E-Government initiatives like Personal Identity Management (PIM) promises great prospects in many developing countries including Pakistan. However, there are many significant challenges to be faced yet. It has been observed that many e-government initiatives like establishment of e-government directorate, Computer training courses to government employees and IT wing at Establishment Division failed because of unsatisfactory preparation and political shakiness. At governmental level, there is realization that e-Government initiatives like PIM at National Database Registration Authority (NADRA) may provide customer-focused, cost effective and easy to use services for citizens and businesses, and have potential to bring betterment in the internal workings of government. This quantitative research was conducted using a structured questionnaire amongst 200 respondents and explores the perceived role of e-Government initiative like that of PIM in determining government-citizens’ relationship and reducing corruption. The results of the study support the hypothesis that e-Government initiative is positively related to improved government–citizen relationships and corruption reduction. The research also proposes that while e-Government initiatives (NADRA-PIM) can make notable contributions in bringing improvement in public services but they can best do in enhancing by and large relationships between governments and citizens.