Pakistan and IMF collaborate to enhance social security programs

Pakistan is currently in discussions with the International Monetary Fund (IMF) to bolster its social security initiatives, particularly focusing on poverty alleviation and support for vulnerable populations. The IMF is stressing the importance of transparency and accountability in implementing programs like the Benazir Income Support Program (BISP).

The IMF is urging Pakistan to increase budget allocations for cash transfer programs to strengthen safety nets for those in need. In response, Pakistan has committed a substantial amount of Rs472 billion for BISP this fiscal year and is encouraging provinces to play a more active role in social security efforts.

To safeguard BISP beneficiaries, Pakistan is considering linking cash transfers to power tariffs, aiming for a more holistic approach to easing financial burdens. By September 2024, the country aims to include 20 million households in a dynamic registry, showcasing a commitment to inclusivity and equitable resource distribution.

Recent updates shared with the IMF indicate positive progress, with BISP currently assisting 9.3 million households, with an expected increase of 300,000 families this year. Furthermore, significant strides have been made in enrolling 900,000 families in the health cash transfer program and 1.9 million children in the Education Cash Transfer Program, underscoring a comprehensive strategy to combat poverty.

Looking ahead, Pakistan plans to boost its financial support for social security programs in the upcoming fiscal year, demonstrating a sustained effort to uplift marginalized communities. While the IMF acknowledges the advancements in social security initiatives, it emphasizes the need to enhance BISP's administrative capacity for seamless implementation.

As Pakistan continues its negotiations with the IMF, the primary goal remains centered on strengthening social security measures to offer vital support to those in need, ultimately fostering poverty reduction and inclusive development across the nation.