BISP Kafalat payment likely to rise in 2025-26 Budget

The federal government is considering a 20% increase in the quarterly payments of the BISP Kafalat Program as part of the upcoming 2025-26 budget.

This was highlighted in the IMF’s latest review report, which praised Pakistan for fully utilizing the current BISP budget and encouraged continued efforts to support low-income families through unconditional cash transfers (UCTs).

Previously, the BISP Kafalat payment was raised from Rs10,500 to Rs13,500. This increase included adjustments for inflation and a special one-time boost to help families more. It also allowed 700,000 new families to join the program, bringing the total to 10 million enrolled households.

Looking ahead, the government plans to further increase the quarterly payment to Rs14,500 starting January 2026, to keep up with rising living costs. However, this increase still needs to be approved in the next budget.

The IMF stressed the importance of maintaining the value of these benefits and gradually improving them to match international standards, aiming for 15% of the spending needs of the poorest families.

The report also praised recent upgrades to the BISP payment system, including more bank participation and better access for users, giving them more control over their accounts.

Read More: Budget 2025–26 Pakistan Set for June 2: Major Reforms, IMF Conditions in Focus