- Increase the 20% ratings of the amount of the amount allocated to outgoing financial years.
- The adjustment aims to compensate for the annual inflation scheduled for 2025.
- This allows BISP to maintain the total number of households registered at 10m.
Islamabad: The Ministry of Finance proposed a substantial increase in the allocation of the Benazir income support program (BISP) during the next financial year, with a proposed budget of 716 billion rupees.
This marks a significant leap of 20% compared to the 592.48 billion rupees allocated during the outgoing financial year, signaling a reinforced commitment to social security networks.
Expenditure figures, including social protection programs, were a key point for discussion in current budgetary negotiations, The news reported citing the confirmation of the senior officials of the finance division.
Despite these wider financial obstacles, BISP financing seems ready for an increase of almost 20%.
This increased allowance for the BISP should facilitate a crucial adjustment to the Kafaalat Program for Unconditional Cash Transfer (UCT). In accordance with an agreement with the International Monetary Fund (IMF), the quarterly service should go from Rs 13,500 to Rs 14,500, from January 2026.
This adjustment aims to compensate for the annual inflation anticipated in 2025, offering an essential relief for beneficiaries.
It will also allow BISP to maintain the total number of households registered at 10 million.
The Ministry of Finance is committed to the IMF for the adjustments of continuous annual inflation for UCT services in order to ensure that the purchasing power of the most vulnerable households remains a constant minimum in real terms in the coming years; and (ii) readjust the advantages of the UCT when released any new surveys of households to continue transfers equivalent to 15% of the consumption of the lower quintile once this threshold has been reached.
The BISP works in close collaboration with the World Bank to improve cash transfer programs (CCT) of education and health and nutrition, and with the provinces to avoid overlapping of CCT BISP and provincial programs; The budget for financial year 26 will continue to spend these constant GDP sharing programs.
From July to February FY5, the BISP disabled 347 billion rupees, representing an increase of 82.6% compared to the previous year, against an annual allowance of 592.5 billion rupees.
Energy subsidies have been restructured to target 40% of the least of the population, thus guaranteeing budgetary savings without compromising social equity. Meanwhile, a complete rationalization of public administration is underway, involving the rationalization of more than 43 ministries and 400 departments
The World Bank engages with the Ministry of Electricity and the BISP to develop (1) a method to identify consumers of electricity per income rather than the level of consumption and a transfer mechanism which could replace current energy grant frameworks.
The BISP works in close collaboration with the World Bank to refine its administrative systems. Efforts are underway to keep the NSER live and cover all the poor in Pakistan; Keep the inscription at the bisp open; And administer the regular overhaul of the status of BISP beneficiaries on the three -year cycle planned.
The BISP will continue to gradually expand the new electronic payment model, which will allow a greater choice for beneficiaries. They will have bank accounts, which will allow beneficiaries to save money, in place in pilot districts by the first quarter of fiscal year 26.
The BISP continues its efforts to register UCT Kafaalat families interested in the two CCT programs, as it has exceeded the registration objective of FY25 CCT EDUCATION of 10.4 million by 400,000, and is on the right track to achieve its target CCT of 2.1 million.