FOR OFFICIAL USE ONLY Report No: RES58293 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF THE PUBLIC FINANCIAL MANAGEMENT AND ACCOUNTABILITY TO SUPPORT SERVICE DELIVERY PROGRAM FOR RESULTS APPROVED ON DECEMBER 19, 2017 TO THE ISLAMIC REPUBLIC OF PAKISTAN Governance Global Practice South Asia Region Regional Vice President: Martin Raiser Country Director: Najy Benhassine Regional Director: Mathew A. Verghis Practice Manager: Hisham Ahmed Waly Task Team Leaders: Akmal Minallah, David I, Haider Raza The World Bank PFM and accountability to support service delivery PforR (P157507) ABBREVIATIONS AND ACRONYMS AMIS Audit Management Information System DCS Direct Credit Scheme FCC Fiscal Coordination Committee KPK Khyber Pakhtunkhwa PAO Principal Accounting Officer PAC Public Accounts Committee PDO Project Development Objective PforR Program for Results PFM Public Financial Management RTGS Real Time Gross Settlement TSA Treasury Single Accounting The World Bank PFM and accountability to support service delivery PforR (P157507) DATA SHEET (PFM and accountability to support service delivery PforR - P157507) BASIC DATA Project ID Financing Instrument IPF Component P157507 Program-for-Results Financing No Approval Date Current Closing Date 19-Dec-2017 31-Oct-2023 Organizations Borrower Responsible Agency Islamic Republic of Pakistan Program Development Objective(s) The project development objective (PDO) is to improve public financial management and procurement systems for better management and accountability in service delivery for health and education sectors. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date IDA-61700 19-Dec-2017 29-Dec-2017 29-Dec-2017 31-Oct-2023 380.00 342.41 37.59 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING A. Program Status 1. The World Bank’s Board of Executive Directors approved the Public Financial Management (PFM) and Accountability for Service Delivery Program for Results (PforR, P157507) on December 19, 2017. The Program became effective on December 29, 2017. The Program was restructured twice: (i) on November 22, 2021 to extend the closing date to June 30, 2023 and to reduce the size of the Program to US$380 million; and (ii) on June 25, 2023, to extend the closing date to October 31, 2023. This proposed restructuring aims to reallocate financing across Disbursement Linked Results (DLRs). 2. The Program aims to improve PFM and procurement systems for better management and accountability in service delivery for health and education sectors, through the following five key result areas:  Strengthening the Legal Framework and Internal Management Systems in Line Ministries and Service Delivery Units (US$110 million);  Improved Procurement Performance (US$45 million);  Payroll and Pension Payment Systems (US$65 million);  External Audit, Legislative Scrutiny and Social Accountability (US$80 million); and  Performance-based Grants (US$80 million). 3. The Program continues to operate under a strong authorizing environment, as reflected in the Government of Pakistan’s PFM Reform Strategy (2017) and initiatives following the PFM Act 2019, such as the federal government’s transitioning toward the Treasury Single Accounting (TSA) system, decentralized payment process and delegation of full financial powers to Principal Accounting Officers (PAOs) to support the management of budgets for improved service delivery. 4. Program implementation remains on track, with progress towards achievement of the Program Development Objective (PDO) rated Moderately Satisfactory and Implementation Progress rated Satisfactory. Progress against implementation of the five key result areas and achievement of the PDO level indicators is as follows:  Result Area 1 focuses on strengthening the legal framework and internal management systems of line ministries and service units. The enactment of a PFM Law has helped empower the principal accounting officers, lay principals and foundation for TSA and improve discipline in Public Investment Management. A Cash Management and TSA policy (2019-2029) has also been implemented to save costs and increase efficiency in cash management. The State Bank has linked the bank accounts in commercial banks to the tune of PKRs 150 billion through a sweeping arrangement under the Real Time Gross Settlement (RTGS) system. Electronic Fund Transfer is implemented in the federal government and expected to be replicated across the country. The budget reforms mandated by the PFM Law have contributed to improvements in the Budget Transparency Index Score of Pakistan from 28 points in 2017 to 46 points in 2022.  