Pakistan, June 3 -- The federal government has decided to increase the size of the Public Sector Development Programme (PSDP) for fiscal year 2026-27. The move matters because it signals higher development spending despite fiscal constraints. Provinces, infrastructure projects, and development initiatives are expected to benefit from the proposed increase.

According to official sources, the government has proposed raising the PSDP allocation from Rs1.126 trillion to Rs1.320 trillion. The increase would add nearly Rs200 billion to the federal development budget compared to the current fiscal year. The enhanced allocation is aimed at accelerating development projects and supporting economic growth.

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