The International Monetary Fund (IMF) has welcomed the increase in the BISP budget, praising Pakistan’s efforts to strengthen social protection. The IMF recommended further enhancement of financial support under the Benazir Kafalat Programme to improve the well-being of vulnerable families.
According to IMF officials, the current assistance under Benazir Kafalat remains lower than international benchmarks. The recent revision in the BISP budget includes a 20 percent rise in spending on cash support programs. This increase will allow higher payments to beneficiaries and help maintain their purchasing power amid rising living costs.
Under the updated plan, unconditional cash assistance will rise from Rs13,500 to Rs14,500. The IMF noted that the expanded BISP budget is expected to add at least 200,000 more families to the programme. By the end of the 2026 fiscal year, the total number of beneficiary families is projected to reach 10.2 million.
The IMF also advised Pakistan to enhance Kafalat assistance after a new household survey in 2026 and adjust benefit amounts regularly to keep pace with inflation. Additionally, the Fund recommended expanding the coverage of BISP’s conditional cash transfer programme. Full utilisation of the allocated budget for conditional transfers is considered critical to achieving programme goals.
Officials said the increase in the BISP budget reflects Pakistan’s commitment to improving social welfare and supporting low-income families. The enhanced funds are aimed at mitigating the effects of economic challenges while ensuring broader access to financial aid.
The programme continues to play a key role in poverty alleviation, offering direct cash support to marginalized households across the country. With the recent budget increase, authorities aim to make social protection more inclusive and effective.
Overall, the IMF’s endorsement highlights the importance of the BISP budget in addressing economic vulnerabilities and promoting equitable growth in Pakistan.
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