- Islamabad:
During current talks for a new loan program, the IMF urged Pakistan to increase its poverty reduction initiatives.
The IMF team requested an increase in poverty alleviation and social protection programs during negotiations with Pakistan for a new loan program.
The IMF team specifically asked the government to improve the Benazir Income Support Program (BISP) by expanding coverage, increasing transparency, and enhancing administrative efficiency.
They also suggested more funding for cash transfer programs that benefit the poor.
Sources mentioned that the IMF stressed the need to boost the budget for cash transfers to pro-poor programs as much as possible.
During discussions with the IMF, Pakistani officials stated that Rs472 billion would be allocated to the BISP this year.
They confirmed that BISP beneficiaries would be protected from future electricity tariff increases through the cash transfer system.
The IMF team was informed that the goal was to have 20 million households registered in a fully operational database by September.
Officials also informed the IMF review team that the number of BISP beneficiaries had reached 9.3 million.
This year, an additional 300,000 families have been included in the Kafalat Programme. Additionally, 900,000 families have been registered in the health cash transfer programme. The official also informed the global lender’s delegation that 1.9 million children have been included in the education cash transfer programme. Furthermore, they mentioned that more funds will be allocated for social security programmes in the upcoming financial year.
