Strengthening climate resilience through asset transfers: Lessons from Pakistan’s National Poverty Graduation Programme

Policy brief Sustainable Growth and Energy

The National Poverty Graduation Programme (NPGP) in Pakistan has successfully reduced poverty and improved livelihoods for ultra-poor households by providing livestock and other productive assets. However, this brief finds that the 2022 floods highlighted the need for climate-resilient assets and shock-responsive support to protect households from increased financial vulnerability during climate shocks.

  • The National Poverty Graduation Programme (NPGP), funded by the International Fund for Agricultural Development and the Government of Pakistan, has successfully reduced poverty and improved livelihoods for ultra-poor households by providing livestock and other productive assets.
  • While asset transfers benefit households during stable periods, the 2022 floods revealed that these assets, particularly livestock, increased financial vulnerability during climate shocks.
  • Maintaining livestock during floods became a burden due to rising costs, lack of fodder, and increased vulnerability to disease, leading many households to financial distress.
  • Although livestock served as a store of wealth and provided income during normal times, they failed to build household resilience during floods, increasing vulnerability instead of mitigating it.
  • NPGP should incorporate climate-resilient assets, such as drought-resistant livestock or alternative livelihoods, to reduce vulnerability during climate shocks. Shock-responsive consumption support may help households smooth consumption and protect assets during crises.
  • To build a climate-resilient poverty alleviation strategy, NPGP must integrate these policy recommendations to ensure community members escape poverty and are better protected from future climate shocks.