Federal Govt Eyes BISP Transfer to Provinces

The federal government is weighing the transfer of the Benazir Income Support Programme (BISP) to provincial administrations, a senior minister has officially confirmed to reporters.

BISP, launched in 2008, currently supports more than 10 million low-income families across Pakistan, providing direct financial assistance primarily to women in vulnerable households.

Minister of State Kheal Das Kohistani stated that the government is examining the administrative structure of BISP following debates arising from the devolution of powers under the 18th Constitutional Amendment.

Kohistani clarified that 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.

He added that several provinces have expressed support for bringing BISP under provincial control, though no formal decision has yet been reached by the federal government.

The federal government will finalise any decision on the future structure of BISP only after completing formal consultations with its coalition partners, Kohistani confirmed to reporters.

These remarks followed reports that Pakistan had submitted written assurances to IMF regarding replacing the electricity subsidy system with a targeted relief mechanism.

That targeted mechanism would be directly linked to BISP beneficiary data, aligning the programme with broader fiscal reforms Pakistan has committed to under its IMF agreement.

The question of transferring expenditure responsibilities to provinces previously surfaced at a National Finance Commission meeting held in December of last year.

At that meeting, both Sindh and KP formally opposed federal proposals that would shift selected spending obligations, including BISP funding, to provincial government budgets.

Federal authorities argued that growing provincial transfers under the NFC award, combined with ongoing federal spending obligations, are widening fiscal deficits and increasing pressure on federal borrowing.

Provinces specifically rejected proposals requiring them to assume financial responsibility for BISP, HEC, and Public Sector Development Programme-funded development projects across the country.

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