The Pakistani government has proposed a significant increase in the budget for the Benazir Income Support Programme (BISP), raising it to a record Rs593 billion for the next fiscal year. This move comes after discussions with the International Monetary Fund (IMF), which urged Islamabad to increase the number of beneficiaries and their compensation to mitigate the impact of rising inflation.
Impact of the BISP Increased Budget
The proposed Rs593 billion allocation is 26% higher than the previous year’s budget of Rs472 billion. This substantial increase aims to support more families and enhance the cash compensation they receive.
- New Budget Proposal: Rs593 billion for BISP in the next fiscal year.
- Beneficiaries: Proposed increase to 9.6 million to 9.7 million people.
- Current Beneficiaries: 9.3 million people under the Kafaalat program.
- Increase in Compensation: Quarterly compensation to rise from Rs10,500 to approximately Rs13,000 per family.
- IMF Recommendations: Focus on inflation adjustment, healthcare, education, and targeted electricity subsidies.
Beneficiaries and Compensation
| Fiscal Year | Budget Allocation (Rs Billion) | Number of Beneficiaries (Million) | Quarterly Compensation per Family (Rs) |
|---|---|---|---|
| 2023-2024 | 472 | 9.3 | 10,500 |
| 2024-2025 | 593 | 9.6 – 9.7 | ~13,000 |
Also Read: List of Banks Included in 10500 BISP Payment Distribution
IMF’s Role and Recommendations
The IMF has been a significant influence on the proposed budget increase. Their recommendations include:
- Increasing Beneficiaries: Adding more families to the BISP program to cushion the effects of inflation.
- Compensation Adjustment: Ensuring that compensation increases align with inflation rates to maintain purchasing power.
- Electricity Subsidies: Restricting subsidies to BISP beneficiaries and providing direct cash transfers instead of general subsidies.
- Health and Education: Improving outcomes through conditional cash transfer programs.
IMF’s Role and Recommendations
The IMF has been a significant influence on the proposed budget increase. Their recommendations include:
- Increasing Beneficiaries: Adding more families to the BISP program to cushion the effects of inflation.
- Compensation Adjustment: Ensuring that compensation increases align with inflation rates to maintain purchasing power.
- Electricity Subsidies: Restricting subsidies to BISP beneficiaries and providing direct cash transfers instead of general subsidies.
- Health and Education: Improving outcomes through conditional cash transfer programs.
Conclusion
The proposed increase in the BISP budget to Rs593 billion is a significant step towards supporting Pakistan’s poorest families amid rising inflation. With the IMF’s recommendations, the government aims to enhance the effectiveness of the program, ensuring that more families receive adequate support and that compensation keeps pace with inflation. This move not only provides immediate relief but also aims to improve long-term outcomes in health and education for the most vulnerable segments of society.