The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) SOUTH ASIA | Pakistan | Governance Global Practice | Requesting Unit: SACPK | Responsible Unit: ESAC1 IBRD/IDA | Program-for-Results Financing | FY 2019 | Team Leader(s): Lucy Pan, Irum Touqeer Seq No: 8 | ARCHIVED on 11-Dec-2023 | ISR58761 | Created by: Irum Touqeer on 13-Nov-2023 | Modified by: Irum Touqeer on 08-Dec-2023 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) To increase the collection of Khyber Pakhtunkhwa's own source revenues and improve the management of public resources Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Implementation Status and Key Decisions The progress towards achievement of Program Development Objective is satisfactory. Own source tax revenue of the Government of KP has increased from PKR14.3 billion in FY19 to PKR43 billion in FY23. Underpinning this achievement, the filing compliance of the services sales tax has improved from the 51 percent baseline to 77 percent in FY2022. The Urban Immoveable Property Tax (UIPT) records of 7 cities in Abbottabad, Nowshera and Mardan districts have been updated, digitized and linked with the GIS map. Similarly, 22 percent of annual development funds have been allocated to unapproved projects in FY23, compared with 49 percent in FY18. In addition, 90 Tehsil Municipal Authorities have recorded payments in the Financial Management Information System throughout the FY23, supporting transparency and efficient resource management. Under component 2 of the Program, some progress has been noted for the implementation of e-Government functionality, including completion of the business process review for the automation of critical government processes, development and testing of the modules, providing extensive user training, and formal launch of tranche 1 activities (go-live) for selected departments on November 8, 2023. Remaining tranches of the e- government system are expected to be launched during second half of FY24. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162302 IDA-64210 Effective USD 118.00 118.00 0.00 88.82 27.11 77% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162302 IDA-64210 Effective 13-Jun-2019 17-Jun-2019 18-Jun-2019 31-Dec-2024 31-Dec-2024 Program Action Plan 12/11/2023 Page 1 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Develop annual internal audit plan and conduct internal audits of KPRA; KPITB; ETNCD; FD; PD&D and LGD in a Action Description manner and substance satisfactory to the Association Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems FD Recurrent Yearly In Progress Completion Measurement Submission of annual internal audit plan and internal audit report to the Association Comments Internal audit is being operationalized in KPITB, ETNCD and Local Govt. department. The plan is in process. Conduct communication campaigns on tax compliance, Taxpayer Facilitation Centers (TFCs) and on the benefits of Action Description commercialization of government properties Source DLI# Responsibility Timing Timing Value Status FD, KPRA, ETNCD, Technical Recurrent Semi-Annually In Progress BoR At least two communication campaigns per year to be included in the Program Reports submitted by the PCU to the Completion Measurement Association KPRA regularly conducts outreach activities through social media, radio podcasts, and also holds registration drives. Comments Communication on TFCs will initiate near its launch, whereas commercialization of government properties is being reviewed. All commitments entered in NFMIS in four targeted provincial government departments (Communication and Works, Action Description Education, Health and Irrigation) Source DLI# Responsibility Timing Timing Value Status Technical P&DD Recurrent Continuous In Progress Completion Measurement All commitments available in NFMIS in the four targeted provincial government departments Commitments of centralized units of these departments are recorded in NFMIS except for commitments of Self Comments Accounting Units within the Works Departments. These units maintain their separate accounts which are not yet linked with NFMIS. Conduct infrastructure survey based on inclusion and equity for Provincially Administered Tribal Areas and (PATA) Action Description and of former Federally Administered Tribal Areas (FATA) districts Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&DD Due Date 27-Dec-2019 Completed Systems Completion Measurement Survey report submitted to the Association GoKP has developed a Tribal Development Strategy 2020-2030 based on FATA development indicators household Comments survey conducted in FY14, outlining priorities in Infrastructure, Energy, Governance, Local Government, Education, Health and sanitation. 