BISP Stipend
ISLAMABAD: The government has increased the monthly stipend for beneficiaries of the Benazir Income Support Programme (BISP) by 20%, meeting a condition set by the International Monetary Fund (IMF), though falling short of matching the inflation rate. The BISP Secretariat has officially announced the raise, taking the monthly cash stipend from Rs2,916 per family to Rs3,500, effective from January 1, 2024, representing a 20% increase or Rs583.3 per family.
In addition to the unconditional cash grant, the government has also raised the conditional cash transfer related to health and education costs by Rs167 per month. However, not all families receive this conditional cash transfer. This increase in the unconditional cash grant is Rs831 or nearly 33% less than what was required to match the inflation rate.
Under the $3 billion standby arrangement with the IMF, Pakistan was obligated to announce a stipend increase equal to the inflation rate from January 1. Despite the commitment, the government’s decision falls short of matching the inflation rate, which averaged 29.2% nationally and 32.6% in rural areas in the last fiscal year.
The IMF emphasized that the BISP’s unconditional cash transfer program, even with the January inflation adjustment, would remain below the global best practice standard of 25%. Pakistan had committed to the IMF to protect the program’s current real generosity level, yet the increase provided is below the inflation rate.
While the BISP aims to support vulnerable populations, rising inflation, increased gas and electricity prices, and escalating food costs have disproportionately impacted Pakistan’s poorest households. The stipend increase aims to alleviate some of this economic strain, but concerns remain about the lack of an exit strategy for beneficiaries and the need for sustainable economic support.
Despite the challenging economic conditions, the government has pledged to disburse Rs185.5 billion among BISP beneficiaries in the first half of the current fiscal year.
