DOCUMENTS ISLAMIC REPUBLI OF PAKISTAN PROVINCE OF PUNJAB .\7, 2016 International Bank for Reconstruction Development 1818 H Street NW Washington, DC 20433 United States of America Re: Loan Number 8600-PK (Punjab Jobs and Competitiveness Program) Performance Monitoring Indicators Dear Sir/Mesdames: We refer to Section III A of the Schedule 2 of the Loan Agreement (Punjab Jobs and Competitiveness Program) between the Islamic Republic of Pakistan the ("Borrower") and the International Bank for Reconstruction and Development the ("Bank") and Section III A of the Schedule to the Project Agreement between the Bank and the Province of Punjab of even date herewith for the above-mentioned Project. We hereby agree that the Performance Monitoring Indicators to monitor and evaluate the carrying out of the above-mentioned Project and the achievement of the objectives thereof are those set forth in the Attachment to this letter. Very truly yours, ISLAMIC REPUBLIC OF PAKISTAN By AuthorizedU Representative PROVINCE OF PUNJAB Authorized Representative Attachment Results Framework Matrix Program Development Objectives: To improve the investment climate and promote investments and jobs in more inclusive and sustainable industrial estates in Punjab. PDO Level Results E Unit of arget Vales Data Source/ Responsibility a Baseline Frequency for Data Indicators i St Measure YR1 YR2 YR3 YR4 YR5 Methodology Dataeource Methoology Collection PDO Indicator 1 and X X Absolute score 61 61 64 67 70 75 Annual Doing Doing Business DLI 1: Improvement using the Business Project Team in aggregate Doing DB16 Indicator (World Bank) Business performance methodology for Punjab (business (100 being the registration, contract best DB 16 enforcement, performer) construction permit and property registration) PDO Indicator 2: - Progress made Significant - Significant - Significant - Bi-annual EU Secretary of Progress made by by Punjab on progress progress progress evaluation Industry and Punjab on GSP+ GSP+ Labor made by made by made by Commerce, Labor conventions as conventions as Punjab Punjab Punjab Labor reported in the bi- reported in the reported in reported in reported in Department annual EU evaluation bi-annual EU 2016 EU 2018 EU 2020 EU evaluation evaluation evaluation evaluation PDO Indicator 3: - - Full time 82,000 82,000 85,000 95,000 110,000 140,000 Annual Enterprise PIEDMC/ Increase in number of workers in (13,900) (13,900) (15,000) (17,000) (22,000) (32,000) survey FIEDMC workers in existing existing industrial estates (of PIEDMC and which women) FIEDMC estates PDO Indicator 4: - - US$ million 0 25 50 100 200 300 Annual Enterprise PIEDMC/ New investments in invested in (25%) (30%) (35%) (40%) (50%) (cumulative) survey FIEDMC existing industrial existing estates (of which PIEDMC and percentage of FDI) FIEDMC estates