ISLAMABAD - The government has planned to keep Public Sector Development Programme (PSDP) at Rs 450 billion for the upcoming financial year 2013-14 that would be 25 percent higher than the allocation of the outgoing fiscal year 2012-13.

Sources said that Adviser to Prime Minister on Finance and Economic Affairs Dr Shahid Amjad Chaudhary has chaired the meeting on PSDP on Wednesday. The government has decided to allocate Rs 450 billion for PSDP in the upcoming fiscal year wherein foreign aid/loan would be Rs 125 billion.

Sources informed that finance ministry and planning commission of Pakistan would brief the expected finance minister Senator Ishaq Dar on the PSDP and other budget preparations in next few days. He further said that Ishaq Dar could suggest changes to be made in the PSDP. "If required they would bring changes in the PSDP in order to incorporate priorities of the new government," he added.

According to the official documents, the government has planned to allocate Rs 450 billion on PSDP in the budget for next fiscal year 2013-14, which would be 25 percent higher than the allocation of Rs 360 billion of the outgoing fiscal year 2012-13.

The documents revealed that government has allocated Rs 258.9 billion for federal ministries/divisions, Rs 39 billion for WAPDA (power) and Rs 65 billion for National Highways Authority (NHA) for the upcoming financial year. Similarly, the government would allocate Rs 28.1 billion for Kashmir Affairs and Gilgit Baltistan division and Rs 18.5 billion for states and frontier regions divisions.

The government would keep Rs 27 billion for special programme wherein Rs 5 billion would be allocated for PWP-I and Rs 22 billion for PWP-II for the next fiscal year. The documents showed that government would allocate Rs 13.5 billion for Earthquake Rehabilitation and Reconstruction Authority (ERRA) that were Rs ten billion during the outgoing fiscal year.