The environmental problems of NWFP are wide and diverse. The problems cannot be addressed all together and at the same time in a system which is highly centralized and bureaucratic, and with very little or no involvement of local institutions or participation of the rural population in project design, preparation and implementation. While the top-down system may be appropriate for some sectors, it does not appear suitable for a programme that entails the sustainable management of local natural resources. The current system needs to be modified to ensure that environmental factors are properly identified and fully incorporated, and that there is greater participation by the public and experts, in order to make the developmental process more rational and sustainable. Therefore, for an effective NRM, the main focus should be on the establishment of suitable institutions with strong legislative support, adequate financial resources, and qualified staff who have clear lines of authority, responsibility and proper coordination. That can only be achieved with a vigorous political will, the partnership of the local population, NGOs and local institutions. In order to ameliorate the existing environmental conditions of the province and achieve the goal of sustainable development, a number of recommendations are made below.