12/11/2023 Page 2 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Action Description Adopt multi-year investment plan for former FATA districts Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&DD Due Date 30-Jun-2020 Completed Systems Completion Measurement Investment plan notified by GoKP Based on Tribal Development Strategy, GoKP has developed three-year program in the form of Accelerated Comments Implementation Programme comprising 206 projects. Departments approved 127 projects of cost RS. 142 billion.In FY20, PKR24 billion released. At least 100 DDOs in participating departments, TMAs, and former FATA districts have PFM certification and FMIS Action Description training Source DLI# Responsibility Timing Timing Value Status Technical FD Due Date 30-Jun-2020 Completed Completion Measurement List of Drawing and Disbursing Officers (DDOs) certified in PFM and trained in FMIS submitted to the Association About 256 officials (including 6 females) were trained on NFMIS at District Account Office level. Total of 398 Drawing Comments and Disbursement Officers (including 45 female)trained in financial management functions. Training in PFM is also being provided. Simplification of the tax system evidenced by the reduction of the number of Own Source Revenue (OSR) tax Action Description instruments Source DLI# Responsibility Timing Timing Value Status Technical FD Due Date 30-Dec-2020 Delayed Completion Measurement Reduction in number of OSR tax instruments from 13 to 8 There is a need for a plan to simplify tax instruments (e.g. eliminate taxes which are counted as double taxation; or Comments piggy back small collections). KP has waived off capital value tax, and given exemptions on professional tax, and land tax. Action Description Develop annual audit plan and conduct annual risk-based audit of selected provincial government departments Source DLI# Responsibility Timing Timing Value Status Technical KPRA Recurrent Yearly In Progress Completion Measurement Submission of annual audit plan and annual audit report to the Association Clarification: risk-based audit is for taxpayers to be conducted by KPRA. KPRA has developed annual audit plan. Comments Audit manual is yet to be developed. A consulting firm is being hired to guide/support on risk based audit methodology. 12/11/2023 Page 3 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Action Description Analyze impact of General Sales Tax on Services (GSTS) and property tax on women Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&DD Due Date 30-Jun-2020 Delayed Systems Completion Measurement Report with recommendations Comments A consulting firm has been hired and the work is expected to be completed in December 2023 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate 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 Substantial Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Substantial Moderate Moderate Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Increase in KP Own Source Revenue IN01367681 ►Increase in own source tax revenues (million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 99.40 91.00 149.00 153.00 Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 The indicator records KP's total tax collections in PKR billion. Baseline is PKR14.30 billion or US$ 99.4 million as of May 31, 2019. As per final available data, KP’s tax Comments collection in FY2018/19 was PKR.20.2 billion (or US$ 125 million). Total tax collection of KP was PKR 25.66 billion (or US$ 163 million) in FY2019/20, PKR 33.6 billion (US$ 211 million) in FY2020/2021, and 12/11/2023 Page 4 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) PKR 44.6billion (US$ 216million; revised estimate)in FY2021/22. In FY23, KP has collected Rs. 43 billion (~ US$ 149 million). Therefore, the Govt of KP has overachieved this year's target of own-source tax collection. Improved Cash Management IN01367670 ►Cash deposits held by Government in commercial banks (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Reduction by 60% in government cash Not achieved. PKR 274 Not achieved. PKR 268 deposits in the PKR 185.868 billion of billion of cash deposits in billion of cash deposits commercial banks. government cash deposits Value commercial banks; about in commercial banks; End Target: PKR in the commercial banks 47% increase from about 44% increase 74.347 billion of (status: Jan. 2018) baseline from baseline government cash deposit commercial banks Date 31-Jan-2018 30-Dec-2022 30-Jun-2023 28-Jun-2024 As per the SBP data (March 2023), Government of KP’s deposits were PKRs 268 billion in commercial banks, an increase of about 44% from the baseline for this indicator. Data for June 2023 is not yet Comments finalized. Progress on this indicator is linked with DLI 4. However, there are any exogenous factors that may have led to this result and similar outcomes are seen at the federal level. Improved Management of Public Investments