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, Adnan Ashraf Ghumman, Irum Touqeer Seq No: 1 | ARCHIVED on 29-Jan-2021 | ISR44196 | Created by: Akmal Minallah on 09-Nov-2020 | Modified by: Akmal Minallah on 28-Jan-2021 Program Development Objectives 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 Overall Implementation Progress (IP) -- Satisfactory Implementation Status and Key Decisions The Program became effective on December 17, 2020 and implementation has started, with strong commitment and ownership by the Government of Punjab (GoPb). The structure and mandate of the Public Financial Management (PFM) Unit was approved by the Chief Minister of Punjab. The Finance Department (FD) has initiated consultations for the development of a PFM Law for the Province. The Provincial Finance Commission (PFC) has been notified and it is expected that a new PFC formula incorporating multiple indicators and performance grants to the local government shall be enacted by June 2021. FD is also exploring different parameters for pension reforms based on recently concluded actuarial analysis. The Punjab Information Technology Board (PITB) has brought 18 services online and is well on its way to implement GoPb’s vision of providing services through integrated solutions. 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 0.76 303.24 0.3% 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 1/29/2021 Page 1 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Action Description 1. Establish PFM Unit Source DLI# Responsibility Timing Timing Value Status Technical Finance Department Due Date 30-Jun-2021 In Progress Completion Measurement Notification of unit establishment and staffing The PFMU structure has been approved by the Punjab Chief Minister. The establishment of unit and related staffing Comments is in process. Action Description 2. Standard Operating Procedures for E-waste management approved by the GoP Source DLI# Responsibility Timing Timing Value Status Environmental and Social P&D Department Due Date 30-Jun-2021 Not Yet Due Systems Completion Measurement Procedures notified by Environment Protection Agency Comments Action Description 3.Reporting on the compliance of the Bank ACG. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Finance Department Recurrent Yearly In Progress Completion Measurement Annual reporting by the Finance Department to the Bank 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 has been notified, to be chaired by Punjab’s Finance Minister. Its membership Comments includes the Program implementing agencies. 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-2021 In Progress Systems 1/29/2021 Page 2 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Completion Measurement Complaints' log available for each tier of complaints A GRM is available for all departments of the Punjab Government under Chief Minister’s online complaint cell and Comments Government departments’ complaint registration system through websites. There is a need to consolidate the GRMs. Action Description 6. Publication of guidelines on collection, storage, usage, or processing of personal data. Source DLI# Responsibility Timing Timing Value Status Technical PITB Due Date 29-Oct-2021 Not Yet Due Completion Measurement Approval by the Cabinet Comments 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 01-Mar-2021 In Progress 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 Macroeconomic Substantial -- Substantial 1/29/2021 Page 3 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Moderate -- Moderate Sustainability Fiduciary Substantial -- Moderate Environment and Social Low -- Low Stakeholders Moderate -- Moderate Other Moderate -- Moderate Overall Moderate -- Moderate Results PDO Indicators by Objectives / Outcomes Strengthened budget formulation and fiscal risk management IN00915551 ►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 Average of three years Value variance is 18%. (2015- -- variance is 18%. (2015- variance (FY22 – 18). 18) FY24) is <10% Date 30-Jun-2020 -- 15-Jan-2021 15-Jul-2025 Comments Variance in expenditure composition out turn by function (PEFA 2.1) Increased use of digital technology for delivery of selected public services IN00915553 ►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% 500,000, of which 9% 1,800,000, of which Value -- female female 20% female Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Increased number of citizens using specific public digital services. Improved collection of own source revenue IN00915552 ►Value of own-source tax revenue (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Own-source tax PKRs 191 billion (FY20, PKRs 191 billion (FY20, Value -- collection of Rs.300 RE) RE) billion. Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 1/29/2021 Page 4 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Comments Total taxes collected by GoPb Intermediate Results Indicators by Results Areas Strengthening budget formulation and fiscal risk management IN00915554 ►Moderate and reduce the annual pension cost of GoPb (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least six In FY19 (30th June), Actuarial analysis of (cumulative) key Punjab civil service Value -- Punjab pension parameters pension cost 15% of payments completed implemented of the budget Pension Reform Plan Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Implementation of parametric pension reform plans IN00915557 ►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 In FY20 (30th June), no No policy guidelines on policy guidelines on contracting & monitoring contracting & monitoring of commodity debt exist Punjab FD ensures no of commodity debt exist along with strategy to more than PKR20 Value along with strategy to -- reduce commodity debt billion flow in reduce commodity debt flow as well as no commodity debt stock. flow as well as no detailed detailed disclosure of disclosure of commodity commodity debt stock. debt stock. Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Reduction in CFDS IN00915560 ►Districts achieving minimum standards for Disaster Risk Reduction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target GoPb does not have Disaster Risk Financing Value Disaster Risk Financing -- 70% Strategy is not notified Strategy (DRFS) Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Minimum standards for DRR shall be defined in the DRFS. IN00915563 ►Strengthened cash management function of Government of Punjab (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cash forecasting GoPb does not have cash Cash Management Value -- reports published on management policy. Policy is not approved quarterly basis by FD Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 1/29/2021 Page 5 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Comments Supporting GoPb in strengthening its cash management function Increased use of digital technology for delivery of selected public services IN00915555 ►Operational budget expenditure processed through e-procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target e-procurement system e-procurement system Value -- 50% does not exist. does not exist. Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments e-procurement system means an end to end system. IN00915558 ►Additional services provided to citizens and firms online, through a single identity platform (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 18 services are 50 Services provided 10 services are provided Value -- provided to citizens to citizens and firms to citizens online online online Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Increased public services provided online through a single identity platform IN00915561 ►Citizen satisfaction with online services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 -- 50.00 75.00 Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Target population is number of citizens using the online services (gender dis-aggregated) IN00915564 ►Number of Punjab Urban Local Areas reporting on revenues and expenditure position (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 -- 16.00 319.00 Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Supporting digital web based financial reporting solutions to Urban Local Areas for enhanced financial Comments transparency. Improved collection of own source revenue IN00915556 ►Increase in number of registered services sales taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82,285.00 -- 86,000.00 145,000.00 1/29/2021 Page 6 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Comments Expansion of tax base by increasing number of registered taxpayers with PRA. IN00915559 ►Increase in registered taxpayers who filed STS returns in previous year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 23,947.00 -- 23,947.00 77,500.00 Date 30-Jun-2020 -- 15-Jan-2021 31-Jul-2025 Increase in average number of STS filers in previous fiscal year (July-June) with PRA. Baseline is as Comments reported on July 24, 2020 IN00915562 ►Database integration in tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No linkages among No linkages among Punjab tax authorities Punjab tax authorities’ Punjab tax authorities’ have access to shared databases or with third- databases or with third- Value -- data with links to third parties; PRA & FBR parties; PRA & FBR parties (at least total signed MOU for data signed MOU for data 10 for PRA), sharing sharing Date 29-May-2020 -- 15-Jan-2021 31-Jul-2025 Comments Supporting integration of databases IN00915565 ►Key business processes for tax administration simplified and automated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target BP's of taxpayer registration, payment, Selected BPs automated Selected BPs arrears monitoring and in few tax authorities (e- automated in few tax Value -- refunds, appeals, payment for 8 taxes of authorities (e-payment litigation and feedback Punjab) for 8 taxes of Punjab) systems simplified and automated. Date 30-Jun-2020 -- 15-Jan-2021 31-Jul-2025 Supporting simplified and automated business processes of the tax administration of PRA, ETNCD and Comments BOR in Punjab. IN00915566 ►Enhanced capacity for revenue generation from real estate (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Substantial difference Substantial difference Complete properties’ between official and between official and market valuation market values of market values of studies for 6 cities Value properties; No market -- properties; No market (cumulative) using valuation study conducted valuation study modern valuation for public and private conducted for public methodology. properties and private properties Date 30-Jun-2020 -- 15-Jan-2021 30-Jun-2025 Building capacity for tax and non-tax revenue generation from public and private property by improving the Comments valuation system in six zones 1/29/2021 Page 7 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) 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 DLR 1.5: At least six (cumulative) key In FY19 (30th June), parameters Value Punjab civil service pension -- Draft PFM law prepared implemented of the cost 15% of budget Pension Reform Plan Date -- -- 15-Jan-2021 -- Comments ►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 composition by function and actual Value was an average of 18% -- Draft PFM Law prepared expenditure during last three years. composition is less (2015-16, 2016-17 and than 10% by 2017-18). program administrative or functional classification Date -- -- 15-Jan-2021 -- Comments ►DLI 3 Operational budget expenditure processed through e-procurement. (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 3.6.Implementing Entity processes e-procurement system e-procurement system cumulatively 50% of Value -- does not exist. does not exist. operational budget expenditures through e- procurement Date -- -- 15-Jan-2021 -- Comments 1/29/2021 Page 8 of 10 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 -- 500,000 1,800,000 Date -- -- 15-Jan-2021 -- 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, Finance Department Web based MIS publishes budgets implemented in 16 Urban and bi-annual Local Areas (ULAs) for Value -- 16.00 revenue and accounting and reporting. expenditure reports System not integrated with of 319 Urban Local Government IFMIS Areas (cumulative) and the provincial government Date -- -- 15-Jan-2021 -- Comments ►DLI 6 Value of own-source tax revenue (Outcome, 40.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 6.6: Implementing Value Rs. 191 billion (FY20, RE) -- Rs. 191 billion (FY20, RE) Entity’s own-source tax collection of Rs 300 billion Date -- -- 15-Jan-2021 -- Comments ►DLI 7 Database integration in tax administration (Intermediate Outcome, 37.00, 0%) Baseline Actual (Previous) Actual (Current) FY2024/25 DLR 7.6: Punjab tax No linkages among authorities have No linkages among Punjab Punjab tax authorities’ access to shared tax authorities’ databases databases or with third- data with links to Value or with third-parties; PRA & -- parties; PRA & FBR third parties (total 10 FBR signed MOU for data signed MOU for data for PRA), accessible sharing. sharing. with taxpayer’s CNIC/Name/STN. 1/29/2021 Page 9 of 10 The World Bank Implementation Status & Results Report Punjab Resource Improvement and Digital Effectiveness (P171417) Date -- -- 15-Jan-2021 -- Comments 1/29/2021 Page 10 of 10