The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) KP- Spending Effectively for Enhanced Development (P175727) SOUTH ASIA | Pakistan | Governance Global Practice | Requesting Unit: SACPK (1539) | Responsible Unit: ESAG1 (9742) IBRD/IDA | Program-for-Results Financing | FY 2021 | Team Leader(s): Akmal Minallah Seq No: 7 | Archived on 19-Dec-2024 | ISR02627 | Created by: Akmal Minallah on 26-Nov-2024 | Modified by: Akmal Minallah on 18-Dec-2024 1. PROJECT DEVELOPMENT OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 22-Apr-2021) To improve the availability and management of public resources for delivery of primary, middle and high school education and primary health care services. 2. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 3. KEY ISSUES & STATUS 3.1 Implementation Status and Key Decisions The Program is making significant progress, navigating through a challenging fiscal landscape. The Cabinet has endorsed draft policy notes aimed at enhancing facility-level planning, budgeting, and execution within the health and education sectors. This endorsement paves the way for the creation of standard norms for facility-level budgeting in these critical areas. Additionally, the Cabinet's approval of the Asset Management Policy marks a pivotal step towards better asset oversight, with the establishment of a Central Asset Management Unit within the Planning and Development Department being a key outcome. The program is also set to conduct an exhaustive survey of existing assets in collaboration with the Departments of Health and Education. Progress is evident in the development of a supply chain management framework for health and education, further bolstered by the Finance Department's initiative to implement an e-procurement system in Khyber Pakhtunkhwa. The Government of Khyber Pakhtunkhwa (GoKP) has initiated training for May 26, 2025 Page 1 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) procurement staff on the federal government's e-Procurement system, demonstrating a commitment to enhancing procurement efficiency. Despite the fiscal challenges, financial disbursements to service delivery units in primary health and primary education remain on course, ensuring that the program's objectives are met. 4. DATA ON FINANCIAL PERFORMANCE 4.1 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-68720 Effective 400.00 377.15 0.00 252.55 127.06 66.53% 4.2 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-68720 Effective 22-Apr-2021 06-May-2021 06-May-2021 30-Jun-2026 30-Jun-2026 4.3 Program Action Plan Capacity building of relevant units in the departments of health and education for Action Description monitoring and evaluation Source DLI# Responsibility Timing Timing Value Status Planning and Technical NA Development Recurrent Semi-Annually In Progress Department Completion Adequate staff in M&E unit trained and equipped to collect, analyze and report data to Measurement support Program and related data collection needs Ongoing activity. More than 20 staff of Independent Monitoring Units for Health and Comments Education provided with training May 26, 2025 Page 2 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Action Description Stakeholder engagement involved in Program related activities support strategic reforms Source DLI# Responsibility Timing Timing Value Status Finance Technical NA Recurrent Semi-Annually In Progress Department Completion Increased awareness and buy in of reform measures supported by the Program and active Measurement participation in quarterly discussions on reform path. Several stake holder consultations were held in Peshawar, Mardan, Kohistan and Swat to Comments understand PFM bottlenecks in service delivery. Four of these workshops were organized with Govenable. Action Description Assessing the distributional impact of health and education sector spending on women Source DLI# Responsibility Timing Timing Value Status Finance Technical 1 Due Date 30-Aug-2024 In Progress Department Completion Submission of report on the distributional impact of public health and education sector Measurement spending on women Comments Activity is initiated by the staff of project implementation unit. Action Description Developing a policy framework for climate resilient construction of service delivery facilities Source DLI# Responsibility Timing Timing Value Status Environmental and Planning 6 Due Date 30-Jun-2022 Completed Social Systems Department Completion Policy document on climate resilient specifications for construction of schools and hospitals Measurement Comments Document prepared Action Description Develop guidelines for E-waste management Source DLI# Responsibility Timing Timing Value