IN01367682 ►Share of ADP funds spent on capital investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 47% 81% 81.35% >65% Date 03-Jul-2017 15-May-2023 30-Jun-2023 28-Jun-2024 In FY23 (July 2022 – June 2023), total Annual Development Plan (ADP) was PKR 283 billion (excluding Comments foreign funded projects) and the amount for Capital share was PKR 230.23billion (81.35% of total). Intermediate Results Indicators by Results Areas Efficient Revenue Mobilization IN01367683 ►Registered taxpayers who filed GSTS in previous year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 51.00 77.00 77.00 75.00 Date 30-Jun-2017 30-Jun-2022 30-Jun-2022 28-Jun-2024 Filing compliance was 75% in FY20, 82% in FY21, 77% in FY22. The FY23 numbers are yet to be Comments confirmed by the third party. IN01367685 ►Database integration in tax administration (Text, Custom) 12/11/2023 Page 5 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Baseline Actual (Previous) Actual (Current) End Target Year 4 target not yet Year 4 target not yet achieved. A firm is being achieved. A firm is hired KP tax authorities hired to develop data to develop data have access to shared No linkages among KP tax integration framework. integration framework. data with links to third Value authorities’ databases or Accordingly, data will be Accordingly, data will be parties with third-parties stored in warehouse, and stored in warehouse, (accessible with data management and and data management taxpayer CNIC/Name) access protocols will be and access protocols designed. will be designed. Date 31-Dec-2018 15-May-2023 30-Jun-2023 28-Jun-2024 Federal Board of Revenue and KP Revenue Authority have signed MOU setting forth responsibilities for information exchange. Year 1-3 targets have been achieved. A data integration plan has been approved by Cabinet. KPRA has established data linkages with four agencies - including Water and Sanitation Project, KP Comments information technology board, KP accountant general office and MOL Pakistan. KP Excise & Taxation Department and Board of Revenue have also confirmed their readiness to integrate databases with KPRA. Third party has confirmed achievement of these targets. A firm is hired to develop data integration framework. Accordingly the data will be stored in warehouse. IN01367687 ►Business processes for tax administration simplified and harmonized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Action plan has been Action plan has been prepared for business prepared for business 5 (litigation process) process simplification process simplification Value No harmonized processes and harmonization. But and harmonization. Year 4 target is not yet Year 4 target is not achieved. achieved. Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Based on detailed review of key business processes of tax authorities, an action plan has been prepared for business process simplification and harmonization. Progress on simplification and digitization of some processes is as follows: o Under application functionality, Excise and Taxation Department has developed Motor Vehicle Registration System (MVRS) and streamlined processes related with Motor Vehicle Registration, MV Registration Renewal (Token Tax), and Motor Vehicle Transfer. o For Urban Property Tax, the department is testing the digitization of demand notice for the tax in Comments selected districts. o KP Revenue Authority has completed the registration portal, registration and enrollment of taxpayers, deregistration of taxpayers, filing of sales tax returns, payment of taxes, and notice management o BOR has completed land registration, land mutations, land title document (fard) issuance and stamp fee collections. IN01367689 ►Taxpayer facilitation centers functional (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None 9 TFCs not established 9 TFCs not established 12 TFCs Date 31-May-2019 15-May-2023 30-Jun-2023 01-Jul-2024 Comments A study has been completed to inform the design of joint TFCs. KPITB is taking lead in establishing Citizen Facilitation Centers (CFC) where various public services, including tax related services, will be provided at one place. In this regard, KP Government signed MOU with NESPAK and NADRA to operationalize 7 CFCs at divisional level (Peshawar, Mardan, Abbottabad, Kohat, D.I.Khan, Bannu, and Swat). At the same 12/11/2023 Page 6 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) time, tax authorities will continue to maintain separate facilitation counters in their main/field offices. However, the plan is not yet implemented. IN01367690 ►Cities with updated UIPT surveys, valuations and digitized records (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No recent survey conducted; partial 1 additional city (total 7 1 additional city (total 7 Value 2 additional cities digitization of tax records