The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) PFM and accountability to support service delivery PforR (P157507) SOUTH ASIA | Pakistan | Governance Global Practice | Requesting Unit: SACPK | Responsible Unit: ESAG1 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Akmal Minallah, Michael Graeme Osborne Seq No: 3 | ARCHIVED on 13-Sep-2019 | ISR37641 | Created by: Akmal Minallah on 11-Jun-2019 | Modified by: Akmal Minallah on 09-Sep-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The project development objective (PDO) is to improve public financial management and procurement systems for better management and accountability in service delivery for health and education sectors. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions Key Result Area 1: Strengthening the legal framework and internal management systems in line ministries and service delivery units. 1. National Assembly approved the PFM Law on June 28th, 2019, which addresses key gaps in the current legal and regulatory framework for PFM in the country. . The law includes: provisions for Treasury Single Account (TSA); shifting to Medium Term Budgetary Framework (MTBF) and Output Based Budget; empowering Chief Finance and Accounts Officers (CFAOs) with budget management and execution function and Introducing a function of Internal Audit in the line ministries. The standardized expenditure control procedure prepared by the Controller General of Accounts (CGA)is notified by the Auditor General of Pakistan. This notification shall be further strengthened through the provisions of the Public Financial Management Law which delegates payment authorization function to the Chief Finance and Accounts Officer (CFAO). 2. Key Result Area 2: Improved Procurement Performance 1. Public Procurement Regulatory Authority (PPRA) has prioritized Standard Bidding Documents to cover the Goods, consulting services, contracts for specialized procurements, e.g., ICT, pharmaceuticals, framework contracts SPDs required to meet DLI3.2. The e-GP is a phased development system and the disbursement is also phased over a three-year period. The first cycle is due by FY20. This activity needs to be accelerated \Key Result Area 3: Payroll and Pension Payment System 1. The standardization of sanctioned position codes between the budget and payroll in pilot district of Islamabad is completed. According to the Independent Verification Report (IVR), more than 50% of the pensioners in the federal government are converted to Direct Credit Scheme (DCS). The conversion of pensioners to DCS has provided opportunity to the CGA to identify and close accounts of ghost pensioners. DG MIS is compiling the number of ghost pensioners identified during the process. Ministry of Finance (MoF) has also undertaken actuarial analysis of pension costs and a set of pension reforms, aimed at introducing contributory pension, is under consideration. Key Result Area 4: External audit legislative scrutiny and social accountability Auditor General of Pakistan (AGP), has decided to develop the AMIS in-house. Bidding documents to procure services of a firm are being prepared. Audit Command Language (ACL) licenses for Audit Competency Center are already procured. Position of Director General Management Information System (MIS) is created, and a team of qualified staff is placed in the new Wing. The DG MIS reports to the Deputy Auditor General (Specialized Audit). Auditor General of Pakistan, (AGP) is in the process of assessing the scope of Citizen Participatory Audit (CPA). It is recommended that CPA should be focused on selected performance audits in collaboration with either Non-Government Organizations, Citizens, College students, university faculties or professional bodies. Currently AGP is undertaking performance audit of water management in Baluchistan province. This is a good candidate for CPA. AGP has initiated important IT based audits which needs to be documented and show-cased. Even though road map for open government was prepared in 2017, the Government of Pakistan has not sent a request to join the OGP. Transparency and Citizen Participation is the hallmark of the current government. Prime Minister’s office has established a citizens’ portal which caters for grievance redressal of citizens. In addition, several steps are taken to establish open government and enhance the access of citizens to 9/13/2019 Page 1 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) information. Ministry of Finance and Economic Affairs Division (EAD) should take a lead to engage with all stake-holders so that there is a consensus on scope and extent of Open Government. Key Result Area 5: Performance Based Grants 1. Fiscal Coordination Committee has been proactively engaged in several actions. During the last session of FCC, a performance grants mechanism was approved. Under this mechanism, MoF has allocated PKRs 