ISLAMABAD: The Public Accounts Committee (PAC) has unearthed major financial irregularities in the Benazir Income Support Programme (BISP), including payments to deceased individuals and ineligible government employees, raising concerns over transparency in one of Pakistan’s largest social safety nets.
The findings came during a PAC sub-committee meeting chaired by Mueen Aamir Wattoo, which reviewed audit reports of the Poverty Alleviation Division for fiscal years 2020-21, 2021-22, and 2022-23. The audits flagged irregularities amounting to Rs. 96 billion.
Payments to deceased beneficiaries
Audit officials revealed that in just two years, Rs. 15 million in stipends were paid to beneficiaries who had already died. In 2021-22, payments were made to 842 deceased individuals, and in 2022-23, another 34 cases surfaced. The BISP Secretary confirmed the lapse but maintained that recovery efforts are in progress.
Government employees among recipients
Equally alarming, the audits found that hundreds of government employees, including the spouses of senior officers in Grade 19 to 22, illegally received BISP assistance meant for impoverished families.
The Federal Investigation Agency (FIA) reported that 878 FIRs have been lodged, and 272 government employees have been arrested so far. The PAC sub-committee recommended criminal proceedings against officers from Grade 16 to 22 and recovery of illicit payments directly from their salaries.
Idle funds in banks
The audit also pointed out that 297,000 BISP beneficiary accounts remained inactive for up to six months, leaving over Rs. 7 billion idle in commercial banks. Despite this, banks faced no penalties for failing to de-credit these funds.
BISP officials explained that many of these problems arose during the COVID-19 period, but insisted that reforms have since been implemented. Under new rules, unused funds are automatically reversed if no activity occurs in beneficiary accounts for nine months.
PAC response
Convener Mueen Aamir stressed that while reforms are needed, decisions must consider ground realities, noting that many elderly women face difficulties withdrawing stipends on time. The committee decided to defer the matter for further review.