cities) completed. cities) completed. in some cities. Date 31-May-2019 15-May-2023 30-Jun-2023 01-Jul-2024 KP Excise and Taxation department has formed a high-level committee to monitor progress on digitization of UIPT records. So far, the department has completed the digitization work in seven cities, including 6 from Abbottabad and Nowshera districts (Havelian, Amangarh, Akora Khattak, Nowshera Kalan, Jahangeria, Comments Pabbi) and 1 city (Katlang) from Mardan district (verified by third party firm). The department is working on remaining cities of 3 districts (Bannu, Kohat and Mardan) and plans to complete at least two districts in FY24. IN01367692 ►Revenue generation from public property (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No asset maps of Act on establishment of Act on establishment of Performance government-owned real holding company not holding company not framework and targets Value estate. drafted, and its board drafted, and its board for the company set in members not approved. members not approved. MoU with GoKP. Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 The Survey of Pakistan (SOP) has completed digitization of cadastral mapping of public properties in selected districts of KP. It includes GIS mapping of government land, buildings, roads etc. BOR has initiated data validation to identify any issues, starting from Pabbi district. BOR has also established a unit Comments to strengthen its capacity in this area. However, draft Act for establishing holding company is not available as yet, and its board members are not approved. Effective public resource management IN01367684 ►Cash management based on regular consolidation of cash balances and cash plans (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Monthly cash plans for four provincial government departments Cash management not (Communication and based on regular Works, Elementary Year 4 target not Year 4 target not Value consolidation of cash and Secondary achieved. achieved. balances and regular cash Education, Health, plans. Irrigation) prepared by respective departments and submitted to FD through out year 5 Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Comments Year 1 target has been achieved, but Years 2, 3 and 4 targets are not achieved. The progress is as follows: 12/11/2023 Page 7 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302)  Govt of KP has approved KP Public Financial Management Act in June 2022 and adopted a cash management policy.  Finance Department has established a treasury help Desk and Liquidity Management Committee for consolidation of cash balances and reporting of cash plans.  As per revised methodology, all commercial banks will consolidate balances of Designated Accounts (DAs). They will credit their respective consolidated balance to Account 1 at end of each day. There will be a corresponding reversal of the same amount back to the respective commercial banks at start of the next day; thereby leaving a trail/record of the consolidated commercial bank wise balances. (Daily consolidation of cash balances is required for Accounts 1- 4).  In compliance with above methodology, the centralized bank accounts of Govt of KP are being consolidated by State Bank of Pakistan (SBP) on daily basis, but the DAs in commercial banks are not consolidated. As a special arrangement, SBP is providing statistical quarterly consolidated balances report of designated accounts in commercial banks. These statistical balances report require about 75 days after the end of a quarter. The last report in this regard was received from balances of Dec 2022 and the report for March 2023 is awaited.  For real consolidation of DAs balances, the SBP shall daily transfer the balances from the commercial bank accounts to SBP Non Food Account-I and return the balances to the same accounts at the start of next working day.  The reconciliation procedure and GL heads have been approved and accounting procedures shared with SBP.  For pilot execution of real consolidation, the signatories of bank account holding department shall sign Standing Debit Instructions (SDI), which will be provided to the commercial bank and a copy of SDI will also be provided to SBP. To return the funds back to the DA on next day, the Finance Department shall also sign and issue the SDI to SBP.  Progress has been made for piloting real consolidation: KP Finance Department has shared SDIs for DAs maintained in National Bank and Bank of Khyber. For all new DAs, signing of the SDI will be mandatory. Govt of KP has closed about 750 multiple DAs of DDOs and converted to Asaan (Easy) Assignment Accounts.  A computer application for balances and cash forecast reporting has been developed under KPRMP, but yet to be implemented.  