World Bank-Sponsored Punjab Digital Reform Program Set for Overhaul – Here’s Why!

The World Bank project ‘Punjab Resource Improvement and Digital Effectiveness (PRIDE)’ worth $304 million is likely to be restructured on account of modifications in the Local Government Act. According to the official documents, the new act has led to the consolidation of various local government units. Consequently, the overall count of local government units has decreased from 319 to 229. However, this reduction has not resulted in any change regarding the jurisdiction of these entities or the volume of transactions processed through the Local Government IFMIS system.

PRIDE program for results (PforR) was approved by the World Bank’s Board of Executive Directors on October 22, 2020, and became effective on December 17, 2020. The Program has an overall allocation of $304 million. It aims to increase its own source revenue and improve the reliability of resource allocation and access to digital services for people and firms in the province of Punjab, by focusing on three primary areas:

Key Components of PRIDE

1. Strengthening Budget Formulation and Fiscal Risk Management: Enhancing the planning and management of the province’s budget to mitigate financial risks.
2. Increasing Use of Digital Technology for Public Service Delivery: Leveraging digital tools to streamline and improve the provision of selected public services.
3. Improving Collection of Own-Source Revenue (OSR): Implementing strategies to boost the province’s internal revenue generation.

As of now, the program’s progress toward its development objectives and implementation is rated as satisfactory. With 79% of funds disbursed, PRIDE continues to make headway as it achieves its Disbursement Linked Indicators (DLIs) and Disbursement Linked Results (DLRs).

The restructuring is a proactive response to the evolving local governance landscape. It ensures that PRIDE remains aligned with the province’s administrative framework. This adaptability highlights the program’s commitment to the effective enhancement of digital services in Punjab.

In our view, the consolidation of local government units presents challenges, however, it also offers an opportunity to streamline operations and improve service delivery. The PRIDE program’s restructuring is a timely move to align with these changes and continue its mission of strengthening Punjab’s fiscal and digital infrastructure.

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