Status Environmental and FD, KPITB, KPPRA, NA Due Date 31-Dec-2024 In Progress Social Systems P&D Completion Approved guidelines on e-waste management Measurement Comments The work is under progress May 26, 2025 Page 3 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Add community health and safety, labor safety, child labor and SEAH prevention clauses to Action Description construction contracts Source DLI# Responsibility Timing Timing Value Status Environmental and KPESED, Health Revised NA Due Date 31-Oct-2024 Social Systems Dept, C&W Date Completion Contracts containing safety requirements Measurement Draft Contracts are developed but needs to be notified. The new due date to complete this Comments action is March 15, 2025. Action Description Establish provincial level GRS Source DLI# Responsibility Timing Timing Value Status Environmental and NA Finance Dept. Due Date 30-Dec-2022 Completed Social Systems Completion GRS in operation Measurement Comments GRS in operation 5. KEY DATES Key Events Planned Actual Approval 22-Apr-2021 22-Apr-2021 Effectiveness 06-May-2021 06-May-2021 Mid-Term Review No. 01 30-Aug-2024 31-Oct-2024 Operation Closing/Cancellation 30-Jun-2026 6. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 06 - 04 Jun Proposed Rating 22 Apr 2021 2024 May 26, 2025 Page 4 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Political and Governance Moderate 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 Moderate Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Overall Moderate Moderate Moderate May 26, 2025 Page 5 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) 7. RESULTS 7.1 PDO Indicators by PDO Outcomes Improved availability of public finances for delivery of education and health services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Limited facility Mar/2021 This activity is 30-Apr-2024 Policy on 30-Oct-2024 (a) At least Apr/2026 level budget on track. for facility level 75% of responsibility the first three budgeting is primary health for primary quarters, the approved. care facilities health care releases were manage own centers and made non-wage primary and according to budget as per middle schools the plan the approved ( non-salary policy in DLR Increased facility level expenditure 8.1 and responsibility for budgeting up to PKR 3 maintain up to and spending in primary and million by date books of middle schools and primary Primary accounts; and healthcare facilities (Text) Teacher (b) At least Councils). 75% of primary and middle schools manage own non-wage budget as per the approved policy in DLR May 26, 2025 Page 6 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) 8.1 and maintain up to date books of accounts. Improved management of resources for delivery of education and health services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 60.00 Mar/2021 70.00 30-Apr-2024 53 30-Oct-2024 85.00 Apr/2026 PHC facilities having all the essential medicines and Comments on The funds were released by the Finance Department on time but there appears to be a delay commodities (Percentage) achieving targets in supply chain of essential medicine. Health Department is requested to investigate the reason of fall in availability of medicine. 50.00 Mar/2021 67.00 30-Apr-2024 58% 30-Oct-2024 80.00 Apr/2026 of which, Maternal and Comments on The funds were released by the Finance Department on time but there appears to be a delay Neonatal Clinics achieving targets in supply chain of essential medicine. Health Department is requested to investigate the (Percentage) reason of fall in availability of medicine Several service Mar/2021 a) Target 30-Apr-2024 a) Target 30-Oct-2024 (a) Additional Apr/2026 delivery achieved for achieved for 10% (45% in centers the year but the year but total) of missing basic most of the most of the primary, facilties. schools are schools are middle, and Primary, Middle and High affected by affected by high schools schools and PHC facilities floods, so new floods, so new are fully have functioning basic data will be data will be equipped with infrastructure (Text) collected.b) collected.b) climate Target has Target has resilient basic been achieved been achieved infrastructure; for the year for the year and (b) and TPV and TPV Additional 10% verified that verified that (45% in total) May 26, 2025 Page 7 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) 5% of PHCs are 5% of PHCs are of primary equipped with equipped with health care climate climate facilities are resilient resilient equipped with infrastructure. infrastructure. climate resilient basic infrastructure Primary, middle, and high 0.00 Mar/2021 45.00 30-Apr-2024 45.00 30-Oct-2024 45.00 Apr/2026 schools