In NWFP, SDC is working since 1966 in Natural Resources Management (NRM) as a means to address the sustainable utilization of natural resources, mostly in poverty pockets.

Experiences showed that poor rural communities largely depend on natural resources directly or indirectly for their livelihoods. In this context the communities need more equitable access to services and opportunities. , The rights issues (e.g. participation and exclusion, land tenure, water rights) also need to be tackled adequately. Hence, SDC started a ‘Livelihoods Programme’ (LP) in January 2008, which merged and capitalized on successful elements of the previous SDC/IC projects (PLI, CBRM, IPRP and FFSP) under one programme. The programmatic approach provides an opportunity for replicating and up-scaling relevant components. It aims to make better use of synergies with other thematic and sub-domains of SDC Pakistan’s portfolio, namely Governance and Microfinance. Thus, the Livelihoods Programme aims at increasing the effectiveness and efficiency of SDC's development assistance in NWFP.

The Sustainable Livelihood Approach (SLA) and Human Right Based Approach (HRBA) form the basis of the Programme, supporting people to improve their livelihood strategies, emphasizing on the rights of marginalised women and men (rights holders) and obligations of state institutions (duty bearers). The Programme strategically builds local capacities and service delivery systems around specific resources/products/value chains, aiming at empowering communities to deal independently with various service providers.

The LP is aligned with the SDC's Cooperation Strategy Pakistan 2006 – 2010, under the increasing income domain which aims at, “Reducing poverty through promoting a people-driven, equitable and ecologically sound development”.

The programme is implemented in close partnership with the Government of NWFP under a Memorandum of Understanding. The Team Leader from IC and the Programme Director from GoNWFP jointly manage and perform their respective duties for the implementation of LP. For field activities, a north hub in Swat and a south hub in Kohat (later on shifted to Peshawar) have been established. The Project Steering Committee comprising of representatives from SDC, Government, civil society and the private sector is responsible for providing strategic guidance to the programme. During 2008, the programme conducted a large number of livelihood assessments in the chosen villages through local NGOs and sought insight into existing coping strategies, vulnerabilities, assets and potentials. About 20 non-formal schools were established and teachers were trained. Pre and post harvest management trainings on medicinal, aromatic plants and pine nuts were imparted for men and women entrepreneurs. Detailed value chain analyses were conducted for honey, walnut, pine nut and groundnut. The programme continues to focus on assets and capacity building in improved livestock management at the level of the service providers and the community. During 2009, the project has formally merged successful farm forestry activities inherited from Farm Forestry Support Project (FFSP) into all of its geographical areas.