Relief or ruin? The hidden cost of cash handouts

CHITRAL: Temporary financial assistance schemes, whether under titles such as the Benazir Income Support Program, Ehsaas Kifalat, or Ramzan relief packages etc,  continue to operate across Pakistan. The critical question, however, is whether these short-term initiatives genuinely contribute to the long-term welfare and economic uplift of the poor. The honest answer, upon closer reflection, appears to be a big ‘No’.

At their core, such programs are flawed in conception. In a country with a vast and growing population of economically vulnerable citizens, selecting a small segment to receive modest cash handouts is neither equitable nor impactful. The assistance provided is often too limited to meaningfully improve livelihoods, yet sufficient to erode personal dignity, reducing recipients, in effect, to dependents rather than empowering them as self-reliant individuals.

Moreover, the process of identifying ‘deserving’ beneficiaries is inherently compromised in a system marked by political and administrative corruption. In such an environment, the likelihood of fair and merit-based selection remains highly doubtful. Reports and public perceptions of corruption, ranging from beneficiary identification to the final disbursement of funds further weaken the credibility and effectiveness of these knee jerk initiatives.

Perhaps most concerning is the broader societal consequence. These programs risk fostering a culture of dependency, where individuals increasingly look toward the ‘free lunch’ syndrome happening rather than depend on personal efforts and productivity. This gradual shift in mindset is damaging, not only economically but also morally, as it undermines the values of hard work and self-sufficiency.

It is time to reconsider this approach. Instead of perpetuating fragmented and knee jerk relief measures, resources should be redirected toward strengthening social infrastructure, education, healthcare, employment generation, and skill development. Such investments would benefit the wider population collectively, uplift living standards in a sustainable manner, and, importantly, restore dignity by eliminating the stigma associated with receiving alms and aid.

A nation progresses not by distributing alms, but by creating opportunities. The sooner this principle guides policy, the better it will serve both the people and the country as a whole. .. CN report, 18 Mar 2026

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