4 billion for the fiscal year 2019-20 for performance-based distribution among the provinces. The mission noted that the federal government is engaged in consultation with the provinces to encourage them adopt the TSA; implement E-procurement; digitize payment systems; introduce online bill submission and align HR and Financial data in education and health sector. This will lead to consistent application of PFM reforms across all levels of government. Project management 1. Institutional arrangements have substantially improved. Secretary Finance is in charge of the overall program and a proactive project management team led by JS Budget is fully engaged in day to day coordination with all stakeholders. PMU is being established at the PPRA. The position of DG MIS is created at the AGP and a steering committee is nominated to steer the activities related to AMIS Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157507 IDA-61700 Effective USD 400.00 400.00 0.00 180.00 220.00 45% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157507 IDA-61700 Effective 19-Dec-2017 29-Dec-2017 29-Dec-2017 30-Nov-2021 30-Nov-2021 DLI Disbursement Achievement Disbursed amount in Disbursement % DLI ID DLI Type Description Coc DLI Amount Status Coc for DLI Loan: IDA61700-001 Reduction variance to Partially 1 Regular USD 70,000,000.00 30,000,000.00 2.3 % improve reliabilty Achieved Reduction in cash outside 2 Regular USD 50,000,000.00 Not Achieved 0.00 Recip TSA % of vendor contracts thru Partially 3 Regular USD 50,000,000.00 20,000,000.00 2.5 % Recip e-proc Achieved % of alignment info&ID#s Partially 4 Regular USD 30,000,000.00 20,000,000.00 1.5 % for Teachers&HW Achieved % of prisoners, Partially 5 Regular USD 30,000,000.00 10,000,000.00 3% disaggregated by gender Achieved % of audit recomm 6 Regular USD 40,000,000.00 Not Achieved 0.00 processed thru AMIS Incrsd citizen access to 7 Regular USD 30,000,000.00 Not Achieved 0.00 fiscal infoH&E % of fiscal Partially 8 Regular performance&SDI met by USD 60,000,000.00 20,000,000.00 3% Achieved prov 9/13/2019 Page 2 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Prior Results Reduction in cash outside 2.1 USD 10,000,000.00 Fully Achieved 10,000,000.00 1% Financing DLI Recip TSA Prior Results Reduction in cash outside 2.2 USD 10,000,000.00 Fully Achieved 10,000,000.00 1% Financing DLI Recip TSA % of fiscal Prior Results 8.1 performance&SDI met by USD 10,000,000.00 Fully Achieved 10,000,000.00 1% Financing DLI prov % of fiscal Prior Results 8.2 performance&SDI met by USD 10,000,000.00 Fully Achieved 10,000,000.00 1% Financing DLI prov Program Action Plan Action Description Complete third surveillance audit for ISO 27001:2013 Information Security Management Services Certification. Source DLI# Responsibility Timing Timing Value Status Other CGA Due Date 30-Aug-2019 Delayed Completion Report Measurement ISO 27001 cycle initiated in 2014 was completed in 2017. For the next cycle ToRs for hiring of firm has been Comments developed by DG MIS and procurement process needs to be expedited. Action Description Undertake Open Data Readiness Assessment and adopt an implementation plan. Source DLI# Responsibility Timing Timing Value Status Technical PPRA Due Date 28-Feb-2019 In Progress Completion Data Readiness Report Measurement Comments Data Readiness Assessment is being carried out with the help of PPRA. Undertake pension sustainability analysis: pension liabilities to be informed by sound actuarial analysis, coupled with Action Description a system in place for funding these liabilities. Source DLI# Responsibility Timing Timing Value Status Auditor General of Technical Due Date 31-May-2019 In Progress Pakistan Completion Pension Liability Assessment Report Measurement Comments Internal Assessment was carried out by MoF, however mission has advised to hire an actuarial firm for the purpose. Sustaining activities for collaborative leadership, change management, and strategic communication, including media Action Description outreach to citizens presenting the benefits of the reform program and seeking feedback for course correction. 9/13/2019 Page 3 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Source DLI# Responsibility Timing Timing Value Status Technical Ministry of Finance. Due Date 30-Jun-2018 Completed Completion Nomination of Committees Measurement Under the Fiscal Coordination Committee, six technical groups are nominated. These are a) Treasury Single Account Comments Group. b) e-payment group. c) e-procurement group. d) Pensions group e) Open Government Group and f) Audit Systems Group Action Description PPRAs to ascertain KPIs and baselines to monitor the reform progress. Source DLI# Responsibility Timing Timing Value Status Public Procurement Technical Recurrent Semi-Annually Completed Regulatory Authority Completion Notification of KPIs Measurement Comments KPI are included in the Budget