The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Punjab Resource Improvement and Digital Effectiveness (P171417) SOUTH ASIA | Pakistan | Governance Global Practice | Requesting Unit: SACPK | Responsible Unit: ESAG1 IBRD/IDA | Program-for-Results Financing | FY 2021 | Team Leader(s): Akmal Minallah, Derek Hung Chiat Chen, Irum Touqeer Seq No: 7 | ARCHIVED on 08-Apr-2024 | ISR60359 | Created by: Akmal Minallah on 21-Mar-2024 | Modified by: Akmal Minallah on 04-Apr-2024 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) To increase own source revenue, and improve reliability of resource allocation and access to digital services for people and firms in the province of Punjab. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The Program implementation continues at a steady pace and several accomplishments have been achieved in the past few months. A summary regarding a set of parametric pension reforms has been prepared for Cabinet approval. The roll-out of the e-Procurement system is progressing well after a successful pilot phase. All summaries to the Chief Secretary are now submitted in a digital format, marking a significant shift from manual file movements. Punjab’s tax revenue collection is on track for achieving its year-end target (June 2024), while the expansion in services sales tax base and filing compliance are also expected to achieve annual targets. ` Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P171417 IBRD-91700 Effective USD 304.00 304.00 0.00 214.24 89.76 70% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P171417 IBRD-91700 Effective 22-Oct-2020 16-Dec-2020 17-Dec-2020 25-Aug-2025 25-Aug-2025 Program Action Plan Action Description 1. Establish PFM Unit Source DLI# Responsibility Timing Timing Value Status 4/8/2024 Page 1 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Technical Finance Department Due Date 30-Sep-2022 Completed Completion Measurement Notification of unit establishment and staffing The PFMU structure has been approved by the Punjab Chief Minister. The establishment of unit and related staffing Comments is in process. So far, procurement specialist and PFM specialist has been hired to support procurement under IPF component Action Description 2. Standard Operating Procedures for E-waste management approved by the GoP Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&D Department Due Date 28-Jun-2024 In Progress Systems Completion Measurement Procedures notified by Environment Protection Agency Comments SOP for E Waste Management is are prepared but not yet notified. Action Description 3.Reporting on the compliance of the Bank ACG. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Department Recurrent Yearly Completed Completion Measurement Annual reporting by the Finance Department to the Bank Comments Comprehensive report is submitted annually Action Description 4. PFM Reforms Steering Committee meeting held at least once in three months Source DLI# Responsibility Timing Timing Value Status Other Finance Department Recurrent Continuous In Progress Completion Measurement Minutes of the PFM Reforms steering committee meeting PFM reforms steering committee notified (chaired by Punjab’s Finance Minister). Membership includes Program Comments implementing agencies. Committee held its meetings in June 2021, December 2021, and January 2022 and February 2024 5. A robust grievance redress mechanism in place and integrating all existing GRM systems under one focal point Action Description (PITB) Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&D Department Due Date 31-May-2024 In Progress Systems Completion Measurement Complaints' log available for each tier of complaints 4/8/2024 Page 2 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) A GRM is available for all departments of the Punjab Government under Chief Minister’s online complaint cell and Comments Government departments’ complaint registration system through websites. Consolidated and program specific GRM being implemented Action Description 6. Publication of guidelines on collection, storage, usage, or processing of personal data. Source DLI# Responsibility Timing Timing Value Status Technical PITB Due Date 29-Dec-2023 Completed Completion Measurement Approval by the Cabinet Comments Guidelines and Storage for use of digital data is included in the Operational Manual Action Description 7. Establish a Program Support Unit in P&DD with in three months of project effectiveness Source DLI# Responsibility Timing Timing Value Status Technical P&DD Due Date 29-Apr-2022 Completed Program Support Unit shall be staffed with M&E specialist, procurement specialist, financial management specialist Completion Measurement and a safeguard specialist. Comments Action Description 8. Increase participation of women in workforce Source DLI# Responsibility Timing Timing Value Status Environmental and Social Finance Department Due Date 30-May-2025 Not Yet Due Systems Bringing the women participation to aggregate 15% of the workforce of selected GoPb departments including two Completion Measurement implementing agencies. Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate 4/8/2024 Page 3 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Strengthened budget formulation and fiscal risk management IN01415388 ►Variance between original budget and actual expenditure composition (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The average variance of The average variance of the Average of three years the Average of three years previous three years Value variance is 18%. (2015- previous three years variance (FY22 – (2019-20, 2020- 18). (2019-20, 2020- FY24) is <10% 21 and 2021-22) is 21 and 2021-22) is 7.1% 7.1% Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 15-Jul-2025 PFM law enacted and The average variance of the previous three years (2019-20, 2020- 21 and 2021-22) is Comments 7.1% Increased use of digital technology for delivery of selected public services IN01415390 ►Citizens accessing government services through digital platforms, of which 20% are female (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 500,000, of which 9% 6.240,895 of which 6.240,895 of which 1,800,000, of which Value female 19.65% are female 19.65% are female 20% female Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Increased number of citizens using specific public digital services. The target is over achieved Comments Improved collection of own source revenue IN01415389 ►Value of own-source tax revenue (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Own-source tax PKRs 191 billion (FY20, PKRs 310 billion (FY23, PKRs 215 billion (July Value collection of Rs.300 RE) revised estimates) 23 - Feb 24) billion. 4/8/2024 Page 4 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Date 30-Jun-2020 30-Jun-2023 30-Jun-2023 30-Jun-2025 As per final figures, Punjab's total own-source tax revenue collection was PKR188.5 billion in FY20, PKR.224 billion in FY21, PKR. 286 billion in FY22, and PKR. 310 billion in FY23 (revised estimates). The collections were PKR. 215 billion during July 2023-February 2024. The COVID impact assessment on revenue and Punjab revenue mobilization strategy and implementation plan were approved and published Comments on the website of the Finance Department. The revenue departments have prepared their detailed annual plans for the implementation of the strategy. Intermediate Results Indicators by Results Areas Strengthening budget formulation and fiscal risk management IN01415391 ►Moderate and reduce the annual pension cost of GoPb (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least six In FY19 (30th June), (cumulative) key Punjab civil service One parametric reform One parametric reform Value parameters pension cost 15% of implemented implemented implemented of the budget Pension Reform Plan Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Pension Plan approved by the Cabinet Comments IN01415394 ►Enhance transparency of commodity debt stock by detailed reporting and gradual reduction in flow of commodity debt by GoPb (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Semi-annual publication of (a) In FY20 (30th June), no commodity debt stock, policy guidelines on with breakdown by contracting & monitoring commodity and of commodity debt exist PKRs 395 billion of PKRs 395 billion of creditors, together with Value along with strategy to Commodity Debt retired Commodity Debt retired outstanding mark-up reduce commodity debt position, and (b) flow as well as no detailed annual interest cost disclosure of commodity and subsidy provided debt stock. against commodity operations. Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Total commodity debt retired till August 2023 = Rs 395 billion. Comments Cabinet has approved further retirement of Rs. 143 billion in current FY. IN01415397 ►Districts achieving minimum standards for Disaster Risk Reduction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target GoPb does not have Disaster Risk Financing Disaster Risk Financing Value Disaster Risk Financing 70% Strategy is not notified Strategy is not notified Strategy (DRFS) Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 4/8/2024 Page 5 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Consultation with the stake holders are carried out to finalize the Disaster Risk Financing Strategy Comments IN01415400 ►Strengthened cash management function of Government of Punjab (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash Management Cash Management Cash forecasting GoPb does not have cash Policy and accounting Policy and accounting Value reports published on management policy. framework are not framework are not quarterly basis by FD approved. approved. Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 No progress on activities relation to the Cash Management function. Comments Increased use of digital technology for delivery of selected public services IN01415392 ►Operational budget expenditure processed through e-procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Five procuring agencies processes cumulative 30% of e-procurement system Piloting of e-Procurement Role out to five entities Value their procurable does not exist. system completed started operational budget expenditure through e- Procurement Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Bidding documents and revision to rules approved. Comments IN01415395 ►Additional services provided to citizens and firms online, through a single identity platform (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 20 services are 50 Services provided 10 services are provided 20 services are provided Value provided to citizens to citizens and firms to citizens online to citizens online online online Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Increased public services provided online through a single identity platform. This is on track. Comments IN01415398 ►Citizen satisfaction with online services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 75.00 Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Target population is number of citizens using the online services (gender dis-aggregated). This is being measured through number of complaints received (where available) against the number of citizens who have utilized a specific service. The progress is on-track and target is expected to be achieved. PITB is also Comments developing a user contact and feedback mechanism, both call center and online, to survey the effectiveness and quality of its digital service delivery which is expected to be implemented next year. IN01415401 4/8/2024 Page 6 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) ►Number of Punjab Urban Local Areas reporting on revenues and expenditure position (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 119.00 220.00 169.00 Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 Comments Improved collection of own source revenue IN01415393 ►Increase in number of registered services sales taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82,285.00 116,229.00 128,464.00 145,000.00 Date 30-Jun-2020 30-Jun-2023 29-Feb-2024 30-Jun-2025 The taxpayers’ registration efforts of PRA has led to the increase of registered Service Sales tax payers by 41% from baseline in FY20. As reported on February 1, 2022, total registered taxpayers were 94,484 on June 30, 2021. The registered taxpayers increased to 109,950 on June 30, 2022, 116, 229 on June 30, 2023, and 128,464 during July 2023-February 2024. Comments PRA has provided user guides on its website for registration, filing, and payment. Information is regularly shared through social media and communication campaigns. A facilitation officer is also assigned to help taxpayers in person. IN01415396 ►Increase in registered taxpayers who filed STS returns in previous year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 23,947.00 40,109.00 53,500.00 77,500.00 Date 30-Jun-2020 30-Jun-2023 29-Feb-2024 31-Jul-2025 Average number of PRA’s STS filers increased by 39% in FY 21 (July 2020-June 2021), 176% in FY22, and 67% in FY23 over the baseline. The average number of STS filers were 33,398 during FY21, 66,199 during FY22, 40,109 in FY23, and 53,500 during July 2023-February 2024 (numbers will be updated for FY24 in July 2024). Baseline numbers were reported on July 24, 2020. The filing number keeps updating in subsequent year. Comments PRA has conducted several workshops for withholding agents and taxpayers on how to file returns. User guides are available on website for registration, filing, and payment. Information is regularly shared through social media and communication campaigns. A facilitation officer is also assigned to help taxpayers in person. IN01415399 ►Database integration in tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data integration plan has Finance Department No linkages among been approved. PRA has confirmed readiness of Punjab tax authorities Punjab tax authorities’ created data linkage with BoR and ETNCD have access to shared databases or with third- Value 6 third parties. The plan databases (selected data with links to third parties; PRA & FBR to establish data taxes) for linkage with parties (at least total signed MOU for data warehouse is in PRA. Establishment of 10 for PRA), sharing progress. data warehouse is 4/8/2024 Page 7 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) expected to complete in FY25. Date 29-May-2020 15-Sep-2023 29-Feb-2024 31-Jul-2025 Finance Department (FD) is working with three revenue authorities of Punjab on implementation of this indicator. The data integration plan has been approved. PRA has established data linkages with 6 third parties including excise, taxation and narcotics control department, Punjab food authority, Punjab employees