The International Monetary Fund (IMF) has approved a significant increase in the Benazir Kafaalat stipend, a crucial initiative aimed at lifting impoverished families out of poverty and enhancing Pakistan’s social security system. This program, which operates under the Benazir Income Support Program (BISP), provides vital financial assistance to millions of women from economically disadvantaged backgrounds. Currently, around 9.5 million families benefit from this program, receiving quarterly cash support from the government.
Key Details of the Stipend Increase
The approved increase will see the quarterly stipend for beneficiaries rise by 3,000 PKR. Previously set at 10,500 PKR, the new amount will be 13,500 PKR, effective from January 2024. This enhancement is aimed at cushioning the impact of inflation and improving the standard of living for deserving families in Pakistan.
| Previous Stipend | New Stipend | Effective Date |
|---|---|---|
| 10,500 PKR | 13,500 PKR | January 2024 |
This increase is expected to provide immediate relief to low-income families, enabling them to cope better with the rising cost of living and economic challenges.
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The Role of IMF and World Bank
The IMF, in collaboration with the World Bank, is actively involved in enhancing the management and efficiency of the Benazir Income Support Program. The budget allocated for BISP this financial year stands at 599 billion PKR, representing 0.5% of Pakistan’s GDP and a 27% increase from the previous year. This partnership aims to improve financial aid distribution and program management, ensuring that assistance reaches those in need effectively.
New Registrations and Initiatives
In conjunction with the stipend increase, the BISP has announced that new registrations for the Benazir Kafaalat program will continue for the next three years. This initiative seeks to extend financial assistance to more families living below the poverty line. Additionally, the BISP is piloting a new electronic payment model, designed to facilitate timely payments and enhance transparency in fund distribution. This model is anticipated to be fully operational by January 2025, following successful pilot implementations in various cities.
Conclusion
The IMF’s approval of the increased financial assistance under the Benazir Kafaalat program marks a significant step towards providing relief to impoverished families in Pakistan. With the quarterly stipend rising to 13,500 PKR, the program aims to promote economic stability and assist families in overcoming poverty. Furthermore, the continuation of new registrations for the next three years and the introduction of a new electronic payment system represent progressive steps toward improving the effectiveness of social welfare programs. This is indeed great news for families who have yet to register, as they now have ample time to do so within the established framework.
