Output 5 score and performance description: B Output moderately did not meet expectation
Progress against expected results:
1. While the log frame targets for this output have been achieved (see below), it is fairer to say that the output moderately did not meet expectation because some earlier planned results under this output were shelved and the remaining results cannot be said to add up to a sufficiently significant improvement in resource management. However the institutional structure of FATA and the secretariat’s position within it have been a challenge to translating technical assistance products into better resource management in practice – in particular approval and preparation of budgets remain federal responsibilities with the Secretariat in a purely budget execution role, so building their capacity can have only limited impact. In addition, in agreement with USAID, some of the work was picked up by a USAID project which engaged Abacus Consulting to implement a $17m reform programme. In previous years the DFID programme supported FATA-S on human resource reform, establishing mechanisms for Donor Coordination and preparation of an IT Strategy. However, given the limitations of the institutional set-up and in the light of the USAID support, fourth year activities have been limited to work on the Secretariat’s rules of business.
The 4th year targets were:
- Rules of Business revised and approved by FATA-S
- Monitoring framework for PCNA approved and under implementation
Rules of Business for FATA Secretariat have been completed. This was the culmination of a technical assistance work stream on resource management plans. The rules are currently awaiting approval from the Governor before being rolled out across the Secretariat. The monitoring strategy for the PCNA was an additional workstream incorporated in response to a request from the government. However, the need for this support fell away with set up of the World Bank Multi-donor Trust Fund (MDTF) and its secretariat and the activity was removed from OPM’s work plan. Recommendations: Impact Weighting (%): 5%
Revised since last Annual Review? No Risk: Medium
Revised since last Annual Review? No
Section B: Results and Value for Money.
1. Progress and results
1.1 Has the logframe been updated since last review? No
1. In district Buner the government’s business plan for OBB includes Nwab girls’ primary school where missing facilities in the school are provided for by money going direct to Parent Teacher Council. Jamila Naz, chair of a PTC newly established at the school says “I get directly affected if my daughter has a classroom to sit in or not; if her teacher turns up to teach regularly or not. Now that I am part of the Parent-Teacher Council (PTC) of the school, I now feel I can contribute to improve things at school. Honestly, till recently, I didn’t even know PTCs existed!”
2. In 2009-10, the health department of the Government of Khyber Pakhtunkhwa treated around 7,000 Hepatitis C patients. A year later, with no discernible increase in the total health department budget, it was able to treat 17,000. “We adopted output-based budgeting to move towards a strategic approach to the allocation of our resources,” says Nadim Bashir, Additional Secretary Finance, GoKP. “It is one part of a fundamental change in our budget preparation process, which also includes presentation of the budget strategy before the members of the cabinet and pre-budget consultation with all stakeholders. Now, our budget is used more effectively as a driver of operational efficiency.” 3. A salary audit undertaken by the Government of Khyber Pakhtunkhwa has identified savings of over Rs.400 million – a sum equivalent to building 600 additional classrooms. Bashir Khan, Deputy Director of Finance Management Information Unit, puts this in context: “It is estimated that the efficiency savings identified through the audit can help the government build 600 additional classrooms, benefiting 24,000 children.” 4. A Rs 1 billion microfinance scheme launched by the Government of Khyber Pakhtunkhwa out of its reform programme has helped more than 7,000 entrepreneurs build up their own small businesses – and unlike previous many previous such schemes in Pakistan – seen repayment rates of over 99 percent.