and social security institution, agriculture department data (mandi app with data of aarti or middle-man/commission agent of agricultural products), school education department (private education providers registration information system and schools owner’s data), and food department (wheat Comments procurement, farmer data). FD has confirmed readiness of BOR and ETNCD databases (selected taxes) for linkage with PRA. The evidence is being reviewed by TPV firm to confirm the achivement. FD is working with PITB and consultants to establish data warehouse. A knowledge sharing session will be organized between Punjab, KP and FBR on data sharing arrangements. IN01415402 ►Key business processes for tax administration simplified and automated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Plan for BPR and Plan for BPR and feedback system for tax feedback system for tax BP's of taxpayer administration in Punjab administration in Punjab registration, payment, Selected BPs automated is not available as yet. is not available as yet. arrears monitoring and in few tax authorities (e- Monitoring of arrears, Monitoring of arrears, Value refunds, appeals, payment for 8 taxes of refunds and appeals refunds and appeals litigation and feedback Punjab) processing are yet to be processing are yet to be systems simplified and reviewed for reviewed for automated. simplification and simplification and automation. automation. Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 31-Jul-2025 Supporting simplified and automated business processes of the tax administration of Punjab Revenue Authority (PRA), Excise, Taxation and Narcotics Control Department (ETNCD) and Board of Revenue (BOR) in Punjab. A firm has been hired to prepare the Business Process Reengineering (BPR) plan. Punjab has provided e-pay facility for 23 levies. In addition, ATM, mobile banking, and over the counter payment facilities are also available. As of May 2022, total 15 million transactions were conducted and RS. Comments 77 billion revenue collected using e-pay facility (in 30 months). https://epay.punjab.gov.pk/latest- booklet/#page/2 PRA is working with Pakistan Revenue Administration Limited (PRAL) to increase its level of automation for administration. IN01415403 ►Enhanced capacity for revenue generation from real estate (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Review of legal framework and Review of legal procedures for valuation Substantial difference framework and of properties to align it Complete properties’ between official and procedures for valuation with modern techniques market valuation market values of of properties to align it is not available as yet. studies for 6 cities Value properties; No market with modern techniques Valuation unit has not (cumulative) using valuation study conducted is not available as yet. yet been established, modern valuation for public and private Valuation unit has not yet and properties’ market methodology. properties been established. valuation studies for 4 cities has not been completed. Date 30-Jun-2020 15-Sep-2023 29-Feb-2024 30-Jun-2025 4/8/2024 Page 8 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Building capacity for revenue generation from real estate by improving the valuation system in six zones. Excise and Taxation department plans to establish a valuation unit, and Bank will provide capacity building support for the same. The department also plans to present the proposal for policy shift from rental Comments value to capital value in next year’s budget. Accordingly, consultants will be hired to review legal framework and procedures for valuation of properties. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Moderate and reduce the annual pension cost of GoPb (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 1.5: At least six (cumulative) key In FY19 (30th June), One parametric reform One parametric reform parameters Value Punjab civil service pension approved approved implemented of the cost 15% of budget Pension Reform Plan Date -- 15-Sep-2023 29-Feb-2024 --  Punjab Cabinet has approved the Policy Framework for Improved Management of Fiscal Risk and the fiscal risk statement is presented to the Provincial Assembly. Comments  Pension plan is approved by the Cabinet ►DLI 2 Variance between original budget and actual expenditure composition (Outcome, 45.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 2.5. During Year 5, the variance of the average of the Variance in original budget previous three years and actual expenditure The average variance of The average variance of in original budget composition by function the the and actual Value was an average of 18% previous three years previous three years expenditure during last three years. (2019-20, 2020- (2019-20, 2020- composition is less (2015-16, 2016-17 and 21 and 2021-22) is 7.1%. 