Result Area 2 pertains to improved procurement performance. The E-Procurement system has been piloted in the Federal Ministries of Health and Education and has been adopted by the Government Punjab. A Memorandum of Understanding was signed between the Federal Public Procurement Regulatory Authority (PPRA) and Provincial PPRAs. Punjab, Sindh and Khyber Pakhtunkhwa (KPK) are adopting the systems developed by the Federal Government and Baluchistan has already implemented an e-procurement system that will be aligned with the Federal System. Improvements in the Public Procurement Rules and regulations are being undertaken to support seamless implementation of the e-Procurement systems and interoperability with different entities. The World Bank PFM and accountability to support service delivery PforR (P157507)  Result Area 3 concerns payroll and pension payment systems. The federal government and all provinces have implemented a Direct Credit Scheme (DCS) for pension payments, including verification under the National Database and Registration Authority. Over 90 percent civil pensioners of the federal government have been brought under the DCS, 100 percent in Punjab, Baluchistan, Sindh, and KPK. This has helped in eliminating, thousands of ghost pensioners. Personnel data is being reconciled with provincial payrolls in KPK, Punjab and Baluchistan, thereby improving internal controls of salary expenditure. In Punjab, while the entire payroll data is reconciled, complete change over may not be completed before the end of the Program.  Result Area 4 addresses external audit, legislative scrutiny and social accountability. An Audit Management Information System (AMIS) was launched to enhance monitoring of the entire audit cycle. The new system provides transparent tracking of each step of the audit cycle, which includes audit planning, quality assurance, execution, reporting, and follow up. The Auditor General of Pakistan has a backlog of 40,000 audit recommendations. These audit recommendations are, for the first time, shifted from manual to digital mode to enable auditors and members of the Public Accounts Committee (PAC) to sift through the audit reports, reduce redundancies and duplications, and thus effectively follow up on the material audit recommendations.  Result Area 5 provides incentives to improve PFM performance through performance-based grants. The Finance Division has approved recommendations from the Fiscal Coordination Committee’s (FCC) regarding performance grants to provinces to incentivize provincial governments for implementing federal PFM reforms. All provinces have enacted PFM Laws, initiated the implementation of a single e-procurement system in the federal government and three provinces, and adopted electronic pension payments, online payment system, and citizen budgets. The performance grants will support uniformity of sector reforms across all government units. B. Rationale for Restructuring 5. Three scalable Disbursement Linked Results are unlikely to be completed by the closure of the Program. These are: a. DLR 1.6: Less than 13 percent variance in functional expenditure composition for health and education as measured by variation between original approved budget and actual expenditures (US$ 5 million, of which US$1 million cannot be achieved). This DLR is time-bound, with fixed targets that cannot be adjusted. The variance for this DLR is calculated for the fiscal year 2021-22, during which the governments faced challenges due to the aftermath of Covid-19. As a result, federal government was unable to achieve the target variance. b. DLR 1.7: Less than 10 percent variance in functional expenditure composition for health and education as measured by variation between original approved budget and actual expenditures (US$5 million, of which US$2 million cannot be achieved). Two of four provinces are unlikely to meet the target due to the impact of the 2022 flood disaster faced by the country. c. DLR 4.6: Pilots replicated across one additional provincial government (US$2.5 million, of which US$2.5 million cannot be achieved). This DLR, which supports the government's integration of budgeting and accounting systems for personnel data, is underway, but unlikely to be achieved by the closing date. The World Bank PFM and accountability to support service delivery PforR (P157507) 6. The Ministry of Economic Affairs has accordingly requested on October 18, 2023 that the funds attached to these DLRs, in the amount of US$5.5 million, are reallocated to DLR 2.7: Additional 5 percent of baseline or additional PKRs 50 billion brought under the TSA. The Treasury Single Account (TSA) is a key intervention aimed at consolidating and centralizing government funds. The PFM program has supported the inclusion of PKR 150 billion into the TSA. The TSA also has the potential to create savings of PKR 33 billion – or an annual saving of US$117 million. The allocation of this DLR was reduced in the first restructuring