The Government of Pakistan has allocated an amount of INR 6.237 billion for the development of rural areas of the country. The government has adopted a comprehensive policy for rural development, including agriculture, social and physical infrastructure.
The policy aims to empower local government institutions and involve different communities for development activities and reduce poverty through a set of coherent policies including social mobilisation of the poor and their access to microfinance. The local government and Rural Development Ministry will contribute around Rs. 4.547 billion, out of which Rs. 4.420 billion is for Khushal Pakistan Programme (KPP-I), Rs. 102 million for Model Villages project and Rs. 14 million for the Physical Resources Development of Akhtar Hameed Khan National Centre for Rural Development and Municipal Administration (AHK NCRD Phase-II), while Rs. 12 million for establishment of Monitoring and Evaluation Cell. The Narcotics Control Division has allocated Rs. 156 million, which includes foreign exchange component of Rs. 90 million, while the Finance Division of Rs. 292 million includes foreign exchange component of Rs 200 million for technical assistance to improve the performance of local government. The government is stressing for the development of agriculture as well as rural industrialization under its annual plan for the year 2007-2008. Under its annual plan, the government will provide basic and technical education in rural areas.