IMF Proposes Increase in BISP Kafalat Stipend to Rs. 20,000 Amid Inflation Relief Talks

Islamabad: The International Monetary Fund (IMF) has reportedly advised Pakistan to increase the financial assistance under the Benazir Income Support Programme (BISP) as part of ongoing discussions on social protection and fiscal reforms.

In the latest update of the ongoing IMF-Pakistan negotiations, the proposed recommendation involves increasing the BISP Kafalt payment from Rs. from Rs. 14,500 to Rs. 20,000. The proposed hike is of Rs. 5,500 is aimed at helping low-income families cope with rising inflation and increasing cost of living.

The plan is being considered and hasn’t been decided yet. There are technical-level talks with the government officials, IMF and Federal Board of Revenue (FBR).

Inflation Pressure Driving Social Support Review

The proposed amendment is part of a larger initiative to discuss expenditure on social protection, tax policy changes, and rationalization of tax exemptions in Pakistan. The IMF has stressed the need to boost targeted financial support measures including the Benazir Income Support Programme to shield vulnerable households.

IMF officials are also looking at Pakistan’s overall fiscal framework to ensure fiscal sustainability without reducing the social welfare support.

Ongoing IMF-Pakistan Negotiations

In the ongoing assessment of current programme, focus is placed on revenue generation measures and reforms that are in place at the Federal Board of Revenue. Final decisions on the proposed stipend increase will be based on the results of these discussions.

Authorities have clarified that there is no final decision on this and the new BISP payment system will rely on the overall agreement of the IMF program.

What Happens Next?

Additional rounds of negotiations are anticipated in the next few days, where both parties will agree upon major fiscal goals, such as adjustments in social protection spending and tax policy.