The World Bank has rated the Khyber Pakhtunkhwa (KP) project’s overall implementation progress as good. In contrast, the project’s progress toward achieving its development objective (PDO) has been rated moderately satisfactory.
• World Bank Assesses KP’s Governance and Policy Program as Meeting Expectations
• World Bank Deems KP’s Governance and Policy Program Progress Satisfactory
• KP’s Governance and Policy Program Earns World Bank’s Satisfactory Rating
• World Bank Rates Success of KP’s Governance and Policy Program as Satisfactory
• KP’s Governance and Policy Program Performance Rated Satisfactory by World Bank
According to official documents, a copy of which is available, the project was approved in 2017 for $21 million to improve public investment management and accountability for providing public services in Khyber Pakhtunkhwa. The project was scheduled to end on June 30, 2022. However, that date was later changed to June 30, 2023.
The project’s first component was increasing income mobilization and public financial management capability. This component is making good progress. According to updated projections, the General Sales Tax on Services (GSTS) collected in KP grew from Rs 7.3 billion in 2015–16 to Rs 27.08 billion in 2022–23. The number of GSTS taxpayers who have enrolled has climbed from 7,588 in June 2016 (the baseline) to 20,264 in June 2023 (an increase of more than 160%).
Governance and Policy Program
The project has supported the development of sector audit guidelines for the development sector, strengthened the KP Revenue Authority’s (KPRA) appellate tribunal, and facilitated taxpayers’ registration, filing, and payment of taxes by providing field staff and technical assistance.
Campaigns to raise taxpayer awareness have also received funding from the KP Governance and Policy Program (GPP). The Excise & Taxation Department and the Board of Revenue of KP have also received technical help from GPP and infrastructure (IT equipment, furniture, and fixtures). The GPP has specifically backed the digitization of stamp duty in the province.
Thirty-four districts have adopted the system. This year, the government has received over Rs. 600 million through the estamp system. The technology is anticipated to close gaps, simplify valuation tables, improve collection efficiency, and benefit taxpayers.
GPP assisted the KP Procurement Regulatory Authority (KPPRA) in performing diagnostic research on converting to a digital procurement system in five districts. A mechanism for grievance redressal is available on the KPPRA website, which also shows data on bids and contract awarding.
The procurement plans of more than 30 government agencies in KP are available online. Additionally, in FY23, a total of 22 departments implemented framework agreements. In June 2022, the Public Financial Management Law was adopted. The GPP offered technical assistance to finish the actuarial research for the employee pension and benefit plan, finding 3 trillion PKR in pension obligations.
This served as the foundation for KP’s ongoing pension changes. The GPP has furthermore supported the creation of two specialized divisions in the Finance Department: the Corporate Governance Unit and the Debt Management Unit.
Enhancing public investment management (PIM) and accountability in public services was the focus of the project’s second component. This component’s implementation progress is Moderately Satisfactory. To enhance public service delivery, GPP helped develop a few accountability institutions and encourage citizen involvement. This includes backing the KP Right to Public Services Act and the KP Right to Information Act’s execution.
According to the second round of the residents’ Perception Survey, finished in March 2023, 84 percent of residents are satisfied with a subset of governmental services.
The GPP also helped to improve the Performance Management Reform Unit, which can still communicate with citizens via the Pakistan Citizens’ Portal. In FY23, 88,029 out of 89,294 complaints submitted via the citizen’s portal were handled, or around 98.5 percent.
The Anti-Corruption Establishment has created a revamped anti-corruption statute and action plan; the Cabinet has yet to accept them. To produce pertinent outcomes for PIM, the GPP sponsored the development of/strengthening of several units under the Planning and Development (P&D) Department.
For example, during FY23, the M&E Directorate and district/field offices were established, and they deployed a digital system to oversee around 29% of public investment programs.
GPP strengthened the P&D department’s GIS center, enabling it to complete the geo-mapping of the province’s 22,507 public investment assets. Although the geo-tagged information of public investment assets was not made available online for security concerns, the Government of KP is still using the information for planning.
In 2022, it was also applied to determine flood-related damage. Despite excellent outcomes in other areas, the Government of KP could not reduce throw-forward, which rose from Rs. 420 million in FY20 to Rs. 1,345 million in FY23.
This was primarily due to the Annual Development Plan’s slow execution in the year due to the inclusion of investment schemes with unapproved PC-Is in the budget, the Finance Department’s slow release of funds, and implementation-related difficulties. The merged region data, now included in the throw-forward of FY23 post-merger with FATA territories, was missing from the baseline data.
The project’s third component effectively supports the synchronization of operational management and governance improvements. This component’s implementation progress is satisfactory. The Operations Support Unit was fully staffed, and the Shared Services Unit facility assisted it with its fiduciary duties.