ISLAMABAD: The International Monetary Fund (IMF) appreciated the government’s determination to enhance spending on Benazir Income Support Programme (BISP) through augmented budgetary allocation for BISP.
IMF in its second to fifth review under the Extended Fund Facility arrangement and request for re-phasing of access released here on Thursday noted that the authorities’ determination to fully execute the augmented budget allocation for BISP spending would support ongoing expansion of the BISP programme’s coverage from 3.4 to 6 million households within the current fiscal year 2020-21.
IMF called for finalising the update of the National Socio Economic Registry (NSER) database (end-June 2020 Structural Benchmark, reset to end-June 2021), which will allow for better reflecting Pakistan’s poverty structure and thus ensure a well-targeted expansion of the BISP beneficiary base and design of new programmes. The delay is associated with pandemic related social distancing measures.
IMF recommended increasing BISP stipends and introducing an adequate indexation of benefits, better aligning educational cash transfers (under BISP) with actual child schooling costs to boost school enrollment, attendance, and educational outcomes over the medium term.
The report stated that “the authorities have made important strides in expanding social safety nets, and other policies aimed at reducing poverty. This remains key to catching up to peers’ levels of economic and human development and garnering broad buy-in for their policies….the authorities increased the FY 2021 budget allocation for BISP spending by almost 80 percent over its FY 2020 execution level (excluding one-off Covid-related spending). This follows the January 2020 increase in BISP beneficiaries’ cash stipends by 20 percent.”
The government increased cash transfers for primary education (Waseela-e-Taleem) to boost girls’ enrollment and developed a nutrition programme for mother and children to reduce stunting. When Covid-19 hit, the authorities launched the Ehsaas Emergency Cash (EEC) programme that provided immediate one-time financial support until end-September 2020 to almost 15 million households identified with the support of the provinces.
Copyright Business Recorder, 2021
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