ISLAMABAD: The National Assembly Standing Committee on Poverty Alleviation and Social Safety on Thursday expressed serious concern over the rising poverty rate in Pakistan, which is now approaching 50 percent. The committee called for urgent measures to reverse this trend and improve the effectiveness of social welfare programmes, particularly the Benazir Income Support Programme (BISP).
The committee’s meeting, held at the Parliament House under the chairmanship of Mir Ghulam Ali Talpur, stressed the need to transition to a more transparent, technology-based system for social assistance. It emphasized reducing human involvement in the distribution process to uphold transparency and protect the dignity of beneficiaries.
Chairman Talpur highlighted inefficiencies in the existing system, especially at BISP’s point-of-sale camps, where recipients often face significant hardships. He underscored the original intent of BISP—to deliver support in a fair and respectful manner—and called for structural reforms.
The committee also voiced dissatisfaction over delays in launching the digital banking pilot project, which was initially scheduled for rollout by June. The project, being developed jointly by the State Bank of Pakistan (SBP) and BISP, aims to modernize the aid distribution system by using formal banking channels and geotagged branches.
According to a recent World Bank report, 45 percent of the population is now living below the poverty line, with extreme poverty rising from 4.9 percent to 16.5 percent. These figures added urgency to the committee’s recommendations.
The Acting Governor of the SBP assured the committee that the digital banking pilot would be operational within a week. The plan is to open the first beneficiary accounts by August 15, 2025. Initially, the pilot will be rolled out in seven districts, plus Muzzafargarh, followed by a six-month review to determine its effectiveness before scaling it up nationwide.
To improve access and reduce crowding, SBP will expand ATM networks, implement a staggered aid distribution system, and gradually introduce digital wallets.
The committee also urged BISP to address staffing shortages by coordinating with the Establishment Division and the Ministry of Finance. In addition, BISP offices will be relocated to underserved areas such as Munda and Balambat to improve outreach.
In conclusion, the committee called for the immediate launch of the digital banking project, with strict monitoring to ensure transparency, protect beneficiaries, and integrate vulnerable populations into the formal financial system.
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