Massive Corruption in BISP! Billions Illegally Paid to Govt Employees, Dead Beneficiaries, and Fake Biometric Accounts

The meeting, held under the Poverty Alleviation and Social Protection Division, reviewed multiple audit objections, with audit authorities, the BISP Secretary, and the Federal Investigation Agency (FIA) presenting their accounts. The revelations cast a shadow on Pakistan’s flagship welfare scheme at a time when the government continues to expand online registration of BISP and promote the 8171 check online CNIC service for transparent disbursement of funds.

Govt Employees and Pensioners as Beneficiaries

Audit officials told the committee that government employees and their spouses were found among BISP’s cash recipients despite being explicitly ineligible under programme rules.

The BISP Secretary admitted that the beneficiaries came from multiple departments, making direct recovery difficult. He confirmed that 85 officers in Grade 20, 630 officers in Grade 19, and even names of Grade 22 officers appeared on lists of those receiving assistance.

Convener Pirzada expressed astonishment: “Grade 22 officers are listed as beneficiaries — this is shameful. Even senior bureaucrats are siphoning off stipends meant for the poorest.” He further questioned the programme’s design, remarking: “What can anyone do with Rs 7,000 for the whole year?”

Audit officials stressed that BISP stipends are intended solely for the poorest families, not salaried officials with pensions and benefits. The committee directed that criminal charges be framed in all cases above Grade 16, warning that offenders should not be allowed to continue in service.

Table 1 — Govt Employees Flagged as BISP Beneficiaries

Payments to Deceased Beneficiaries

Audit officials further disclosed that Rs 15.06 million was paid to deceased individuals, some of whom had died before 2008. In one case, stipends had continued to flow into accounts of beneficiaries dead for more than a decade.

The BISP Secretary contested the figures, saying that in a sample of 841 cases flagged as deceased, 94 percent were found alive, suggesting weaknesses in audit data rather than in BISP’s system. He blamed poor death reporting and inadequate verification mechanisms for discrepancies, while acknowledging that gaps remain.

The committee nonetheless directed a comprehensive verification exercise to reconcile differences between the audit’s findings and BISP’s internal review.

Members also raised concerns about fake biometric withdrawals being made from the accounts of deceased persons, pointing to collusion between local agents and beneficiaries’ relatives.

Table 2 — Deceased-Beneficiary Payments

Bank Penalties: Rs 607 Million Not Recovered

Another major audit objection related to partner banks. According to the audit brief, BISP had agreements requiring banks to block and de-credit accounts that remained dormant for six months. If banks failed to enforce this clause, they were liable to pay penalties.

Audit officials told the committee that banks had repeatedly violated this rule but that BISP failed to recover Rs 607 million in penalties due under contract.

The PAC expressed concern over this lapse but decided to defer discussion to its next sitting for a fuller examination.

Table 3 — Bank Penalty Audit Findings

FIA Action and Prosecutions

The Federal Investigation Agency (FIA) briefed the committee on its enforcement actions, reporting that it had registered 879 FIRs, arrested 292 suspects, and filed challans in courts to recover funds. Officials said cases involving Grade 17 and above officers would be pursued under criminal charges, with some already under trial.

The FIA confirmed that recoveries are ongoing and that investigations have expanded to include officials suspected of enabling fake biometric fraud at payout points.

Table 4 — FIA Enforcement on BISP Fraud

Provincial vs Federal Employees

In response to a question from the Convener about whether the implicated officers were mainly federal employees, the BISP Secretary said the majority were provincial staff, though federal officers also featured among the flagged names.

PAC’s Conclusion

Summing up, Convener Pirzada said the proceedings exposed systemic weaknesses in BISP’s administration. From government officers illegally receiving stipends to payments to the deceased, fake biometric withdrawals, and banking lapses, he said the irregularities undermined the very purpose of the programme.

The committee directed that:

• Criminal charges will be filed in Grade 16+ cases.

• A fresh verification drive will be conducted for deceased-beneficiary cases.

• The issue of bank penalties will be reviewed at the next meeting.

• FIA prosecutions continue against fraudsters.

Audit officials noted that while the programme is Pakistan’s largest social safety net, these failures seriously compromise its credibility.

But the latest findings raise questions about oversight. With cases of senior bureaucrats, deceased beneficiaries, and even fake biometric fraud surfacing, experts warn that unless recovery mechanisms are strengthened and accountability enforced, the integrity of the programme remains at risk.