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: 6 | ARCHIVED on 05-Oct-2023 | ISR57940 | Created by: Irum Touqeer on 18-Sep-2023 | Modified by: Akmal Minallah on 02-Oct-2023 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 has achieved significant milestones, including the enactment of the Public Financial Management Law and the approval and implementation of the Pension Reform Plan. Additionally, amendments to the Punjab Public Procurement Regulatory Authority (PPPRA) rules have been made to support the implementation of an e-Procurement system, and the Standard Bidding Documents have been notified. The Medium- Term Fiscal Framework and the Fiscal Risks Statement have also been published on the website of the Government of Punjab (GoPb). Furthermore, the number of citizens accessing government digital services has exceeded expectations, with 6.8 million citizens being able to access these services, surpassing the target of 1.5 million citizens. The Accountant General Punjab has actively collaborated with the Punjab Information Technology Board to align with the reform efforts of the GoPb. The Cabinet has approved the Punjab Revenue Mobilization Strategy and Tax Data Integration Plan. Progress has also been made in hiring staff for the Public Financial Management Unit (PFMU) and Program Support Unit (PSU). 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 0.00 206.74 97.26 68% 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 10/5/2023 Page 1 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Program Action Plan Action Description 1. Establish PFM Unit Source DLI# Responsibility Timing Timing Value Status 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 30-Nov-2023 In Progress Systems Completion Measurement Procedures notified by Environment Protection Agency The consultant hiring for developing SOPs is delayed. The TORs for consultant is now reviewed, finalized and Comments approved by Bank's E&S staff and TTL, and hiring is in process. After approval of SOPs by EPA, training will be conducted. 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 A consolidated report for first year on compliance with ACGs shared by the Finance Department for Bank’s review Comments and comments. 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. 5. A robust grievance redress mechanism in place and integrating all existing GRM systems under one focal point Action Description (PITB) 10/5/2023 Page 2 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&D Department Due Date 30-Dec-2023 In Progress Systems Completion Measurement Complaints' log available for each tier of complaints 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 In Progress Completion Measurement Approval by the Cabinet Comments The draft Punjab Digital Policy has a chapter on personal data management. It is being discussed with P&D Board. 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 10/5/2023 Page 3 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) 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 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 IN01344255 ►Variance between original budget and actual expenditure composition (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The average variance of the Average of three years Average of three years MTFF prepared and previous three years Value variance is 18%. (2015- variance (FY22 – presented to the Cabinet (2019-20, 2020- 18). FY24) is <10% 21 and 2021-22) is 7.1% Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 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 IN01344572 ►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 30-Jun-2022 15-Sep-2023 30-Jun-2025 Increased number of citizens using specific public digital services. The target is over achieved Comments Improved collection of own source revenue IN01344571 10/5/2023 Page 4 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) ►Value of own-source tax revenue (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PKRs 228.65276.693 billion (FY21FY22, revised estimates). First drafts of impact assessment of COVID on Own-source tax PKRs 191 billion (FY20, revenue approved and PKRs 310 billion (FY23, Value collection of Rs.300 RE) published on the website revised estimates) billion. of Finance Department, and Punjab Revenue mobilization strategy and implementation plan have been prepared. Date 30-Jun-2020 30-Jun-2022 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, and PKR. 286 billion in FY22. The collections were RS. 310 billion (revised estimates) in FY23. The COVID impact assessment on revenue and Punjab revenue mobilization strategy Comments and implementation plan were approved and published on the website of the Finance Department. The revenue departments are preparing their detailed annual plans for the implementation of the strategy Intermediate Results Indicators by Results Areas Strengthening budget formulation and fiscal risk management IN01344573 ►Moderate and reduce the annual pension cost of GoPb (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Policy Framework At least six In FY19 (30th June), for Improved (cumulative) key Punjab civil service One parametric