IMF rejects Pakistan government’s proposal to increase BISP coverage

IMF rejects Pakistan government’s proposal to increase BISP coverage

The International Monetary Fund (IMF) turned down a request to increase the number of Benazir Income Support Program beneficiaries, which dealt a blow to the Pakistani government’s efforts to aid the average citizen (BISP).

Authorities had proposed expanding the social assistance program’s coverage to provide quarterly stipends to up to 20 to 30% of the people who live in poverty.

Although the IMF had approved and endorsed raising the BISP allocation for the current fiscal year for 8.9 million beneficiaries from Rs 360 billion to Rs 400 billion by Rs 40 billion, the proposal to increase coverage up to the desired level could not be implemented due to a lack of necessary budgetary resources.

According to the IMF, the government’s request to increase the proxy mean test (PMT) for improving coverage of delivering monthly stipends to around 30% of the population living below the poverty line was declined since the government lacked the necessary budgetary resources.

(Read Also: BISP to open bank accounts for women in Pakistan)