The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) SOUTH ASIA | Pakistan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2017 | Seq No: 9 | ARCHIVED on 29-Jun-2022 | ISR49504 | Implementing Agencies: Islamic Republic of Pakistan, Planning and Development Department, Khyber Pakhtunkhwa Key Dates Key Project Dates Bank Approval Date: 20-Apr-2017 Effectiveness Date: 23-May-2017 Planned Mid Term Review Date: 28-Jan-2019 Actual Mid-Term Review Date: 15-May-2019 Original Closing Date: 30-Jun-2022 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 public investment management and accountability of public service delivery in the water sector in Khyber Pakhtunkhwa. 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 Sales Tax on Services collection and improve public investment management and accountability for public service delivery in Khyber Pakhtunkhwa. Components Table Name Increasing capacity for revenue mobilization and the public financial management:(Cost $8.75 M) Improving public investment management and accountability in public services:(Cost $8.75 M) Providing effective support for the coordination of governance reforms and operational management:(Cost $3.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions Overall implementation progress continues to be satisfactory and the project is on track to achieve its development objective. As a result of consistent satisfactory performance the project was granted additional financing of US$8million (approved in July 2020) and was restructured to process (i) revision of the Project Development Objective; (ii) revision of the Results Framework; (iii) scaling up and revision of project activities; (iv) change in disbursement categories; and (v) extension of the closing date to June 30, 2022. 6/29/2022 Page 1 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Component 1: Increasing capacity for revenue mobilization and public financial management: Progress on this component continues to be satisfactory. General Sales Tax on Services (GSTS) collection of Khyber Pakhtunkhwa (KP) increased from PKR 7.3 billion in FY 2015/16 to PKR 26.5 billion in FY 21/22. There has also been an increase in registered taxpayers from 14,310 in April 2021 to 17,522 in May 2022. The project has been supporting the strengthening of KP Revenue Authority’s (KPRA) appellate tribunal and has helped establish a court room at the collector’s office. KPRA has also conducted a training for withholding tax agents and will conduct more trainings in remainder of FY22. The project continues to support taxpayers facilitation and awareness campaigns. The project is also supporting the implementation of an Enterprise Resource Planning (ERP) system in KPRA. The KP Procurement Authority (KPPRA) has developed an E-procurement software and conducted a diagnostic study in five districts on transformation to digitized procurement system. KPPRA has also launched its website which displays information on tenders and contract awards while also offering a platform for grievance redressal. The Public Financial Management (PFM) law has been approved by the Cabinet in June 2022. Component 2: Improving public investment management (PIM) and accountability in public services. Implementation progress under this component is also satisfactory. The PIM Unit has developed a Planning Manual. Following the completion of a Training Needs Assessment (TNA), the Planning and Development Department (P&DD) has prepared a training manual on project cycle management which was used to train 148 public officials including 20 female staff. The Public Private Partnership (PPP) Rules 2018 were approved by the Cabinet in September 2021 and the unit is preparing to hire Specialists to advance its reforms. The Performance Management Reform Unit continues to reach citizens through its Citizens’ Portal which has resolved 95 percent of complaints—354,000 out of 370,000 complaints. The Anti-Corruption Establishment has revised the Anti-corruption legislation, which is awaiting endorsement by the Establishment Department and subsequent approval by the Cabinet. The Right to Public Services Commission (RTPSC) in collaboration with IM Sciences has completed a Citizen Perception Survey. The RTPSC is now moving towards initiating the second Citizen Perception Survey. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Low Low Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and High Low Low Sustainability Fiduciary High Moderate Moderate Environment and Social Substantial Low Low Stakeholders Moderate Low Low Other High Low Low Overall Substantial Low Low Results PDO Indicators by Objectives / Outcomes Increasing capacity for revenue mobilization and public financial management IN01077527 6/29/2022 Page 2 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) ►Increased collection of the Sales Tax on Services (STS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target KPRA targets to KPRA collected PKR 5 KPRA collected PKR KPRA collected Rs. 11 collect, at least, Rs. Value billion during July 2021- 26.5 billion during FY billion during FY 18/19 18.0 billion in FY September 2021. 21-22. 