The International Monetary Fund (IMF) has proposed increasing financial assistance under Pakistan’s Benazir Income Support Programme (BISP) by Rs5,500, as discussions continue over economic reforms and the upcoming federal budget.
According to official sources, the IMF has recommended raising the quarterly BISP stipend from Rs14,500 to Rs20,000 to provide greater financial relief to low-income households facing mounting inflation and economic pressures.
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The proposal was discussed during ongoing meetings between IMF officials and Pakistani authorities, where both sides reviewed the operational structure and future funding requirements of the country’s largest social safety net programme.
Officials briefed the IMF delegation on BISP’s framework, including its flagship Kafaalat programme, beneficiary database and recent efforts to improve registration systems. Authorities also shared updates on expanding family enrolment and refining targeting methods to ensure support reaches deserving households more effectively.
Sources said the government is assessing the financial implications of the proposed increase, which could be incorporated into the next fiscal year’s budget if an agreement is reached with the IMF.
The talks are part of broader negotiations focused on stabilising Pakistan’s economy, narrowing fiscal deficits and boosting state revenues. Alongside social protection measures, the IMF has again pushed for tax reforms, including the removal of all sales tax exemptions.
The Fund believes ending tax concessions could strengthen revenue collection and reduce budgetary imbalances. However, the proposal has sparked concerns among policymakers over its possible effect on inflation, as higher taxes may raise the prices of essential goods and services.
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The IMF delegation is expected to hold four meetings in total, including one with BISP officials and three separate sessions with representatives from the Federal Board of Revenue (FBR).
Analysts say the proposed BISP increase reflects the IMF’s emphasis on balancing fiscal discipline with social protection, as Pakistan faces the challenge of protecting vulnerable communities while implementing difficult economic reforms.