Minister of State for Religious Affairs and Interfaith Harmony Kheal Das Kohistani announced on Friday that the government is exploring the possibility of transferring the Benazir Income Support Programme (BISP) to provincial administrations. Established in 2008, BISP serves as Pakistan’s premier poverty alleviation and social safety net initiative, providing financial aid to over 10 million low-income households, with a focus on women.
Addressing reporters in Matiari, the minister emphasized that there is no intention to completely dismantle BISP. Instead, discussions about restructuring the programme’s administration have arisen following the implementation of the 18th Constitutional Amendment, which devolved numerous ministries and departments from the federal government to the provinces. Kohistani noted that some provinces have expressed support for assuming responsibility for BISP.
He further stated that any final decision regarding the programme’s future would be made after thorough consultations with coalition partners. This announcement follows reports that Pakistan has provided written assurances to the International Monetary Fund (IMF) to phase out the current electricity subsidy system and replace it with a targeted support mechanism. The proposed framework aims to introduce a new subsidy model for low-income consumers starting January 2027, utilizing data from BISP.
Previously, provinces such as Sindh and Khyber Pakhtunkhwa (KP) had strongly opposed the federal government’s proposal to transfer certain expenditures to provincial budgets during the National Finance Commission (NFC) meeting held in December last year. Federal officials argued that increasing transfers to provinces, while maintaining federal spending obligations, was exacerbating fiscal deficits and increasing borrowing pressures on the Centre. The provinces rejected the suggestion that they should take on financial responsibility for programmes like BISP, the Higher Education Commission (HEC), and development projects traditionally funded through the Public Sector Development Programme (PSDP).
