नगरात् कुत्सनप्रावीण्ययोः

Operational rule vidhi

The affix वुञ् comes after the word नगर in the remaining senses, when censure or praise is implied.

Word by word (padaccheda)

Left context नगरात् pañcamī · ekavacanaRight context कुत्सन- प्रावीण्ययोः saptamī · dvivacana

Left context Pañcamī (5th case): "after X", the operation applies to what follows (1.1.67 तस्मादित्युत्तरस्य). Also used for limits and sources.
Right context Saptamī (7th case): "when X follows", the operation applies to what precedes (1.1.66 तस्मिन्निति निर्दिष्टे पूर्वस्य). Also a condition or domain ("in the sense of").

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Full reading

नगरात् कुत्सन-प्रावीण्ययोः

Pāṇini leaves out words that carry over from earlier sūtras. Expand to see the rule as a reader actually understands it.

Commentary

The affix वुञ् comes after the word नगर in the remaining senses, when censure or praise is implied.
The word कुत्सनं which is equivalent to निन्दनं or 'blame or censure'; and प्रावीण्यं which means नैपुण्य "dexterity", qualify the sense of the affix. Thus नागरकः, 'a knave, a cunning person, or a skillful person'. The word literally means 'a town-born, or town-bred', but by the usage of language, it always denotes a person having the vices or virtues of a town, such as a thief or an artist.

Why do we say "when censure or dexterity is implied"? Observe नागराः ब्राह्मणाः 'the Nagara Brahmanas".

Śrīśa Chandra Vasu, The Ashtadhyayi of Panini (1897), via ashtadhyayi.com.