Government considering devolving BISP to provinces, minister says

Speaking to reporters, Kohistani said the government was examining the programme’s administrative structure but clarified that shutting down BISP at the federal level was not under consideration.

He said the debate over devolving the programme emerged after powers and responsibilities of several ministries and departments were transferred to provinces under the 18th Amendment. According to the minister, some provinces had also supported the proposal to place BISP under provincial control.

Kohistani said the federal government would make any final decision only after consultations with coalition partners.

The remarks came a day after reports said Pakistan had provided written assurances to the International Monetary Fund regarding plans to replace the existing electricity subsidy system with a targeted support mechanism and linking it with BISP data.

BISP, launched in 2008, is Pakistan’s largest social safety and poverty alleviation programme and provides financial assistance to more than 10 million low-income families, particularly women.

The issue of transferring expenditure responsibilities to provinces had also surfaced during a National Finance Commission meeting held in December last year, where Sindh and Khyber Pakhtunkhwa opposed proposals by the federal government to shift selected expenditures to provincial budgets.

Federal authorities had argued that rising provincial transfers under the NFC award, combined with continuing federal expenditure obligations, were increasing fiscal deficits and adding pressure on federal borrowing requirements.

The provinces had opposed proposals suggesting they should assume financial responsibility for BISP, the Higher Education Commission and development projects financed through the Public Sector Development Programme.