The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) PFM and accountability to support service delivery PforR (P157507) SOUTH ASIA | Pakistan | Governance Global Practice | Requesting Unit: SACPK | Responsible Unit: ESAG1 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Akmal Minallah, David I Seq No: 9 | ARCHIVED on 20-Dec-2022 | ISR54470 | Created by: Akmal Minallah on 13-Dec-2022 | Modified by: Akmal Minallah on 20-Dec-2022 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) 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. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions The Program continues to progress and implement critical reforms: implementation of the e- Procurement system has picked up; extensive consultations with various stakeholders continue to support seamless implementation of the second phase of Treasury Single Account (TSA II); the Audit Management Information System (AMIS) is set up across all directorates of the Department of the Auditor General of Pakistan, etc. The next few months of Program implementation are critical in ensuring that the remaining Disbursement Linked Results (DLRs) are fully met and that the Program funds are disbursed before reaching the closing date of June 30, 2023. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157507 IDA-61700 Effective USD 400.00 380.00 20.00 309.61 70.39 81% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157507 IDA-61700 Effective 19-Dec-2017 29-Dec-2017 29-Dec-2017 30-Nov-2021 30-Jun-2023 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA61700-001 12/20/2022 Page 1 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Reduction in variance of Partially 1 Regular USD 70,000,000.00 60,000,000.00 86 % functional exp Achieved Reduction in cash held 2 Regular USD 20,000,000.00 Not Achieved 0.00 outside Recip TSA % of vendor contracts Partially 3 Regular USD 45,000,000.00 30,000,000.00 67 % processed thru e-p Achieved % of algnmnt info&ID 4 Regular USD 35,000,000.00 Fully Achieved 30,000,000.00 86 % no.indiv primary sc % of pensioners, Partially 5 Regular USD 30,000,000.00 28,500,000.00 95 % disaggregated by gender Achieved % of audit recomm 6 Regular USD 50,000,000.00 Fully Achieved 40,000,000.00 80 % processed thru AMIS Incrsd citizen access to Partially 7 Regular USD 30,000,000.00 15,000,000.00 50 % fiscal infoH&E Achieved % of fiscal Partially 8 Regular performance&SDI met by USD 60,000,000.00 46,108,571.43 77 % Achieved prov Prior Results Reduction in cash outside 2.1 USD 10,000,000.00 Fully Achieved 10,000,000.00 100 % Financing DLI Recip TSA Prior Results Reduction in cash outside 2.2 USD 10,000,000.00 Fully Achieved 10,000,000.00 100 % Financing DLI Recip TSA % of fiscal Prior Results 8.1 performance&SDI met by USD 10,000,000.00 Fully Achieved 10,000,000.00 100 % Financing DLI prov % of fiscal Prior Results 8.2 performance&SDI met by USD 10,000,000.00 Fully Achieved 10,000,000.00 100 % Financing DLI prov Program Action Plan Action Description Complete third surveillance audit for ISO 27001:2013 Information Security Management Services Certification. Source DLI# Responsibility Timing Timing Value Status Other CGA Due Date 30-Sep-2020 Completed Completion Measurement Report ISO 27001 cycle initiated in 2014 was completed in 2017. For the next cycle ToRs for hiring of firm has been Comments developed by DG MIS and procurement process needs to be expedited. Action Description Undertake Open Data Readiness Assessment and adopt an implementation plan. Source DLI# Responsibility Timing Timing Value Status Technical PPRA Due Date 30-Sep-2020 Completed Completion Measurement Data Readiness Report World Bank is supporting PPRA in setting up their open contracting data standards. The basic data as per Open Comments Contracting Data Standards is converted and available on PPRA website. 12/20/2022 Page 2 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Undertake pension sustainability analysis: pension liabilities to be informed by sound actuarial analysis, coupled with Action Description a system in place for funding these liabilities. Source DLI# Responsibility Timing Timing Value Status Auditor General of Technical Due Date 31-May-2019 Completed Pakistan Completion Measurement Pension Liability Assessment Report Comments Report prepared and presented to the Secretary Finance Sustaining activities for collaborative leadership, change management, and strategic communication, including media Action Description outreach to citizens presenting the benefits of the reform program and seeking feedback for course correction. Source DLI# Responsibility Timing Timing Value Status Technical Ministry of Finance. Due Date 30-Jun-2018 Completed Completion Measurement Nomination of Committees Under the Fiscal Coordination Committee, six technical groups are nominated. These are a) Treasury Single Account Comments Group;. b) e-payment group; . c) e-procurement group; d) Pensions group; e) Open Government Group; and f) Audit Systems Group Action Description PPRAs to ascertain KPIs and baselines to monitor the reform progress. Source DLI# Responsibility Timing Timing Value Status Public Procurement Technical Recurrent Semi-Annually Completed Regulatory Authority Completion Measurement Notification of KPIs Comments KPI are included in the Budget Estimates for Service Delivery A robust grievance redress mechanism in place improving upon the current practices, and available to each ministry, Action Description vendors, contractors and pensioners Source DLI# Responsibility Timing Timing Value Status CGA, AGP, PPRA, Technical Due Date 30-Jun-2018 Completed MoF Completion Measurement Citizen Portal Government has established a robust grievance redress