ISLAMABAD, June 2 -- Prime Minister Shehbaz Sharif has directed economic authorities to increase the proposed federal Public Sector Development Programme (PSDP) allocation for the fiscal year 2026-27 by Rs200 billion, signalling the government's intention to boost spending on development projects despite fiscal constraints.

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According to sources, the prime minister considered the proposed PSDP allocation of Rs1.126 trillion inadequate for meeting the country's development needs and instructed the Ministry of Finance and the Ministry of Planning to explore ways to arrange additional funds.

The directive came shortly after Planning Minister Ahsan Iqbal announced that t...