As per updated information, the SBP will start the daily sweeping of DAs balances from 1st July 2023. However, quarterly cash plans will be adopted for only those accounts which become part of the daily consolidation. In addition, quarterly cash plans have not been submitted by selected departments to the Finance Department. IN01367686 ►Sectors with public investment plans (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 9.00 Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Total 3 departments (Social welfare, Relief & Rehabilitation and Education departments) have submitted their sector plans. To support development of sector plans for remaining 4 departments, consultant is to be hired. Comments Govt of KP has implemented PAMframes tool across all departments to track the output and outcome of Public Investment Management. IN01367688 ►ADP funds allocated to unapproved projects (except foreign project assistance) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Allocated funds to 22% 22% DLR 5.5: Allocated unapproved projects are funds to Unapproved 49% of total Projects have not ADP(excluding Foreign exceeded 20% of total project assistance)in ADP (excluding FY18. Foreign Project Assistance) in FY24 12/11/2023 Page 8 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Years 1, 2, 3 and 4 targets have been achieved. KP Annual Development Plan (ADP) for 2021-22 includes a total of 2,329 projects, including 451 unapproved projects. Out of the total ADP allocation of PKR 199 billion (excluding foreign aid), PKR 59 billion were allocated to un-approved projects in FY22 – which is Comments about 30% of total ADP. In FY23, out of total ADP allocation of RS.283 billion (excluding foreign aid), RS. 61.185 billion have been allocated to unapproved projects. IN01367691 ►E-Government functionality strengthened in selected government departments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implementation of e- archiving/indexing of Limited and uneven Year 4 target is not Year 4 target is not government records in Value functionality of e- achieved. achieved. 7 targeted Government departments. Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Years 1 and 2 targets are overachieved, whereas years 3 and 4 targets are not achieved. Different components of the KP’s Paperless Government project include: review of the administrative processes (already completed); Workflow & document management system (WDMS) hardware and network solutions (in procurement process); email software and hardware; and change management (digital literacy training, and information screens). 1. Total 171 administrative processes (or sub-processes) have been reviewed in more than 10 government departments, where definition of reengineered functional and technical requirements and specifications have been finalized. The strategy, methodology, and change management processes have been reviewed for implementation in the participating departments. 2. For digital literacy training of government officers, a firm has been hired, who is providing trainings on regular basis. The development and implementation of Workflow & document management system (WDMS) is in process. 3. A Project Monitoring Office is established to support implementation of the project. Regular project Comments steering committee meetings are held to review progress, while a deliverable Review committee & IT/Digital Governance committee have also been established. The participating departments (total 33) include: KP Chief Secretary Office; Board of Revenue; Establishment Department; Administration Department; Agriculture Department; Auqaf, Hajj, Religious Affairs Department; Communication and Works Department; Elementary & Secondary Education Department; Environmental Department; Excise and Taxation Department; Energy and Power Department; Finance Department; Food Department; Health Department; Higher Education, Archives & Libraries Department; Home & TAs Department; Housing Department; Industries Department; Information & Public Relations Department; Inter Provincial Coordination; Irrigation Department; Labour Department; Law Department; Local Government; Minerals Department; Public Health Engineering; Planning & Development Department; Population & Welfare; Relief, Rehabilitation & Settlement department; Science & Technology and Information Technology department; Transport Department; Zakat, Ushr & Social Welfare department; and Sports, Tourism, Culture, Youth Affairs, Archeology & Museum Department. IN01367693 ►TMAs using FMIS to record transactions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No NFMIS Year 4 target has been Year 4 target has been Provided that the 30 decentralization plan. achieved. achieved. TMAs continue to use NFMIS to record payments: 12/11/2023 Page 9 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) 20 additional TMAs have used the NFMIS to record payments throughout