IMF okays increase in Benazir Kafalat Program stipend amount

ISLAMABAD: The International Monetary Fund (IMF) has approved a major increase in the Benazir Kafalat Program stipend amount, ARY News reported.

According to IMF, the quarterly stipend for Benazir Kafalat Program recipients will increase by Rs. 3,000, raising the total quarterly stipend to Rs. 13,500 from January who currently receive Rs. 10,500.

The IMF is working to enhance the BISP and its administrative systems, in collaboration with the World Bank. The BISP has a budget of Rs. 599 billion for the current financial year, accounting for 0.5% of Pakistan’s GDP. This represents a 27% increase from the previous year.

The program will remain open for new enrollments for the next three years. Additionally, a new electronic payment model is being piloted, offering users more banking options and transparency. This new model will be gradually rolled out to other cities starting from January.

The development came after the International Monetary Fund unveiled new loan conditions for Pakistan.

The conditions were revealed by the International Monetary Fund in a detailed report of a new loan agreement with Pakistan. The IMF in its report has urged the Pakistan government to work to stabilize the macroeconomic situation in line with the loan agreement.

Pakistan’s government has been asked to ensure economic reforms and conducive conditions for the private sector to boost the economy.

The international lender has also urged Pakistan to increase its tax net and slash government spending and expedite reforms in the government-owned entities.

Read more: Pakistan receives first tranche of IMF loan

The report predicted Pakistan’s GDP to remain between 4 to 4.5pc during FY2024-25 to 2029-30, while the inflation is predicted to remain between 6.6 to 9 per cent.

The International Monetary Fund (IMF) Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion.

The 37-month Extended Fund Facility arrangement aims to support Pakistan’s economic stability and growth, with key policy goals including sustainable public finances, reduced inflation, and strengthened external buffers.

On September 27, Pakistan received the first tranche of the International Monetary Fund’s (IMF) following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion.

State Bank of Pakistan (SBP) received SDR 760 million –equivalent to USD 1026.9 million– as the first tranche from the IMF on Friday, according to SBP.