$330M More Budget Approved By Govt For BISP Program!
Latest Update From the BISP 8171 Program!
The government of Pakistan has approved an additional budget for the BISP Program in order to transfer more support to the Beneficiaries so that they can receive their monthly Kafalat Payment into their accounts from the next installments. Due to financial constraints, the federal government has authorized a $330 million (Rs92 billion) loan for recipients of the Benazir Income Support Programme (BISP).
Approval of $330M Additional Support For BISP
The concept paper for the Integrated Social Protection Development Programme (ISPDP), which would obtain additional funding of $330 million, was approved by the Central Development Working Party (CDWP), which is chaired by Planning Minister Ahsan Iqbal.
انٹیگریٹڈ سوشل پروٹیکشن ڈویلپمنٹ پروگرام (آئی ایس پی ڈی پی) کے کانسیپٹ پیپر، جو کہ 330 ملین ڈالر کی اضافی فنڈنگ حاصل کرے گا، کی منظوری سینٹرل ڈویلپمنٹ ورکنگ پارٹی نے دی، جس کی صدارت وزیر منصوبہ بندی احسن اقبال کر رہے ہیں۔ روپے کا احاطہ بی آئی ایس پی کے مستحقین کو نقد رقم کی ادائیگی کے لیے استعمال کیا جائے گا، جب کہ قرض کو بجٹ سپورٹ کے طور پر مرکزی بینک کے ذخائر کو بڑھانے کے لیے استعمال کیا جائے گا۔
The rupee cover will be used to pay out cash to BISP beneficiaries, while the loan will be utilized as budget support to increase the central bank’s reserves.
2% Interest Will Be Charged On Loan By ADB
Here is very important information the BISP program which has previously gotten a loan of $600M from ADB has received additional support on the basis of 2% interest on this Support. The Asian Development Bank (ADB), which has already contributed $600 million to the BISP, is the source of this financing.
The interest rate that the ADB will impose on the loan in dollar terms is approximately 2%. Approximately $500 million of the $600 million has already been spent. Currently, 9.3 million households get unconditional cash benefits from the BISP, which targets women with families and does not include never-married women to prevent duplication.
BISP Aims To Alleviate Poverty In All The Provinces
Although the goal of the cash transfers is to reduce poverty, some contend that using foreign loans, for this reason, could make debt sustainability problems worse, particularly if the funds are not used to fund industries that generate income.
Pakistan, having struggled to satisfy its obligations expiring between October 2024 and September 2027, has asked China to reschedule a $3.4 billion project debt.
Importance Of 330 Million Loan For BISP Program
The needs from 2025 to 2028 will be partially met by the $330 million loan. According to the planning ministry documents, the loan is also for institutional capacity for climate resilience and social protection.
It will be used to give children and adolescents from low-income households access to elementary and secondary education, as well as health care and nutritional supplies for women, teenage girls via the Benazir Nashonuma Program, and children from low-income families. The concept paper states that the funds will be utilized to help the younger generation from low-income families select educational paths that will improve their human capital. It will encourage students to finish their regular secondary education up to grade 12.
BISP Supporting Women & Children Through Multiple Initiatives
The extra funding is intended to address the possible effects of climate change on nutrition for the targeted impoverished population and to reinforce the BISP’s continued assistance for mothers, children, and adolescent girls.
Free health services for impoverished pregnant and lactating women and children under two years old will now be available in all districts of Khyber-Pakhtunkhwa and Balochistan, instead of only the 22 areas that were initially targeted.
Conclusion
The approval of an additional $330 million for the BISP program demonstrates the government’s commitment to alleviating poverty and supporting vulnerable communities across Pakistan. This funding will enhance financial assistance, improve access to education and healthcare, and address climate change impacts on nutrition for low-income families.