21/22. Date 28-Jun-2019 28-Oct-2021 26-May-2022 30-Jun-2022 KPRA collected PKR 10.35 billion in FY2018/19, which increased to PKR16.09 billion in FY2019/20 (actual figures from civil accounts) and PKR 19 billion in FY2020/21 (actual figures revised estimates from civil accounts). During FY 2021/22, the KPRA has collected PKR 26.5 billion (revised estimates from civil accounts). Comments: This indicator has been revised to align the unit of measurement in the baseline and target. IN01077529 ►Improved public financial management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target KP does not have a PFM PFM law and Strategy PFM Law approved by Law as of 2020 are currently under the Provincial review by relevant The PFM law has Assembly. Value stakeholders. The PFM been approved by the law will be submitted for Cabinet. Cabinet approval in November, 2021. Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Improving public investment management and accountability in public services IN01077526 ►Reduction in total throw-forward amount in the Annual Development Plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least a 15% ($42 Total throw forward is Total throw forward is Total throw forward is Rs. million) reduction in the Value Rs. 420 million in FY Rs. 982 million for FY 982 million for FY 20-21 total throwforward over 19/20. 20-21 FY 19/20 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 The actual data (Rs.727million) includes merged areas whereas the original calculation for the baseline Comments: did not. IN01077528 ►Citizens reporting satisfaction with selected notified services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 75.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Comments: The Citizens' Perception Survey is complete and a draft report is currently under review. 6/29/2022 Page 3 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Intermediate Results Indicators by Components Increasing capacity for revenue mobilization and the public financial management IN01077530 ►Increase in number of STS tax payers that filed tax returns (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Project Implementing Entity has increased the 578 taxpayers out of 10,246 tax payers filed 10,246 tax payers filed number of STS 1259 registered Value their returns during their returns during taxpayers filing tax taxpayers filed returns in FY20/21. FY20/21. returns in the Fiscal 2015/2016. Year by a cumulative percentage of 50% above Baseline. Date 30-Jun-2016 28-Oct-2021 26-May-2022 30-Jun-2022 The indicator was revised during restructuring to ensure consistency between the baseline and target (measuring cumulative increase in over the baseline). Comments: IN01077533 ►Increase in registered taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7,588.00 15,710.00 18,016.00 9,106.00 Date 29-May-2020 28-Oct-2021 26-May-2022 30-Jun-2022 IN01077536 ►Enhanced human resource capacity for tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Limited progress on HR/staffing and training this indicator. The plans are not available. Staffing and training Limited progress on this training manual has plans are approved for indicator. While job been developed and a implementation. descriptions and training training needs KPRA’s total working Value manual were revised, the assessment has also strength is 185 (including KPRA has trained at KPRA needs to develop been conducted. 22 on deputation and 45 least 45% of the staff a training and staffing KPRA plans to outsourced staff), against (including women). plans. develop a training and 227 sanctioned positions staffing plans in the coming FY. Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 IN01077538 ►Share of taxpayers who paid any amount with returns (Percentage, Custom) 6/29/2022 Page 4 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 14.00 11.00 22.00 Date 29-May-2020 28-Oct-2021 29-Apr-2022 30-Jun-2022 IN01077540 ►Departments using Framework Agreements (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 7.00 7.00 5.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 IN01077542 ►Procuring entities publishing procurement plans online (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 31.00 44.00 37.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Data for FY 21-22: 18 procuring entities publishing procurement plans online Comments: Cumulative: 31 procuring entities publishing procurement plans online Improving public investment management and accountability in public services IN01077531 ►Public investment schemes monitored, and results published in publicly disclosed progress reports (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 10.00 19.00 35.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Total number of schemes (FY 20-21): 2,467 out of which 666 schemes were monitored (27%) Total number of schemes (FY 21-22): 2,342 out of which 234 schemes were monitored (10%) in the first quarter of this FY Comments: This target is not cumulative because the number of schemes changes every year. Results have been published on the Planning and Development Department (P&DD) website: https://pndkp.gov.pk/monitoring-evaluation/ IN01077534 ►Increase in Public Investment Assets that are geo-mapped and published online (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A total of 2156 public 550 public assets have The Project assets have been geo been geo mapped. The Implementing Entity mapped. The Public Investment Assets Government has has cumulatively Government has Value are not geomapped and indicated that these geomapped and indicated that these not available online. assets cannot be published online 600 assets cannot be published due to security Public Investment published due to risks. Assets security risks. 