The World Bank Implementation Status & Results Report Pakistan Financial Inclusion and Infrastructure Project (P159428) Pakistan Financial Inclusion and Infrastructure Project (P159428) SOUTH ASIA | Pakistan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 10 | ARCHIVED on 27-Jul-2022 | ISR52359 | Implementing Agencies: Central Directorate of National Savings (CDNS)- Ministry of Finance, Development Finance Group, State Bank of Pakistan, Islamic Republic of Pakistan, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 15-Jun-2017 Effectiveness Date: 28-Mar-2018 Planned Mid Term Review Date: 30-Jun-2020 Actual Mid-Term Review Date: 05-Jun-2020 Original Closing Date: 31-Dec-2022 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective is to contribute to increasing access and usage of digital payments and other financial services for households and businesses in Pakistan. This will be done by: (a) improving market infrastructure and institutional capacity, (b) supporting the uptake and usage of Digital Payments and Financial Services and by (c) improving access to financial services for micro, small and medium enterprises (MSMEs).The project will seek to substantially increase access and usage of financial services by women and support women-owned MSMEs. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Direct Support to the NFIS Implementation:(Cost $17.50 M) Supporting Expansion of Access Points for Financial Services:(Cost $9.40 M) Improving Access to Microfinance and to Financial Services for Micro, Small, and Medium Enterprises:(Cost $110.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions The project was approved by the World Bank Board on 15 June 2017 and became effective on 28 March 2018. The project development objective is to contribute to increasing access and usage of digital payments and other financial services for households and businesses in Pakistan. This will be done by: (a) improving market infrastructure and institutional capacity, (b) supporting the uptake and usage of Digital Payments and Financial 7/27/2022 Page 1 of 5 The World Bank Implementation Status & Results Report Pakistan Financial Inclusion and Infrastructure Project (P159428) Services and by (c) improving access to financial services for micro, small and medium enterprises (MSMEs). The project will seek to substantially increase access and usage of financial services by women and support women-owned MSMEs. Progress towards achievement of project development objective has been strong. The three project development objective level indicators related to number of digital transaction accounts, electronic payments per capita and number of unique beneficiaries (borrowers) have all substantially exceeded the project targets. In addition, 3 out of 6 intermediate level indicators (number of digital transaction accounts – female, number of unique female beneficiaries, and number of loans disbursed) have also exceeded the project plans. Despite achievement of key results framework indicators, the project has also experienced delays with implementation of planned payment system upgrades and operationalization of the risk sharing facility in support of bank lending to small and medium enterprises (SME) which offer opportunities for additional project impact. Unfortunately, no tangible progress was recorded with planned modernization of CDNS. With the project currently closing in December 2022, the key focus area going forward is to continue making progress on project activities and undertake needed discussions and next steps to maximize results in line with the project’s development objective. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Low Low Sector Strategies and Policies Low Substantial Substantial Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Low Low Environment and Social Moderate Moderate Moderate Stakeholders Low Low Low Other -- -- -- Overall Moderate Low Low Results PDO Indicators by Objectives / Outcomes Improving market infrastructure and institutional capacity IN01168227 ►Electronic payments per capita (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/27/2022 Page 2 of 5 The World Bank Implementation Status & Results Report Pakistan Financial Inclusion and Infrastructure Project (P159428) Value 0.40 4.46 5.03 2.00 Date 30-Dec-2016 30-Jun-2021 31-Dec-2021 31-Dec-2022 Electronic Payment per capita measures the growth of electronic payments and transactions per capita. The number of electronic payments will be divided according to the total population to receive a per capita Comments: measurement Supporting the uptake and usage of Digital Payments and Financial Services IN01168228 ►Number of digital transaction accounts (in millions) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 120.58 128.54 60.00 Date 30-Dec-2016 30-Jun-2021 31-Dec-2021 31-Dec-2022 According to SBP, digital transaction accounts (DTA) are defined as “Transactional accounts which store value of money that can be accessed through digital touch points/ access points for accessing financial Comments: services”. Improving access to financial services for MSMEs IN01168229 ►Number of unique beneficiaries (borrowers) reached* (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 325,661.00 387,414.00 123,900.00 Date 30-Dec-2016 30-Sep-2021 31-Dec-2021 31-Dec-2022 Intermediate Results Indicators by Components Direct Support to the NFIS Implementation IN01168230 ►New/Upgraded SBP-Operated Payment system and National Payments Gateway installed and operational (Yes/No) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Dec-2016 07-Dec-2021 01-Jun-2022 31-Dec-2022 IN01168253 ►DTA Scheme designed and operational (Yes / No) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/27/2022 Page 3 of 5 The World Bank Implementation Status & Results Report Pakistan Financial Inclusion and Infrastructure Project (P159428) Value No No No Yes Date 30-Dec-2016 07-Dec-2021 01-Jun-2022 31-Dec-2022 While activities to this end are under way, they are not funded under FIIP Project. Comments: IN01168255 ►Number of digital transaction accounts (female) in millions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 18.85 20.45 10.50 Date 30-Dec-2016 30-Jun-2021 31-Dec-2021 31-Dec-2022 Supporting Expansion of Access Points for Financial Services IN01168251 ►End-to-end automation and modernization of the NSS implemented and operational (Yes/No) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Dec-2016 07-Dec-2021 01-Jun-2022 31-Dec-2022 Improving Access to Microfinance and to Financial Services for Micro, Small, and Medium Enterprises IN01168252 ►Number of loans disbursed*** (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 365,150.00 441,259.00 150,000.00 Date 30-Dec-2016 30-Sep-2021 31-Dec-2021 31-Dec-2022 IN01168254 ►Number of unique female beneficiaries reached (rounded to nearest 50)** (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 227,730.00 275,194.00 74,340.00 Date 30-Dec-2016 30-Sep-2021 31-Dec-2021 31-Dec-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) 7/27/2022 Page 4 of 5 The World Bank Implementation Status & Results Report Pakistan Financial Inclusion and Infrastructure Project (P159428) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159428 IDA-59890 Effective USD 37.30 37.30 0.00 7.45 31.82 19% P159428 IDA-61010 Effective USD 99.70 99.70 0.00 103.09 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159428 IDA-59890 Effective 15-Jun-2017 05-Jan-2018 28-Mar-2018 31-Dec-2022 31-Dec-2022 P159428 IDA-61010 Effective 15-Jun-2017 05-Jan-2018 28-Mar-2018 31-Dec-2022 31-Dec-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 7/27/2022 Page 5 of 5