GPP for KP project: Implementation progress rated as satisfactory by World Bank

ISLAMABAD: The World Bank has rated the overall implementation progress of the Governance and Policy Programme (GPP) for the Khyber-Pakhtunkhwa (KP) project as satisfactory while progress towards achievement of the Project Development Objective (PDO) as moderately satisfactory.

The project was approved in 2017 with a cost of $21 million, envisaging strengthening the capacity for sales tax on services collection and improving public investment management and accountability for public service delivery in KP. 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 mobilisation and public financial management. Progress on this component is satisfactory. General Sales Tax on Services (GSTS) collection in KP increased from Rs7.3 billion in 2015-16 to Rs27.08 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).

Sales tax on services: KPRA collects Rs26.5bn in 2022

The project has supported the strengthening of the KP Revenue Authority’s appellate tribunal; establishing a courtroom at the collector’s office; developing 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 the Excise and Taxation Department and the Board of Revenue of KP. In particular, the GPP has supported digitization of stamp duty in the province. The system is rolled out to 34 districts.

Through eStamp system, the government has collected more than Rs600 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 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 PKRs3 trillion. This became the basis for the ongoing pension reforms in KP.

The GPP has also provided support in establishing specialised 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 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 complaints, received through citizens’ 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 the Planning and Development (P&D) Department to achieve relevant results. This includes the establishment of the M&E Directorate and district/field offices, which implemented digitised system to monitor about 29 percent of public investment schemes during FY23.

GPP helped strengthen the GIS hub at the 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.

Copyright Business Recorder, 2023