Estimates for Service Delivery 2016-19. A robust grievance redress mechanism in place improving upon the current practices, and available to each ministry, Action Description vendors, contractors and pensioners Source DLI# Responsibility Timing Timing Value Status CGA, AGP, PPRA, Technical Due Date 30-Jun-2018 Completed MoF Completion Citizen Portal Measurement Government has established a robust grievance redress mechanism. This activity is led by the Prime Minister Comments Secretariat. A citizen portal is developed which logs all complaints and resolution of complaints is closely monitored. A mechanism for enhanced citizen engagement in measuring program performance/improvement in service delivery Action Description (specifically in education), participating in Performance Audits and endorsing open data Source DLI# Responsibility Timing Timing Value Status Technical AGP Due Date 28-Feb-2019 Delayed Completion Audit Report Measurement Comments Guideline for Citizen Participatory Audits are being prepared A mechanism for enhanced citizen engagement in measuring program performance/improvement in service delivery Action Description (specifically in education), participating in Performance Audits and endorsing open data 9/13/2019 Page 4 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Source DLI# Responsibility Timing Timing Value Status AGP Due Date 28-Feb-2019 Revised Date Completion Measurement Comments Guideline for Citizen Participatory Audits are being prepared Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Substantial Substantial Substantial Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other Moderate Moderate Moderate Overall Substantial Substantial Moderate RiskComments Comments Political and Governance risk had increased due to transition in government. However, with the new government in place, the project activities have gained momentum. Results PDO Indicators by Objectives / Outcomes Strengthening the legal framework and internal management systems in line ministries and SDUs IN00716913 ►Reduction of variance in functional expenditure composition for health and education (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Health - 43%; Health - 43%;Education - PFM Law approved by Value Education - 30% 5% 30% the parliament 9/13/2019 Page 5 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 The law is included in the Finance Bill 2019 for approval by the National Assembly. The law addresses key gaps in the current legal and regulatory framework for PFM in the country. The draft law is in the process of inter-governmental consultation and is expected to be submitted to the National Assembly as part of the finance bill, 2019. The draft law incorporates some of the important suggestions made by the Bank, these include: provisions for TSA; shifting to Medium Term Budgetary Framework and Output Based Budget; empowering CFAOs with budget management and execution function; Introducing a function of Internal Audit in the line ministries; formalizing the forum of Economic Advisory Council and integrating recurrent and development budget through MTBF. These are all transformational actions, absence of which, had Comments adversely plagued the PFM landscape in Pakistan since many decades. Implementing the provisions of the law in letter and spirit is a challenge and MoF will need to expeditiously work on subsidiary laws and implementation arrangements. However, the law does not provide for ex-ante approval of all supplementary grants by the Parliament as suggested by the Bank. Mof has informed that these provisions could not be included in the law due to a recent judgement by the Supreme Court, which has interpreted Article 80-84 of the Constitution, and stated that according to the constitution, it is the domain of the Cabinet to provide ex- ante approval of the Supplementary Grants. MoF has also informed, that requirement of ex-ante approval of all Supplementary Grants can be included in the Budget Rules as provided in the Law. IN00716957 ►Reduction in cash held outside the Recipient’s Treasury Single Account (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15% Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Policy and Cash Management Framework is approved by the Cabinet. Once approved by the cabinet, detailed operation guidelines shall be prepared. This includes, inter alia, the establishment of a state-of-the- art cash management function in the Ministry of Finance and the preparation of regulations to support smooth implementation of the TSA. The TSA implementation shall be done in phases. The MoF acknowledged the substantial benefits that would accrue from the introduction of systematic cash management system, including reducing the Government’s reliance on short-term domestic debt to finance Comments budget expenditure. The Bank mission and the MoF agreed on the importance of realistic