Pakistan is negotiating a new bailout package with the IMF, focusing on enhancing social security programs, particularly the Benazir Income Support Programme (BISP). The IMF proposes increasing the budget and ensuring transparency and accountability.
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IMF’s Key Demands
The IMF has urged for increased coverage of poverty alleviation programs, increased budget allocation for cash transfer programs, and strict oversight to ensure the money reaches those most in need, as well as increased funding for programs like BISP.
| Aspect | Details |
| IMF’s Demands | Increase BISP budget, expand coverage, ensure transparency and accountability |
| Current BISP Scope | Supports 9.3M families; includes health and education assistance for millions |
Current State of the BISP Kafalat Program in 2024
The BISP Kafalat program in Pakistan offers financial assistance to the poorest families, with an allocated budget of Rs 472 billion this year. Provincial governments are being encouraged to contribute to the program. Currently, 9.3 million families receive benefits, with an additional 300,000 expected this year. The program also supports 900,000 families with health-related financial support and 1.9 million children with education assistance.
Future Goals
The government has set ambitious objectives to expand and enhance BISP.
- Dynamic Registry: By September 2024, BISP plans to establish a dynamic registry for 20 million households to streamline and optimize benefit distribution.
- Increased Funding: The budget for social security programs is set to be increased in the upcoming financial year.
Why the IMF is Pushing for Increased BISP Payments
The IMF believes that expanding and enhancing BISP can significantly reduce poverty and support vulnerable populations, particularly in Pakistan, addressing economic challenges like high inflation and unemployment, by providing substantial financial support to the poorest families.
Planned Expansions for BISP
The government plans to expand BISP by including 20 million households in a dynamic registry by September 2024, ensuring efficient distribution of benefits and reaching those in need. Additionally, the budget for BISP and other social security programs will be increased in the coming financial year to accommodate additional beneficiaries and provide more substantial support.
Conclusion
The IMF’s call for increased BISP payments and transparency is crucial for Pakistan’s social security. Expanding coverage and effectively using funds can reduce poverty and support vulnerable populations. With continued efforts and international support, Pakistan can strengthen its social safety nets and contribute to a more equitable and prosperous society.
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FAQs
What is the IMF urging Pakistan to do with BISP?
The IMF is urging Pakistan to increase the budget for BISP, expand its coverage, and ensure transparency and accountability in the distribution of funds.
What is the current state of the BISP Kafalat program?
The BISP Kafalat program currently supports 9.3 million families with financial aid, including health-related support for 900,000 families and education assistance for 1.9 million children.