Pakistan’s poverty rate nearing 50% became a cause of serious discussion at the tenth meeting of the Standing Committee on Poverty Alleviation and Social Safety. The committee meeting, chaired by Mir Ghulam Ali Talpur, was held in Islamabad and deliberated on the Benazir Income Support Program (BISP) and its transformation into a more technically advanced and transparent system. Talpur emphasized minimizing human intervention in aid distribution to maintain beneficiary respect and transparency and highlighted measures to address challenges faced by beneficiaries at Point of Sale locations.
The delay in the digital banking pilot program, initially slated for a June launch, drew criticism from the committee. The State Bank of Pakistan (SBP) attributed the delay to pending procedural approvals and assured that technical preparations are complete. With geotagged branches and a streamlined account opening process, the program is now expected to launch by the end of July. The Acting Governor SBP promised activation within a week, with initial accounts opened by August 15, 2025.
Eight districts, starting with Muzaffargarh, will participate in the pilot program, followed by a six-month evaluation before nationwide expansion. The SBP aims to increase ATM access, implement staggered payments to avoid rush, and gradually incorporate digital wallets. Biometric verification will be the primary identification method, with debit cards issued only if fingerprints are unusable. Banks are fully on board with the project, and API integration tests are complete. Enhanced security measures like two-factor authentication are also being considered.
Beneficiary treatment at banks and designated locations was a key concern. The Acting Governor reiterated the SBP’s commitment to ensuring respectful customer service and providing full banking access, including fund transfers. Mobile data utilization through the Pakistan Telecommunication Authority (PTA) was also discussed to enhance biometric reliability and range. BISP revealed a severe staff shortage, with 1,139 of 3,486 sanctioned positions vacant, necessitating reliance on temporary staff, increasing costs and hindering continuity.
The Finance Ministry clarified that recruitment falls under the Cabinet and Establishment Division’s purview, currently restricted due to Pakistan’s IMF program. The committee urged BISP to address the staff shortage with the Establishment Division and Finance Ministry. For improved access, BISP will also establish branches in underserved areas like Munda and Bilam Bat. The meeting concluded with a consensus on expediting the pilot program while maintaining close monitoring to ensure transparency, beneficiary rights, and financial inclusion of the vulnerable population. Several National Assembly members, government representatives, and officials from relevant organizations, including BISP, PPAF, and TVO, were present.