Karachi: The rupee component of Public Sector Development Program (PSDP) has been slashed by PkR 51 bn, to PkR 210 bn from PkR 261 bn after receiving foreign funding in the shape of project aid.
According to Alfalah Securities Limited, the saving made through cutting down of rupee component of PSDP would be mainly utilized for power sector subsidies. The government has released PkR 274 bn for federally-funded PSDP till April 24, 2012, which is 91% of the total envisaged allocation of PkR 300 bn. The government had initially budgeted PkR 39 bn as foreign aid for FY12 in which it has received PkR 83 bn till April against the revised target of PkR 90 bn for FY12. The national development outlay for federal and provincial government stood at PkR 730 bn with federal share of PkR 300 bn and provincial share of PkR 430 bn.