Unveiling effects of cash transfers on poverty and social cohesion in conflict-affected zones: Insights from ex-FATA, Pakistan

This study assesses the impact of the Benazir Income Support Program (BISP) on poverty and social cohesion in conflict-affected areas of ex-FATA, Pakistan. Using multidimensional analysis and data from 600 households, we employ propensity score matching (PSM) to examine BISP's effects. Results reveal significant reductions in poverty measures, including livestock ownership, living standards, and economic well-being. Cash transfer recipients strategically invested in livestock and agricultural tools, boosting daily income and resilience. However, BISP cash transfers have negatively affected social cohesion within the study areas. This outcome suggests the potential for alienation among non-beneficiaries. The study contributes to policy formulation by navigating the complex interplay between cash transfers, poverty, and social dynamics in conflict-affected settings.