What is the full form of PSI:

PSI represents Private Sector Involvement.

As the name suggests it is the involvement or participation of private sector in the projects run by the government. This involvement is not a willing involvement. PSI is a participation which is mostly unwilling from the private sector. Mostly the existing government projects and the on-going projects of government are now participated by the private sector. Family planning project and health care project are few examples of projects which are initiated by the government, and then asked some private companies or entities to get involved in them. Usually it is a financial affair. One such example is the involvement of private sector in the sovereign debt restructuring of Greece. It was done in the year 2012. There are public private partnerships which are different from the Private Sector Involvement. In public private partnership both the government agency and the private sector company (one or more) venture their funds to run a particular project. Both government agency and the private company are partners with equal amount of funds deposited and the rights they get to make the changes in the project. The projects are started with the partnership. But in PSI, the project is started by the government agency and after a while, private sector is asked to get involved.