The Sub-National Governance Programme supports the provincial and local governments in Punjab and Khyber Pakhtunkhwa (KP) to strengthen planning systems, ensuring plans are linked with evidence and lead to improvement in service delivery. The SNG is supporting the planning departments in both provinces by:

Providing Technical Assistance on the Annual Development Programme (ADP) and aligning it to the provincial growth strategy targets and sectoral policies

Updating Planning Manuals and ADP guidelines

Supporting Local Government Departments in both provinces to develop cash flow plans, performance scorecards, manage solid waste in select local governments through across-policy-cycle support

Creating capacity at the local level is a major challenge. SNG will indirectly benefit an estimated 12 million people in Khyber Pakhtunkhwa and 12 million people in Punjab with key institutional reforms. The programme’s two provinces have a collective of 140 million people, indirectly improving the way provincial governments manage their resources.

To ensure that budgets are more robust and transparent and are executed as planned, SNG is working closely with finance departments in Punjab and Khyber Pakhtunkhwa on these key objectives:

  • Strengthen policy-based fiscal strategy and budgeting, ensuring that macroeconomic forecasts are robust and provide realistic guidance for budgeting.
  • Provide a needs-based, transparent and equitable distribution of resources, ensuring that local governments can develop realistic plans and budgets based on predictable resource allocation.
  • Support local governments in both provinces in improved budgeting, expenditure review and budget execution reporting


The SNG-I programme supported the finance departments in both provinces to establish donor coordination committees to ensure a synchronised response to Public Financial Management (PFM) reforms. SNG-I also established Reform Working Groups (RWGs) in each province with responsibility for planning and implementing proposed PFM reform interventions.