with filled teaching Comments on GoKP has approved the staffing norms, which are being verified by TPV. staff positions according to achieving targets approved staffing norms (Percentage) 0.00 50.00 50.00 70.00 of which girls' schools Comments on Share of girls' schools with approved staffing norms (Percentage) achieving targets 0.00 60.00 60.00 55.00 of which, in NMDs Comments on Schools in Newly Merged Districts meeting agreed staffing norms (Percentage) achieving targets Education and Jan/2021 1. DOH, in 30-Apr-2024 1. DOH, in 30-Oct-2024 Additional 5 Apr/2025 health service collaboration collaboration districts delivery with the World with the World meeting District Key Bank, Bank, agreed KPI for Districts that meet agreed Performance prepared KPIs prepared KPIs delivery of KPIs for education and health Indicators not to strengthen to strengthen education and service delivery (Text) notified. accountability accountability health for for services. Total performance performance 35 districts in service in service meeting KPIs delivery. The delivery. The May 26, 2025 Page 8 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) DOH has DOH has by the end of notified these notified these the program. KPIs, including KPIs, including in NMDs, in NMDs, continues to continues to report the report the status through status through its its Independent Independent Monitoring Monitoring Unit (IMU).2. Unit (IMU).2. Education Education department department has, in has, in collaboration collaboration with the World with the World Bank, Bank, prepared KPIs prepared KPIs to strengthen to strengthen accountability accountability for for performance performance in service in service delivery. They delivery. They continue to continue to collect data on collect data on these KPIs these KPIs through their through their Education Education Management Management May 26, 2025 Page 9 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Information Information System (EMIS). System (EMIS). 0.00 0.00 0.00 6.00 of which, NMDs Comments on NMDs that have met the 100 percent of the performance standards developed as part of the (Number) achieving targets MTEF PHC facilities with filled 10.00 Mar/2021 68.00 30-Apr-2024 68.00 30-Oct-2024 60.00 Apr/2026 medical staff positions according to approved staffing norms (Percentage) 7.2 Intermediate Results Indicators by Results Areas RA1: Providing adequate and reliable resources for delivery of education and health services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Development Nov/2020 Due to interim 30-Apr-2024 Budget call 30-Oct-2024 Three-year Apr/2026 and recurrent government, circular issued indicative budgets not this activity budgeting integrated and was not ceiling Multi-year budgeting not multi year completed announced implemented integrating with the development and current Integrated expenditure (Text) Budget Call Circular issued no later than March of the current year May 26, 2025 Page 10 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Comments on The revised format of BCC supports integration of recurrent and development budget. achieving targets Repairs and maintenance 7.50 Dec/2020 4.00 30-Apr-2024 5% 30-Oct-2024 12.00 Apr/2026 expenditure ( % of development expenditure ) (Percentage) Proportion of approved 25.00 Jan/2021 45.00 30-Apr-2024 45.00 30-Oct-2024 65.00 Apr/2026 development budget for Comments on Complete figure is compiled at the end of the ear. continuing projects in achieving targets elementary and secondary education released within 90 days after budget approval (Percentage) <3 7 percent 7 percent At least 10% of which for education Comments on Education repairs and maintenance expenditure (development expenditure) (Text) achieving targets <3 7 percent 7 percent At least 11% of which, for health Comments on repairs and maintenance expenditure (development expenditure) (Text) achieving targets KP does not Mar/2021 MTEP was 30-Apr-2024 MTEP was 30-Oct-2024 Budget Apr/2026 have a costed developed with developed with releases for MTEP for the support of the support of non-salary A costed medium term primary departments of departments of recurrent expenditure plan for primary, education and Education and Education and budget lines, middle, and high school PHC. Health, and Health, and at least 20% of education and primary approved by approved by the approved health care (Text) the Finance the Finance budget for FY Department Department 26, per and budget and budget quarter, based May 26, 2025 Page 11 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) releases are on releases are on on the track track minimum threshold set under DLR 1.1 Comments on MTEP is in place achieving