IMF welcomes increase in BISP budget

The International Monetary Fund (IMF) has expressed satisfaction over the increase in the budget of the Benazir Income Support Programme (BISP) and has also recommended a further enhancement in financial assistance under the Benazir Kafalat Programme in Pakistan.

According to the IMF, the amount provided under the Benazir Kafalat Programme remains low when compared with international standards. The IMF noted that the BISP budget has been strengthened to improve social protection mechanisms.

The IMF said that appropriate increases in benefits are being made to maintain the purchasing power of beneficiaries. It added that the BISP budget includes a 20 per cent rise in spending on assistance programmes, which will result in higher cash support under the Kafalat Programme.

Under the revised plan, unconditional cash assistance will be increased from Rs13,500 to Rs14,500. The IMF said this increase is expected to expand the programme’s coverage by at least 200,000 additional families.

By the end of fiscal year 2026, the total number of beneficiary families is expected to reach 10.2 million.

The IMF further recommended that Kafalat assistance should be enhanced following a new household survey scheduled for 2026, and that benefit amounts should continue to be adjusted in line with inflation.

The Fund also called for an expansion in the coverage of BISP’s conditional cash transfer programme, stressing that full utilisation of the allocated budget for conditional cash transfers is critically important.