ISLAMABAD – The federal government is reviewing a proposal to increase the quarterly amount of the BISP Kafalat Program by 20 percent in upcoming budget 2025-26.
It was revealed by the International Monetary Fund (IMF) in its latest review report, stating that the year’s BISP budget, which is on pace to be fully executed, includes a significant increase in unconditional cash transfer (UCT), an effort which should continue.
Earlier, the BISP Kafalat payment was increased to Rs13,500 from Rs10,500. This benefit increase included an inflation adjustment, a one-time additional adjustment to increase the stipend’s generosity level (from 9.6 percent of the bottom income quintile’s consumption basket to 12.4 percent), with the absorption of an additional 700,000 families into the program, bringing total enrollment to 10 million this fiscal year.
“Going forward, it is critical that Kafalat benefits maintain their purchasing power—another inflation adjustment that would increase the quarterly benefit from PRs 13,500 to PRs 14,500 is planned (end-January 2026 new SB) —and that, upon the availability of a new household survey (HIES), the generosity level, which is low by international standards, is again increased gradually towards 15 percent of the bottom income quintile’s consumption basket,” read the IMF report.
BISP Kafalat Quarterly Payment Update
As per the proposal, the quarterly amount for BISP Kafalat beneficiaries would be increased to Rs14,500 from existing Rs13,500 while it would come into effect from January 2026 if approved in the budget.
The IMF has lauded the recent improvements in the BISP electronic payment model—in which more banks participate, and users move from limited mandate to full mandate accounts—will provide greater choice and access to beneficiaries.
BISP Kafalat Rs13,500 cash payment April 2025 – Quarterly installment update
