Governance and Policy Project for Khyber Pakhtunkhwa



To strengthen capacity for Sales Tax on Services collection, and improve public investment management and accountability of public service delivery in the water sector in KP.

Grant Amount: US$ 10 million (original project) + 4 million (additional financing)
Duration: May 23, 2017 - June 30, 2020
Khyber Pakhtunkhwa

Implementing Agency

KP P&D Department

PCNA Pillar

Strategic Objective 1: Build responsiveness and effectiveness of the State


Planning and Development Department, KP
Finance Department, KP
Right to Information Commission, KP
Chief Minister Complaint Cell
Peshawar High Court
Public Health, Local Government, and Energy and Power Departments, KP
KP Revenue Authority
Right to Public Service Commission, KP
Water and Sanitation Services Company, Peshawar District
Water and Sanitation Services Company, Mardan District


US$ 2.9 million


  • KP Revenue Authority (KPRA) collections exceeded the GPP target of a five percent increase over the FY 15-16 baseline (PKR 7.3 billion).
  • Formulation of KPRA Revenue Strategy has been initiated.
  • Establishment of the Tax Policy Unit is underway.
  • KP Public Financial Management Strategy has been developed and disseminated.
  • Monitoring of fiscal transfers to local governments was piloted in two districts (out of targeted seven). A survey has been completed for 7 Tehsils and 542 Neighborhood and Village Councils in Peshawar and Mansehra.
  • Public Investment Management (PIM) Assessment was completed for district governments. A total of 21 focus group discussions (FGDs) were held with 510 stakeholders (278 public representatives, 107 civil society representatives, and 125 officials) across 7 districts. PIM guidelines are under preparation.
  • Geo-mapping of public sector assets was piloted in the water sector. A total of 70 assets, and 322 projects and schemes under the Annual Development Program (ADP) were geo tagged in Peshawar and Mansehra.
  • PIM instructions were developed for Line Departments and Public Sector Entities involved in China-Pakistan Economic Corridor (CPEC).
  • Establishment of a Monitoring and Evaluation(M&E) and Economic Development Research is underway in collaboration with international and national academia/institutes.
  • The Peshawar High Court held a workshop with judges, lawyers and the private sector to prepare for Fast Track Dispute Resolution for Investment.
  • Citizen service delivery satisfaction monitoring and geo tagging of the water sector was piloted by students.
  • A Citizen Integration Forum was established in collaboration with 22 civil society organizations. The Forum is led by the Right to Public Services, Right to Information and Ehtesab commissions, and the Peshawar High Court. It encourages civil society intermediation to improve accountability for service delivery.
  • Governance Volunteer Groups were established with 126 volunteers (university students) to intermediate service delivery to citizens.
  • Citizen Facilitation Centres (CFCs) were piloted by the RTPS in Mansehra and Mardan covering 7 districts. The CFCs will be linked with the service delivery departments and will collect citizen feedback through ICT for transparency, accountability, and citizens’ awareness.
  • The establishment of the Secretariat for District Judiciary Performance Management is underway. The Secretariat will monitor and manage service delivery.