The PSID approach was developed by BPKS in 1996 to meet the needs of people with disabilities in Bangladesh. Before this time, BPKS saw that existing programs and services were not meeting the needs of people with disabilities. BPKS was also influenced to develop a new approach by UN initiatives regarding disability and the philosophy and work of Disabled Peoples' International (DPI). A DPI training seminar held in Dhaka in 1993 was a turning point for BPKS' thinking, as from then on disability was considered a development, and not welfare, issue. After this time, BPKS conducted an investigation into what people with disabilities needed and how a new and sustainable approach could be developed.

At the core of the PSID approach is the belief that, without the active and equal participation of people with disabilities in society and the development process, national development will not fully occur. Under the PSID program, people with disabilities not only plan and undertake activities for themselves, but also projects which benefit the wider community.