cash forecasting, based on regular cash plans from budget entities with large development budgets and forecasts of revenue receipts from the Federal Board of Revenue, as a key ingredient in a proper cash management system. The registration of commitments in the IFMIS will also enable better-informed decisions on issuance of short- term debt and investment of idle cash balances. Improved procurement performance IN00716914 ►Percentage of vendor contracts processed through the Recipient’s e-procurement system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 16-Jan-2017 06-Jun-2018 06-Jun-2018 18-Jan-2021 PPRA has prioritized Standard Bidding Documents to cover the Goods, consulting services, contracts for specialized procurements, e.g., ICT, pharmaceuticals, framework contracts SPDs required to meet DLR3.2. This activity is slow moving and not expected to be completed before the end of the fiscal year. The e-GP Comments is a phased development system and the disbursement is also phased over a three-year period. The first cycle is due by FY20. However, the e-GP system development is slow, and this would impact the achievements in subsequent years. External audit, legislative scrutiny, and social accountability. IN00716915 9/13/2019 Page 6 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) ►Percentage of audit recommendations processed through the Audit Management Information System. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value AMIS does not exist AMIS does not exist AMIS does not exist 80% Date 16-Jan-2017 25-Dec-2018 25-Dec-2018 18-Jan-2021 AGP has decided to develop the AMIS in-house. Bidding documents to procure services of a firm are being prepared. ACL licenses for Audit Competency Center are already procured. Position of DG MIS is created, Comments and a team of qualified staff is placed in the new Wing. The DG MIS reports to the Deputy Auditor General (Specialized Audit). Procurement of firm to held develop AMIS is delayed Performance-based grant IN00716956 ►Percentage of fiscal performance and service delivery indicators met by the provinces (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Criterion for Performance Grant developed and will Value 0% 20% 75% be submitted for approval by the FCC Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Fiscal Coordination Committee has been proactively engaged in several actions. During the last session of FCC, a performance grants mechanism was approved. Under this mechanism, MoF has allocated PKRs 4 billion for the fiscal year 2019-20 for performance-based distribution among the provinces. The mission noted that the federal government is engaged in consultation with the provinces to encourage them adopt Comments the TSA; implement E-procurement; digitize payment systems; introduce online bill submission and align HR and Financial data in education and health sector. This will lead to consistent application of PFM reforms across all levels of government. MoF has informed that Provinces have achieved 20% of the targets. This needs to be confirmed by the IVA. Intermediate Results Indicators by Results Areas Strengthening legal framework and internal management systems in line ministries,service delivery IN00716958 ►Notification of revised New Accounting Model (NAM 2.0): Accounting Policies and Procedures Manual; C (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 CGA has carried out GAP analysis which shall provide information for updating the NAM. ToRs for the firm Comments are approved by the FD. The bidding process should be completed by 30th August, 2019 IN00716962 ►Internal Audit arrangements modernized in health and education departments. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 9/13/2019 Page 7 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Draft Internal Audit Charter is approved. The PFM law also provides for establishment of an Internal Audit Comments Function IN00716966 ►Improve the timeliness of comprehensive financial and nonfinancial reporting by linkage or interface (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 6.00 6.00 2.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Linkages have been established with FBR, CDNS, Pak PWD, and SBP, whereas linkages with EAD, MAG and Pakistan Post are in process. Through these linkages daily/weekly financial data is being pulled into the datawarehouse of MIS Directorate (FABS) for display on dashboard developed for decision-makers in Finance Division. Daily data on tax receipts is being pulled in through interface with database of FBR; weekly data on domestic debt is being captured from CDNS. A linkage has been established with Pak PWD through which daily expenditure data from its 58 formations is being captured. A link has also been developed with SBP Comments through which daily cash balance is being reported on the mentioned dashboard of Secretary FD. SAP