The main objective of this paper is to form and compare the clusters of the districts of Punjab on the basis of their socio-economic development. Therefore we use multivariate statistical technique–cluster analysis. For tracking the progress towards Millennium Development Goals for Education, Health, Water Supply & Sanitation, the government of Punjab has conducted two multiple indicator cluster surveys (MICS) so far (2003-04 &
2007-08). The comparison is made using the data of MICS (2003-04) and (2007-08). The results show various features. The government can use the results of this study for future policy making