The National Reconstruction Bureau (Reporting name: NRB) of Pakistan was an independent and constitutionally established federal institution tasked with economic recovery and prosperous development through the local government system.

The war torn areas in Western Pakistan, the unplanned and illegal housing caused major disturbances in planned traffic systems and cities.

In 1999, President Pervez Musharraf took the recommendation from Pakistan Army and his government to established the National Reconstruction Bureau (NRB) for quick economic recovery and development in war-torn areas.

"[4] Meanwhile, President Musharraf reconcile the matter between Interior ministry and NRB at the high level meeting over the economic recovery plans.

It is a focal organisation to generate fundamental thoughts on promoting good governance to strengthen democracy through reconstruction of institutions of State.

Alongside administrative and political decentralisation, provisions have been made for transfer of funds to the local governments so they can carry out their planning and development functions effectively.