6/29/2022 Page 5 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Date 30-Jun-2016 05-Oct-2021 26-May-2022 30-Jun-2022 IN01077537 ►Public Investment schemes with unapproved PC 1 prior to inclusion in the budget (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 29.00 19.00 19.00 20.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Exceeded target for this FY. Comments: IN01077539 ►Citizens reporting that WSS services was provided within the stipulated time frame (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45.00 45.00 50.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 Data for this indicator has been derived from the Citizens' Perception Survey. While 56 percent of citizens reported satisfaction from water supply services, only 34 percent reported satisfaction from garbage Comments: disposal services. IN01077541 ►Improved legal and institutional framework for anti-corruption (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Action plan for rationalization of Institutional provincial government Institutional assessment assessment completed entities dealing with completed and new Anti- and new Anti- mandate for anti- Corruption Act drafted. Corruption Act drafted. corruption finalized Existing legal and The draft Act is under The draft Act is under and submitted for institutional framework review by the Value review by the cabinet approval for Anti-Corruption is Establishment Establishment inadequate Department and will be Department and will be submitted for Cabinet submitted for Cabinet Draft new Anti- approval by December approval by December Corruption legislation 2021. 2021. submitted to Provincial Assembly Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 IN01077543 ►Complaints resolved through Pakistan Citizen Portal (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 60.00 94.00 75.00 Date 30-Jun-2021 05-Oct-2021 26-May-2022 30-Jun-2022 Resolution of complaints is 60% for the first few months of the current fiscal year. Comments: 6/29/2022 Page 6 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Providing effective support for the coordination of governance reforms and operational management IN01077532 ►Public officials participating in project financed training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 463.00 1,245.00 1,245.00 820.00 Date 29-May-2020 05-Oct-2021 26-May-2022 30-Jun-2022 This data is cumulative, including for the sub indicator: Public officials participating in project financed training of which are female participants. Data for the sub indicator is as below: Last FY: 66 female public officials participated in project financed training This FY: 80 female public officials participated in project financed training Comments: Total number of participants: 1245 (male and female) Total number of female participants: 146 (12 percent) IN01077535 Public officials participating in project financed training of which are female participants (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 12.00 12.00 35.00 Performance-Based Conditions IN01077544 ►PBC 1 Increase in number of STS tax payers that filed tax returns (Text, Intermediate Outcome, 500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) FY21/22 The Project Implementing Entity has increased the number of STS 578 taxpayers out of 1259 10,246 tax payers filed 10,246 tax payers filed taxpayers filing tax Value registered taxpayers filed their returns during FY their returns during returns in the Fiscal returns in 2015/2016. 20/21. FY20/21. Year by a cumulative percentage of 25% above Baseline. Date -- 28-Oct-2021 05-Apr-2022 -- IN01077545 ►PBC 2 Increase in Public Investment Assets that are geo-mapped and published online (Text, Outcome, 500,000.00, 0.00%) 6/29/2022 Page 7 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Baseline Actual (Previous) Actual (Current) FY21/22 The Project 550 public assets have Implementing Entity been geo mapped. The Public Investment Assets has cumulatively Government has indicated Value are not geomapped and not 550 public assets geomapped and that these assets cannot available online. published online 250 be published due to Public Investment security risks. Assets Date -- 05-Oct-2021 05-Apr-2022 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156410 TF-A3361 Effective USD 10.00 10.00 0.00 10.00 0.00 100% P156410 TF-B3385 Effective USD 8.00 8.00 0.00 4.70 3.30 59% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156410 TF-A3361 Effective 23-May-2017 23-May-2017 23-May-2017 30-Jun-2020 30-Jun-2022 P156410 TF-B3385 Effective 09-Jul-2020 15-Jul-2020 12-Oct-2020 30-Jun-2022 30-Jun-2022 Cumulative Disbursements 6/29/2022 Page 8 of 9 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Restructuring History Level Approved on Related Project(s) P171659-Governance and Policy Project for Khyber Pakhtunkhwa 6/29/2022 Page 9 of 9