due to limited progress. The increase in allocation by US$ 5.5 million partially restores the original assessment of the level of ambition and effort required to make this significant achievement. II. DESCRIPTION OF PROPOSED CHANGES 7. This Program restructuring proposes the following changes which are presented in the table below: a. DLRs 1.6, 1.7 will be revalued while DLR 4.6 will be dropped. b. Reallocate an additional amount of US$5.5 million to DLR 2.7. DLR Description Original Revised Allocation (in Allocation US$ Million) (in US$ million) DLR 1.6 Less than 13 percent variance in functional expenditure 5 4 composition for health and education as measured by variation between original approved budget and actual expenditures. DLR 1.7 Less than 10 percent variance in functional expenditure 5 3 composition for health and education as measured by variation between original approved budget and actual expenditures. DLR 2.7 Additional 5 percent of baseline or additional PKRs 50 5.5 10.5 billion brought under the TSA DLR 4.6 DLR 4.6: Pilots replicated across one additional provincial 2.5 0 government. III. SUMMARY OF CHANGES Changed Not Changed Reallocation between and/or Change in DLI ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ The World Bank PFM and accountability to support service delivery PforR (P157507) Change in Program Scope ✔ Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Cancellations Proposed ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_EA_TABLE . The World Bank PFM and accountability to support service delivery PforR (P157507) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The project development objective (PDO) is to improve public financial management and procurement systems for better management and accountability in service delivery for health and education sectors. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Strengthening the legal framework and internal management systems in line ministries and SDUs Variance in health and Less than 25 percent Less than 15 percent Less than 13 percent Less than 10 percent education for fiscal variance in functional variance in functional Less than 10 percent variance in functional variance in functional year 2016-17 expenditure expenditure variance in functional expenditure expenditure (Federal) - 26% composition for composition for expenditure Reduction of variance in composition for composition for health and education health and education composition for health functional expenditure (Punjab) - 21 % health and education health and education PFM law enacted as measured by as measured by and education as composition for health and (Khyber Pakhunkhwa) - as measured by as measured by variation between variation between measured by variation education (Text) 29% variation between variation between original approved original approved between original (Sindh) - 11% for fiscal original approved original approved budget and actual budget and actual approved budget and year 2016-17 budget and actual budget and actual expenditures. (FY expenditures. (FY actual expenditures. expenditures. expenditures. (Baluchistan) - 10% 2018-19) 2019-20) Page 6 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 DLR 2.1: Auditor General of Pakistan (AGP) to complete special survey of government accounts in commercial banks. (FY 2016-17) Federal (prior result) Government Deposits (US$10m) of PKRs 0.916 trillion 10% of baseline (PKRs Reduction in cash held parked in commercial 100 billion) brought DLR 2.2: The 15% of the baseline or outside the Recipient’s bank accounts of under the TSA (US $ which PKRs 0 billion Recipient’s Ministry Deleted Deleted Deleted PKRs 150 billion Treasury Single Account 1.5 million for PKRs of Finance adopts brought into the TSA (Text) was brought into the 10 billion brought TSA. accounting under the TSA) framework for daily consolidation of all government cash balances as part of the TSA. (prior result) (US$10m) Improved procurement performance Percentage of vendor PPRA approves the Publication of 50 to 90 percent of 50 to 90 percent of e-procurement pilot contracts processed notification for the mandatory standard Development of an e- targeted packages targeted procurement 0.00 test run in identified through the Recipient’s e- amendment to the bidding documents Procurement system (whose contract packages (whose entities procurement system (Text) Recipient’s Public for goods and amount is more than contract amount is Page 7 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Procurement Rules request for proposal PKR 5 million for more than PKR 5 2004 (Rules 10, 19, for consultancy goods and services million for goods and 24, and 33). services and and more than PKR services and more than contracts for 50 million for works) PKR 50 