Abstract: The main objective of the study was to assess impact of Katchi Abadi Improvement Programme that was implemented from 1985 to 1990 on the user`s opinion about the change in the social environment as one of parameters, which was used for measuring the impacts of KIP on the social environment. The survey therefore, included recording the inhabitants` perceptions about improvement in the physical and social environment of the study area. Moreover, the inhabitants` level of satisfaction with utility services and community facilities provided under KIP in various katchi abadis was also assessed in Punjab province. Seven hundred households from the katci abadis of three districts (Rawalpindi, Faisalabad and Multan) which are representatives of three geographical zones (Northern, central and Southern) of the Punjab were selected by using the systematic random sampling technique. The analysis of the data reveals that the overall perception of improvement made in the social and physical environment was 69.1%. Moreover, the overall percentage of the respondents who were satisfied with the water supply, sewerage, drainage of the area, street pavement, electricity, gas and telephone was 65.9%. It can be concluded that KIP was relatively successful to achieve its objectives.