The Pakistani government, in negotiations with the International Monetary Fund (IMF), has agreed to increase the budget for the Benazir Income Support Programme (BISP) by Rs60 billion. This will bring the budget for the next financial year from Rs470 billion to Rs530 billion.
Key Highlights of BISP Kafalat Increment
- Increased Budget: The Benazir Kafaalat budget will increase from Rs470 billion to Rs530 billion.
- Expansion of Beneficiaries: The number of beneficiaries is set to increase, aiming to register 20 million households by September.
- Enhanced Stipends: Proposals include increasing the stipends received by beneficiaries.
- Targeted Subsidies: Plans to use BISP data for effective implementation of targeted subsidies.
- Provincial Support: Provinces will be encouraged to share the burden of social security.
Budget Increase
The agreement with the IMF will see a significant increase in the BISP Kafalat budget:
| Financial Year | Previous Budget (Rs Billion) | New Budget (Rs Billion) |
|---|---|---|
| Current Year | 470 | – |
| Next Year | – | 530 |
Beneficiary Expansion
Currently, BISP benefits 9.3 million individuals. The program aims to include 20 million households by September, an ambitious expansion to ensure more families receive support.
Also Read: Last Date for June 10500 BISP Kafalat Dynamic Survey
Stipend Enhancements
Along with increasing the number of beneficiaries, there are proposals to enhance the stipends provided. This means more financial support for the families who need it the most.
Targeted Subsidies and Social Protection
The IMF has emphasized the importance of expanding social protection programs to eradicate poverty. Using data from BISP registrants, the government plans to:
- Implement targeted subsidies more effectively.
- Mitigate the impact of electricity tariffs through a cash transfer program for BISP beneficiaries.
Provincial Involvement
To support these initiatives, the government will encourage provincial participation in sharing the burden of social security. This collaborative approach aims to enhance the overall impact of the program.
Current Programs and Beneficiaries
As of now:
- Health Cash Transfer Program: Supports 900,000 families.
- Education Cash Transfer Program: Enrolls 1.9 million children.
In the recent briefing to the IMF mission, it was highlighted that an additional 300,000 families have been included in the sponsorship program this year.
The IMF has demanded greater transparency and improved administrative efficiency within BISP. These measures aim to ensure that the expanded budget and resources are utilized effectively to benefit the targeted populations.
How much is the BISP budget increasing?
The BISP budget is increasing by Rs60 billion, from Rs470 billion to Rs530 billion.
How many beneficiaries are currently supported by BISP?
Currently, BISP benefits 9.3 million individuals.
Conclusion
The addition of Rs60 billion to the BISP Kafalat budget marks a significant step towards strengthening social protection in Pakistan. This budget increase, combined with the expansion of beneficiaries and enhanced stipends, demonstrates the government’s commitment to eradicating poverty and supporting low-income families. The targeted subsidies, improved transparency, and efficient administration will ensure that the increased resources are utilized effectively. By working in collaboration with provincial governments and adhering to the guidelines set by the IMF, Pakistan aims to create a more robust and equitable social security system, ultimately improving the quality of life for millions of its citizens.