terminals have been placed at PF/CF branches of FD and training imparted to staff, to enable timely capturing of direct releases by FD to SAEs, provinces. Once linkages with Pakistan Post , MAG and EAD are finalized, the dashboard will be able to report daily/weekly position on federal government's receipts, expenditures, domestic debt and external debt, thereby aiding in determining in-month fiscal deficit, and improved cash forecasting. IN00716969 ►Approved Cash Management Policy with accounting framework for daily consolidation of all government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Cash Management Policy approved by the Cabinet. Comments External audit, legislative scrutiny, and social accountability IN00716959 ►PAC hearings on audit report on annual financial statements conducted in public, except for strictly (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 36.00 36.00 36.00 6.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 PAC was notified in December 2018 after a lapse of four months. The PAC sub-committees are formed to expedite the back log of audit reports. PAC hearing is not open to the public but journalist can attend and Comments report on the proceeds. IN00716963 ►Financial transactions of health and education function recorded in FABS audited through Computer Ai (Text, Custom) 9/13/2019 Page 8 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) End Target Value 0% 0% 0% 80% Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 IT center established and ACL software acquired. Officials are re-trained in ACL. The percentage of funds Comments audited through ACL shall be calculated upon completion of the audit report. IN00716967 ►Citizen Portal set up to facilitate Citizen Participatory Audits, including fraud hotline for feedback (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Draft Policy on CPA prepared and submitted to the AGP for approval Comments IN00716970 ►Citizen Participatory Audit reports that cover indicators in the ISDR published. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Draft Policy on CPA prepared and submitted to the AGP for approval. Comments Improved procurement performance IN00716961 ►Percentage of vendor claims for basic health units and schools paid at District Accounts Offices (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 CGA has developed guidelines for simplifying payment authorization procedures. Once the guidelines are approved the AGP, these shall be applied in spending units which have converted to e-procurement Comments systems. IN00716965 ►Bank reconciliation of all active government bank accounts in the TSA takes place at least weekly at (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 1.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Cash Management Policy approved Comments IN00716968 ►Percent of budget derived from procurement plans in federal ministries and provincial departments (Percentage, Custom) 9/13/2019 Page 9 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 PFM law requires linkage of the budget with plans. MoF plans to improve Budget Call Circular, requiring all departments to be include procurement plans along with budget demands. This is not implemented during Comments the current fiscal year. IN00716971 ►Databases or records are maintained for contracts, including data on what has been procured, value o (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Currently all data at PPRA is on PDF format which is not useful of analysis. WB is supporting PPRA on Comments digitizing the datablise. IN00716972 ►E-procurement guidelines issued and Supplier Relations Management Module operational in health and e (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Standard Bidding Documents are being prepared. PPRA has prioritized Standard Bidding Documents to cover the Goods, consulting services, contracts for specialized procurements, e.g., ICT, pharmaceuticals, Comments framework contracts SPDs required to meet DLR3.2. This activity is slow moving and not expected to be completed before the end of the fiscal year.SBDs are required for e-procurement guidelines IN00716973 ►Mandatory certification of procurement officers and procurement committee members in selected federal (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 This activity is delayed Comments Performance-based grant IN00716960 ►Incentive system by the FCC to improve fiscal performance and service delivery in selected areas app (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 1. Fiscal Coordination Committee has been proactively engaged in several actions. During the last Comments session of FCC, a performance grants mechanism was approved. Under this mechanism, MoF has allocated PKRs 4 billion for the fiscal year 2019-20 for performance-based distribution among 9/13/2019 Page 10 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) the provinces. The mission noted that the federal government is engaged in consultation with the provinces to encourage them adopt the TSA; implement E-procurement; digitize payment systems; introduce online bill submission and align HR and Financial data in education and health sector. This will lead to consistent application of PFM reforms across all levels of government. . IN00716964 ►Innovative applications used to report and account for funds utilized. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 16-Jan-2017 25-Dec-2018 30-May-2019 18-Jan-2021 Dashboard for the Secretary Finance is prepared. Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Reduction of variance in functional expenditure composition for health and education to improve the reliability of the budget (Outcome, 70,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 DLR 1.5: Less than 10 percent variance in functional expenditure composition for Health - 43%; Draft PFM law submitted PFM Act approved by the health and Value Education – 30% to the Finance Minister Cabinet and submitted to education as for approval the National Assembly measured by variation between original approved budget and actual expenditures Date -- 25-Dec-2018 30-May-2019 -- The law is included in the Finance Bill 2019 for approval by the National Assembly. The law addresses key gaps in the current legal and regulatory framework for PFM in the country. The draft law is in the process of inter-governmental consultation and is expected to be submitted to the National Assembly as part of the finance bill, 2019. The draft law incorporates some of the important suggestions made by the Bank, these include: provisions for TSA; shifting to Medium Term Budgetary Framework and Output Based Budget; empowering CFAOs with budget management and execution function; Introducing a function of Internal Audit in the line ministries; formalizing the forum of Economic Advisory Council and integrating recurrent and development budget through MTBF. These are all transformational actions, absence of which, had adversely Comments plagued the PFM landscape in Pakistan since many decades. Implementing the provisions of the law in letter and spirit is a challenge and MoF will need to expeditiously work on subsidiary laws and implementation arrangements. However, the law does not provide for ex-ante approval of all supplementary grants by the Parliament as suggested by the Bank. Mof has informed that these provisions could not be included in the law due to a recent judgement by the Supreme Court, which has interpreted Article 80-84 of the Constitution, and stated that according to the constitution, it is the domain of the Cabinet to provide ex-ante approval of the Supplementary Grants. MoF has also informed, that requirement of ex-ante approval of all Supplementary Grants can be included in the Budget Rules as provided in the Law. ►DLI 2 Reduction in cash held outside the Recipient’s Treasury Single Account (Outcome, 70,000,000.00, 0%) 9/13/2019 Page 11 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) Baseline Actual (Previous) Actual (Current) FY 2020/21 Based on the 753, 084 commercial bank recommendations in the accounts with total balance DLR 2.5: additional survey report done by the of Cash Management Policy 5 percent reduction Value AGP, JS budget is PKR 1.584 trillion in apprved in cash held outside preparing a draft Cash Recipient’s cash the TSA. Management Framework. Date -- 25-Dec-2018 30-May-2019 -- Policy and Cash Management Framework is developed and approved by the Cabinet. Earlier, the AGP had undertaken had undertaken a survey which identified that around PKRs 1 trillion of government funds, deposited in the commercial bank accounts can be retrieved. The MoF acknowledged the substantial benefits Comments that would accrue from the introduction of systematic cash management system, including reducing the Government’s reliance on short-term domestic debt to finance budget expenditure. ►DLI 3 Percentage of vendor contracts processed through the Recipient’s e-procurement system (Outcome, 50,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 DLR 3.4: 90 percent of targeted procurement packages (whose contract amount is more than PKR 5 million for goods and services and more than PKR 50 million for works) processed through e-procurement for health and education sectors. PPRA to establish baseline ($5m) data based on selected PMU for implementation Bidding documents are Value methodology for assessing of e-procurement system DLR 3.5: 50 percent being prepared procurement systems set up of targeted indicators by March 2018. procurement packages (whose contract amount is more than PKR 5 million for goods and services and more than PKR 50 million for works) processed through e-procurement for additional five selected procuring entities. ($5m) Date -- 25-Dec-2018 30-May-2019 -- Comments