Medium Term Performance Based Budget 2020-21 to 2022-23

Performance Based Budget 2020-21 to 2022-23

Government of Pakistan Finance Division Islamabad

Preface

This document has been prepared to comply with the requirement laid down in Section 6 of Public Finance Management Act, 2019. The medium-term Performance Based Budget which is referred to as the “Green Book” is an endeavor to specify the purposes i.e. output and outcomes expected to be achieved with funds appropriated by Parliament. The Green Book provides supplementary information to the details of Demands for Grants and Appropriations, which set out the details of the Budget by accounting Budget line according to the functional and object classifications of the Chart of Accounts.

The key elements of Green Book are:

• Three-year framework for budgetary planning which lies at the heart of the MTBF reforms. Under this process ministries make their plans and prepare budgetary estimates for a rolling 3-year budgetary horizon. This includes the 2020-21 estimates, which are to be appropriated by Parliament, and two additional or “outer” years estimates (in this case 2021-22 and 2022-23) for planning purposes.

• Breakdown of each Ministry’s Budget by “Outputs” . Outputs represent major lines of service delivery of each ministry. Each ministry identifies its main lines of service delivery and the costs associated with the delivery of each main line of service, down to the level of the individual spending unit. This would enable Parliament and other stakeholders to assess whether value for money in terms of delivery of services is being achieved.

• L inkage of service delivery with total budgetary allocations for each Ministry / Division (current and development). As the government budget is divided between the recurrent budget and development budget, the delivery of outputs and outcomes requires a combination of allocations through the recurrent budget to meet the operations costs and development budget to meet cost of expansion of access to services or improvement of the future quality of public services.

• Development of indicators, which should be used for measuring the quantity and quality of services (outputs) to be delivered. The Green Book also provides targets for the levels of services, which the ministries and divisions are expecting to achieve. Budgetary preparation based on specified outputs/services, provides a basis for monitoring of the results expected from public spending.

• Identification of outcomes that represent effects of service delivery on the target population. Outcomes are often more difficult to measure than outputs and are typically measured less frequently.

I hope that this document would be of value in terms of describing the linkage between budgetary allocations and the public services delivered.

NAVEED KAMRAN BALOCH

Secretary to the Government of Pakistan

Finance Division

Islamabad, the 12^th June 2020

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Table of Contents

Composition of this document Summary of the Medium-Term Budget

Detailed Medium-Term Budget Estimates by Services Delivery

Composition of this document

This document presents medium-term (2020-21 to 2022-23) budget estimates by outputs for each Ministry / Principal Accounting Officer separately. The presentation in the document, also known as the MTBF “Green Book” has been improved this year. The following key improvements have been made:

1. The budget is presented by Ministry / Principal Accounting Officer (i.e. the executing agency). In order to present reconciliation with the Demands for Grants and Appropriation, the budget for each Principal Accounting Officer is also shown by Demands for Grants.

This method of presentation allows enhanced understanding of policy priorities (services or outputs) and the related budgets. For example, in the book “Demands for Grants and Appropriations” the budget for Higher Education Commission is part of the Demands shown in the Finance Division. The MTBF “Green Book” shows the same budget but mentions it under the Principal Accounting Officer - i.e. the Executive Director of Higher Education Commission. A reconciliation between “Demands and Grants and Appropriations” and MTBF “Green Book” is also shown with each Principal Accounting Officer separately.

2. The actual expenditure (on provisional basis) is provided for the past two years (i.e. for 2017-18, and 201819). The expenditure has been extracted from computerised accounting system called “Project to Improve Financial Reporting and Auditing” (PIFRA). These numbers are provided on provisional basis.

3. Name of the policy document, and organisational structure (consisting of attached departments and or autonomous organisations, etc.)

4. Together with the budget, a personnel plan is also provided

5. For each output, selected projects are shown in order to enhance clarification of how the Office of the Principal Accounting Officer intends to improve access and quality of services.

The budget 2020-21 is to be appropriated by the Parliament while the budget estimates for outer-years (2021-22 and 2022-23) are provided for planning purposes. The budget estimates for outer-years are a result of a technical exercise completed by the Finance and Planning Divisions to provide predictability of resources on the recurrent and development budgets. The budget ceilings (2020-21 to 2022-23) were issued to all the Federal Ministries by the Finance Division April / May 2020 after the approval of Budget Strategy Paper by the Cabinet in March 2020.

For each Ministry the following information is presented:

1. Entity Name:

   • This is the name of the organisation that is headed by a Principal Accounting Officer while the Minister is the Executive Authority.

