• Download the Constitution of Pakistan
  • Advertise
Saturday, July 19, 2025
  • Login
NEWSLETTER
ECONOMY
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
ECONOMY
No Result
View All Result
Home Economy

IMF rejects govt’s proposal to increase BISP coverage

by News Publishing
March 18, 2023
in Economy
Reading Time: 2 mins read
0
IMF rejects govt’s proposal to increase BISP coverage
Share on FacebookShare on TwitterLinkedinWhatsapp

The government’s efforts to provide relief to the masses received a jolt when the International Monetary Fund (IMF) rejected the proposal to jack up the number of beneficiaries of the Benazir Income Support Programme (BISP).

The News reported on Saturday that the authorities had suggested 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 supported raising the BISP allocation for the current fiscal year for 8.9 million beneficiaries from Rs360 billion to Rs400 billion by Rs40 billion, the proposal to increase coverage up to the desired level could not be implemented due to the lack of necessary budgetary resources.

The IMF refused to comply with the government’s request to increase the Proxy Mean Test (PMT) in order to improve coverage for giving monthly stipends to about 30% of the population that lives below the poverty line, arguing that the government lacked the necessary budgetary resources.

When contacted, a top official from the Finance Ministry stated that there was no disagreement over this matter because, in the case of the BISP, there was a clear agreement that the government will pay Rs 7,000 in salaries and benefits to 8.9 million beneficiaries on a quarterly basis.

According to the sources, government officials had discussed raising the PMT ceiling before the IMF review mission in order to maximize coverage. They expected that after the implementation of the strict recommendations made by the IMF by raising taxes and utility costs, CPI-based inflation would soar.

The Fund staff initially did not object to it but instead called for more tax collections and the elimination of untargeted subsidies.

The IMF high-ups argued the government possessed a rich database under the National Socio-Economic Registry (NSER) of the BISP, and there was a need to utilize it for providing all kinds of targeted subsidies on electricity, gas, and provision of POL for motorcycles and small vehicles.

This proposal could not yet be put into action. However, given the prospect of a new IMF programme once the current one under the Extended Financial Facility expires in June 2023, Pakistan and the IMF will need to set up a target subsidy mechanism to shield the masses suffering from inflation from rising prices.

Many ideas for launching a targeted subsidy mechanism were proposed but eventually abandoned for a variety of reasons.

Now, the weekly Sensitive Price Index (SPI) has touched 45.64% on weekly basis and Consumer Price Index (CPI) crossed 31.5% on monthly basis in February 2023. Both the CPI and SPI are bound to further escalate in weeks and months ahead of the current fiscal year.

There is no other choice but to place a targeted subsidy mechanism to protect the vulnerable segments from falling below the poverty line over the short and medium-term period.

Tags: BISPConsumer Price IndexIMF
News Publishing

News Publishing

Related Posts

PSX soars to new high of over 133,000 points in intraday trade

PSX soars to new high of over 133,000 points in intraday trade

by News Publishing
July 7, 2025
0

July 8, 2025: The Pakistan Stock Exchange (PSX) continued its remarkable upward trend on Monday, as the KSE-100 index surged...

Pakistan, Azerbaijan sign $2billion investment agreement

Pakistan, Azerbaijan sign $2billion investment agreement

by News Publishing
July 5, 2025
0

Pakistan and Azerbaijan have signed an agreement for investment worth two billion dollars in diverse sectors of Pakistan's economy. The...

Electricity Rate cut 2025

NEPRA Slashes Power Tariff by Rs1.16 Per Unit

by Anum Arif
July 2, 2025
0

In a major relief to power consumers across Pakistan, the National Electric Power Regulatory Authority (NEPRA) has approved a reduction...

PSX 2025

PSX Crosses 125,000 Points for First Time

by Anum Arif
June 30, 2025
0

The Pakistan Stock Exchange (PSX) achieved a historic milestone on June 30, 2025, as the benchmark KSE-100 Index crossed the...

Petrol increase

Petrol Prices Likely to Rise by Rs5/Litre from July 1

by Anum Arif
June 30, 2025
0

ISLAMABAD: Prices of petroleum products in Pakistan are likely to rise by up to Rs5 per litre starting Monday, July...

Govt Eyes $3.3 Billion in Foreign Loans From Chinese Banks

Govt Eyes $3.3 Billion in Foreign Loans From Chinese Banks

by News Publishing
June 24, 2025
0

The Government of Pakistan is working on securing two foreign loans totaling $3.3 billion from Chinese financial institutions, aimed at...

Next Post
Govt to distribute free flour among deserving families

Govt to distribute free flour among deserving families

About Us

Economy.pk is a source of economic, political, business, finance, health and sports updates.

Important Categories

  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin
  • YouTube
  • Linkedin
  • TikTok
  • WhatsApp
  • About
  • Advertise
  • Careers
  • Contact

© 2024 Economy.pk - Web Development by Digital Otters

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

© 2024 Economy.pk - Web Development by Digital Otters