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: 5 | ARCHIVED on 21-Mar-2023 | ISR53173 | Created by: Irum Touqeer on 26-Sep-2022 | Modified by: Akmal Minallah on 20-Mar-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) Moderately Satisfactory Satisfactory Implementation Status and Key Decisions Significant progress has been made by the Program, including notable accomplishments such as the Cabinet's approval of the Pension Plan, Data Integration Plan, as well as the Provincial Assembly's enactment of the PFM Law. Additionally, the Cabinet granted its approval of an amendment to Public Procurement rules and notification of Standard Bidding Documents, while a MoU between the Federal Public Procurement Regulatory Authority and the Punjab Public Procurement Regulatory Authority has been signed. Lastly, a priority committee is now in place. These are all remarkable achievements, leading to an upgraded implementation rating from Moderately Satisfactory to Satisfactory for the GoPb. 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 0.00 148.02 155.98 49% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P171417 IBRD-91700 Effective 22-Oct-2020 16-Dec-2020 17-Dec-2020 25-Aug-2025 25-Aug-2025 Program Action Plan Action Description 1. Establish PFM Unit Source DLI# Responsibility Timing Timing Value Status 3/21/2023 Page 1 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Technical Finance Department Due Date 30-Sep-2022 Completed Completion Measurement Notification of unit establishment and staffing Comments Critical hiring of the PFM Unit are completed 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 31-Mar-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, Jan 2022. 5. A robust grievance redress mechanism in place and integrating all existing GRM systems under one focal point Action Description (PITB) Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&D Department Due Date 30-Jun-2023 In Progress Systems Completion Measurement Complaints' log available for each tier of complaints 3/21/2023 Page 2 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) A GRM is available for all departments of the Punjab Government under Chief Minister’s online complaint cell and Comments Government departments’ complaint registration system through websites. Consolidated and program specific GRM being implemented Action Description 6. Publication of guidelines on collection, storage, usage, or processing of personal data. Source DLI# Responsibility Timing Timing Value Status Technical PITB Due Date 30-Nov-2022 Completed 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 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 3/21/2023 Page 3 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Strengthened budget formulation and fiscal risk management IN01193803 ►Variance between original budget and actual expenditure composition (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Average of three years Average of three years MTFF prepared and Value variance is 18%. (2015- PFM Law notified variance (FY22 – presented to the Cabinet 18). FY24) is <10% Date 30-Jun-2020 30-Jun-2022 31-Dec-2022 15-Jul-2025 PFM Law was approved by the cabinet Comments Increased use of digital technology for delivery of selected public services IN01193805 ►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 30-Dec-2022 30-Jun-2025 Increased number of citizens using specific public digital services. The target is over achieved Comments Improved collection of own source revenue IN01193804 ►Value of own-source tax revenue (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PKRs 228.65276.693 PKRs 277 billion . billion (FY21FY22, Impact assesment of revised estimates). First COVID on revenue is Own-source tax PKRs 191 billion (FY20, drafts of impact approved and published Value collection of Rs.300 RE) assessment of COVID on on the website of billion. revenue approved and Finance Department. published on the website Punjab Revenue of Finance Department, mobilization strategy 3/21/2023 Page 4 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) and Punjab Revenue and implementation mobilization strategy and plan have been implementation plan prepared, and pending have been prepared. Cabinet approval. Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 30-Jun-2025 As per final figures, Punjab's total own-source tax revenue collection was Rs188.5 billion in FY20, and RS.224.615 bi impact assessment on revenue approved and published on the website of the Finance Deparment, and Punjab Reve and implementation plan have been prepared, to be presented to Cabinet for approval. Comments Intermediate Results Indicators by Results Areas Strengthening budget formulation and fiscal risk management IN01193806 ►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 1 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 30-Dec-2022 30-Jun-2025 One parametric reform implemented Comments IN01193809 ►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 No policy guidelines on No policy guidelines on In FY20 (30th June), no contracting & monitoring contracting & monitoring policy guidelines on of commodity debt exist of commodity debt exist contracting & monitoring along with strategy to along with strategy to Punjab FD ensures no of commodity debt exist reduce commodity debt reduce commodity debt more than PKR20 Value along with strategy to flow, as well as no flow, as well as no billion flow in reduce commodity debt detailed disclosure of detailed disclosure of commodity debt stock. flow as well as no detailed commodity debt stock, commodity debt stock, disclosure of commodity interest cost and interest cost and debt stock. subsidies. subsidies. Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 30-Jun-2025 Guidelines are not yet approved Comments IN01193812 ►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 30-Dec-2022 30-Jun-2025 3/21/2023 Page 5 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Comments Minimum standards for DRR shall be defined in the DRFS. IN01193815 ►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 30-Dec-2022 30-Jun-2025 Supporting GoPb in strengthening its cash management function. This function may be performed by Comments technical staff to be hired under PFMU. Increased use of digital technology for delivery of selected public services IN01193807 ►Operational budget expenditure processed through e-procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Standard bidding documents prepared, and rules are being e-procurement system revised. Both are yet to SBD and Rules are Value 50% does not exist. be approved by the notified Board. e-Procurement pilot departments have been notified. Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 30-Jun-2025 MoU singed between the Federal and Provincial PPRAs. Comments IN01193810 ►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 30-Dec-2022 30-Jun-2025 Increased public services provided online through a single identity platform. This is on track. Comments IN01193813 ►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 30-Dec-2022 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 Comments have utilized a specific service. The progress is on-track and target is expected to be achieved. PITB is also 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. 3/21/2023 Page 6 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) IN01193816 ►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 69.00 319.00 Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 30-Jun-2025 Supporting digital web based financial reporting solutions to Urban Local Areas (ULAs) for enhanced financial transparency. The draft for Provincial Finance Commission (PFC) formula with clear incentives for improving LG revenue and expenditure recoding is prepared. But its approval depends on finalization of the Commission for PFC Award. The nominated commission members are yet to come on board. Comments A new LG ordinance has been approved. 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. Previously recorded information is updated: the actual current and previous is same as baseline. Improved collection of own source revenue IN01193808 ►Increase in number of registered services sales taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82,285.00 109,950.00 145,000.00 145,000.00 Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 30-Jun-2025 Comments IN01193811 ►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 66,199.00 77,500.00 Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 31-Jul-2025 Comments IN01193814 ►Database integration in tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PRA is in discussion Draft data integration No linkages among with entities has plan is being discussed Punjab tax authorities Punjab tax authorities’ established data and yet to be approved. have access to shared databases or with third- linkages with 3 third Value PRA is in discussion with data with links to third parties; PRA & FBR parties, while data has established data parties (at least total signed MOU for data linkages with additional linkages with 4 3 third 10 for PRA), sharing 3 entities are in parties for data linkages. process. Date 29-May-2020 30-Jun-2022 30-Dec-2022 31-Jul-2025 Data integration plan approved Comments 3/21/2023 Page 7 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) IN01193817 ►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 administration in Punjab, registration, payment, Selected BPs automated Punjab, is not available is not available as yet. arrears monitoring and in few tax authorities (e- as yet. Value Monitoring of arrears and refunds, appeals, payment for 8 taxes of Monitoring of arrears refunds processing is yet litigation and feedback Punjab) and refunds processing to be reviewed for systems simplified and is yet to be reviewed for simplification and automated. simplification and automation. automation. Date 30-Jun-2020 30-Jun-2022 30-Dec-2022 31-Jul-2025 Supporting simplified and automated business processes of the tax administration of Punjab Revenue Authority (PRA Narcotics Control Department (ETNCD) and Board of Revenue (BOR) in Punjab. The TORs have been developed for 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 payment facil of May 2022, total 15 million transactions were conducted and RS. 77 billion revenue collected using e-pay facility (in months). https://epay.punjab.gov.pk/latest-booklet/#page/2 Comments PRA is working with Pakistan Revenue Administration Limited (PRAL) to increase its level of automation for administr be automated. The agreement is in process. IN01193818 ►Enhanced capacity for revenue generation from real estate (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Review of legal Review of legal Substantial difference framework and framework and Complete properties’ between official and procedures for valuation procedures for valuation market valuation market values of of properties to align it of properties to align it studies for 6 cities Value properties; No market with modern techniques with modern techniques (cumulative) using valuation study conducted is not available as yet. is not available as yet. modern valuation for public and private Valuation unit has not yet Valuation unit has not methodology. properties been established. yet been established. Date 30-Jun-2020 30-Jun-2021 31-Dec-2021 30-Jun-2025  Some areas of initial targets were supported by GIZ. For example, to inform the design/establishment of valuation unit, a proposal has been prepared by GIZ and study tours arranged in Malaysia and Thailand. Next steps are to complete the formalities to establish the unit, Comments and initiate review of relevant law and rules. . 