Benazir Kafalat Payment Raised to Rs. 13,500 Following IMF Approval

The Benazir Income Support Program (BISP) is undergoing significant changes as it gears up to boost quarterly payments for its beneficiaries. With the recent approval from the International Monetary Fund (IMF), recipients can expect an increase in their support, with the new total reaching Rs. 13,500. This development marks a crucial advancement in aiding low-income families in Pakistan.

Key Points About the Increased BISP Payment

The BISP has officially announced a substantial increase of Rs. 3,000 in the quarterly stipend provided to beneficiaries. This adjustment translates to an enhanced payment of Rs. 13,500 as opposed to the prior amount of Rs. 10,500. The revised payment structure is set to take effect starting January.

Reason Behind the Benazir Kafaalat Payment Hike

The increment aligns with efforts by the IMF to fortify social safety nets in Pakistan. By elevating the payments, the Benazir Kafaalat program aims to offer improved financial assistance to those most in need. Collaborative endeavors by the IMF and the World Bank are actively working to optimize the efficiency and scope of the BISP.

Budget Allocations for the Current Fiscal Year

For the ongoing financial year, the BISP has been allocated a budget of Rs. 599 billion, equivalent to around 0.5% of Pakistan’s Gross Domestic Product (GDP). This marks a 27% escalation compared to the preceding year, underscoring the government’s dedication to enhancing the program.

Anticipated Enhancements in BISP

• New Enrollments: The BISP is continuing to accept new enrollments over the next three years to ensure more needy families can access the program.
• Electronic Payment System: In a bid to enhance transparency and offer more banking options, a pilot electronic payment system is being introduced. The full-scale implementation of this system is scheduled to commence in January.

IMF’s Contribution to Strengthening BISP

The IMF has played a pivotal role in the recent revamping of BISP. As a prerequisite for extending loans to Pakistan, the IMF has stressed the importance of enhancing social welfare programs like BISP. These measures are aimed at streamlining the system, making it more effective and user-friendly.

Final Thoughts

The escalation of BISP payments to Rs. 13,500 signifies a positive stride in aiding families in need nationwide. With the support of the IMF and other global entities, BISP is on the path to becoming more streamlined and beneficial for its beneficiaries. The upcoming electronic payment system and the continuous acceptance of new enrollments underscore the government’s commitment to the expansion and enhancement of the program.