Abstract:
We use propensity score analysis to evaluate impact of two different Cash transfers; Benazir
Income Support Program and Zakat; on household expenditure shares in Pakistan. The Household
Integrated Economic Survey 2018-19 is used as the data set to obtain results. BISP payments tend
to create dependency and in general are unproductive. We do find some evidence that Zakat
improves living standards and human capital. The data for Zakat is limited and needs further
exploration to determine its importance, especially in contrast with other social safety nets.
