Punjab Municipal Improvement Service Project (PMISP)

Punjab Municipal Services Improvement Project (PMSIP), initiated by Government of Punjab with the help of World Bank, started in June 2006 and winded up in December 2013. The objective of the project was “To introduce performance based culture in TMAs to improve municipal service delivery in a viable and sustainable manner.” The project was implemented in 37 Tehsil Municipal Administrations (TMAs) of Punjab, which were selected on the basis of performance against two criteria: (a) Ratio of own source revenue to total recurrent revenue and (b) Ratio of development funds expenditure to total development funds. An extension of 3 years was granted by World Bank with the approval from Government of the Punjab for scaling-up of different capacity building interventions in additional 68 TMAs of Punjab, taking the total number of partner TMAs to 105 (all non-city district TMAs in Punjab).

Project Achievements

As envisioned in the project objective, PMDFC has developed a systematic approach to assess and monitor the performance of municipal bodies (TMAs) on key indicators of municipal service delivery. This has been achieved to enable a centralized system of performance tracking for municipal services for the first time in Punjab, if not all of Pakistan. PMDFC has also provided support in the capacity enhancement of the Local Government Department in Punjab, which has helped to develop a culture of accountability, transparency, good governance and informed decision-making.


Development in the listed below areas can be seen:


The project comprised of two components:

  • Infrastructure Development
  • Capacity Building

Infrastructure Development

Under infrastructure development component, total 41 infrastructure schemes were being implemented with a total cost of Rs 2,802 million which included 17 schemes of water supply, 14 schemes of roads, 7 schemes of solid waste management and 1 scheme each of sewerage, firefighting and parks. Special emphasis was being given to the sustainability of these schemes by introducing Operation & Maintenance (O & M) frameworks in these towns. Required hands-on trainings to relevant TMA staff were also provided in areas of project designing, project planning, contract administration and O & M. Furthermore, all project-funded infrastructure schemes had followed the PMDFC-developed environmental and social framework to ensure that their design and implementation adheres to highest standards and do not leave any significant negative impact. All schemes had also obtained EPA approvals, setting a strong precedent for environmental and social safeguards in municipal service delivery.

Capacity Building

Under capacity building component, the Company introduced the concept of centralized monitoring of municipal services at Local Government and Community Development Department (LG & CD) Department, Punjab. Different system improvements and capacity building activities were implemented in 105 TMAs of Punjab (all TMAs except those falling under 5 city district governments).

The capacity building interventions included:

  • Website development for TMAs for dissemination of information
  • Introduction of operation & maintenance framework for sustainability of municipal services
  • Hardware support
  • Trainings (computer trainings, hands-on trainings, on-job trainings, etc.)
  • Planning exercise of towns for integrated urban development
  • Mapping of municipal services using Geographic Information System (GIS)
  • Introduction of Computerized Financial Management System for financial accountability
  • Introduction of Complaint Tracking System for redressal of citizen grievances
  • Development & establishment of centralized web-based performance mentoring system for LG & CD Department
  • Introduction of Performance Management System for improved municipal service delivery

These interventions were designed with strong support and assistance from World Bank, following global best case practices in capacity building of municipal bodies and customizing these to the needs of the local environment.

Project flexibility also helped in providing assistance during the emergency needs for fighting against dengue fever which was increasingly becoming an epidemic especially in urban Punjab. PMDFC provided support to 105 TMAs in fighting against dengue fever by providing 520 carry-over shoulder foggers and 1600 spray pumps along with safety gears. District Headquarter TMAs are also being provided with 31 vehicle-mounted foggers along with vehicles.