targets Pension costs Mar/2021 Progress on 30-Apr-2024 two parametric 30-Oct-2024 FD has Apr/2026 rising as a achieving three reforms are in implemented Reduction in pension proportion of parametric progress six parametric expenditure (Text) total revenue reforms reforms Comments on After agreement on parametric reforms, the work is in progress to complete two parametric achieving targets reforms before the end of the fiscal year. Repairs and Mar/2021 R&M budget 30-Apr-2024 Final figures to 30-Oct-2024 (a) FD has Apr/2026 maintenance increased by be compiled increased its budget low 1% repairs and and climate maintenance considerations recurrent not expenditure incorporated by additional 1 Increased recurrent in physical percentage expenditure for repairs and assets point; and (b) maintenance of public The P&DD has investment assets (Text) established a unified asset register comprising at least 90% of assets registered by May 26, 2025 Page 12 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) departments of Health and Education) Delays in Mar/2021 a) According to 30-Apr-2024 a) According to 30-Oct-2024 (a) On average Apr/2026 availability of IMU data 70% IMU data 70% at least 80% of essential PHC facilities PHC facilities primary health medicine and having all the having all the care facilities school essential essential have all the supplies. medicines and medicines and essential commodities.b) commodities.b) medicines for Availability of essential 55% of schools 55% of schools one year; and supplies in schools and has all the has all the (b) At least hospitals and increased essential essential 65% of transparency (Text) supplies supplies primary, middle, and high school have all the essential supplies. Comments on While the budget for medicine was increased, the drop is attributable to delay in release of achieving targets funds and supply of medicine to some of the districts. RA2: Improved management of public finances for delivery of education and health services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year IFMIS Dec/2020 Consulting firm 30-Apr-2024 Consulting firm 30-Oct-2024 FD deployed Apr/2026 Automated budgeting and coverage hired and As-Is hired and As-Is the automated expenditure reporting currently analysis is analysis is billing process systems (Text) restricted only carried out carried out in at least 25 to Finance May 26, 2025 Page 13 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Department departments and CGA (cumulatively). Districts with completed 5.00 Dec/2020 0.00 30-Apr-2024 0.00 02-Dec-2024 30.00 Apr/2026 audits within 90 days after Comments on Audit Reports are submitted after compilation of financial statements at the year end. the end of financial year achieving targets (Number) 5.00 0.00 0.00 30.00 of which, accounts for Comments on Districts in which audits of the DESE has been conducted within 90 days of end of fiscal year DESE (Number) achieving targets 0.00 0.00 0.00 25.00 of which, accounts for Comments on DESE district accounts that have been audit within 90 days of close of financial year DoH (Number) achieving targets Invoices paid directly into 0.00 Mar/2021 0.00 30-Apr-2024 0.00 30-Oct-2024 55.00 Apr/2026 vendor bank accounts (Percentage) of which, for education 0.00 0.00 0.00 20.00 related expenses Comments on Vendor payments for education expenses (Percentage) achieving targets 0.00 0.00 0.00 20.00 of which, for DOH Comments on Vendor payments for health expenses (Percentage) achieving targets 100,000.00 Feb/2021 150,000.00 30-Apr-2024 150,000.00 30-Oct-2024 700,000.00 Apr/2026 Citizens surveyed on budget Comments on To receive feedback from citizens, the GoKP has established a portal on the website of the priorities and receiving achieving targets Finance Department. Through this website, citizens will be able to post their suggestions budget information through email, WhatsApp and regular posts. The GoKP will also collect feedback from (Number) different stakeholders by arranging conferences and workshops. Data on this indicator will be available once the GoKP prepares their report which will include findings from their ongoing efforts. May 26, 2025 Page 14 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) 7.3 Disbursement Linked Indicators (DLI) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date DLR 1.5: Budget releases for non- salary recurrent 1:A costed medium KP does not have a budget lines, at term expenditure costed medium term The targets for The targets for least 20% of the plan for primary, expenditure plan for Value budget releases are budget releases are approved budget middle, and high primary education on track 30-Apr-2024 on track 30-Oct-2024 for FY 26, per school education and primary health quarter, based on and primary health care the minimum care (Text) threshold set Partially achieved under DLR 1.1. Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 55,000,000.00 Finance department DLR 2.5: Finance has completed 2:Reduction in Department has pension reform plan Six parametric Six parametric pension implemented at however it is not reforms to be reforms to be agreed Value 30-Apr-2024 30-Dec-2024 least six expenditure (Text) submitted or agreed by the GoKP by the GoKP and the (cumulative) key Partially achieved approved by the and the WB WB parameters cabinet. Pension implemented of rules are revised and May 26, 2025 Page 15 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) approved by the the Pension cabinet during 52nd Reform Plan meeting held on March 16, 2021. Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 40,000,000.00 DLR 3.5: (a) FD has increased its repairs and maintenance recurrent expenditure by 3:Increased additional 1 recurrent percentage point; Repairs and expenditure for Asset guidelines Asset guidelines and (b) The P&DD Value maintenance budget repairs and prepared approved. has established a low 30-Apr-2024 30-Oct-2024 maintenance of unified asset public investment register assets (Text) comprising at Off-track least 90% of assets registered by departments of Health and Education Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 45,000,000.00 May 26, 2025 Page 16 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) DLR 4:5: (a) On average at least 80% of primary health care facilities have all the essential 4:Availability of medicines for one essential supplies in Delays in availability Report on Supply Report on Supply year; and (b) At schools and Value of essential medicine Chain Management Chain Management least 65% of hospitals and and school supplies prepared 30-Apr-2024 prepared 30-Oct-2024 primary, middle, increased and high school transparency (Text) have all the Not Due essential supplies as reported by the Supply Chain Management System Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 50,000,000.00 5:Primary, middle, DLR 5.5: and high schools Additional 10% of with filled teaching primary, middle, Staffing norms have staff positions and high schools been defined as at Value 50% 30-Apr-2024 50% 30-Oct-2024 meet basic according to least six teachers per approved staffing staffing norms for school norms (Text) primary, middle, and high schools, Not Due including a May 26, 2025 Page 17 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) minimum requirement of female teachers for each girls’ school. Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 50,000,000.00 DLR 6.5: At least 6:Primary health 10 % of primary care facilities with health care Staffing norms not filled medical staff Value 60% 68% facilities meet currently defined positions according 30-Apr-2024 30-Oct-2024 basic staffing to approved staffing norms for primary norms (Text) health care Not Due Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 45,000,000.00 DLR 7.5: (a) Additional 10% of 7:Primary, middle, primary, middle, and high schools and high schools Several service and primary health At least 5% schools are fully equipped delivery centers care facilities have Value were identified in 30-May-2024 On track 30-Oct-2024 with climate missing basic functioning basic the TPV resilient basic infrastructure infrastructure (Text) infrastructure; Not Due and(b) Additional 10% of primary health care May 26, 2025 Page 18 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) facilities are equipped with climate resilient basic infrastructure Allocated 0.00 0.00 5,000,000.00 Amount DLI allocation 50,000,000.00 DLR 8.5: (a) At least 75% of primary health care facilities manage own non- wage budget as 8:Increased facility per the approved level responsibility policy in DLR 8.1 Limited facility level for budgeting and and maintain up budget responsibility spending in primary Policy notes Policy notes to date books of for primary health and middle schools Value approved by the 30-Apr-2024 approved by the 30-Oct-2024 accounts; and (b) care centers and and primary secretary finance secretary finance At least 75% of primary, middle and healthcare facilities primary and high schools (Text) middle schools Partially achieved manage own non- wage budget as per the approved policy in DLR 8.1 and maintain up to date books of accounts May 26, 2025 Page 19 of 20 The World Bank Implementation Status & Results Report KP- Spending Effectively for Enhanced Development (P175727) Allocated 0.00 0.00 6,000,000.00 Amount DLI allocation 50,000,000.00 May 26, 2025 Page 20 of 20