In November, 2002 the Federal Cabinet approved that NRB shall operate as part of the Prime Minister's Secretariat and perform the following functions:- generate fundamental thought on promoting good governance to strengthen democracy through the reconstruction of institutions of State related to all aspects of governance and social welfare; provide support to the Federal Government and Provincial Governments in implementation of local government system; interact with the Government organisations for institutionalising capacity building of local governments at all levels; process the amendments in the local government laws proposed by the Federal and Provincial Governments under Article 268 read with the Sixth Schedule of the Constitution of Pakistan 1973 for the approval of the President of Pakistan; initiate proposals for reconstruction of civil services at the Federal, Provincial and Local levels and assist the concerned Governments in implementation of the approved proposals; liaise with the national and international think tanks on issues relevant to governance; organize seminars, workshops and conferences in the areas of Bureau's activity and disseminate knowledge through media amongst all stakeholders; perform such other functions as shall be assigned to the Bureau by the Prime Minister; and submit an annual report to the Prime Minister during the month of March each year on its working, studies, research, recommendations or suggestions in respect of any matter dealt with by the Bureau during the preceding year.

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