The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) Governance and Policy Project for Balochistan (P156411) SOUTH ASIA | Pakistan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2017 | Seq No: 10 | ARCHIVED on 29-Jun-2022 | ISR48721 | Implementing Agencies: Government of Balochistan, Islamic Republic of Pakistan Key Dates Key Project Dates Bank Approval Date: 28-Dec-2016 Effectiveness Date: 06-May-2017 Planned Mid Term Review Date: 30-May-2019 Actual Mid-Term Review Date: 01-Aug-2019 Original Closing Date: 30-Jun-2020 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen the capacity for Sales Tax on Services collection, and improve accountability in public financial management and public service delivery in the education and irrigation sectors in Balochistan. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) To strengthen the capacity for revenue mobilization and improve public financial management and accountability for public service delivery in Balochistan Components Table Name Strengthening capacity for provincial revenue mobilization and federal receipts management:(Cost $4.50 M) Strengthening public financial and risk management:(Cost $4.00 M) Improving public investment management and accountability in public services:(Cost $5.00 M) Ensuring effective support for the coordination of governance reforms and the operational management of the GPP:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions Significant progress is being made towards achieving the PDO. Revenue collection from July 2021 - March 2022 is up 28 percent over the same period one year earlier. On March 3, 2022, the Implementation Committee (under the Secretary of Planning) endorsed the progress of Immovable Public Assets which includes the geo-mapping of assets and continued automation of the Public Sector Development Program (PSDP). Of a total of 6/29/2022 Page 1 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) 31,000 assets identified for geotagging, 21,672 have been competed through February 28, 2022. Both complaints received and resolutions have also continued to increase. Through February 28, 2022, the Ombudsman office has received 1210 cases and resolved 719 of them. The is compared to a total of 724 cases received and 393 cases resolved over previous year. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Moderate Macroeconomic Substantial High Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High Substantial Moderate Sustainability Fiduciary High Moderate Moderate Environment and Social Moderate Low Low Stakeholders Moderate Moderate Moderate Other High High Moderate Overall Substantial Substantial Moderate Results PDO Indicators by Objectives / Outcomes Increased effectiveness of collection of provincial tax and non-tax revenues IN01053366 ►Increased collection of the province’s tax revenues (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Total provincial revenue PKR 7.87 Billion (9 Total provincial PKR 9.04 Billion Value collected in FY 18/19 is months) revenue collection is, PKR 8.437 Billion. at least, Rs. 12 Billion. Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 Revenue collection for the period of June - March 2022 was 7.87 billion PKR compared to 6.1 billion PKR from the same period the previous year. From April - June 2021 over 3 billion PKR billion was collected during a period of business closures. Assuming the same level of increase from the first 9 months puts Comments: the Baluchistan Revenue Authority on track to meet is 2022 target of 12 billion PKR. 6/29/2022 Page 2 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) Improving public investment management and accountability in public services IN01053367 ►All public investment assets in seven divisions of the province are geo mapped and published online (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Total 36000+ assets Public investment Over 70% of assets No division currently has have been already assets in additional targeted have been Value public investment assets identified and listed for four divisions geo- geotagged as of Feb geo-mapped Geo-tagging in the mapped and published 2022 Province. online Date 29-May-2020 04-Oct-2021 28-Feb-2022 30-Jun-2022 This exercise was a commendable effort as most of the assets had only paper records recorded in various documents. Hence the identification of the assets itself was in itself a remarkable achievement. The PDO indicator shows a clear improvement since the previous ISR period which reported that geo tagging (pilot) in two districts - Quetta and Mastung - are ongoing and that 3196 assets in Quetta and 744 assets in Mastung were geo-tagged. Phase II is progressing rapidly with 21,672 of a targeted 31,000 assets Comments: completed as of February 2022 Current Progress - Phase I: 3196 assets were geo-tagged in Quetta and 744 assets in Mastung Phase II : 21,672 assets (2154 assets previously reported) IN01053368 ►Complaints resolved by the Office of the Balochistan Ombudsman (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 54.00 54.00 70.00 Date 31-Dec-2019 04-Oct-2021 04-Oct-2021 30-Jun-2022 End target for this indicator is 70 percent. A total of 1210 cases were registered from July 2021 - Feb 2022, of those 719 were disposed of by the Provincial Ombudsmen Office (59 percent). This is an increase over the previous yea The total Number of registered cases was 724 from July 1, 2020 to June 30, 2021 out of which 393 cases Comments: were disposed of which is 54 percent. Overall Comments