reform Value Management of Fiscal parameters pension cost 15% of implemented Risks presented to the implemented of the budget cabinet Pension Reform Plan Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 30-Jun-2025 Pension Plan approved by the Cabinet Comments IN01344576 ►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 No policy guidelines on publication of (a) In FY20 (30th June), no contracting & monitoring commodity debt stock, policy guidelines on of commodity debt exist with breakdown by contracting & monitoring along with strategy to commodity and of commodity debt exist reduce commodity debt PKRs 395 billion of creditors, together with Value along with strategy to flow, as well as no Commodity Debt retired outstanding mark-up reduce commodity debt detailed disclosure of position, and (b) flow as well as no detailed commodity debt stock, annual interest cost disclosure of commodity interest cost and and subsidy provided debt stock. subsidies. against commodity operations. 10/5/2023 Page 5 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 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. IN01344579 ►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 30-Jun-2022 15-Sep-2023 30-Jun-2025 Consultation with the stake holders are carried out to finalize the Disaster Risk Financing Strategy Comments IN01344582 ►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 30-Jun-2022 15-Sep-2023 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 IN01344574 ►Operational budget expenditure processed through e-procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Standard bidding Five procuring documents prepared, agencies processes and rules are being Piloting of e- cumulative 30% of e-procurement system revised. Both are yet to Value Procurement system their procurable does not exist. be approved by the completed operational budget Board. e-Procurement expenditure through e- pilot departments have Procurement been notified. Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 30-Jun-2025 Bidding documents and revision to rules approved. Comments IN01344577 ►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 30-Jun-2022 15-Sep-2023 30-Jun-2025 Increased public services provided online through a single identity platform. This is on track. Comments IN01344580 10/5/2023 Page 6 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) ►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 30-Jun-2022 15-Sep-2023 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. IN01344583 ►Number of Punjab Urban Local Areas reporting on revenues and expenditure position (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 19.00 119.00 169.00 Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 30-Jun-2025 Comments Improved collection of own source revenue IN01344575 ►Increase in number of registered services sales taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82,285.00 109,950.00 116,229.00 145,000.00 Date 30-Jun-2020 30-Jun-2022 30-Jun-2023 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, and 116, 229 on June 30, 2023. Comments PRA has provided user guides on its website for registration, filing, and payment. A facilitation officer is also assigned to help taxpayers in person IN01344578 ►Increase in registered taxpayers who filed STS returns in previous year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 23,947.00 66,199.00 40,109.00 77,500.00 Date 30-Jun-2020 30-Jun-2022 30-Jun-2023 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, and 40,109 in FY23. 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. A facilitation officer is also assigned to help taxpayers in person. 10/5/2023 Page 7 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) IN01344581 ►Database integration in tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data integration plan Draft data integration No linkages among has been approved. plan is being discussed Punjab tax authorities Punjab tax authorities’ PRA has created data and yet to be approved. have access to shared databases or with third- linkage with 6 third Value PRA is in discussion with data with links to third parties; PRA & FBR parties. The plan to has established data parties (at least total signed MOU for data establish data linkages with 4 3 third 10 for PRA), sharing warehouse is in parties for data linkages. progress. Date 29-May-2020 30-Jun-2022 15-Sep-2023 31-Jul-2025 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 Comments information system and schools owner’s data), and food department (wheat procurement, farmer data). 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. IN01344584 ►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, Value Monitoring of arrears and refunds, appeals, payment for 8 taxes of refunds and appeals refunds processing is yet litigation and feedback Punjab) processing are yet to be to be reviewed for systems simplified and reviewed for simplification and automated. simplification and automation. automation. Date 30-Jun-2020 30-Jun-2022 15-Sep-2023 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. The TORs have been developed for assignment and soon consultants will be 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 Comments payment facilities are also available. As of May 2022, total 15 million transactions were conducted and RS. 