Punjab Cities Programme (PCP)


The Program Development Objective is to improve economic potential, governance, management, and service delivery in the selected cities of Punjab


Okara, Jaranwala, Gojra, Jhang, Kamalia, Muridke, Hafizabad, Kamoki, Daska, Wazirabad, Jhelum, Vehari, Burewala, Khanewal, Bahawalnagar & Kot Addu
Selected Municipal Committees of Punjab except falling under the World Bank funded PCGIP and ADB funded PICIIP.


  • LG&CD Department
  • Finance Department
  • Punjab Local Government Board
  • 16 Municipal Committees
  • Punjab Municipal Development Fund Company

Key Features

  • It will use a hybrid of investment Project Financing and Program for Results instrument.
  • It will support Government of Punjab design and operationalize a Performance-Based Grants (PBGs) mechanism, and pilot it in 16 selected Municipal Committees (MCs). Based on the experience gained and lessons learnt, the mechanism would be scaled up to other local governments across the Punjab.
  • Window-I will provide Performance Based Grants (PBGs) based on results achieved by the MCs against the Disbursement-Linked Indicators (DLIs).
  • Window-2 will support provincial government agencies (Finance Department, Local Government & Community Development Department/Local Government Board, and Punjab Municipal Development Fund Company) and the selected MCs with technical assistance and institutional strengthening.
  • DLI-1comprises of Minimum Access Condition (MACs). Compliance with MACs will be a pre-condition to access the PBGs, and failure to satisfy any MAC will disqualify an MC from accessing the PBG that year.
  • DLI-2 comprises of Performance Measures (PMs). These will build on the foundations laid by MACs, and will challenge the MCs to raise their performance to achieve incremental targets. Together, the MACs and PMs will enable the 16 MCs to access the PBGs allocations. *Result areas under MACs and PMs include:
    • Investment Planning and Budgeting
    • Human Resources Strengthening
    • Own Source Revenues
    • Procurement
    • Financial Management and Audit
    • Environment and Social Management
    • Transparency and Accountability
    • Operation Specific
    • Urban Infrastructure