The International Monetary Fund (IMF) has welcomed the recent increase in the budget for Pakistan’s Benazir Income Support Programme (BISP) and has recommended further enhancements in financial assistance under the Benazir Kafalat Programme. According to the IMF, while the recent allocation strengthens social protection mechanisms, the current assistance under Kafalat remains relatively low compared to international standards, prompting the need for continued improvements.
The IMF highlighted that the BISP budget has been increased to maintain the purchasing power of beneficiaries and improve the overall effectiveness of cash support initiatives. The revised budget includes a 20 percent rise in spending on assistance programmes, which will translate into higher unconditional cash transfers under the Kafalat Programme. Under the updated plan, the monthly cash assistance provided to eligible families will increase from Rs13,500 to Rs14,500, a move expected to extend coverage to at least 200,000 additional households. By the end of fiscal year 2026, the total number of families benefiting from the programme is projected to reach 10.2 million.
The IMF also recommended that future adjustments to Kafalat assistance should be informed by a comprehensive household survey planned for 2026, with benefit amounts regularly updated to keep pace with inflation. In addition, the Fund emphasized the importance of expanding the coverage of BISP’s conditional cash transfer programmes. It stressed that fully utilising the allocated budget for conditional cash transfers is crucial to ensuring that vulnerable families receive maximum support and that social protection objectives are met effectively.
These recommendations from the IMF aim to strengthen Pakistan’s social safety net, enhance poverty alleviation efforts, and ensure that financial support programmes remain adequate and equitable for the country’s most vulnerable populations.
