BISP Gets Huge Budget Increased in 2024! (Rs. 593 Billion)

 

BISP Gets Huge Budget Boost in 2024! (Rs. 593 Billion)

BISP: Empowering Vulnerable Families in Pakistan with a Significant Budget Increase

The Benazir Income Support Program (BISP), established in 2008, is a vital social safety net program in Pakistan. Designed to empower vulnerable families and alleviate poverty, BISP provides financial assistance to millions of deserving households across the country.

In a major development, the BISP budget is set to receive a significant boost in the next fiscal year.

This detailed breakdown explores the proposed increase, its impact on beneficiaries, and the influence of the International Monetary Fund (IMF) recommendations.

The Proposed Increase: More Support, Enhanced Compensation

The proposed Rs. 593 billion allocation for BISP represents a 26% increase compared to the previous year's budget of Rs. 472 billion. This substantial increase aims to achieve two key goals:

• Supporting More Families: The program intends to expand its reach, bringing more deserving families under its umbrella. The number of beneficiaries is expected to rise from the current 9.3 million under the Kafaalat program to an estimated range of 9.6 million to 9.7 million people.
• Enhancing Cash Compensation: The financial assistance provided to families will also see a significant rise. The quarterly compensation is proposed to increase from Rs. 10,500 to approximately Rs. 13,000 per family.

Impact of the BISP Increased Budget

The following table summarizes the key changes proposed in the BISP budget:

Beneficiaries and Compensation	Fiscal Year
Budget Allocation (Rs Billion)	2023-2024: 472
Number of Beneficiaries (Million)	2023-2024: 9.3 (Kafaalat Program)
Quarterly Compensation per Family (Rs)	2023-2024: 10,500

The Role of the IMF

The International Monetary Fund (IMF) has played a significant role in advocating for the proposed BISP budget increase. Their recommendations focus on key areas to ensure the program's effectiveness:

• Increasing Beneficiaries: Expanding the program to include more families struggling with rising inflation.
• Compensation Adjustment: Aligning compensation increases with inflation rates to maintain purchasing power.
• Targeted Electricity Subsidies: Shifting from general electricity subsidies to direct cash transfers for BISP beneficiaries.
• Improved Health and Education Outcomes: Utilizing conditional cash transfers to encourage participation in health and education initiatives.

Conclusion

The proposed increase in the BISP budget demonstrates a strong commitment to supporting Pakistan's most vulnerable families during a period of economic hardship. With the IMF's recommendations in mind, the government aims to make the program more effective in reaching more families, providing adequate financial support, and keeping pace with inflation. This initiative not only offers immediate relief but also has the potential to improve long-term outcomes in health and education for these most deserving segments of society.