Ayesha Saba

Backed by the Ministry of Information Technology and Telecom (MoITT) and State Bank of Pakistan, Benazir Income Support Program’s (BISP) upcoming digital wallet will use free, biometrically verified SIMs to give the beneficiaries direct access to funds through ATMs, POS agents, and mobile apps.

The SIMs will be distributed among the beneficiaries from November 17 this year. According to the documents available with Wealth Pakistan, the State Bank of Pakistan will oversee the regulatory framework, while the MoITT, through PTA and telecom partners, will facilitate infrastructure and connectivity to ensure smooth nationwide operations.

Currently, BISP disburses Kafaalat stipends through six Partner Financial Institutions (PFIs), with each beneficiary linked to a specific bank and restricted to that bank’s Point-of-Sale (POS) network. While effective in reaching millions, this structure has created accessibility challenges in remote areas and increased dependency on local agents.

Following the full migration to digital wallets, BISP will implement interoperability in two phases, first by connecting its six partner banks, and then by expanding access to other financial institutions across Pakistan.

To achieve this, BISP will engage a Payment Service Provider (PSP) through an open and competitive bidding process under PPRA rules. The selected PSP will establish a unified interoperable framework, manage interbank settlements, and enable cross-bank withdrawals, allowing beneficiaries to access their stipends from any participating bank’s BVS-enabled POS, ATM, or cash centre.

BISP’s Legal Wing will review contractual amendments to ensure compliance, while its Procurement Wing will finalize engagement with the PSP as a commercial service provider. Importantly, no additional costs will be passed on to the beneficiaries, as BISP will absorb all interoperability-related fees to safeguard their full entitlement.

The interoperable system is expected to bring multiple benefits, including improved accessibility, reduced dependence on agents, faster transactions, and enhanced transparency through real-time monitoring and audit trails.

By ensuring that every beneficiary, especially those in remote and underserved regions, can securely access funds from any authorized banking channel, the initiative marks a significant milestone in Pakistan’s digital financial inclusion agenda.

BISP’s Social Protection Wallets initiative, launched in line with the government’s vision for a cashless and digitally empowered Pakistan, will provide 10 million beneficiary families with secure, CNIC-linked digital wallets, enabling direct, traceable, and fraud-resistant transactions.

“Through Social Protection Wallets and the interoperable payment system, BISP aims to ensure that every beneficiary, regardless of location, can securely access their entitlements with ease and dignity,” a BISP official told Wealth Pakistan.

Credit: INP-WealthPk