Year 5 Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Years 1-4 targets have been achieved, as verified by TPV firm. During Year 1 of KP-Revenue Mobilization and Public Resource Management Program (KPRMP), National Financial Management Information system (NFMIS) decentralization plan was approved by the Government Comments of KP. An MOU was also signed between Punjab Municipal Development Fund Company (PMDFC), Lahore Cantonment Board (LCB) and KPRMP for the transfer of ownership rights of the system. The system is being used by 90 Tehsil Municipal Authorities (TMAs) to record transactions. IN01367694 ►OBB departments with measurable gender KPIs, reporting number of females reached by their services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 28.00 28.00 32.00 Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 Year 1: 25%, 8 out of 32 departments; Year 2, 3 and 4: 28%, 9 out of 32 departments. These 9 departments have gender based KPIs (55 KPIs) and they report number of females reached by their Comments services. This is annual indicator, and is to be maintained by the 9 departments. IN01367695 ►Improved management of dedicated funds (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No reports currently Annual consolidated Year 4 target not Year 4 target not Value published; No estimate of report for all KP Funds achieved. achieved. pension liabilities published Date 31-May-2019 15-May-2023 30-Jun-2023 28-Jun-2024 First four years targets have not been achieved. The progress on this indicator is as follows: 1. A draft of Systems for Fund Administration (SFA) bill has been prepared, as part of efforts to design the institutional framework for funds management. However, it is not yet approved. 2. The actuarial study has been completed about pension liability (amounting to RS.3 trillian). Annual report on pension fund (PF) liabilities has been published. 3. Annual report on GPIF is not published. Comments Initially, it was suggested that 3 pension schemes i.e., General Provident Fund (GPIF), retirement benefit and death compensation (RBDC) and benevolent fund (BF) may be merged into one i.e., Universal pension. But later it was decided that instead of universal pension, employees would be awarded contributory pension scheme. And the employee would have the option to avail any fund.The hydel development fund (HDF) has been abolished. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Registered taxpayers who filed GSTS in previous year (Intermediate Outcome, 25,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) Value 51.00 77.00 77.00 75.00 Date -- 30-Jun-2022 30-Jun-2022 -- 12/11/2023 Page 10 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Filing compliance was 75% in FY20, 82% in FY21, and 77% in FY22, as confirmed by the third party. FY23 Comments target is yet to be reviewed by third party. ►DLI 2 Database integration in tax administration (Intermediate Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) No linkages among KP tax authorities’ databases or Year 4 target not yet Year 4 target not yet DLR 2.5: KP Tax with third parties achieved. A firm is being achieved. A firm is hired to Authorities have Data Warehouse Pilot in hired to develop data develop data integration access to shared the Department of Science integration framework. framework. Accordingly, data with links to Value and Technology and Accordingly, data will be data will be stored in third parties Information and stored in warehouse, and warehouse, and data (accessible with Technology (ST&IT) data management and management and access taxpayer access protocols will be protocols will be designed. CNIC/Name) designed. Date -- 15-May-2023 30-Jun-2023 -- Federal Board of Revenue and KP Revenue Authority have signed MOU setting forth responsibilities for information exchange. Year 1-3 targets have been achieved. A data integration plan has been approved by Cabinet. KPRA has established data linkages with four agencies - including Water and Sanitation Project, KP Comments information technology board, KP accountant general office and MOL Pakistan. KP Excise & Taxation Department and Board of Revenue have also confirmed their readiness to integrate databases with KPRA. Third party has confirmed achievement of these targets. A firm is hired to develop data integration framework. Accordingly the data will be stored in warehouse. ►DLI 3 Cities with updated UIPT surveys, valuations and digitized records (Intermediate Outcome, 15,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) No recent survey conducted; partial Value 7 cities 7 cities 2 additional cities digitization of tax records in some cities. Date -- 15-May-2023 30-Jun-2023 -- KP Excise and Taxation department has formed a high-level committee to monitor progress on digitization of UIPT records. So far, the department