mechanism. This activity is led by the Prime Minister Comments Secretariat. A citizen portal is developed which logs all complaints and resolution of complaints is closely monitored. A mechanism for enhanced citizen engagement in measuring program performance/improvement in service delivery Action Description (specifically in education), participating in Performance Audits and endorsing open data 12/20/2022 Page 3 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Source DLI# Responsibility Timing Timing Value Status Technical AGP Due Date 23-Apr-2021 Completed Completion Measurement Performance audit of education and health indicators Data4Pakistan launched by the federal government. AGP has acquired the data for use in performance audit. Audit Comments Reports are published on AGP website. The website has also links to the citizen participatory audit. 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 Substantial Substantial Substantial Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other Moderate Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Strengthening the legal framework and internal management systems in line ministries and SDUs IN01233632 ►Reduction of variance in functional expenditure composition for health and education (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Variance in health and Less than 10 percent education for fiscal year variance in functional 2016-17 Federal – 7.4% expenditure (Federal) - 26% Punjab – 9.4% End of the year composition for health (Punjab) - 21 % KPK – 1.8% variances are being Value and education as (Khyber Pakhunkhwa) - Sindh – 10.49% carried out measured by variation 29% Baluchistan -5.3% between original (Sindh) - 11% for fiscal approved budget and year 2016-17 actual expenditures. (Baluchistan) - 10% 12/20/2022 Page 4 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Date 30-Jun-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 End of the year variance is being calculated Comments IN01233676 ►Reduction in cash held outside the Recipient’s Treasury Single Account (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (FY 2016-17) Federal Government Deposits of PKRs 0.916 trillion parked in commercial bank 15% of the baseline or PKRs 5 billion of funds PKRs 5 billion of funds Value accounts of which PKRs 0 PKRs 150 billion brought in the TSA brought in the TSA billion was brought into the brought into the TSA TSA. Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 A working group is nominated consisting of officials from State Bank, Controller General Accounts, Ministry Comments of Finance and donors to support implementation of the TSA Improved procurement performance IN01233633 ►Percentage of vendor contracts processed through the Recipient’s e-procurement system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 50 to 90 percent of targeted procurement packages (whose contract amount is Some modules of e- more than PKR 5 Procurement system million for goods and Piloting of e- developed and activities services and more Value 0.00 Procurement started in started to pilot the e- than PKR 50 million for Health and Education Procurement system in works) to be Health and Education processed through e- procurement for targeted primary health and primary education sectors. Date 16-Jan-2017 21-Jun-2022 13-Dec-2022 30-Jun-2023 Operation Acceptance Testing of the e-Procurement System is completed by the technical team of PPRA. Comments External audit, legislative scrutiny, and social accountability. IN01233634 ►Percentage of audit recommendations processed through the Audit Management Information System. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 80 percent of PAC Audit Management recommendations for Value Information System does 80% 80% health, education and not exist at least four more 12/20/2022 Page 5 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) sectors effectively followed-up and reports published on an official website or by any other means easily accessible to the public Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Audit Management Information System is implemented across all offices of the Department of Auditor Comments General of Pakistan Performance-based grant IN01233635 ►Percentage of fiscal performance and service delivery indicators met by the provinces (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Innovation award provided from the Ministry of Finance of the Recipient to the provincial governments Value 0% 53% 53% for at least 35 percent up to 70 percent of fiscal performance and service delivery indicators met. Date 16-Jan-2017 20-Jun-2022 20-Jun-2022 31-Mar-2023 The federal government is engaged in consultation with the provinces to encourage them adopt the TSA; implement E-procurement; digitize payment systems; introduce online bill submission and align HR and Comments Financial data in education and health sector. This will lead to consistent application of PFM reforms across all levels of government. Intermediate Results Indicators by Results Areas Strengthening legal framework and internal management systems in line ministries,service delivery IN01233677 ►Notification of revised updated delegation of power, General Financial Rules, Accounting Policies and Procedures Manual and Chart of Accounts. