The size of the Public Sector Development Programme (PSDP) for the fiscal year 2014-15 has been increased from Rs425 billion in the outgoing fiscal year to Rs525 billion – an 24% increase from last year’s PSDP size.
Energy, water, infrastructure, value-addition and human resource development will be the priority sectors for development.
“For the first time in recent history of the country we are investing the fullest available development outlay of Rs.425 billion,” said Finance Minister Ishaq Dar while announcing the federal budget.
The finance minister hailed the move as a remarkable achievement since the government has made a fiscal adjustment of 2.4% during the year.
“Frequently, in the past, whenever such adjustment was made it was essentially made by cutting development spending. We have broken this tradition,” he said.