PPRA has prioritized Standard Bidding Documents to cover the Goods, consulting services, contracts for specialized procurements, e.g., ICT, pharmaceuticals, framework contracts SPDs required to meet DLR3.2. This activity is slow moving and not expected to be completed before the end of the fiscal year. The e-GP is a phased development system and the disbursement is also phased over a three-year period. The first cycle is 9/13/2019 Page 12 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) due by FY20. However, the e-GP system development is slow, and this would impact the achievements in subsequent years. ►DLI 4 Percentage of alignment of information and identification numbers for individual primary school teachers and health workers related to their place of work and salaries (Intermediate Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 DLR 4.5: 80 percent Mapping with NEMIS and of primary school Mapping with NEMIS and Individual data in the OM IFMIS codes are being teachers and health IFMIS codes for District are not aligned with the developed for district workers tagged Value Islamabad and ones in the EMIS and Islamabad. This will be against unique Muzzaffarabad are HMIS. replicated at District primary schools and completed Muzzafarabad. basic health units in pilot districts. Date -- 25-Dec-2018 30-May-2019 -- 1. The exercise is being undertaken in two pilot districts. Mapping is completed in District Islamabad. The standardization of sanctioned position codes between the budget and payroll in pilot districts Comments should be completed. ►DLI 5 Percentage of pensioners, disaggregated by gender, authenticated against NADRA computerized national identity card, paid through the Direct Credit Scheme no later than the following pension payment cy (Intermediate Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 More than 50% pensioners converted to DCS. DG MIS shall DLR 5.4: 90% coordinate with National Value DCS paid 35% 80% Bank to assess the extent of bio-metric verification carried out of the account holders Date -- 25-Dec-2018 30-May-2019 -- This DLR has surpassed the year 3 target, more than 80% of pensioners have converted to Direct Credit Scheme. The conversion of pensioners to DCS has provided opportunity to the CGA to identify and close accounts of ghost pensioners. DG MIS is compiling the number of ghost pensioners identified during the Comments process. MoF has also undertaken actuarial analysis of pension costs and a set of pension reforms, aimed at introducing contributory pension, is under consideration. ►DLI 6 Percentage of audit recommendations processed through the Audit Management Information System. (Outcome, 40,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 Value AMIS does not exist. AGP has decided to AMIS center not DLR 6.4: 80 percent procure off the shelf established of PAC software for AMIS. recommendations Bidding documents are in for health and the process of education sectors preparation. effectively followed- up and reports published on an 9/13/2019 Page 13 of 14 The World Bank Implementation Status & Results Report PFM and accountability to support service delivery PforR (P157507) official website or by any other means easily accessible to the public Date -- 25-Dec-2018 30-May-2019 -- AGP has decided to develop the AMIS in-house. Bidding documents to procure services of a firm are being prepared. ACL licenses for Audit Competency Center are already procured. Position of DG MIS is created, Comments and a team of qualified staff is placed in the new Wing ►DLI 7 Increased citizen access to key fiscal information on health and education. (Intermediate Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 DLR 7.4: ISDR for education National Action Plan is and health sectors National Action Plan not Value FY 16/17 Budg developed but needs to uploaded in Open developed be updated Public Finance Data Portal. Date -- 25-Dec-2018 30-May-2019 -- Action Plan is prepared but not submitted. Comments ►DLI 8 Percentage of fiscal performance and service delivery indicators met by the provinces. (Outcome, 80,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY 2020/21 DLR 8.5: Innovation award provided from the Ministry of Finance First FCC meeting held of the Recipient to and draft indicators for the provincial No existing coordination performance grants Performance framework governments for at Value mechanism prepared. These shall be perpared least 35 percent up submitted for approval in to 70 percent of the next meeting of FCC fiscal performance and service delivery indicators met. Date -- 25-Dec-2018 30-May-2019 -- Fiscal Coordination Committee is nominated. It comprises of Ministers of Finance for Federal and Provincial Governments. FCC has approved a performance framework for the provinces and allocated PRs 4 billion in Comments the budget for fiscal year 2019-20 9/13/2019 Page 14 of 14