The International Monetary Fund has advised Pakistan to significantly raise cash assistance under the Benazir Income Support Programme to cushion low-income households from inflationary pressure.
According to officials familiar with the ongoing negotiations, the IMF has proposed increasing the quarterly BISP Kafalat payment by Rs. 5,500, taking it from the current Rs. 14,500 to Rs. 20,000.
The recommendation is aimed at offsetting rising food prices, energy costs and overall living expenses that have disproportionately affected vulnerable families.
The proposal is still under discussion and has not yet been formally approved. Talks are continuing between IMF representatives and Pakistani authorities as part of the broader programme review, with meetings involving the Federal Board of Revenue and other key economic departments.
Officials said discussions held on Thursday focused on social protection spending, including the proposed BISP increase, alongside wider fiscal measures such as tax policy reforms and the rationalisation of tax exemptions.
The IMF is pushing for targeted relief through cash transfers while simultaneously pressing for stronger revenue mobilisation.
Further negotiations are expected in the coming days to decide whether the revised stipend of Rs. 20,000 will be approved in full, adjusted downward, or phased in as part of the overall IMF programme framework.
If accepted, the increase would mark one of the largest upward revisions in BISP assistance in recent years, reinforcing the programme’s role as Pakistan’s primary social safety net during a period of sustained economic stress.
