In the ongoing negotiations between Pakistan and the International Monetary Fund (IMF), a significant agreement has been reached to increase the budget for the Benazir Income Support Programme (BISP). The budget for the next financial year is set to rise from the current Rs470 billion to Rs530 billion.
Alongside this increase, there are also proposals to expand the number of beneficiaries and the stipends they receive. The IMF has underscored the need for greater expansion of social protection programs to eradicate poverty. This includes using data from individuals registered in BISP to implement targeted subsidies more effectively. The government has assured the IMF that provinces will be encouraged to share the burden of social security.
There is a plan to protect BISP beneficiaries through a cash transfer program to mitigate electricity tariff impacts. This move is part of a broader strategy to provide targeted subsidies using data from BISP registrants. Additionally, the number of beneficiaries is proposed to be increased, with a goal to register 20 million households by September. Currently, BISP benefits 9.3 million individuals, as per the briefing to the IMF mission, adding that this year, an additional 300,000 families have been included in the sponsorship program. The health cash transfer program now supports 900,000 families, while the education cash transfer program has enrolled 1.9 million children.
The IMF has demanded increased transparency and improved administrative efficiency within BISP. These measures are aimed at ensuring that the expanded budget and resources are effectively utilized to benefit the targeted populations. On the other hand, Pakistan’s economic team has engaged in discussions with the International Monetary Fund (IMF), sharing the macroeconomic framework as both parties work towards setting fundamental economic goals.