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2. Executive Authority:

Designation of the Minister is provided in this area.

3. Goal:

A high-level statement providing overall goal of the organisation (Ministry / Division / Principal Accounting Officer) is included.

4. Budget Information:

In this section actual expenditure, budget, and forecast estimates are provided by:

• Outputs: These are the services delivered by an organisation (Ministry / Division / Principal Accounting Officer)

• Demands for Grants: Demands for Grants are the method of appropriation. In this section reconciliation between Demands for Grants and budget by Principal Accounting Officer is provided.

• Inputs: These are the line-items - or object classification of the Chart of Accounts.

5. Policy Document:

Relevant policy document is provided in this section.

6. Organisational Structure:

In this section the organisational structure - consisting of attached departments, autonomous bodies / corporations / authorities, is mentioned.

7. Outputs:

Outputs are explained in this section including brief rationale and future policy priorities.

8. Performance Indicators and Targets:

For each of the Output selected performance indicators and targets are provided in this section.

9. Personnel Plan:

This section includes number of filled posts against different grades. In addition, where relevant information

related to contractual posts and number of female employees is provided.

10. Strategic initiatives - selected key projects:

For each output separately, selected key projects are provided together with their estimated cost, completion date, key milestones, expenditure till June 2019 and the budgets and forecasts.

Note Please note that the Actual Expenditure shown in this document is based on provisional figures obtained from the relevant Ministries and Accountant General of Pakistan Revenue (AGPR).

SUMMARY OF THE MEDIUM TERM BUDGET

Cabinet Secretariat

Executive Authority

Prime Minister

Budget Summary

The output-based budget is presented on the subsequent pages.

Note: * ERRA will be merged with NDMA from FY 2021-22 onward

Cabinet Secretariat

Cabinet Division

Principal Accounting Officer

Secretary, Cabinet Division

Goal

The pivotal secretarial setup of the Federation of the Islamic Republic of Pakistan and symbolizes the mode of dispensation of the executive authority of the State under the Constitution and the Rules of Business framed there under.

Budget Information

Budget by Outputs

Rs. '000

Note: * Output 11: Centralize Supply of forms: Department of Stationery and Forms and functions of the department to be transferred to Printing Corporation of Pakistan. Budget Allocation is only given till December 2020 for FY 2020-21.

Output 12: The department fall under this output, had been transferred to National Heritage and Culture Division and Federal Education and Professional Training Division from FY 2019-20.

Cabinet Secretariat

Cabinet Division

Budget by Demands

Budget by Inputs

Organisational Structure

Attached Departments:

• 1 Department of Communications Security

• 2 National Archives of Pakistan, Islamabad

• 3 Printing Corporation of Pakistan, Islamabad

Autonomous bodies / Corporations / Authorities

• 1 Pakistan Telecommunication Authority (PTA)

• 2 National Electric Power Regulatory Authority (NEPRA)

• 3 Oil & Gas Regulatory Authority (OGRA)

• 4 Public Procurement Regulatory Authority (PPRA)

• 5 Frequency Allocation Board (FAB)

• 6 Islamabad Club, Islamabad

• 7 Karachi Infrastructure Development Company Ltd. (KIDCL)

• 8 Pakistan Tourism Development Corporation (PTDC)

• 9 National Tourism Coordination Board (NTCB)

Cabinet Secretariat

Cabinet Division

Policy Documents

• 1 The President's (salary, allowances and privileges) act, 1975.

• 2 The President's (pension) act, 1975.

• 3 The Prime Minister's (salary, allowances and privileges) act, 1975.

• 4 Federal Ministers and Ministers of State (salaries, allowances and privileges) act, 1975

• 5 Policy/Rules for Monetization of Transport Facility for Civil Servants

• 6 Honours and Awards Policy

Output(s)

Cabinet Secretariat

Cabinet Division

Output(s)

Output 10 Promotion of tourism

Office Responsible: Org Wing

Brief Rationale:

Improved tourism through upgradation of tourist information centers (tic)

Output 11 Centralize supply of forms / gazettes*

Office Responsible: Org Wing

Brief Rationale: Printing, Stocking & Supply of Civil Standard Forms to all Federal Departments and Embassies Abroad. Sale & Distribution of Official Publications and Gazettes.

