Cash Payment Shift to Bank Details – October 1, 2024
The Benazir Income Support Program (BISP) has recently taken a significant step towards improving transparency and efficiency in the distribution of funds to beneficiaries. Faisal Karim Kundi, the Special Assistant to the Prime Minister on Poverty Alleviation, highlighted the new mechanism that aims to minimize issues like illegal deductions from payments by transferring funds directly into beneficiaries’ bank accounts.
A New Era of Transparency
The introduction of direct bank account payments under the guidance of Foreign Minister Bilawal Bhutto Zardari marks a shift towards greater openness. Previously, there were reports of unauthorized deductions from the cash disbursed to recipients. This new process will ensure that each beneficiary receives the full amount they are entitled to. The transition to bank accounts will help address these concerns and create a more secure, reliable system for disbursing funds. More details here.
Expanding the Range of Bank Options
One of the key issues BISP faced was the limited number of banks participating in the payment system, leading to fewer options for recipients. To tackle this, the State Bank of Pakistan has expanded the payment options, allowing BISP to partner with multiple banks across the country. Initially launched in seven districts, this system will soon be rolled out nationwide, giving beneficiaries access to a broader range of banking services. This will reduce reliance on just a few banks and further enhance transparency. Learn more.
Inclusivity for All
A significant part of this initiative includes the issuance of Benazir Cards to transgender individuals. In Khyber Pakhtunkhwa, for example, the first transgender person, Jahanzeeb (alias Aroosa), received financial assistance through this program. This move ensures that all marginalized and vulnerable groups, including women and transgender individuals, have access to financial aid. Additionally, Bank Al-Falah is issuing ATM cards under the Benazir Social Protection Accounts, helping more women access their payments securely. Read more.
Increasing the Number of Beneficiaries
Since Faisal Karim Kundi assumed his role, the number of beneficiaries in areas like Dera Ismail Khan has grown significantly. Following last year’s floods, a dynamic survey was conducted, raising the number of registered beneficiaries from 126,000 to 165,000. This expansion reflects the government’s commitment to helping those in need, in line with Shaheed Benazir Bhutto’s vision of a welfare state. The dynamic survey is still ongoing, aiming to include more families in the program. Learn about further initiatives.
Looking Ahead
BISP is taking new initiatives that focus on women’s empowerment. By offering monthly educational support—Rs. 2,500 for girls and Rs. 2,000 for boys—the program ensures that children from low-income families can continue their education. Additionally, mobile registration vans have been deployed to ensure that even those in remote areas can benefit from the program. These initiatives are all part of the broader effort to combat poverty and ensure financial inclusivity. Updated details here.
Conclusion
The transition to making payments through bank accounts marks a new chapter for BISP. By improving transparency, expanding banking options, and ensuring the inclusion of all vulnerable groups, the program is well-positioned to make a lasting impact on the lives of millions. With continued expansion and an unwavering focus on equity, BISP is paving the way for a brighter, more inclusive future for Pakistan.
Read More about similar government initiatives Read More.
FAQs
How will beneficiaries benefit from the shift to bank payments?
Beneficiaries will receive their full payment without any unauthorized deductions, thanks to direct transfers to their bank accounts.
How does BISP ensure inclusivity for marginalized groups?
BISP has introduced special measures such as issuing Benazir Cards to transgender individuals and ensuring financial aid for all vulnerable groups.
What initiatives has BISP launched to empower women?
BISP offers financial support for education—Rs. 2,500 for girls and Rs. 2,000 for boys—to promote gender equality and empower women.
How do people register for BISP?
Individuals can register through dynamic surveys being conducted in various communities or visit their nearest BISP office for assistance.
What is the role of the State Bank of Pakistan in BISP’s new mechanism?
The State Bank is collaborating with BISP to expand payment options, allowing more banks to participate and making the system more efficient.
Are mobile vans available for registration in remote areas?
Yes, mobile registration vans are being used to reach remote communities and ensure no one is left behind in the registration process.
How has BISP grown under Faisal Karim Kundi’s leadership?
The number of registered beneficiaries has increased significantly, especially in areas affected by natural disasters, like Dera Ismail Khan.
What other support does BISP provide beyond cash payments?
In addition to cash payments, BISP offers skill development programs to help families improve their financial standing.
What role does education play in BISP’s new initiatives?
BISP is providing monthly educational stipends to help children from low-income families continue their studies.
Is the new payment mechanism available nationwide?
The new bank payment system is being piloted in seven districts, with plans to expand it nationwide in the near future.