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. IN01344585 ►Enhanced capacity for revenue generation from real estate (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Substantial difference Review of legal Review of legal Complete properties’ between official and framework and framework and market valuation market values of procedures for valuation procedures for valuation studies for 6 cities properties; No market of properties to align it of properties to align it (cumulative) using valuation study conducted with modern techniques with modern techniques 10/5/2023 Page 8 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) for public and private is not available as yet. is not available as yet. modern valuation properties Valuation unit has not yet Valuation unit has not methodology. been established. yet been established. Date 30-Jun-2020 30-Jun-2021 15-Sep-2023 30-Jun-2025 Building capacity for revenue generation from real estate by improving the valuation system in six Comments zones. Consultants will soon 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 The Policy Framework DLR 1.5: At least six for Improved (cumulative) key In FY19 (30th June), Management of Fiscal One parametric reform parameters Value Punjab civil service pension Risks is published on the approved implemented of the cost 15% of budget website of Finance Pension Reform Department Plan Date -- 30-Jun-2022 15-Sep-2023 -- 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 in original budget Medium Term Fiscal composition by function the and actual Framework presented to Value was an average of 18% previous three years expenditure the Cabinet and the during last three years. (2019-20, 2020- composition is less Provincial Assembly (2015-16, 2016-17 and 21 and 2021-22) is 7.1%. than 10% by 2017-18). program administrative or functional classification Date -- 30-Jun-2022 15-Sep-2023 -- 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 10/5/2023 Page 9 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Standard bidding DLR 3.6: five documents prepared, Implementing and rules are being Entities processes e-procurement system revised. Both are yet to Pilot of e-Procurement 30% of Operational Value does not exist. be approved by the system completed Budget Board. e-Procurement Expenditures pilot departments have through e- been notified procurement system Date -- 30-Jun-2022 15-Sep-2023 -- 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 DLR 4.6: Single Value 500,000 4,491,655 6,204,859 of which digital platform 19.65% are female development for ten services Date -- 30-Jun-2021 15-Sep-2023 -- 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 Draft PFC formula with expenditure reports Web based MIS incentives for improving of 319 Urban Local implemented in 16 Urban LG revenue and Areas (cumulative) Local Areas (ULAs) for expenditure recoding is and the provincial Value 119.00 accounting and reporting. prepared, but not yet government System not integrated with approved. 19 ULAs have Government IFMIS expenditure recording DLR 5.6: District system. wise climate expenditure reports published on the website of Finance Department Date -- 30-Jun-2022 14-Sep-2023 -- 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. 10/5/2023 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 PKRs 276.693 billion (FY22, revised estimates). Impact assessment of COVID on DLR 6.6: revenue approved and Implementing published on the website PKRs 310 billion (FY23, Value Rs. 191 billion (FY20, RE) Entity’s own-source of Finance Department, revised estimates) tax collection of Rs and Punjab Revenue 300 billion mobilization strategy and implementation plan have been prepared, but yet to be approved. Date -- 30-Jun-2022 30-Jun-2023 -- As per final figures, Punjab's total own-source tax revenue collection was PKR188.5 billion in FY20, PKR.224 billion in FY21, and PKR. 286 billion in FY22. The collections were RS. 310 billion (revised estimates) in FY23. The COVID impact assessment on revenue and Punjab revenue mobilization strategy and implementation Comments plan were approved and published on the website of the Finance Department. The revenue departments are preparing 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 DLR 7.6: Punjab tax Data integration plan has authorities have No linkages among Punjab been approved. PRA has access to shared tax authorities’ databases PRA has established created data linkage with data with links to Value or with third-parties; PRA & data linkages with 3 third 6 third parties. The plan to third parties (total 10 FBR signed MOU for data parties establish data warehouse for PRA), accessible sharing. is in progress. with taxpayer’s CNIC/Name/STN. Date -- 30-Jun-2022 30-Jun-2023 -- 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 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 Comments schools owner’s data), and food department (wheat procurement, farmer data). 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. 10/5/2023 Page 11 of 11