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: 7 | ARCHIVED on 28-Apr-2021 | ISR46307 | 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 Moderate 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. 4/28/2021 Page 1 of 8 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 in this component continues to be satisfactory. The KP Revenue Authority (KPRA) has improved its revenue collection and continues to exceed annual project targets. The KPRA has reported collection of Rs.14.5 billion during July 2020 - March 2021 . This is based on expanded tax base (14,310 registered taxpayers) and some improvement in business activity compared to the previous year. However, small businesses are reported to have been largely affected by COVID-19 related restrictions. The filing frequency in FY20 was 83 percent, and 10 percent of filers paid any tax amount with returns. During the ongoing year, KPRA is planning to conduct a survey to map businesses in Mardan and South Region, which will help inform policy decisions to expand tax base. For enhanced tax vigilance in key sectors, the oil and gas sector notes have been developed to prepare audit guidelines for KPRA, while preparation of mines and minerals sector notes are in process. Further support for KPRA’s Enterprise Resource Planning infrastructure/software (selected modules) is being discussed to help improve internal organizational planning and monitoring. The project is also helping strengthen KPRA’s appellate tribunal, establish digital library, and support taxpayer facilitation and information activities by providing staffing provision for field offices and media campaign. All these activities will help strengthen tax administration at KPRA. The KP Procurement Authority launched its website which displays information on tenders and contract awards while also offering a platform for grievance redressal. The PFM law has been drafted and submitted to the Cabinet for approval. A draft strategy has also been prepared. Component 2: Improving public investment management (PIM) and accountability in public services. Implementation progress under this component is also satisfactory. The PIM action plan was approved by the PIM Core Committee in December 2020. A PIM Unit has been established to implement this action plan. As a first step, the GoKP has designed training modules on planning and conducted a first round of training for 97 officers working on project management. These trainings will help build a technically strong cohort proficient in all stages of the project cycle. The third phase of the Public Private Partnership (PPP) training to provide certification to PPP specialists is also complete. When fully completed, it is expected that trained professionals will have the foundation to help implement PPP reforms under the new PPP Act 2020. Following an institutional assessment of Anti-Corruption Establishment , the KP Anti-Corruption Agency Act, 2020 has been drafted. The Integrated Grievance Redressal Mechanism—which includes the Chief Minister’s Grievance Redress Cell—has resolved around 96 percent of its cases i.e. 517 out of 535 registered complaints. A Citizens’ Perception Survey was conducted and its findings analyzed. The Institute of Management Sciences is currently finalizing the report. Work is underway to develop a Wheat Management Strategic Plan that will assist the GoKP in planning and making decisions on wheat procurement, storage, price control, import and transportation. The Planning and Development Department is also developing an Integrated Information Management System for implementation of Annual Development Plan projects. Upon the successful implementation of its Case Management Information System , the Secretariat for District Judiciary is in the process of establishing a Data Analysis Wing. The Right to Information Commission has trained 60 investigating officers and established offices in four Divisional headquarters at Abbottabad, Dera, Ismail Khan and Swat. KP Ombudsperson’s Office has established a facilitation center and a Toll free number. It also held a provincial conference successfully to raise awareness on the Protection against Harassment of Women at the Workplace Act Code of Conduct. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Low Technical Design of Project or Program Moderate Moderate Low Institutional Capacity for Implementation and High Moderate Low Sustainability Fiduciary High Moderate Moderate Environment and Social Substantial Low Low Stakeholders Moderate Moderate Low Other High High Low 4/28/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Overall Substantial Moderate Low Results PDO Indicators by Objectives / Outcomes Increasing capacity for revenue mobilization and public financial management IN00980889 ►Increased collection of the Sales Tax on Services (STS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target KPRA targets to KPRA collected Rs. KPRA collected KPRA collected Rs. 11 collect, at least, Rs. Value 17.19 billion in FY19/20 PKR14.5 billion during billion during FY 18/19 18.0 billion in FY (revised estimates). July 2020-March 2021. 21/22. Date 28-Jun-2019 31-Aug-2020 14-Apr-2021 30-Jun-2022 In FY2018/19 the KPRA collected PKR 10.35 billion (actual figures from civil accounts). In FY2019/20, the authority has reported a collection of PKR13.09 billion, and during ongoing fiscal year (July 2020 – March 2021), the authority has collected 14.5 billion. Comments: This indicator has been revised to align the unit of measurement in the baseline and target. IN00980896 ►Improved public financial management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target KP does not have a PFM PFM law has been PFM law has been PFM Law approved by Law as of 2020 drafted and is currently drafted and is currently the Provincial under review. A PFM under review by a Assembly. Value expert will be recruited in PFM expert. The PFM October to support the Strategy has been finalization of the PFM revised and submitted law and strategy. for approval. Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 Improving public investment management and accountability in public services IN00980888 ►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. 727 million for FY 727 Million in FY 20-21 total throwforward over 19/20. 20-21 FY 19/20 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 The actual data (Rs.727million) includes merged areas whereas the original calculation for the baseline Comments: did not. 4/28/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) IN00980890 ►Citizens reporting satisfaction with selected notified services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 65.00 75.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 The Citizens' Perception Survey is complete and a draft report is currently under review. Comments: Intermediate Results Indicators by Components Increasing capacity for revenue mobilization and the public financial management IN00980897 ►Increase in number of STS tax payers that filed tax returns (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target The Project Implementing Entity has increased the 578 taxpayers out of A total of 7,795 tax number of STS 1259 registered payers filed their Value 32 percent taxpayers filing tax taxpayers filed returns in returns during the year returns in the Fiscal 2015/2016. 2019/2020. Year by a cumulative percentage of 50% above Baseline. Date 30-Jun-2016 31-Aug-2020 14-Apr-2021 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: IN00980900 ►Increase in registered taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7,588.00 11,815.00 14,310.00 9,106.00 Date 29-May-2020 31-Aug-2020 16-Apr-2021 30-Jun-2022 IN00980903 ►Enhanced human resource capacity for tax administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Staffing and training HR/staffing and training Training needs plans are approved for plans are not available. assessment, review of Concept note of implementation. job descriptions and Training needs Value preparation of staffing assessment is under KPRA has trained at KPRA’s total working and training plans to be preparation. least 45% of the staff strength is 185 (including initiated after approval of (including women). 22 on deputation and 45 workplan. 4/28/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) outsourced staff), against 227 sanctioned positions Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980905 ►Share of taxpayers who paid any amount with returns (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 12.00 10.00 22.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980907 ►Departments using Framework Agreements (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.00 7.00 5.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980909 ►Procuring entities publishing procurement plans online (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 29.00 13.00 37.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 Improving public investment management and accountability in public services IN00980898 ►Public investment schemes monitored, and results published in publicly disclosed progress reports (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 25.00 23.00 35.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 Results have been published on the Planning and Development Department (P&DD) website: Comments: https://pndkp.gov.pk/monitoring-evaluation/ IN00980901 ►Increase in Public Investment Assets that are geo-mapped and published online (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target The Project Public Investment Assets 250 public assets have 250 public assets have Implementing Entity Value are not geomapped and been geommapped and been geomapped and has cumulatively not available online. published online published online geomapped and published online 600 4/28/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) Public Investment Assets Date 30-Jun-2016 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980904 ►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 27.00 27.00 20.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980906 ►Citizens reporting that WSS services was provided within the stipulated time frame (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 57.00 50.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 Data for this indicator has been derived from the Citizens' Perception Survey. Comments: IN00980908 ►Improved legal and institutional framework for anti-corruption (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Action plan for rationalization of provincial government entities dealing with mandate for anti- Institutional corruption finalized Existing legal and assessment completed and submitted for institutional framework Institutional assessment Value and new Anti- cabinet approval for Anti-Corruption is completed Corruption legislation inadequate drafted. Draft new Anti- Corruption legislation submitted to Provincial Assembly Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980910 ►Complaints resolved through Pakistan Citizen Portal (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 88.00 84.00 75.00 Date 30-Jun-2021 31-Aug-2020 14-Apr-2021 30-Jun-2022 Providing effective support for the coordination of governance reforms and operational management 4/28/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) IN00980899 ►Public officials participating in project financed training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 463.00 506.00 730.00 820.00 Date 29-May-2020 31-Aug-2020 14-Apr-2021 30-Jun-2022 IN00980902 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 15.00 20.00 35.00 Performance-Based Conditions 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 9.62 0.38 96% P156410 TF-B3385 Effective USD 8.00 8.00 0.00 0.00 8.00 0%% 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 4/28/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Governance and Policy Program for Khyber Pakhtunkhwa (KP) (P156410) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) P171659-Governance and Policy Project for Khyber Pakhtunkhwa 4/28/2021 Page 8 of 8