million for specialized to be processed works) to be processed procurements, e.g., through e- through e- ICT, pharmaceuticals, procurement for procurement for framework contracts. targeted primary targeted primary health and primary health and primary education sectors. education sectors. External audit, legislative scrutiny, and social accountability. Percentage of audit Establish AMIS recommendations Audit Management Center and train processed through the Information System officials of AMIS 40.00 0.60 0.80 80.00 80.00 Audit Management does not exist Center and PAC Information System. (Text) Secretariat Performance-based grant Innovation award Innovation award Innovation award Innovation award Innovation award provided from the provided from the provided from the provided from the provided from the Ministry of Finance of Ministry of Finance of Ministry of Finance of Ministry of Finance of Ministry of Finance of Percentage of fiscal the Recipient to the the Recipient to the the Recipient to the the Recipient to the the Recipient to the performance and service Fiscal Coordination provincial provincial provincial provincial 0.00 provincial delivery indicators met by Committee notified governments for at governments for at governments for at governments for at governments for at the provinces (Text) least 10 percent up to least 25 percent up toleast 35 percent up to least 35 percent up to least 35 percent up to 20 percent of fiscal 50 percent of fiscal 70 percent of fiscal 70 percent of fiscal 70 percent of fiscal performance and performance and performance and performance and performance and service delivery service delivery service delivery service delivery Page 8 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 indicators met. indicators met. indicators met. indicators met. service delivery indicators met. PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Strengthening legal framework and internal management systems in line ministries,service delivery Regulatory Framework Notification of revised updated (PFM law, Legal Framework for Rules under PFM Act updated delegation of Accounting Policy Functions and Powers Public Financial for delegation of Treasury Rule to General Financial power, General Financial and Procedure of PAO, Receipt and Management in terms PFM Act enacted. powers to Principal support reciept and Rules updated and Rules, Accounting Policies Manual and Chart of Payment Rules, of Law and Subsidiary Accounting Officers payments notified notified and Procedures Manual and Accounts updated General Financial Rules does not exist notified Chart of Accounts. (Text) Rules, APPM and Chart of Accounts) Internal Audit Regulatory framework PFM Law approved Internal Audi Plan for Internal Audit Internal Audit Reports arrangements modernized Internal Audit Internal Audi for internal audit with provisions for Health and Education Reports for Health for Health and in health and education function notified Committee notified function does not exist internal audit prepared and Education issued Education issued departments. (Text) Improve the timeliness of Upload Comprehensive establish e-forms for Comprehensive comprehensive financial Dashboard for fiscal Implement comprehensive TSA Develop Interface reports published on communicating and reports published on and nonfinancial reporting information does not dashboard to report data into the with State Bank of Ministry of Finance consolidating non- Ministry of Finance by linkage or interface exist on fiscal information Dashboard on a Pakistan Dashboard and FABS data Dashboard and (Text) monthly basis and updated at least on Page 9 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 initiate reporting to monthly basis updated at least on higher management monthly basis PFM Act Approved Cash Legal Framework Regulatory incorporating Cash Management TSA rules and Management Policy with Regulatory framework including law and framework for Cash principals of cash Framework approved Cash Management accounting accounting framework for for Cash Management subsidiary rules for Management does management by the Cabinet Unit established framework for MDAs daily consolidation of all does not exist cash management in not exist approved by the notified government (Text) place parliament External audit, legislative scrutiny, and social accountability Reports of PAC hearings on audit report on annual financial statements are No No Yes Yes Yes Yes Yes published on the website (Yes/No) Financial transactions of health and education Software for Training manuals for function recorded in FABS 0.00 Computer Assisted 0.20 0.60 0.70 0.80 CAATs prepared audited through Computer Audits aquired Ai (Text) Citizen Portal set up to facilitate Citizen Participatory Audits, No No Yes Yes Yes Yes Yes