ISLAMABAD: The National Assembly Standing Committee on Poverty Alleviation and Social Safety on Thursday showed alarm over the country’s escalating poverty rate–now nearing 50 per cent – and stressed the need for steps to reverse the trend.
The committee underlined the need for making the social protection system, especially the Benazir Income Support Programme (BISP), more effective to check rise in poverty. It directed to expedite transition of social protection mechanisms towards more transparent, technology-driven system with minimal human
intervention.
The Committee held its meeting in the Parliament House while Mir Ghulam Ali Talpur chaired the meeting.
He contextualised Pakistan’s social protection framework and emphasised the original intent of the income support mechanism to minimise human intervention in the disbursement of financial assistance, thereby ensuring dignity and transparency. He expressed concerns over the country’s escalating poverty rate and highlighted persistent inefficiencies at BISP beneficiaries’ point-of-sale camps, where beneficiaries face undue hardships.
The Committee was dissatisfied with delay in launching the digital banking pilot project, which was initially scheduled for rollout by June.
It is worth mentioning that according to the recent World Bank Report, 45 per cent of the country’s population is living below the poverty line. The population of people living in extreme poverty has risen from 4.9 per cent to 16.5 per cent.
The State Bank of Pakistan (SBP) says most technical work for the pilot project is complete, with final approvals pending.
The pilot, developed with BISP, is expected to launch by the end of the month and will use formal banking channels, geotagged branches, and simplified account-opening procedures.
The Acting Governor SBP conveyed its assurance that the project—developed over the past year—would be operational within a week, with the first beneficiary accounts to be opened by 15 August 2025. Initially, the pilot will be implemented in seven districts and one additional district of Muzzafargarh, followed by a six-month evaluation (two quarters) to assess outcomes before scaling it nationwide.
To improve access and efficiency, SBP plans to expand ATM networks, implement a staggered distribution mechanism to reduce congestion, and gradually introduce digital wallets.
The Committee urged BISP to engage with the Establishment Division and the Ministry of Finance to address the staffing shortfall. Additionally, BISP will relocate offices to underserved tehsils such as Munda and Balambat to improve accessibility.
The meeting was directed to expedite the pilot rollout while maintaining strict oversight to uphold transparency, protect beneficiary rights, and integrate vulnerable populations into formal banking systems.
Published in Dawn, July 4th, 2025
