the needy people in District Mardan and in the province of Khyber Pakhtunkhwa.