Federal Govt Considers Transferring BISP to Provinces
The federal government of Pakistan is contemplating the transfer of the Benazir Income Support Programme (BISP) to provincial administrations, a senior official confirmed recently. The prospect comes amid ongoing discussions about administrative reforms following the 18th Constitutional Amendment.
BISP, established in 2008, provides direct financial assistance to over 10 million low-income families across the country, predominantly benefiting women in vulnerable households. The programme has been a significant social safety net aimed at reducing poverty nationwide.
Minister of State Kheal Das Kohistani addressed the issue, indicating that while the government is evaluating the programme’s administrative setup, a complete discontinuation of BISP at the federal level is not being considered. “A complete shutdown of BISP at the federal level remains entirely off the table and is not part of any ongoing government review or discussion,” Kohistani stated.
Several provinces have reportedly shown interest in managing BISP themselves, but no definitive decision has been finalized. Kohistani emphasized that federal authorities will only reach conclusions after thorough consultations with coalition partners.
The potential decentralization aligns with broader fiscal reforms linked to Pakistan’s International Monetary Fund (IMF) commitments. Pakistan recently provided written assurances to the IMF that it would replace the existing electricity subsidy framework with a targeted relief system. This new system would link directly with BISP beneficiary data, aiming for more efficient and equitable social assistance.
The transfer of BISP to provincial governments has been a point of contention previously. At the National Finance Commission meeting held in December last year, provinces such as Sindh and Khyber Pakhtunkhwa (KP) opposed proposals that would shift financial responsibilities—including those for BISP—to their budgets. These provinces expressed concerns over increased fiscal burdens amid ongoing demands on their resources.
The federal government has argued that escalating transfers under the NFC award combined with existing federal spending obligations have enlarged budget deficits and heightened borrowing pressures. The idea to devolve certain spending responsibilities, including BISP, stems from efforts to optimize fiscal management and ensure provincial governments have greater autonomy over social welfare programmes.
With growing debates on fiscal decentralization and administrative restructuring, the future management of BISP remains a key policy issue. The government’s final approach will depend on extensive discussions with stakeholders and coalition partners to balance financial sustainability with the programme’s social objectives.
BISP’s role in social protection continues to be critical as Pakistan navigates economic reforms and strives to enhance the efficiency of its welfare system.