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Regulatory Framework updated (PFM law, Legal Framework for Functions and Powers Public Financial Regulations for Regulations for of PAO, Receipt and Value Management in terms of delegation of powers to delegation of powers to Payment Rules, Law and Subsidiary Rules PAOs notified PAOs notified General Financial does not exist Rules, APPM and Chart of Accounts) Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Receipt and Payment rules are prepared and submitted to the Cabinet. Comments IN01233681 ►Internal Audit arrangements modernized in health and education departments. (Text, Custom) 12/20/2022 Page 6 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) End Target Regulatory framework for Internal Audit Reports Internal audit function Internal audit function Value internal audit function for Health and notified notified does not exist Education issued Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Comments IN01233685 ►Improve the timeliness of comprehensive financial and nonfinancial reporting by linkage or interface (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Comprehensive reports published on Dashboard for fiscal Ministry of Finance Value Dash board developed Dash board developed information does not exist Dashboard and updated at least on monthly basis Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Linkages have been established with FBR, CDNS, Pak PWD, and SBP, whereas linkages with EAD, MAG and Pakistan Post are in process. Customized dash boards prepared for Budget and Expenditure Wing of Comments MoF IN01233688 ►Approved Cash Management Policy with accounting framework for daily consolidation of all government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Legal Framework Regulatory framework for including law and Value Cash Management does Yes Yes subsidiary rules for not exist cash management in place Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Cash Management Policy approved by the Cabinet. Secretary Finance has also approved a framework for Comments implementation of TSA. TSA Rules are also notified. External audit, legislative scrutiny, and social accountability IN01233678 ►Reports of PAC hearings on audit report on annual financial statements are published on the website (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 31-Mar-2023 PAC sessions are open to media and the audit reports are widely publicized through new reporting. Since Comments 2019, on the directions of PAC, AGP published all the audit reports on its website. IN01233682 ►Financial transactions of health and education function recorded in FABS audited through Computer Ai (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0% 80% 80% 80% 12/20/2022 Page 7 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 IT center established and ACL software acquired. Officials are re-trained in ACL and financial transactions of health and education subjected to ACL audit. AGP has procured an additional software QLIK for data Comments analytics. IN01233686 ►Citizen Portal set up to facilitate Citizen Participatory Audits, including fraud hotline for feedback (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 24-Apr-2023 Draft Policy on CPA prepared and submitted to the AGP for approval. AGP has updated the website and Comments provided links for the citizen to lodge complaints on the AGP website IN01233689 ►Citizen Participatory Audit reports that cover indicators in the ISDR published. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Auditor General has notified that all Directors Generals should undertake at least one Citizen Participatory Comments Audit. Improved procurement performance IN01233680 ►Number of departments with vendor claims for health and education departments paid at accounting offices. electronically (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 4.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 CGA has developed guidelines for simplifying payment authorization procedures. AGP has approved and notified the guidelines. Comments Online bill submission piloted in Health and Education Department. A green channel for vouchers up-to PKRs 25,000 set up to exempt these vouchers from pre-audit. IN01233684 ►Bank reconciliation of all active government bank accounts in the TSA takes place at least monthly at (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 4.00 4.00 4.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Comments IN01233687 ►Percent of budget derived from procurement plans in selected federal ministries of health and education (Percentage, Custom) 12/20/2022 Page 8 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 30-Jun-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Comments IN01233690 ►Databases or records are maintained for contracts, including data on what has been procured, value o (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Under the Program, the database has been digitized using AI. The data is now available on the PPRA Comments website in machine readable format. IN01233691 ►E-procurement guidelines issued and Supplier Relations Management Module operational in health and education (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Operational Acceptance Testing of the module is completed Comments IN01233692 ►End user training in e-Procurement system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 69.00 80.