has completed the digitization work in seven cities, including 6 from Abbottabad and Nowshera districts (Havelian, Amangarh, Akora Khattak, Nowshera Kalan, Jahangeria, and Comments Pabbi) and 1 city (Katlang) from Mardan district (verified by third party firm). The department is working on remaining cities of 3 districts (Bannu, Kohat and Mardan) and plans to complete at least two districts in FY24. ►DLI 4 Cash management based on regular consolidation of cash balances and cash plans (Intermediate Outcome, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) Value Cash management not Year 4 target not Year 4 target not DLR 4.6: Four based on regular achieved. achieved. Government consolidation of cash Departments balances and regular cash (Communication and plans Works, Elementary and Secondary Education, Health, 12/11/2023 Page 11 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) Irrigation) have prepared monthly cash plans and submitted them to FD throughout Year 5 Date -- 15-May-2023 30-Jun-2023 -- Year 1 target has been achieved, but Years 2, 3 and 4 targets are not achieved. The progress is as follows:  Govt of KP has established a sub-committee under chairmanship of Additional Secretary (Budget) and designed a roadmap for consolidation of cash balances and cash plans.  Govt of KP has approved KP Public Financial Management Act in June 2022 and adopted a cash management policy.  As per revised methodology, all commercial banks will consolidate balances of Designated Accounts (DAs). They will credit their respective consolidated balance to Account 1 at end of each day. There will be a corresponding reversal of the same amount back to the respective commercial banks at start of the next day; thereby leaving a trail/record of the consolidated commercial bank wise balances. (Daily consolidation of cash balances is required for Accounts 1-4).  The reconciliation procedure and GL heads have been approved and accounting procedures shared with State Bank of Pakistan (SBP). SBP will start daily consolidation for all those accounts for which Comments Standing Debit Instructions (SDI) is provided by KP Finance Department.  KP Finance Department has shared SDIs for DAs maintained in National Bank and Bank of Khyber. For all new DAs, signing of the SDI will be mandatory. Liquidity Management Committee and Treasury Desk notified in KP Finance Department.  Govt of KP has closed about 750 multiple DAs of DDOs and converted to Asaan (Easy) Assignment Accounts.  A computer application for balances and cash forecast reporting has been developed under KPRMP, but yet to be implemented.  As per latest information, data sweeping has recently started and quarterly reporting is ongoing. However, quarterly cash plans have not been submitted by selected departments to the Finance Department. ►DLI 5 ADP funds allocated to unapproved projects (excluding foreign project assistance) (Intermediate Outcome, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) DLR 5.5: Allocated funds to Allocated funds are 49 Unapproved percent of total ADP Projects have not Value 22% 22% excluding foreign project exceeded 20% of assistance (FY17/18 ADP) total ADP (excluding Foreign Project Assistance) in FY24 Date -- 15-May-2023 30-Jun-2023 -- Years 1, 2, 3 and 4 targets have been achieved. KP Annual Development Plan (ADP) for 2021-22 includes a total of 2,329 projects, including 451 unapproved projects. Out of the total ADP allocation of PKR 199 billion (excluding foreign aid), PKR 59 billion were allocated to un-approved projects in FY22 – which is about 30% of Comments total ADP. In FY23, out of total ADP allocation of RS.283 billion (excluding foreign aid), RS. 61.185 billion have been allocated to unapproved projects. ►DLI 6 TMAs using NFMIS to record transactions (cumulative) (Intermediate Outcome, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY23/24 (yr5) 12/11/2023 Page 12 of 13 The World Bank Implementation Status & Results Report Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (P162302) DLR 6.5: 30 TMAs under DLR 6.2, 6.3 and 6.4 and 20 No NFMIS decentralization additional TMAs Value Year 4 target is achieved Year 4 target is achieved plan have used the NFMIS to record payments throughout Year 5 Date -- 15-Jun-2023 15-Jun-2023 -- Years 1-4 targets have been achieved, as verified by TPV firm. During Year 1 of KP-Revenue Mobilization and Public Resource Management Program (KPRMP), National Financial Management Information system (NFMIS) decentralization plan was approved by the Government of Comments KP. An MOU was also signed between Punjab Municipal Development Fund Company (PMDFC), Lahore Cantonment Board (LCB) and KPRMP for the transfer of ownership rights of the system. The system is being used by 90 Tehsil Municipal Authorities (TMAs) to record transactions. 12/11/2023 Page 13 of 13