21 and 2021-22) is 7.1%. than 10% by 2017-18). program administrative or functional classification Date -- 15-Sep-2023 29-Feb-2024 -- a. Fiscal management function will be supported under PFMU (hiring in process). b. PFM Law is enacted. Comments ►DLI 3 Operational budget expenditure processed through e-procurement. (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 e-procurement system Pilot of e-Procurement DLR 3.6: five Value Five entities notified does not exist. system completed Implementing 4/8/2024 Page 9 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Entities processes 30% of Operational Budget Expenditures through e- procurement system Date -- 15-Sep-2023 29-Feb-2024 -- Comments ►DLI 4 Citizens accessing government services through digital platforms. (Outcome, 50.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 4.5 1,800,000 (US $ 5 M) No of beneficiaries No of beneficiaries DLR 4.6: Single Value 500,000 6,204,859 of which 6,204,859 of which digital platform 19.65% are female 19.65% are female development for ten services Date -- 15-Sep-2023 29-Feb-2024 -- Comments ►DLI 5 Punjab Urban Local Areas reporting on revenues and expenditure position, especially related to disaster risk management, core public social services, and gender (Intermediate Outcome, 32.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 5.5: After achieving DLR 5.4, Finance Department publishes budgets and bi-annual revenue and expenditure reports Web based MIS of 319 Urban Local implemented in 16 Urban Areas (cumulative) Local Areas (ULAs) for and the provincial Value 119.00 220.00 accounting and reporting. government System not integrated with Government IFMIS DLR 5.6: District wise climate expenditure reports published on the website of Finance Department Date -- 14-Sep-2023 29-Feb-2024 -- Supporting digital web based financial reporting solutions to Urban Local Areas (ULAs) for enhanced financial transparency. Comments A roadmap for implementation of financial reporting system on all ULAs has been prepared. Also, the government is working on ensuring compatibility of the system with FABS. 4/8/2024 Page 10 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) ►DLI 6 Value of own-source tax revenue (Outcome, 40.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 6.6: Implementing PKRs 310 billion (FY23, PKRs 215 billion (July 23- Value Rs. 191 billion (FY20, RE) Entity’s own-source revised estimates) Feb 24) tax collection of Rs 300 billion Date -- 30-Jun-2023 29-Feb-2024 -- As per final figures, Punjab's total own-source tax revenue collection was PKR188.5 billion in FY20, PKR.224 billion in FY21, PKR. 286 billion in FY22, and PKR. 310 billion in FY23 (revised estimates). The collections were PKR. 215 billion during July 2023-February 2024. The COVID impact assessment on revenue and Comments Punjab revenue mobilization strategy and implementation plan were approved and published on the website of the Finance Department. The revenue departments have prepared their detailed annual plans for the implementation of the strategy. ►DLI 7 Database integration in tax administration (Intermediate Outcome, 37.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 Finance Department DLR 7.6: Punjab tax Data integration plan has confirmed readiness of authorities have No linkages among Punjab been approved. PRA has BoR and ETNCD access to shared tax authorities’ databases created data linkage with databases (selected data with links to Value or with third-parties; PRA & 6 third parties. The plan taxes) for linkage with third parties (total 10 FBR signed MOU for data to establish data PRA. Establishment of for PRA), accessible sharing. warehouse is in data warehouse is with taxpayer’s progress. expected to complete in CNIC/Name/STN. FY25. Date -- 30-Jun-2023 29-Feb-2024 -- Finance Department is working with three revenue authorities of Punjab on implementation of this indicator. The data integration plan has been approved. PRA has established data linkages with 6 third parties including excise, taxation and narcotics control department, Punjab food autohrity, Punjab employees and social securty institution, agriculture department data (mandi app with data of aarti or middle-man/commission agent of agricultural products), school education department (private education providers registration information system and schools owner’s data), and food department (wheat procurement, farmer data). FD has confirmed readiness of BOR and ETNCD databases (selected taxes) for linkage with PRA. The Comments evidence is being reviewed by TPV firm to confirm the achivement. FD is working with PITB and consultants to establish data warehouse. A knowledge sharing session will be organized between Punjab, KP and FBR on data sharing arrangements. Finance Department plans to hire firm to assess readiness of database linkage and to design data warehouse. A knowledge sharing session will be organized between Punjab, KP and FBR on data sharing arrangements. 4/8/2024 Page 11 of 11