BISP Kafalat New Installment Announced in Budget 2025–26

The federal government has significantly enhanced social protection measures by approving a 20% budget increase for the Benazir Income Support Programme (BISP), allocating Rs.716 billion for FY 2025-26. The move includes raising quarterly Kafalat payments from Rs.13,500 to Rs.14,500 effective January 2026.

Major Improvements for Beneficiaries

Increased Financial Support:

• Quarterly stipend rising by Rs.1,000 (7.4% hike)
• First payment adjustment since 2023

Inflation Safeguards:

• New annual review mechanism to maintain payment value
• Automatic increases tied to official inflation data

Modernized Distribution:

• Expanded biometric verification
• Priority given to bank account transfers over cash

Program Expansion Details

Supplementary Welfare Initiatives

The enhanced budget also funds:
Education Support: School enrollment incentives
Maternal Health: Prenatal care cash transfers
Nutrition Programs: Supplementary food allowances

“This increase demonstrates our commitment to shielding vulnerable families from economic shocks,” said Dr. Muhammad Ali, BISP spokesperson. “The inflation adjustment feature is particularly crucial.”

Implementation Roadmap

January 2026: Revised payment amounts take effect
September 2025: Digital systems upgrade begins
Real-time Verification: Enhanced 8171 SMS service

With Pakistan’s inflation hovering near 24%, the boosted payments aim to preserve the purchasing power of the country’s poorest households. Beneficiaries can check their status through:

• SMS: CNIC to 8171
• Website: bisp.gov.pk
• 500+ BISP centers nationwide

The budget hike follows IMF recommendations to strengthen Pakistan’s social safety nets while pursuing fiscal consolidation. Analysts estimate the increase could lift 2.1 million people above the poverty line.