ABSTRACT This study is designed to assess the targeting efficiency, evaluate the welfare impact on the lives of the poor and explore the public perceptions about the performance of Dandot Bait-ulMal (DBM), Official Zakat System (OZS) and Benazir Income Support Program (BISP). To achieve the objectives, primary data is collected from households, through a survey conducted in Dandot and Dhalwal towns of district Chakwal, province Punjab, Pakistan. A total of 800 households are interviewed by using stratified and simple random sampling techniques. To address the objectives, different measures of targeting efficiency and propensity score matching methods are employed. The findings reveal that DBM is the most efficient program since its targeting count gap is the lowest, followed by BISP and OZS. Targeting ratio of BISP is the lowest than that of the other two programs but its beneficiaries also belong to the richest households. The results show that all programs succeed to some extent in targeting poor, however, evidence of type-I and type-II errors is found. No leakage of funds is found in DBM. The third quintile of beneficiaries of OZS doesn't receive 24.5% of funds while about one-fifth of funds are not received by the poorest segment of BISP beneficiaries. About one-third of the beneficiary households get help to register their names with programs. The estimates of matching methods reveal that per adult equivalent food and per capita health expenditure of cash recipients are significantly higher than those of the non-recipients. The significant difference in educational expenditures is also observed between recipients and nonrecipients of DBM and BISP. The poverty status of the BISP beneficiary households is not only higher than the non-beneficiary households but also statistically significant. The cash transfer of BISP is unable to provide any relief in terms of poverty to its beneficiaries. A significant proportion of the beneficiary households feel better off as compared to their position last year. Almost all the respondents report that the DBM has the potential to overcome poverty provided that proper ‘rehabilitation schemes’ are introduced and the ‘well-to-do people are motivated to contribute’ to the program funds. The majority of respondents suggest that the ‘allocation of funds should be raised’, and ‘survey for the identification of the poor should be properly conducted’ to improve the role of the programs. The study implies that these programs can playa vital role in improving the lives of the poverty-ridden segments of the society but it needs sincere efforts on the part of the stake-holders.