38 year old Abdul Wali runs a small mobile phone shop in downtown Peshawar as a way of making a decent living for his family of six. “I didn’t need a college degree to understand that offering new products to the customers was important to remain competitive; for that I needed extra cash to invest in my business which I did not have. Because usury is forbidden in Islam, I am grateful to the government for giving me an opportunity to invest in my business without resorting to the paying interest on my loan. Allah has put ‘barkat’ [blessing] in my business and my earnings have increased since I re-stocked my shop with that loan.” Other satisfied borrowers include GulNiaz who runs a small cosmetic shop at Dean Centre and Abudullah Khalil, whose Faisal Juice Point can now keep running even in a power cut thanks to the purchase of a diesel generator. Nadim Bashir, Additional Secretary Finance for the Government of KP, explains the role citizens have played in shaping such schemes. “We realized that there was no interaction with different stakeholders for economic and social development policy formulation and budgeting. Once we engaged with different stakeholders like civil society organizations, NGOs, chambers of commerce/ industry and also parliamentarians from all over KP, we came up with ideas for fast track pro-poor initiatives in health, education and employment generation – like the Bach Khan KhapalRozgar Scheme which, by the way, was suggested by an opposition member in one of last year’s pre-budget consultative workshops.” Hashmat Iqbal, Managing Director of Bank of Khyber which is implementing the scheme, suggests that the keys to success lie in transparency and independence. “We were asked by the government to implement this scheme to ensure transparency. We strictly followed the set criteria with no political interference whatsoever in loan disbursal. Our recovery rate is about 99% which is remarkable. It shows that this scheme has reached out to genuine borrowers.” Source: OPM January 2012, Peshawar
1.4 Summary of overall progress
1. Significant progress has been made in this final year of the programme which has seen earlier policy and capacity development work bear fruit. In particular output based budgeting in Khyber Pakhtunkhwa has been translated from a concept and commitment to action on the ground that is building classrooms, allowing health workers to immunise children (because they now have fridges in which to keep vaccines) and much else. Government see it as the way forward, plan to scale up with their own resources and have committed themselves long term through changed rules of business. They judge it best to proceed incrementally, build up the confidence of citizens and politicians through increasing numbers of case studies and ensure it is not derailed by any fall of in quality by overstretching themselves. We believe that this is the right approach in the political economy in which they are working. That said there are still ambitious plans to roll it out to all departments and sectors. 2. There is enough of a critical mass within Education, Health and Social Welfare Departments to sustain OBB. Rollout across nine other departments is ongoing. We are providing modest technical assistance to some aspects of this, for example on how OBB could be applied to policing, which connects well with newly approved but yet to start DFID support for policing and justice in Peshawar. At least 6 officers within Finance Department are sufficiently proficient in OBB to provide technical backstopping and reduce reliance on external technical assistance. OBB is part and parcel of the system and now unlikely to be reversed even if the political scenario changes. Political and bureaucratic will for reforms remain high. 3. Obtaining information from Federal Government in order to conduct departmental service reviews following the 18th Amendment proved too difficult. However despite shelving this activity, the programme has still exceeded the budget savings it was aiming for.
5. The momentum generated, particularly on output 1, bodes well for good budget preparation for the July 2012 to June 2013 financial year. The current programme will end at a critical time just as the government starts to prepare the new budget based on OBB principles across all sectors for the first time. The Government would like us to continue support during the budget preparation period and provide TA for OBB in other departments, including policing, law and local government. A no cost extension of the OPM contract for a period of 6 months to end of September 2012 is therefore recommended with a focus on OBB support (output 1 and those elements of outputs 3-4 (such as planning for devolving the Annual Development Budget to districts) that directly support it). 6. There is agreement across the departments that reforms need to be led from the core of Government such as Chief Secretary or Chief Minister. The Chief Secretary has concluded that reforms process during the 6 month extension phase of this programme will be based directly under his office. This way the Chief Secretary will have direct ownership of the programme. This will form the basis of dialogue for creating high level engagement for the new SNG programme.
The principle challenge has been in output 5 – support to the FATA Secretariat where the institutional set up limits decision-making and the impact of capacity development. The response has been to limit engagement, and shelve ineffective lines of work. In the new Peace-building support programme we propose a different approach to FATA governance, learning the lessons from our own experience and that of other donors.
A constantly changing security situation has been a challenge for oversight at times. We have managed this in several ways: agreeing strengthened management and arrangements for OPM, meeting them weekly or more in Islamabad in addition to the provincial capital, establishing private sector third party arrangements for audit and M&E, meeting provincial officials and politicians whenever and wherever possible (and taking advantage of their regular visits to Islamabad for government business), comparing notes regularly with other donors and agencies with on the ground presence.
The challenge ahead will be to sustain commitment through any changes in government. The fact that the public sector reform plans have already survived successive governments shows it can be done. In any reforms there are potential losers, at least in the short term. Good communications with citizens and other stakeholders on the benefits – for people and for state representatives in their work - will be needed to ensure politicians and government staff want to continue.
1. Based on the available evidence and assessments to date the programme appears to be on track to meet outcome targets. The target of £4 million of efficiency savings identified has already been met. This is equivalent to yearly stipends for 225,000 students. .. has already committed to reinvest £..million savings realised so far into health and education. The third party validation information we have so far predicts achievement of indicator targets on net enrolment of boys and girls in schools in OBB pilot districts of Buner and DI Khan, as well as results in immunisation and antenatal care. Fuller evidence on progress on goal and outcome targets will be available when third party validation on OBB pilots is completed. We also propose a wider impact evaluation before the proposed new SNG programme begins later this year so that lessons can inform implementation. Expected results in Buner and DI Khan:
111 schools provided with missing facilities benefiting 15,000 girl children.
4550 additional girl students enrolled in Primary Schools.
Construction cost reduced by 10%, approx Rs 10 million.
458,000 children under two years immunized, an increase of 33,000
295,000 women accessing antenatal care, an increase of 31,000
