News Updates

World Bank Rates Progress on KP’s Governance and Policy Program as Satisfactory

World Bank has rated the overall implementation progress of “Governance and Policy Program for Khyber Pakhtunkhwa (KP) project satisfactory, while progress towards achievement of Project Development Objective (PDO) moderately satisfactory.

Official documents a copy of which is available revealed that the project was approved in 2017 with a cost of $21 million, envisaging to strengthen the capacity for Sales Tax on Services collection and improve public investment management and accountability for public service delivery in Khyber Pakhtunkhwa. The original closing date of the project was 30 June 2022 and the revised closing date was 30 June 2023.

The component 1 of the project was increasing capacity for revenue mobilization and public financial management. Progress on this component is satisfactory. General Sales Tax on Services (GSTS) collection in KP increased from Rs. 7.3 billion in 2015-16 to Rs. 27.08 billion in 2022-23 (revised estimates). The registered GSTS taxpayers have increased from 7,588 in June 2016 (baseline) to 20,264 in June 2023 (over 160 percent increase).

The project has supported the strengthening of the KP Revenue Authority’s (KPRA) appellate tribunal; establishing a courtroom at the collector’s office; development sector audit guidelines; and supporting taxpayers’ facilitation in registration, filing and payment of taxes through field staff provision and technical assistance.

KP Governance and Policy Program (GPP) has also supported taxpayers’ awareness campaigns. GPP has also provided infrastructure (IT equipment, furniture and fixture) and technical support to Excise & Taxation Department and Board of Revenue of KP. In particular, the GPP has supported the digitization of stamp duty in the province.

The system is rolled out to 34 districts. Through eStamp system, the government has collected more than Rs. 600 million during the year. The system is expected to plug leakages, streamline valuation tables, make collections more efficient and facilitate taxpayers. GPP supported KP Procurement Regulatory Authority (KPPRA) in conducting a diagnostic study in five districts on transforming to a 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.

More than 30 departments of the Government of KP are publishing their procurement plans online. In addition, around 22 departments have used framework agreements in FY23. The Public Financial Management law was approved in June 2022. The GPP provided technical support to complete actuarial study for employees’ pension and benefit scheme, identifying the pension liabilities of PKRs. 3 trillion. This became the basis for the ongoing pension reforms in KP. The GPP has also provided support in establishing specialized units in the Finance Department, namely the Debt Management Unit and Corporate Governance Unit.

The component 2 of the project was improving public investment management (PIM) and accountability in public services. Implementation progress under this component is Moderately Satisfactory. GPP provided support in strengthening selected accountability institutions and citizens’ engagement to improve public service delivery. This includes the support for the implementation of KP Right to Public Services Act and KP Right to Information Act.

As per the second round of the Citizens’ Perception Survey completed in March 2023, the citizens’ satisfaction level from selected public services is recorded at 84 percent.

In addition, the GPP provided support to the strengthening of the Performance Management Reform Unit, which continues to reach citizens through the Pakistan Citizens’ Portal. About 98.5 percent of complaints, received through the citizen’s portal, have been resolved in FY23 (88,029 out of 89,294 complaints). The Anti-Corruption Establishment has drafted a revised Anti-Corruption law and action plan, which are yet to be approved by the Cabinet. For PIM, the GPP supported the establishment /strengthening of various units in Planning and Development (P&D) Department to achieve relevant results.

This includes the establishment of M&E Directorate and district/field offices, which implemented a digitized system to monitor about 29 percent of public investment schemes during FY23.

GPP helped strengthen GIS hub at P&D department, which completed the geo-mapping of 22,507 public investment assets in the province. Although the geo-tagged data of public investment assets was not published online due to security reasons, the data is being used by the Government of KP for planning purposes.

It was also used to assess flood-related damages in 2022. Despite strong results in other areas, the Government of KP could not achieve a reduction in throw-forward, which increased from Rs. 420 million in FY20 to Rs. 1,345 million in FY23, mainly because of slow execution of the Annual Development Plan in the year on account of inclusion of investment schemes with unapproved PC-Is in the budget, slow release of funds by Finance Department, and implementation related challenges. The baseline data did not include merged areas data, which is now included in throw-forward of FY23 post-merger with FATA areas.

Component 3 of the project provides effective support for the coordination of governance reforms and operational management. Implementation progress under this component is Satisfactory. The Operations Support Unit was fully staffed, and for fiduciary functions, it received support from Shared Services Unit facility.

Source: Pro Pakistani