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 End user training completed for procurement officials in health and education ministries. In addition a group Comments of suppliers were also provided with orientation training. Performance-based grant IN01233679 ►Incentive system by the FCC to improve fiscal performance and service delivery in selected areas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Nov-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 Comments . IN01233683 ►Innovative applications used to report and account for funds utilized. (Number, Custom) 12/20/2022 Page 9 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 16-Jan-2017 20-Jun-2022 13-Dec-2022 30-Jun-2023 1. MIS for procurement which was developed in Punjab is piloted in federal ministry of education 2. Punjab Education department developed FMIS which is being integrated with the IFMIS Comments 3. Online bill submission piloted in ministries of health and education at the federal level Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Reduction of variance in functional expenditure composition for health and education to improve the reliability of the budget (Outcome, 70,000,000.00, 71%) Baseline Actual (Previous) Actual (Current) FY 2022/23 DLR 1.7: Less than 10 percent variance in functional expenditure Federal - 26% Federal – 7.4% composition for KPK - 29% Punjab – 9.4% health and Punjab - 22% Data is in process of KPK – 1.8% education as Value Sindh - 11% compilation Sindh – 10.49% measured by Baluchistan - 10% Baluchistan -5.3% variation between original approved budget and actual expenditures (US $ 1 million for each government) Date -- 20-Jun-2022 13-Dec-2022 -- End of the year data is being compiled Comments ►DLI 2 Reduction in cash held outside the Recipient’s Treasury Single Account (Outcome, 40,000,000.00, 50%) Baseline Actual (Previous) Actual (Current) FY 2022/23 DLR 2.7 Additional 5% of baseline or (FY 2016-17) Federal additional PKRs 50 Government Deposits of billion brought under PKRs 0.916 trillion parked the TSA in commercial bank PKRs 5 billion brought PKRs 5 billion brought Value (US $ 1 million for accounts of which PKRs 0 into the TSA into the TSA PKRs 10 billion billion was brought into the above PKRs 100 TSA. billion brought in the TSA) Date -- 20-Jun-2022 13-Dec-2022 -- Extensive consultations held with Commercial Banks, State Bank, Controller General of Accounts and the Comments entities to finalize plan for implementation of TSA II. 12/20/2022 Page 10 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) ►DLI 3 Percentage of vendor contracts processed through the Recipient’s e-procurement system (Outcome, 45,000,000.00, 44%) Baseline Actual (Previous) Actual (Current) FY 2022/23 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 PPRA to establish baseline Consultant has started than PKR 50 million data based on selected developing the e- Operation Acceptance for works) to be Value methodology for assessing procurement system Testing completed by the processed through procurement systems Standard Bidding technical staff of PPRA e-procurement for indicators by March 2018. Documents notified targeted primary health and primary education sectors. (US $ 6 million on achievement of 50% target. US% 1 million for each additional 10%) Date -- 20-Jun-2022 13-Dec-2022 -- Operational Acceptance Testing of the software completed by the technical team of PPRA Comments ►DLI 4 Percentage of alignment of information and identification numbers for individual primary school teachers and health workers related to their place of work and salaries (Intermediate Outcome, 35,000,000.00, 86%) Baseline Actual (Previous) Actual (Current) FY 2022/23 80 percent of primary Individual data in the OM school teachers and DLR 4.6: Pilots Province wide alignment are not aligned with the health workers tagged replicated across completed in KPK. Value ones in the HR records against unique primary one additional Baluchistan and Punjab is maintained in the health schools and provincial ongoing and education departments basic health units in pilot government districts. Date -- 20-Jun-2022 13-Dec-2022 -- Accountant General Punjab has substantially completed mapping of province wide data. Similarly, Baluchistan Province will also implement the OM module by February 2023. Government of KPK has already implemented Comments the OM module ►DLI 5 Percentage of pensioners, disaggregated by gender, authenticated against NADRA computerized national identity card, paid through the Direct Credit Scheme no later than the following pension payment cy (Intermediate Outcome, 30,000,000.00, 83%) Baseline Actual (Previous) Actual (Current) FY 2022/23 DLR 5.6: 90% (US 500,000 for each Value DCS paid 35% 87% 90% additional 1% above 85%) 12/20/2022 Page 11 of 12 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Date -- 20-Jun-2022 13-Dec-2022 -- Target achieved Comments ►DLI 6 Percentage of audit recommendations processed through the Audit Management Information System. (Outcome, 50,000,000.00, 80%) Baseline Actual (Previous) Actual (Current) FY 2022/23 DLR 6.6: 80 percent of PAC recommendations for health, education and at least four more sectors Value AMIS does not exist. 80% 80% effectively followed- up and reports published on an official website or by any other means easily accessible to the public Date -- 20-Jun-2022 13-Dec-2022 -- Audit Management Information System procured across all directors of the Department of Auditor General of Comments Pakistan ►DLI 7 Increased citizen access to key fiscal information on health and education. (Intermediate Outcome, 30,000,000.00, 50%) Baseline Actual (Previous) Actual (Current) FY 2022/23 DLR 7.6: Integrated Service Integrated Service Government wide Delivery Report (ISDR) Delivery Report (ISDR) for citizen budget Value FY 16/17 Budget for education sector education sector uploaded execution reports uploaded in Open Public in Open Public Finance uploaded in Open Finance Data Portal. Data Portal. Public Finance Data Portal Date -- 20-Jun-2022 13-Dec-2022 -- Comments ►DLI 8 Percentage of fiscal performance and service delivery indicators met by the provinces. (Outcome, 80,000,000.00, 83%) Baseline Actual (Previous) Actual (Current) FY 2022/23 No existing coordination 53% of performance 53% of performance Value -- mechanism targets met targets met Date -- 20-Jun-2022 13-Dec-2022 -- Comments 12/20/2022 Page 12 of 12