PDO All three PDO indicators have improved since the last ISR of October 2021. Intermediate Results Indicators by Components Strengthening capacity for provincial revenue mobilization and federal receipts management IN01053369 ►Registered Sales Tax on Services (STS) payers who filed returns in the previous year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/29/2022 Page 3 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) Value 43.00 78.37 58.00 60.00 Date 29-May-2020 04-Oct-2021 28-Feb-2022 30-Jun-2022 The percentage of tax filers in from July 2021 to February 2022 is 58 percent of 7276 registered taxpayers enrolled with Balochistan Revenue Authority. This is on pace to exceed the 60 percent target by June 2022. For FY 2020 - 2021 the percentage of tax filers was 78%. Comments: IN01053372 ►Enhanced human resource capacity for tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Center of The Center of Excellence Excellence for for Research Based Research Based (i) Staffing and training Management (CERBM) Management plans are approved for has prepared a plan for (CERBM) has implementation. capacity needs prepared a plan for assessment (NA) and is capacity needs (ii)Training provided by HR/staffing and training Value approved. assessment (NA) and BRA to, at least, 45 plans are not available. is approved. percent of the Training sessions were professional staff conducted for 30 key Training sessions were (including women) of staff of relevant conducted for 30 key three tax agencies. departments working in staff of relevant tax enforcement. departments working in tax enforcement. Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 The capacity needs assessment (NA) by Center of Excellence in Research for Research Based Management (CERBM) of University of Baluchistan has been prepared and approved. Training sessions were conducted for 30 key staff of the relevant departments at Finance Department on tax enforcement. Training for Tax Revenue generating departments is in process with 15 officers being Comments: trained on legal framework, tax enforcement, and revenue forecasting. Similar training is scheduled to be conducted at district/division levels. Two to three officers from each department will participate in these sessions. IN01053376 ►Implementation of Balochistan Revenue Mobilization Strategy (BRMS), and improved transparency of revenue performance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Baluchistan Revenue FD publishes annual Baluchistan Revenue Mobilization (BRM) BRMS and progress report on Mobilization (BRM) Plan Plan has been implementation Plan implementation of has been prepared and is prepared and is being prepared. Revenue BRM plan, including Value pending approval of the pending approval of performance related provincial revenue FD. Once the approval is the FD. Once the report/s not available. performance (tax and received, the plan will be approval is received, nontax collections and publicly disclosed. the plan will be publicly federal transfers data). disclosed. Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 6/29/2022 Page 4 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) Baluchistan Revenue Mobilization (BRM) Plan has been approved by the finance department, it has been officially disseminated, and implementation includes ongoing consultations with impacted departments. Further, there are no separate reports on Provincial Revenue mobilization efforts. However, every year, the Government publicly discloses its Revenue mobilization plans for that year as Volume-II with the budget documents. Moreover, the PRM unit is also supporting FD in the following activities. Stamp Duty Automation. This includes introducing of e-stamp. The collections under the scheme will be made through Alternate Delivery Channel System (ADCS) in addition to the existing Over Counter (OTC) payment system. Further, e-stamp paper has been developed for 1,000 denominations with its gradual Comments: expansion for other denominations. Establishment of Alternate Delivery Channel (ADCS) E-payment for the collection of all govt receipts (both tax & nontax receipts). For this cause, the Finance Department entered into a Tripartite Agreement with the State Bank of Pakistan and 1-Link (Pvt) Limited. A detailed action plan was devised and agreed upon with the stated counterparties. In the first phase, the collection of Balochistan Sales Tax on Services has been started through ADCS. Collection of other Provincial Receipts will also be started through this ADCS. There is a considerable progress in this indicator compared to what was reported in the October 2021 ISR. Strengthening public financial and risk management IN01053370 ►Strengthened institutional framework for investment promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Investment policy has been developed by BBOIT 9Baluchistan Board of Investment & Trade) which is in the process of being approved by the Cabinet. Ernest and Young has been hired and the consultant company has started the sector profiling work, scanning, and regulatory mapping There is no investment of the priority productive Investment policy Sector profiles profile; and no sectors in Balochistan as developed and Value underway, investment investment policy for identified by BBOIT. approved by the policy not yet finalized Balochistan Knowledge Exchange Cabinet Visits have been conducted with regional BOITs (KP BOIT, Federal BOIT and Punjab BOIT) to adopt best practices of Investment Promotion. An investment promotion conference will be held in Dubai on 28th of October 2021. BBOIT will prepare an Investment Promotion Strategy by December 2021. Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 Sector Profiling done by Earnest and Young for three sectors, Documents submitted to the relevant productive sector through BBOIT for finalization of the profiles, once endorsed by the departments a Comments: consultative session with all the relevant stakeholders is planned by GPP/BBOIT to finalize and publish the final Sector Profiles. 6/29/2022 Page 5 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) GPP supported the Balochistan Board of Investment to develop and print books to support Investment Promotion however for strategy BBOIT has been working on the document. IN01053373 ►Operationalization of the established PFM reform units (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (a) Fiscal Management Unit Debt database has established and has Debt database has been been developed and produced, at least, two developed and two debt two debt bulletins quarterly debt Various unit under bulletins were published were published by the bulletins. Value establishment but by the PFM (Public PFM (Public Financial incomplete Financial Management) Management) Unit in Unit in year 2020-21. year 2020-21. (b) First draft of the MTFF prepared for FY22. Date 29-May-2020 04-Oct-2021 04-Oct-2021 30-Jun-2022 There is considerable progress on this indicator as well compared to what was reported in the October 2021 ISR: Debt database has been developed and two debt bulletins were published by the PFM (Public Financial Management) Unit in year 2020-21. 1. Midterm Fiscal framework had been developed mutually by PFM EU (European Union) and PFM GPP. 2. Performed reconciliation of loan balances with Economic Affairs Division (EAD) for the year ended 30th June 2021. 3. Prepared Balochistan’s Debt Report 2021 that is approved by Finance Department and will be released in this week. 4. Prepared the Annual Budget statement (ABS) of the GoB for the budget year 2021-22 5. Helped Finance Department in preparing budget working papers for cabinet required under the constitution. 6. Prepared working and calculation of Disparity Reduction Allowance (DRA) & Pension increment announced in Budget by the Government. Comments: 7. Drafted the Capital Investment for Good of Balochistan. 8. Provided support to federal PFM; In addition the following tasks were also accomplished which shows the progress made after operationalization of the PFM Unit to strengthen public finance and risk management: Reviewed the Pension Rules 1987 of the Government of Balochistan and suggested necessary amendments to Government; drafted the revised TA (Technical Assistance) rules of the Government of Balochistan (GoB); drafted revised release policy of the GoB; provided expert opinions in the revision of group insurance rules of the GoB; provided expert opinion to Board of Revenue, Mine and Mineral Department, Energy Department, and Excise & Taxation Department on Receipts targets; completed field audit work and Issued Audit Report of Extended Program for Immunization (EPI) for management comments; prepared Internal Audit Unit`s annual audit plan for the audit year 2021-22; IAU (Internal Audit Unit) budget is included in the SNE (Scheduled New Expenditure - which means the request for new hiring and new fiscal years expenditures) of Finance Department to ensure continuity and sustainability of the Internal Audit Unit. etc. IN01053375 ►Improved budget formulation and management process (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Existing budget Finance Department has Finance Department Medium Term Fiscal formulation process is assigned this duty of has assigned this duty Framework developed budget law/manual to of budget law/manual 6/29/2022 Page 6 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) characterized by PFM Project funded by to PFM Project funded informality. European Union (EU). by European Union (EU). Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 Finance Department has assigned this duty of budget law/manual to Public Financial Management (PFM) Project funded by the EU. Hence this indicator is no longer relevant (but there is no need to remove it Comments: through a level 2 restructuring given this will not have any large impact on the overall PDO. IN01053377 ►Departments publishing procurement plans online (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8.00 5.00 Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 Eight departments are uploading their procurement activities online regularly but no periodic plan has been submitted annually on the website. The eight departments uploading their procurement plan through BPPRA are: Communication and works Comments: department; Irrigation Department; Public Health and Engineering Dept; Education Dept; Livestock Dept; Energy Dept; Health Dept; Local Government Improving public investment management and accountability in public services IN01053378 ►Public sector planning function strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PIM (Public Investment PIM (Public Investment Management) Management) framework framework & action & action plan have been plan have been completed and approved completed and by the Project Steering approved by the (i) Public Sector Committee (PSC). A Project Steering Investment Plan formal PIM Action Plan Committee (PSC). A developed and has been adopted by the formal