1 State of Social Protection in Pakistan 2 www.sprc.org.pk TABLE OF CONTENTS Acronyms and Abbrevations.............................................................................................................................5 Acknowledgments.............................................................................................................................................6 Executive Summary...........................................................................................................................................7 Section I: Theoretical Framework for Social Protection..................................................................................8 1.1. Defining Social Protection........................................................................................................................10 1.2. Origin of Social Protection..................................................................................................................14 1.3. Approaches of Social Protection.........................................................................................................14 1.3.1. Targeted Clientele-Intended Social Protection........................................................................15 1.3.2. A Life Cycle Continuum Investment based Social Protection................................................15 1.3.3. Social Risk Management Approach........................................................................................16 Section II: Social Protection Scenario in Pakistan...........................................................................................20 2.1. Institutional Review.............................................................................................................................22 2.1.1. Evolution of Social Protection Institutions..........................................................................................22 2.1.2. Social Protection Institutions at Sub-National Level...............................................................24 2.2. Social Assistance in Pakistan...............................................................................................................24 2.2.1. Defining Social Assistance.......................................................................................................24 2.2.2. Sustainable Development Goals (SDGs) on Social Assistance...............................................25 2.2.3. Existing State of Social Assistance..........................................................................................26 Poverty........................................................................................................................................................26 Unconditional Cash Transfer to Poor..........................................................................................................26 Child Nutrition............................................................................................................................................27 Pre & Post Natal Coverage..........................................................................................................................28 2.3. Social Insurance in Pakistan................................................................................................................28 2.3.1. Defining Social Insurance........................................................................................................28 2.3.2. Sustainable Development Goals on Social Insurance..............................................................28 2.3.3. Labour Force & Working Age Population...............................................................................29 2.3.4. Health Expenditure..................................................................................................................31 2.3.5. Social Insurance Schemes for Old Age & Disabled................................................................32 Functional Difficulty in Punjab...................................................................................................................32 2.4. Labour Market Policies in Pakistan.....................................................................................................33 2.4.1. History of Labour Law and Trade Unions in Pakistan............................................................33 2.4.2. Constitutional Provisions on Labour Rights ...........................................................................34 2.4.3. Collective Bargaining:.............................................................................................................35 2.4.4. ILO, GSP Plus and Labour Market in Pakistan.......................................................................35 2.4.5. Labour Policies: Post 18th Amendment..................................................................................36 2.4.6. Labour Market of Pakistan: Challenges & Policy Options......................................................36 Minimum Wage in Pakistan.......................................................................................................................36 Child Labour Policy Gaps..........................................................................................................................37 Female Labour Force..................................................................................................................................38 2.4.7. Labour in 21st Century: Digital Labour..................................................................................38 2.4.8. Labour legislation and Highlights............................................................................................39 3 State of Social Protection in Pakistan Section III: Mapping Social Protection Need..................................................................................................42 3.1. Rationale..............................................................................................................................................44 3.2. Methodology........................................................................................................................................44 3.2.1. SPI Indicators and Sources of Data.........................................................................................44 3.2.2. Transforming Data to Represent Need.....................................................................................45 3.2.3. Imputation of Missing Data.....................................................................................................46 3.2.4. Normalization..........................................................................................................................46 3.2.5. Summarizing Index Components.............................................................................................46 3.2.6. Weighing and Aggregation.......................................................................................................46 3.2.7. Defining Range of Need Based Social Protection Index (SPINB)...........................................46 3.3 District Rank Based on Social Protection Need........................................................................................46 3.4. Multidimensionality Poverty and Social Protection Need.......................................................................48 Section IV: Pandemic and Social Protection...................................................................................................50 4.1. Introduction.........................................................................................................................................52 4.2. Global Response to COVID-19...........................................................................................................52 4.3. Interventions by Pakistan with respect to COVID-19.........................................................................56 4.3.1. Government Assistance...........................................................................................................57 Cash Transfers............................................................................................................................................57 Loan Extension and Restructuring Package...............................................................................................58 SBP Rozgar Scheme48.................................................................................................................................58 Facilitating New Investment – TERF49.......................................................................................................58 Supporting the Health Sector to Combat COVID-1950...............................................................................58 Construction Sector Tax Relief COVID-1952..............................................................................................59 Ehsaas Ration Portal53.................................................................................................................................59 Recovery Plan of Economy54......................................................................................................................59 4.3.2. Optimal Response to COVID19..............................................................................................59 Conclusion and Way Forward..........................................................................................................................60