The newly delineated Peshawar CityDistrict (PCD) has undergone significant transformations inthe past ten years. Originally encompassing the adjoiningdistricts of Charsadda and Nowshera, the district graduallyshrunk in size after both sub-divisions acquired a districtstatus of their own in the mid-nineties. However, as theprovincial capital, Peshawar continues to enjoy a specialstatus within North West Frontier Province (NWFP). It housesthe provincial parliament, headquarters of all provincialpublic sector agencies, major Banks, Development FinanceInstitutions (DFls), academic institutions, Non-GovernmentOrganizations (NGOs), industry, various trading houses, andmajor private sector institutions. Over two million peopleco-exist in Peshawar in an environment that is marked by ahigh incidence of poverty, unemployment, poor access toquality social services, alarming levels of air and waterpollution, and a worsening law and order situation. Theiraggregate effect is that Peshawar has not only become a lessdesirable city from the perspective of the common citizenry,but more importantly, from the perspective of the local andinternational business community, that is so critical forits long-term growth. Rapid changes in the federal and theprovincial governments have also adversely impacted onsystems of governance. As a result, the developmentenvironment is characterized by a high degree ofpoliticization, adhoc policies, inadequate planning, pooraccountability, and generally weak capacities.
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