The project aims to enhance national capacity to research, formulate, review and implement comprehensive environmental fiscal reforms in Pakistan . The project will engage governments at the federal and provincial levels to build support for EFR - and address challenges over fiscal powers and the enabling conditions for fiscal decentralization - the district level work will be more on implementation of EFR instruments as well as the pilot schemes. The project will work on understanding the options and the feasibility of EFR through action research in different fields (solid waste, sanitation, water charges, tourism, land tenure rates, recovery charge system, etc.), Capacity building of District officials in developing and implementing fiscal instruments, advocating the concept of user and polluter pays at the district level, awareness raising and coalition building with key stakeholders around specific issues, pilot testing of the EFR concept in promising and non-controversial fields. The research component of this project will identify key fiscal instruments and their linkages to environmental and financial benefits.