Pakistan Plans Higher Benazir Kafaalat Payments from 2027

Pakistan has informed the International Monetary Fund that the federal budget for fiscal year 2026-27 will incorporate fiscal provisions to increase quarterly payments under the Benazir Kafaalat Programme from ₨14,500 to ₨18,000 per beneficiary, with the revised disbursement structure expected to take effect from January 2027.

According to the report, the proposed enhancement is intended to account for projected inflationary pressures during 2026 while also providing an additional increase in financial assistance, thereby aligning programme benefits more closely with the government’s policy objective of covering approximately 15% of the consumption expenditure basket of low-income households.

The IMF further confirmed that Pakistan successfully met all seven quantitative performance benchmarks established for end-December 2025, including targets relating to expenditure allocations for cash transfer programmes administered through the Benazir Income Support Programme.

The Fund additionally observed that the government had already implemented an inflation-linked adjustment for the Kafaalat Programme in January 2026 and remains on course to fully utilise both unconditional and conditional cash transfer allocations during FY26 while simultaneously broadening programme outreach and beneficiary coverage.

The IMF also emphasised that expenditure under conditional cash transfer initiatives should continue to be preserved at an appropriate proportion of gross domestic product as part of Pakistan’s broader social protection framework.