Pakistan CGAP–Ford Foundation Graduation Pilot

Implementers: Aga Khan Planning and Building Services Pakistan (AKPBS); Badin Rural Development Society (BRDS); Indus Earth Trust (IET); Sindh Agricultural and Forestry Workers Coordinating Organization (SAFWCO); Orangi Charitable Trust (OCT)

Pilot Overview

The Pakistan CGAP–Ford Foundation Graduation Pilot was launched in 2007. Program areas were selected based on their poor agro-environmental and socio-economic conditions (e.g. low numbers of livestock), poor infrastructure (e.g. difficult market accessibility), and high unemployment (especially, low numbers of government employees).

For more information on this pilot contact: farid@ppaf.org.pk

Implementing Organization Overview

The Pakistan Poverty Alleviation Fund (PPAF) selected five partner organizations to implement the CGAP- Ford Foundation Graduation Pilot in the coastal areas of Sindh: Aga Khan Planning and Building Services Pakistan (AKPBSP), Badin Rural Development Society (BRDS), Indus Earth Trust (IET), Sindh Agricultural and Forestry Workers Coordinating Organization (SAFWCO) and Orangi Charitable Trust (OCT). Each of the five organizations targeted 200 households (pilot phase).

Targeting: The five partner organizations use two sets of targeting criteria. All households must be single headed, with an able-bodied member under 75 years of age. Those with government employees or accessing a formal microfinance loan were excluded. The partners utilize one of the two following criteria sets: Criteria A: Households headed by women with an income of less than PKR 25 (USD 0.26 ) per person per day; vulnerable livelihood (e.g. beggars, small fishermen, stone crushing laborers etc); no productive assets; over-indebted and/or charity-dependent households. Criteria B: Households that meet at least three of the following criteria: own less than two acres of land with no crops grown for sale on the land; no household member with salaried employment; no separate room in the home for cooking; the household doesn’t own any type of music player. Note: PKR:USD exchange rates as of April 4, 2013.

Consumption support: Participants receive a consumption support of approximately PKR1,047 (US$11) per month for 12 months after the asset transfer. Each partner organization takes a slightly different approach to the form of this support: BRDS, IET, and OCT provide the stipend in cash on a monthly basis, but SAFWCO distributes the in weekly installments. AKPBSP provide in-kind transfers of similar value rather than cash; participants received 15kg of flour, two types of pulses and three liters of cooking oil. Note: PKR:USD exchange rates as of April 4, 2013.

Livelihoods: Most participants choose livestock rearing but some also engage in small trade and crafts. The asset value is of PKR15,000 (USD 154) maximum per participant. Note: PKR:USD exchange rates as of April 4, 2013.

Financial service: Most organizations encourage participants to save through rotating savings and credit organizations, or individual accounts at MFIs. In some cases, group savings are deposited into group accounts at local banks.

Additional services: All organizations link participants with free livestock vaccination government service. Additional services offered by some organizations include hemoglobin tests, health awareness sessions, distribution of first aid boxes at village level and to households, linkages with private laboratories where participants access free blood tests, and linkages with other non-governmental organizations providing tuberculosis medicine free of cost.

Research: Qualitative research at OCT was conducted by BRAC Development Institute, funded by The MasterCard Foundation. A randomized control trial impact assessment (household level) is conducted by Innovations for Poverty Action, funded by the Ford Foundation.

Graduation criteria: Participants can graduate if their asset value increased by at least twenty- five percent, they have a minimum of PKR 2,000 (USD 21) in savings, households are having at least two meals a day, participants have at least two sources of income. In addition, participants’ hemoglobin level must reach a “normal” level and all children aged five to ten must be attending school if a school is accessible in a radius of 1.5km. Note: PKR:USD exchange rates as of April 4, 2013.

Graduation rate: Depending on the organization implementing the pilot, seventy- nine percent to eighty- eight percent of participants “graduated” in July 2010.

Scale up: PPAF have incorporated lessons from the pilot phase into the Livelihood Enhancement and Protection Unit PPAF has scaled up to approximately 288, 542 households in partnership with 37 partner organizations across Pakistan.