PIM Action Plan approved by the Inadequate system for Government of has been adopted by Cabinet. strategic planning in the Baluchistan (GoB) and the Government of Value Planning and Foreign Aid Section of Baluchistan (GoB) and (ii) A Public Development the Planning & Foreign Aid Section of Investment Department Development the Planning & Management Department (P&DD) has Development Information System been directed to submit Department (P&DD) (PIMIS) established the proposed PIM has been directed to and functional. Strategic Actions for the submit the proposed review and prioritize PIM Strategic Actions activities/ actions to start for the review and implementation. prioritize activities/ actions to start implementation. Date 29-May-2020 04-Oct-2021 31-Mar-2022 30-Jun-2022 Comments: Draft Public Investment Management (PIM) framework and action plan have been completed and has been approved by the Project Steering Committee (PSC) but has not yet been approved by the 6/29/2022 Page 7 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) cabinet. The subsequent step was the adoption of a formal PIM Action Plan by the Government of Baluchistan (GoB), which is a significant outcome supported by the current GPP. Foreign Aid Section of the Planning & Development Department (P&DD) of GoB has been directed to submit the proposed PIM Strategic Actions for the review and prioritize activities/ actions to start implementation. In addition, there is a significant progress in the development and deployment of Public Sector Development Program (PSDP) automation since the period covered by previous ISR. Acceptance and deployment is underway. the PSDP will service as the Public Investment Management Information System for the Government of Balochistan. IN01053379 ►Strengthened institutional framework for accountability and integrity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Public Accounts Committee (PAC) has reviewed/examined audit report of 2017-2018 (audit year 2018-2019) 1414 government and submitted its report officials have received to Balochistan Provincial training on project Assembly as required by financing and 1562 Legal rules for the Anti- the rules and procedures. Integrity risk audits people from civil Corruption Establishment Copies of the reports conducted in five of the Value society and of Balochistan Act were sent to respective highest spending government developed departments for departments participated in a one compliance and following day public awareness that the report has been seminar in 6 districts. published. The audit report of 2018-2019 has also been reviewed/examined and up to 80% is completed. Date 29-May-2020 04-Oct-2021 28-Feb-2022 30-Jun-2022 With the assistance of the Governance and Policy Project, the Planning & Development Department (P&D Department) trained a total of 1414 Officers from different departments of the Government of Balochistan in 1) Monitoring and Evaluation. 2) Leadership and Management 3) Project Preparation and Management with an emphasis on PC-I to PC-V and Project Appraisal 4) Public Procurement 5) Finance for Non- Comments: financial executives. Further, 1562 civil society and government officials participated in one-day public awareness seminars in 6 districts (Khuzdar, Lasbela, Ziarat, Loralai, Zhob, and Killa Saifullah) from Education, Health, Social Welfare departments, local Organizations, INGO representatives, and Bar association members between July 2021 and February 2022. Ensuring effective support for the coordination of governance reforms and the operational management IN01053371 ►Public officials participating in project financed training activities (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 227.00 687.00 1,340.00 377.00 Date 29-May-2020 04-Oct-2021 28-Feb-2022 30-Jun-2022 With the assistance of the Governance and Policy Project, the Planning & Development Department (P&D D) trained 29% of Females (406 of 1414) from different departments of the Government of Balochistan in Comments: 1) Monitoring and Evaluation. 2) Leadership and Management 3) Project Preparation and Management with an emphasis on PC-I to PC-V and Project Appraisal 4) Public Procurement 5) Finance for Non- 6/29/2022 Page 8 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) financial executives. Further, 60% (934 of 1562) of females civil society and government officials participated in one-day public awareness seminars in 6 districts (Khuzdar, Lasbela, Ziarat, Loralai, Zhob, and Killa Saifullah) from Education, Health, Social Welfare department, local Organizations, INGO representatives, and Bar association members between July 2021 and February 2022. IN01053374 Public officials participating in project financed training activities (% of which are women) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 17.00 86.00 29.00 30.00 Overall Comments IR Almost all intermediate indicators also have improved since last IRS of March 2021. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156411 TF-A3352 Effective USD 16.00 16.00 0.00 14.53 1.47 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156411 TF-A3352 Effective 18-Jan-2017 18-Jan-2017 06-May-2017 30-Jun-2020 30-Jun-2022 Cumulative Disbursements 6/29/2022 Page 9 of 10 The World Bank Implementation Status & Results Report Governance and Policy Project for Balochistan (P156411) Restructuring History Level 2 Approved on 09-Jun-2020 ,Level Approved on 02-Aug-2020 Related Project(s) There are no related projects. 6/29/2022 Page 10 of 10