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The federal government has approved a Rs3,500 increase in the monthly stipend for beneficiaries of the Benazir Income Support Programme (BISP) following discussions with the International Monetary Fund (IMF).
During five days of negotiations between Pakistani officials and an IMF delegation, it was resolved that the federal budget would remain intact, with no reductions. Among the outcomes was the IMF’s agreement to raise the BISP cash transfer for underprivileged households from Rs10,000 to Rs13,500.
According to sources, an IMF delegation held extensive meetings with Finance Minister Senator Muhammad Aurangzeb, provincial representatives, and officials from the Federal Board of Revenue (FBR) to discuss various aspects of Pakistan’s economic framework. The discussions focused on key economic issues, with the IMF team seeking detailed insights into the country’s fiscal policies and plans.
Officials successfully convinced the IMF regarding the provincial surplus budget, but the Fund only partially agreed with the government’s proposal to impose taxes on the agriculture sector. During the meetings, the IMF posed challenging questions to provincial representatives, pushing for clarity on the economic strategies being adopted.
A consensus was reportedly reached, with other provinces agreeing to adopt Punjab’s model of imposing a Super Tax on agricultural revenues, which aims to increase tax collection from the agriculture sector.
Earlier, the IMF expressed satisfaction with the performance of the Benazir Income Support Program (BISP). A delegation currently in Islamabad, negotiating with various government institutions, was briefed on BISP’s performance. According to sources, BISP officials reported positive outcomes for the program during the first four months of the current fiscal year.
Details about the distribution of aid to beneficiaries, as well as the financial challenges faced by the program, were shared with the IMF team. Sources noted that IMF officials seemed pleased with the progress made by BISP, signaling continued support for the program’s operations.
