By Ayesha Saba
ISLAMABAD, Oct 27 (Wealth Pakistan) — The Benazir Income Support Program (BISP), backed by the Ministry of Information Technology and Telecom (MoITT) and the State Bank of Pakistan (SBP), is set to launch a digital wallet that will allow beneficiaries to access funds directly through ATMs, Point-of-Sale (POS) agents, and mobile apps.
The wallet will run on free, biometrically verified SIMs that will be distributed from November 17 this year. The initiative marks a key milestone in Pakistan’s transition toward digital financial inclusion.
Digital framework and supervision
According to documents available with Wealth Pakistan, the SBP will regulate the system while MoITT, working through PTA and telecom partners, will ensure smooth digital infrastructure and connectivity.
At present, BISP disburses Kafaalat stipends via six Partner Financial Institutions (PFIs). Each beneficiary is tied to one bank, restricting access to that bank’s POS network. This setup, though effective, has created accessibility issues in rural and remote areas.
Phased migration to interoperable wallets
To improve convenience, BISP will shift to digital wallets in two phases. In the first, it will link all six partner banks. In the second, it will expand access to other financial institutions across the country.
To achieve this, BISP will select a Payment Service Provider (PSP) through open bidding under PPRA rules. The chosen PSP will develop an interoperable system, manage interbank settlements, and allow cross-bank withdrawals. As a result, beneficiaries will be able to withdraw funds from any participating bank’s BVS-enabled POS, ATM, or cash center.
Legal and financial safeguards
BISP’s Legal Wing will ensure all contractual arrangements comply with relevant regulations. Meanwhile, its Procurement Wing will finalize the PSP’s engagement as a commercial partner.
Importantly, beneficiaries will not bear additional costs. BISP will cover all interoperability-related expenses to ensure full payments reach recipients. The new system will enhance transparency, speed up transactions, and reduce dependency on local agents.
Expanding digital access nationwide
The interoperable system is expected to simplify fund access, particularly for beneficiaries in far-flung areas. It will also create real-time audit trails and improve accountability in fund distribution.
BISP’s Social Protection Wallets initiative supports the government’s goal of building a cashless and inclusive economy. It aims to provide 10 million families with CNIC-linked digital wallets for direct, traceable, and secure payments.
A senior BISP official told Wealth Pakistan that the program seeks to promote dignity and accessibility.
“Through Social Protection Wallets and the interoperable payment system, BISP aims to ensure that every beneficiary can access entitlements with safety, transparency, and ease,” the official said.