USAID KHYBER PAKHTUNKHWA REVENUE MOBILIZATION (KPRM) ACTIVITY, ANNUAL PERFORMANCE REPORT FY 2021

The project began in August 2020 and was implemented over a period of one year, concluding in September 2021. The project's main objective was to enhance the capacity of the Khyber Pakhtunkhwa Revenue Authority (KPRA) to collect revenue, particularly from the General Sales Tax on Services (GST-S). The project faced several challenges during its implementation, including obtaining a No Objection Certificate (NOC) from the government, working in the wake of the COVID-19 pandemic, and late approval of the work plan by the Khyber Pakhtunkhwa Planning and Development Department (KP P&DD). Despite these challenges, the project was able to kickstart its activities in quick succession after the approval of the work plan. The project's implementation progress was monitored through a series of management deliverables, including the project mobilization plan, year one work plan, Monitoring, Evaluation, and Learning (MEL) Plan, Gender Action Plan (GAP), and Branding and Implementation Plan (BIP). The project also initiated a solicitation process for sub-contractors for the IT Stock Take and Review (STAR) of KPRA, Diagnostic Assessment of KPRA, and subcontractor for the implementation of the public outreach awareness campaign. The project's Steering Committee (PSC) was formed in July 2021, with the Additional Chief Secretary Khyber Pakhtunkhwa (ACS-KP) as its chair. The committee's members included senior officials from the government and KPRA. The PSC approved the annual work plan of KPRM for the year I, which comprised three inception activities: Diagnostic Assessment (DA) of KPRA, Stock Take and Review (STAR) of KPRA IT systems and applications, and Political Economy Analysis (PEA). The project made significant progress in improving the system for GST on services. The Diagnostic Assessment (DA) of KPRA is underway, and the final report is expected to be shared in November. The IT Stock Take and Review (STAR) of KPRA IT systems and applications has started, and the report is expected to be submitted in October 2021. The project also onboarded a media firm, No Limits, for the communication campaign, which has produced five videos, including motivational messages from the Director-General of KPRA and Finance Minister KP. The project improved the capacity of KPRA staff through training programs. KPRM organized training for 32 staff members of Tax Facilitation Centers on Communication Reporting and Conflict Management in September. Three key staff members of KPRA also received training from the Center of Excellence in Journalism Karachi during the last quarter of Year I. Additionally, KPRM organized training on Instructed Certified Information Systems Security Professional (CISSP) for KPRA staff from September 6, 2021, to September 10, 2021, at Riphah Institute of Systems Engineering (RISE). Five staff members of KPRA completed two days of beginner-level SAP ERP training for professionals on Financial Controls (FICO) in the last week of the year. The project also organized an exposure/experience exchange visit (peer-to-peer learning) for 10 staff members of KPRA HR and Administration Department, IT Department, Collectorate, Corporate, and Finance sections to Sindh Revenue Board (SRB) from September 01 – September 03. The visit aimed to give a tour of the SRB ERP to the visiting team to know how the ERP is being used and also to see how the in-house developed software of the SRB is being utilized to support the organization in collecting sales tax on services efficiently. The project's coordination frameworks within and across taxation systems were improved through the Political Economy Analysis (PEA) consultant, who initiated the analysis in the third quarter. The project's overall performance was satisfactory, considering the challenges faced during its implementation. The project's achievements will serve as a foundation for future initiatives aimed at improving revenue mobilization in Khyber Pakhtunkhwa.