including fraud hotline for feedback (Text) Citizen Participatory Audit 0.00 0.00 0.00 0.00 0.00 2.00 4.00 reports that cover Page 10 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 indicators in the ISDR published. (Number) Improved procurement performance Number of departments with vendor claims for health and education 0.00 0.00 0.00 0.00 0.00 2.00 4.00 departments paid at accounting offices. electronically (Number) Bank reconciliation of all active government bank accounts in the TSA takes 8.00 8.00 8.00 8.00 6.00 4.00 4.00 place at least monthly at (Weeks) Percent of budget derived from procurement plans in selected federal ministries 0.00 0.00 0.00 0.00 50.00 60.00 90.00 of health and education (Percentage) Databases or records are maintained for contracts, including data on what has 0.00 0.00 0.00 0.00 0.00 0.00 50.00 been procured, value o (Percentage) E-procurement guidelines issued and Supplier 0.00 0.00 0.00 0.00 0.00 1.00 2.00 Relations Management Page 11 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Module operational in health and education (Number) End user training in e- Procurement system 0.00 0.00 0.00 0.00 0.00 40.00 80.00 (Number) Performance-based grant Incentive system by the FCC to improve fiscal performance and service No Yes Yes Yes Yes Yes Yes delivery in selected areas (Yes/No) Innovative applications used to report and account 0.00 0.00 1.00 2.00 3.00 4.00 4.00 for funds utilized. (Number) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01354675 ACTION Reduction of variance in functional expenditure composition for health and education to improve the reliability of the DLI 1 budget Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 70,000,000.00 71.43 Period Value Allocated Amount (USD) Formula Page 12 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) Federal - 26% KPK - 29% Punjab - 22% Sindh - 11% Baseline Baluchistan - 10% DLR 1.1: National Assembly of the Recipient approves the Federal Consolidated Fund and Public Accounts (Maintenance and Operations) Act. (prior result) (US$20m) DLR 1.2: Auditor General of FY 2017/18 30,000,000.00 Pakistan (AGP) in accordance with Article 170 of the Pakistan Constitution 1973, notifies a standardized expenditure control procedure for online bill submission. (US$10m) DLR 1.3: Less than 25 percent variance in functional expenditure composition for health and education FY2018/19 20,000,000.00 as measured by variation between original approved budget and actual expenditures. Fy 2019/20 DLR 1.4 Deleted 0.00 DLR 1.5:Less than 15 percent variance in functional expenditure composition for health and education as measured by variation between original FY 2020/21 10,000,000.00 US $ 2 million for each government approved budget and actual expenditures for federal and each of the provincial governments (2 million for each government). DLR 1.6:Less than 13 percent variance in functional expenditure composition for health and education as measured by variation between original FY 2021/22 5,000,000.00 US $ 1 million for each government approved budget and actual expenditures for federal and each of the provincial governments (1 million for each government). DLR 1.7: Less than 10 percent variance in functional FY 2022/23 expenditure composition for health and education 5,000,000.00 US $ 1 million for each government as measured by variation between original Page 13 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) approved budget and actual expenditures (US $ 1 million for each government) DLI IN01354676 ACTION DLI 2 Reduction in cash held outside the Recipient’s Treasury Single Account Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 40,000,000.00 50.00 Period Value Allocated Amount (USD) Formula (FY 2016-17) Federal Government Deposits of PKRs Baseline 0.916 trillion parked in commercial bank accounts of which PKRs 0 billion was brought into the TSA. DLR 2.1: Auditor General of Pakistan (AGP) to complete special survey of government accounts in commercial banks. (prior result) (US$10m)DLR 2.2: FY 2017/18 The Recipient’s Ministry of Finance adopts 20,000,000.00 accounting framework for daily consolidation of all government cash balances as part of the TSA. (prior result) (US$10m) FY2018/19 DLR 2.3 : Deleted 0.00 Fy 2019/20 DLR 2.4: Deleted 0.00 FY 2020/21 DLR 2.5: Deleted 0.00 DLR 2.6 10% of baseline (PKRs 100 billion) brought FY 2021/22 under the TSA (US $ 1 million for PKRs 10 billion 15,000,000.00 US $ 1.5 million for PKRs 10 billion brought in the TSA) DLR 2.7 Additional 5% of baseline or additional PKRs US $ 1 million for PKRs 10 billion above FY 2022/23 5,000,000.00 50 billion brought under the TSA (US $ 1 million for PKRs 100 billion brought under the TSA Page 14 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) PKRs 10 billion above