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 3/21/2023 Page 8 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) 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 implemented implemented of the cost 15% of budget website of Finance Pension Reform Department Plan Date -- 30-Jun-2022 30-Dec-2022 --  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  Cabinet has approved the pension reform plan and has implemented one parametric reform ►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 in original budget Medium Term Fiscal composition by function and actual Framework presented to PFM Law is approved by Value was an average of 18% expenditure the Cabinet and the the Cabinet during last three years. composition is less Provincial Assembly (2015-16, 2016-17 and than 10% by 2017-18). program administrative or functional classification Date -- 30-Jun-2022 30-Dec-2022 -- a. Fiscal management function will be supported under PFMU b. PFM Law is approved and notified .This will be followed by notification of fiscal management policy and rules to support annual preparation of MTFF. The draft law is pending submission to the new Cabinet. c. FD has also notified MTFF working group, and the Bank team is providing capacity building support Comments to that working group. ►DLI 3 Operational budget expenditure processed through e-procurement. (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 Standard bidding DLR documents prepared, 3.6.Implementing and rules are being Entity processes SBDs and Revision to the e-procurement system revised. Both are yet to cumulatively 50% of Value PPRA Rules are approved does not exist. be approved by the operational budget and notified Board. e-Procurement expenditures pilot departments have through e- been notified procurement Date -- 30-Jun-2022 30-Dec-2022 -- PPRA Rules and Standard Bidding Documents are approved and notified. MoU signed with the Federal Comments Government. 3/21/2023 Page 9 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) ►DLI 4 Citizens accessing government services through digital platforms. (Outcome, 45.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 Value 500,000 4,491,655 6,204,859 1,800,000 Date -- 30-Jun-2021 30-Dec-2021 -- The targets are overachieved 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, 37.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 5.5: After achieving DLR 5.4, Draft PFC formula with Finance Department Web based MIS incentives for improving publishes budgets implemented in 16 Urban LG revenue and 69 ULAs have and bi-annual Local Areas (ULAs) for expenditure recoding is Value expenditure recording revenue and accounting and reporting. prepared, but not yet system. expenditure reports System not integrated with approved. 19 ULAs have of 319 Urban Local Government IFMIS expenditure recording Areas (cumulative) system. and the provincial government Date -- 30-Jun-2022 30-Dec-2022 -- 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. ►DLI 6 Value of own-source tax revenue (Outcome, 40.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 PKRs 276.693 billion PKRs 276.693 billion (FY22, revised (FY22, revised estimates). estimates). Impact Impact assessment of assessment of COVID on COVID on revenue DLR 6.6: revenue approved and approved and published Implementing published on the website on the website of Finance Value Rs. 191 billion (FY20, RE) Entity’s own-source of Finance Department, Department, and Punjab tax collection of Rs and Punjab Revenue Revenue mobilization 300 billion mobilization strategy and strategy and implementation plan implementation plan have have been prepared, but been prepared, but yet to yet to be approved. be approved. Date -- 30-Jun-2022 30-Jun-2022 -- Comments As per final figures, Punjab's total own-source tax revenue collection was Rs188.5 billion in FY20 and RS.224.615 billion in FY21. 3/21/2023 Page 10 of 11 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) The COVID impact assessment on revenue has been approved and published on the website of the Finance Department, and Punjab Revenue mobilization strategy and implementation plan have been prepared, to be presented to Cabinet for approval. ►DLI 7 Database integration in tax administration (Intermediate Outcome, 37.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 7.6: Punjab tax authorities have No linkages among Punjab access to shared tax authorities’ databases PRA has established PRA has established data data with links to Value or with third-parties; PRA & data linkages with 3 third linkages with 3 third third parties (total 10 FBR signed MOU for data parties parties for PRA), accessible sharing. with taxpayer’s CNIC/Name/STN. Date -- 30-Jun-2022 30-Jun-2022 --  Data Integration Plan is approved. PRA has established data linkages with 3 third parties including excise, taxation and narcotics Comments control department, Punjab food authority , and Punjab employees and social security institution 3/21/2023 Page 11 of 11