The State Bank of Pakistan (SBP) has informed a parliamentary committee that beneficiaries of the Benazir Income Support Programme (BISP) will bear the cost of cash withdrawals made through the programme’s new digital wallet system, while online transfers and RAAST transactions will remain free.
The announcement came during a briefing to the National Assembly Standing Committee on Poverty Alleviation and Social Safety as Pakistan moves forward with the digital transformation of welfare payments.
Cash withdrawals to cost Rs. 280
SBP Deputy Governor Saleem Ullah told lawmakers that interoperability charges would apply only to cash withdrawals from digital wallets.
He said beneficiaries would pay Rs. 280 per withdrawal, while digital fund transfers and transactions conducted through the RAAST instant payment system would not incur any fee.
According to the SBP, the schedule of withdrawal charges will be reviewed and officially notified every six months.
Digital wallet rollout underway
The central bank shared the implementation timeline for the new payment system, stating that two private microfinance banks will begin operating the digital wallet platform on July 16 and July 20.
All six participating banks are expected to complete system integration by July 31, while the complete digitization of beneficiary accounts and mandatory online functionality is scheduled for December 31.
The initiative aims to improve payment efficiency, transparency, and financial inclusion for millions of BISP beneficiaries across Pakistan.
Committee raises concerns
Members of the parliamentary committee expressed concern over limited public awareness regarding the digital wallet system and questioned the effectiveness of BISP’s oversight of participating banks.
The committee directed BISP management to strengthen implementation mechanisms, improve bank compliance, and ensure beneficiaries receive adequate guidance and support during the transition to digital payments.
BISP to submit bank performance report
BISP Secretary Amer Ali Ahmad informed lawmakers that the programme would submit a district-wise report evaluating the performance of participating banks.
The report is expected to help identify operational challenges and improve service delivery during the nationwide rollout.
Committee reviews Rahim Yar Khan incident
The committee also reviewed the March incident in Rahim Yar Khan, where several BISP beneficiaries were killed or injured after a roof collapsed at a payment distribution site.
Officials informed lawmakers that BISP imposed penalties on the private microfinance bank responsible for the distribution arrangements due to negligence.
According to the briefing, the family of each deceased beneficiary received Rs. 2 million in compensation, while injured individuals were provided Rs. 500,000 for medical treatment. Authorities said the compensation amount was recovered from the bank’s share.
The SBP and BISP maintain that the transition to digital wallets is intended to make welfare payments more secure, transparent, and accessible while reducing dependence on manual cash distribution systems.