PKRs 100 billion brought in the TSA) DLI IN01354677 ACTION DLI 3 Percentage of vendor contracts processed through the Recipient’s e-procurement system Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 45,000,000.00 44.44 Period Value Allocated Amount (USD) Formula PPRA to establish baseline data based on selected Baseline methodology for assessing procurement systems indicators by March 2018. DLR 3.1: PPRA approves the notification for the FY 2017/18 amendment to the Recipient’s Public Procurement 20,000,000.00 Rules 2004 (Rules 10, 19, 24, and 33). DLR 3.2: Publication of mandatory standard bidding documents for goods and request for proposal for FY2018/19 consultancy services and contracts for specialized 10,000,000.00 procurements, e.g., ICT, pharmaceuticals, framework contracts. Fy 2019/20 DLR 3.3 Deleted 0.00 FY 2020/21 DLR 3.4 Deleted DLR 3.5 Deleted 0.00 DLR 3.6: e-procurement pilot test run in identified entities (2.5) DLR 3.7: Intra-operability framework, FY 2021/22 and process mapping signed off between the 5,000,000.00 federal and provincial PPRAs and key federal entities. (2.5) Page 15 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) DLR 3.8: 50 to 90 percent of targeted procurement packages (whose contract amount is more than PKR 5 million for goods and services and more than PKR US $ 6 million on achievement of 50% 50 million for works) to be processed through e- FY 2022/23 10,000,000.00 target. US% 1 million for each procurement for targeted primary health and additional 10% primary education sectors. (US $ 6 million on achievement of 50% target. US% 1 million for each additional 10%) DLI IN01354678 ACTION Percentage of alignment of information and identification numbers for individual primary school teachers and health DLI 4 workers related to their place of work and salaries Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 35,000,000.00 85.71 Period Value Allocated Amount (USD) Formula Individual data in the OM are not aligned with the Baseline ones in the HR records maintained in the health and education departments DLR 4.1: Completion of mapping of DDO codes to unique primary schools and basic health units in pilot districts. (US$5m)DLR 4.2: Completion of FY 2017/18 10,000,000.00 standardization of sanctioned position codes between the budget and payroll in pilot districts. (US$5m) DLR 4.3: 40 percent of primary school teachers and FY2018/19 health workers tagged against unique primary 10,000,000.00 schools and basic health units in pilot districts. DLR 4.4: 60 percent of primary school teachers and Fy 2019/20 health workers tagged against unique primary 5,000,000.00 schools and basic health units in pilot districts. Page 16 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) DLR 4.5: 80 percent of primary school teachers and FY 2020/21 health workers tagged against unique primary 5,000,000.00 schools and basic health units in pilot districts. DLR 4.6: Pilots replicated across one provincial or FY 2021/22 2,500,000.00 federal government DLR 4.6: Pilots replicated across one additional FY 2022/23 2,500,000.00 provincial government DLI IN01354679 ACTION Percentage of pensioners, disaggregated by gender, authenticated against NADRA computerized national identity card, DLI 5 paid through the Direct Credit Scheme no later than the following pension payment cy Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 30,000,000.00 83.33 Period Value Allocated Amount (USD) Formula Baseline DCS paid 35% FY 2017/18 DLR 5.1:50% 10,000,000.00 FY2018/19 DLR 5.2: 70% 10,000,000.00 Fy 2019/20 DLR 5.3: 80% 5,000,000.00 FY 2020/21 DLR 5.4 Deleted 0.00 DLR 5.5 85% (US 500,000 for each additional 1% US 500,000 for each additional 1% FY 2021/22 2,500,000.00 above 80%) above 80% DLR 5.6: 90% (US 500,000 for each additional 1% US 500,000 for each additional 1% FY 2022/23 2,500,000.00 above 85%) above 85% Page 17 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) DLI IN01354680 ACTION DLI 6 Percentage of audit recommendations processed through the Audit Management Information System. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 50,000,000.00 80.00 Period Value Allocated Amount (USD) Formula Baseline AMIS does not exist. DLR 6.1: AMIS Competency Wing established and FY 2017/18 10,000,000.00 audit and PAC staff trained DLR 6.2: 40 percent of PAC recommendations for health sector effectively followed up and reports FY2018/19 10,000,000.00 published on an official website or by any other means easily accessible to the public DLR 6.3: 60 percent of PAC recommendations for health and education sectors effectively followed up Fy 2019/20 10,000,000.00 and reports published on an official website or by any other means easily accessible to the public. DLR 6.4: 80 percent of PAC recommendations for health and education