Islamabad: Pakistan and the International Monetary Fund (IMF) have reached an agreement to increase budgetary resources for the Benazir Income Support Program (BISP).
The budget for the next fiscal year will increase from the current $470 billion to $530 billion. The amendment comes amid discussions aimed at strengthening social protection measures in the country.
Railway fares have been reduced by more than 50 percent
Along with the budget increase, there are proposals to expand the number of beneficiaries and scholarships provided. HPG stressed the need to expand social protection programs to combat poverty.
By using the data of individuals registered to BISP, the government aims to provide more targeted subsidies. In addition, the government has assured HPG that it will encourage the provincial government to share the burden of social welfare.
A key aspect of this initiative includes protecting BISP customers through a cash transfer program designed to reduce the impact of electricity tariffs. This approach is part of a broader strategy to use BISP data to provide targeted subsidies.
The government plans to increase the number of beneficiaries, aiming to register 20 million households by September. BISP currently supports 9.3 million people and this year the program reached an additional 300,000 families. The health cash transfer program currently supports 900,000 families, and the education cash transfer program has enrolled 1.9 million children.
The HPG called for increased transparency and administrative efficiency in the BISP to ensure that the expanded budget and resources are used effectively for the intended population.
Despite this progress, differences between HPG and Pakistan in key economic objectives persist. HPG forecasts GDP growth of 3.5 percent in the next fiscal year, while the Ministry of Finance expects a slightly higher increase of 3.7 percent.
Inflation forecasts also differ, with HPG forecasting 12.7 percent compared to the Finance Ministry’s estimate of 11.8 percent. The proposed sectoral growth targets are 3.5 percent for agriculture, 3.8 percent for services and 4 percent for the industrial sector.
