ISLAMABAD - The government is likely to fix Public Sector Development Programme (PSDP) at Rs 350-375 billion for the centre in the upcoming budget for financial year 2012-2013 against Rs 300 billion for the ongoing fiscal year, official sources said on Saturday.

Sources said the PSDP allocation would be fixed at around Rs 350 to Rs 375 billion for the centre and Rs 480 billion for the provinces for the fiscal year to come. Sources were of the view that increase in the PSDP had no link with the election year, as government increased it every year preferring the public sector programmes, they added.

Sources further revealed that government would give priority to the energy-related programmes keeping in view its shortage in the country. The government is likely to allocate maximum funds for construction of several dams, Thar coal, Iran-Pakistan gas pipeline and establishment of LNG terminals in the budget 2012-13. Similarly, the government will give priority to those programmes that are in advance stages, running on foreign aid and help, national economic importance and projects of less developed areas of the country including Azad Jammu and Kashmir, Fata, Balochistan and Gilgit-Baltistan.

The govt had fixed PSDP at Rs 300b for the centre and Rs 430b for the provinces in the previous budget for the year 2011-2012. The govt has released Rs 144.3b for the centre during the first nine months (July-March) of the ongoing fiscal year, which are 62pc of the allocation of Rs 228.4b.

The Planning Commission has to release Rs 228.4b for PSDP while its foreign aid component of Rs38.65b, allocated for the current year, and special programmes worth Rs33b will be dealt by the Cabinet Division separately.

According to the breakup of Rs 144.3 billion released during the first nine months of the ongoing financial year 2011-2012, the government has released Rs 77.9 billion against the overall allocation of Rs 157 billion for infrastructure. The govt has released Rs 62b for social sector against the overall allocation of Rs 128.7 billion and Rs 1.3b has been released for other sectors against the total allocation of Rs 3.3 billion for the whole financial year.

The centre has also released Rs 3.2 billion for Earthquake Rehabilitation and Reconstruction Authority against the overall allocation of Rs 10 billion.