sectors effectively followed-up FY 2020/21 10,000,000.00 and reports published on an official website or by any other means easily accessible to the public DLR 6.5: 80 percent of PAC recommendations for health, education and at least two more sectors FY 2021/22 effectively followed-up and reports published on an 5,000,000.00 official website or by any other means easily accessible to the public DLR 6.6: 80 percent of PAC recommendations for FY 2022/23 health, education and at least four more sectors 5,000,000.00 effectively followed-up and reports published on an Page 18 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) official website or by any other means easily accessible to the public DLI IN01354681 ACTION DLI 7 Increased citizen access to key fiscal information on health and education. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 30,000,000.00 50.00 Period Value Allocated Amount (USD) Formula Baseline FY 16/17 Budget FY 2017/18 DLR 7.1 Deleted 0.00 DLR 7.2:Integrated Service Delivery Report (ISDR) FY2018/19 for education sector uploaded in Open Public 10,000,000.00 Finance Data Portal. DLR 7.3:ISDR for education and health sectors Fy 2019/20 5,000,000.00 uploaded in Open Public Finance Data Portal. DLR 7.4:ISDR for education and health sectors FY 2020/21 5,000,000.00 uploaded in Open Public Finance Data Portal. DLR 7.5: Integrated Service Delivery Report (ISDR) FY 2021/22 for education , health and povety alleviation sector 5,000,000.00 sector uploaded in Open Public Finance Data Portal. DLR 7.6: Government wide citizen budget execution FY 2022/23 5,000,000.00 reports uploaded in Open Public Finance Data Portal Page 19 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) DLI IN01354682 ACTION DLI 8 Percentage of fiscal performance and service delivery indicators met by the provinces. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 80,000,000.00 82.64 Period Value Allocated Amount (USD) Formula Baseline No existing coordination mechanism DLR 8.1: Establishment of Fiscal Coordination Committee (FCC) by the Council for Common Interests (CCI). (US$10m) (prior result) DLR 8.2: FY 2017/18 Establishment and approval of an incentive system 20,000,000.00 by the FCC to improve fiscal performance and service delivery in selected areas. (US$10m) (prior result) DLR 8.3: Innovation award provided from the Ministry of Finance of the Recipient to the provincial FY2018/19 governments for at least 10 percent up to 20 20,000,000.00 percent of fiscal performance and service delivery indicators met. DLR 8.4: Innovation award provided from the Ministry of Finance of the Recipient to the provincial Fy 2019/20 governments for at least 25 percent up to 50 20,000,000.00 percent of fiscal performance and service delivery indicators met DLR 8.5:Innovation award provided from the Ministry of Finance of the Recipient to the provincial FY 2020/21 governments for at least 35 percent up to 70 20,000,000.00 percent of fiscal performance and service delivery indicators met. Page 20 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) FY 2021/22 0.00 FY 2022/23 0.00 Page 21 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement Complete third surveillance audit for ISO 27001:2013 Information Security Management Services Certification. Other CGA Due Date 30-Sep-2020 Report Undertake Open Data Readiness Assessment and adopt an implementation plan. Technical PPRA Due Date 30-Sep-2020 Data Readiness Report Undertake pension sustainability analysis: pension liabilities to be informed by sound actuarial analysis, coupled with a system in place for funding these Auditor General Pension Liability Assessment liabilities. Technical of Pakistan Due Date 31-May-2019 Report Sustaining activities for collaborative leadership, change management, and strategic communication, including media outreach to citizens presenting the benefits of the reform program and seeking feedback for Ministry of course correction. Technical Finance. Due Date 30-Jun-2018 Nomination of Committees PPRAs to Public ascertain KPIs and Technical Procurement Recurrent Semi-Annually Notification of KPIs Page 22 of 23 The World Bank PFM and accountability to support service delivery PforR (P157507) baselines to Regulatory monitor the Authority reform progress. A robust grievance redress mechanism in place improving upon the current practices, and available to each ministry, vendors, contractors and CGA, AGP, PPRA, pensioners Technical MoF Due Date 30-Jun-2018 Citizen Portal A mechanism for enhanced citizen engagement in measuring program performance/impr ovement in service delivery (specifically in education), participating in Performance Audits and endorsing open Performance audit of education data Technical AGP Due Date 23-Apr-2021 and health indicators . Page 23 of 23