Queen Maxima (C) of the Netherlands speaks with a Pakistani woman with chairperson Marvi Memon (R)
The money is earmarked for the controversial Benazir Income Support Programme (BISP) that simply hands out cash to individuals and families to spend how they want.
The scheme has been heavily criticised over claims it is open to corruption and an official report from Britain’s aid spending watchdog said recently a quarter of recipients were not the country’s poorest people.
Families get given 4,500 rupees (£34.50) a quarter with no strings attached as to how they spend the money.
One in 10 recipients currently get their money in envelopes at post offices, while others get cash cards that are topped up with money that can either be withdrawn or used directly in shops.
British taxpayers currently fund seven per cent of the BISP scheme although in previous years this has been as high as 20 percent.
A Dfid-commissioned study found that there were problems with the database of those getting the money and admitted it “needed to be strengthened”.
Lord Bates in 2011
It also found that those given the cash cards were susceptible to being tricked out of the money as they did not know how to use the cards.
In one example cited in the report, a school master in one village collected everyone’s cards and took a 100 rupee (77p) cut to help them take the money out.
A nationwide investigation is underway after a number of complaints had been received about fake accounts and alleged corruption by staff.
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It is believed seven employees have been suspended on corruption charges and 125,714 suspicious accounts have been frozen.
Conservative Minister Lord Bates, 55, told peers the Department for International Development had earmarked £420.3million for the project between 2012 and 2020, which is higher than the £300million it was previously known had been allocated.
Queen Maxima of the Netherlands speaks to a Pakistani woman in February 2016
But Dfid has defended its spending on the Pakistan scheme, saying in a statement: “Cash transfers get aid to those who need it, when they need it, and achieve value for taxpayers' money – and this independent report recognises that.
“Small cash transfers… cut out the middle man and reduce waste.”