The North West Frontier Province (NWFP)is the third largest province of Pakistan. The province islandlocked and the land routes to the north are few anddifficult, passing through hilly terrain. The provinceitself is largely mountainous, with only 30 percentcultivated land. Nearly 50 percent of the population livesin the mountainous and arid areas. The province shares along border with eastern and southern Afghanistan and mostof its population has the same ethnic background (Pushtoon)as parts of bordering Afghanistan. This document reports ona Performance Measurement Framework (PFM) assessment bydescribing the existing financial systems briefly and ratingthese systems against the laid down indicators of the PFMPerformance Measurement Framework. The study has beenconducted in line with the Public Financial ManagementPerformance Measurement Framework, using six criticaldimensions of performance for an open and orderly PFM system.