The Punjab Cities Program (PCP) is aligned with the World Bank Group’s Pakistan Country Partnership Strategy (CPS) FY15-20. The program aims to contribute towards Bank’s overarching goals of ending extreme poverty and promoting shared prosperity by delivering improved urban infrastructure inclusively and in ways that enhance economic growth and development in the participating cities. The program is financed through a hybrid of Investment Project Financing (IPF) and Program-for-Results (PforR) instruments. The larger part of the program is financed through the PforR instrument, which has proved to be an effective mechanism for managing conditional grants to LGs and for strengthening institutions and systems for the sustainable delivery of infrastructure and services. GoPunjab has an ongoing formula-based mechanism of fiscal transfers to urban LGs to support urban governance and municipal service delivery, through the Provincial Finance Commission (PFC) Award. The Government has introduced a program of performance-based grants (PBGs) to urban LGs. The program will not affect existing formula-based PFC transfers to the 16 MCs participating in PCP over its duration.
Infrastructure Investment
Water Supply, Sewerage, Storm Drainage, Solid Waste Management, Waste Water Treatment Plants, Urban Roads, Parks and Street Lights.
Disbursement Linked Indicators Result Areas
Investment Planning & Budgeting, HR, Own Source Revenues, Procurement, Financial Management & Audit, Environment & Social Management, Transparency and Accountability and Urban Infrastructure.
Program Details
Basic Information
  • Status: Active
  • Approval Date: May 25, 2018
  • Closing Date: September 30, 2023
  • Country: Pakistan
  • Region: South Asia
  • Borrower: Islamic Republic of Pakistan
  • Implementing Agency: LG & CD Department and PMDFC
  • Total Project Cost: US$ 236.00 Million
  • Commitment Amount: US$ 236.00 Million
  • LG&CD Department
  • Finance Department
  • Punjab Local Government Board
  • 16 Municipal Committees & Corporations
  • Punjab Municipal Development Fund Company

Partner Municipal Committees

  • Daska
  • Hafizabad
  • Jhleum
  • Kamoke
  • Muridke
  • Wazirabad
  • Gojra
  • Jaranwala
  • Jhang
  • Kamalia
  • Okara
  • Bahawalnagar
  • Burewala
  • Khanewal
  • Kot Addu
  • Vehari
Program Scope
Will provide Performance Based Grants (PBGs) for municipal infrastructure investments based on results achieved by the MCs against the Disbursement-Linked Indicators (DLIs)
Will support provincial government agencies (Finance Department, LG&CD Department, Punjab Local Government Board & PMDFC) and selected Municipal Committees with technical assistance and institutional strengthening.