After devolution in Pakistan, local government professionals are increasingly pressed to demonstrate sound management decision-making and resource allocation. This, therefore, defines the place of Performance Management System as a tool for change in our conceptualization of the local government transformation in Punjab.PMS has been introduced in 6 sectors including water supply, solid waste collection, streetlights, roads, parks and sanitation in partner TMAs.
PMDFC under the guidance of the World Bank had taken the initiative to introduce the PMS at TMA level. This was an entirely new concept to be implemented in government sector. Although performance measurement and review was not new for public sector organizations as they do it in some way or other, but it was never used as a tool for performance improvement. At all levels of implementing PMS, right from planning to performance review, active participation of the TMA staff was ensured.

PMDFC adopted the following 5 step strategy for implementation of PMS:

1. Create awareness among stakeholders
2. Develop a long list of performance indicators
3. Select core performance indicators & Develop data collection plan
4. Ascertain baseline values
5. Develop target values