Performance Indicators and Targets

Cabinet Secretariat

Cabinet Division

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Federal Public Service Commission

Principal Accounting Officer

Secretary, Federal Public Service Commission

Goal

Merit based recruitment and selection of human resources for public service

Budget Information

Budget by Outputs

Budget by Demands

Budget by Inputs

Policy Documents

• 1 FPSC Ordinance , 1977

Cabinet Secretariat

Federal Public Service Commission

Medium-Term Outcome(s)

Outcome 1: Merit based recruitment through Competitive Exam (CSS) and General Recruitment Exam.

Conduct of Competitive Exam (CSS) on annual basis and General Recruitment Exams on quarterly basis throughout the country for recommendation of human resource for public service on merit basis

Output(s)

Output 1 Administrative and logistic support, human resource Office Responsible: FPSC management and Information Technology Support

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Earthquake Reconstruction and Rehabilitation Authority

Principal Accounting Officer

Chairman, Earthquake Reconstruction and Rehabilitation Authority*

Goal

ERRA is mandated to undertake various Projects of Reconstruction & Rehabilitation in the Earthquake affected areas of KPK & AJK as per the strategy of "Build Back Better".

Budget Information

Budget by Outputs

Rs. '000

Budget by Demands

Budget by Inputs

Medium-Term Outcome(s) Outcome 1: Provision of quality infrastructure Outcome 2: Improvements in Quality of life

Cabinet Secretariat

Earthquake Reconstruction and Rehabilitation Authority

Output(s)

Output 1 Direct Outreach Services, housing, livelihood and social protection

Cabinet Secretariat

Earthquake Reconstruction and Rehabilitation Authority

Output(s)

Output 3 Public Infrastructure Services; Governance, power generation, telecommunication, transportation, tourism

Brief Rationale: portfolio has been completed. 01 Telecom Sector strategy project was envisaged and has been completed. Out of total number envisaged 301 Transport strategy projects 262 have been completed. 87 Percent of Governance sector portfolio has been completed. (Source ERM) Out of total number envisaged 301 Transport strategy projects 262 have been completed. 87 Percent of Governance sector portfolio has been completed. Future Policy Priorities: Other sectors which are more resource intensive can be targeted after completion of priority sector projects and upon further rationalization by the stakeholders during the execution of priority sector projects subject to availability of funds.

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Earthquake Reconstruction and Rehabilitation Authority

Personnel Plan

Cabinet Secretariat

Aviation Division

Principal Accounting Officer

Secretary, Aviation Division

Goal

To promote and regulate Civil Aviation activities, to develop an infrastructure for safe, secure, efficient, adequate, economical and properly coordinated civil air transport service in Pakistan.

Budget Information

Budget by Outputs

Rs. '000

Budget by Demands

Budget by Inputs

Cabinet Secretariat

Aviation Division

Budget by Inputs

Organisational Structure

Attached Departments:

• 1 Pakistan Meteorological (PMD)

• 2 Airports Security Force (ASF)

Autonomous bodies / Corporations / Authorities

• 1 Civil Aviation Authority Pakistan

• 2 Pakistan International Airlines Company Limited (PIACL)

Policy Documents

• 1 Aviation Policy 2019 https://www.caapakistan.com.pk/upload/AT/NAP-2019.pdf

Medium-Term Outcome(s)

Outcome 1: Uplift of civil aviation industry in the country

Output(s)

Cabinet Secretariat

Aviation Division

Performance Indicators and Targets

Personnel Plan

Strategic Initiatives (selected key projects)

Rs. '000

Output 1: Policy formulation and compliance of International Civil Aviation Organisation (ICAO) standards

Cabinet Secretariat

Aviation Division

Strategic Initiatives (selected key projects)

Rs. '000

Cabinet Secretariat

Capital Administration and Development Division

Principal Accounting Officer

Secretary, Capital Administration and Development Division

Goal

Capital Administration & Development Division shall execute all functions previously performed by the abolished Ministries/Divisions within the jurisdiction of the Federal Capital Area. All such functions of the Division are multifarious capturing a range of the subjects like health, social welfare, education, rehabilitation of persons with disabilities, population welfare etc.

Budget Information

Budget by Outputs

Rs. '000

Budget by Inputs

Personnel Plan

Total Contractual Posts (including project posts)

of which Female Employees

Cabinet Secretariat

Establishment Division

Principal Accounting Officer

Secretary, Establishment Division

Goal

Fostering excellence in the civil service by ensuring merit based appointments, postings and promotions, capacity building through trainings, introduction of modern management techniques and technology, undertaking governance through institutions and systems and deconcentration of power through effective decentralization.

Budget Information

Budget by Outputs

Rs. '000

Budget by Inputs

Cabinet Secretariat

Establishment Division

Budget by Inputs

Organisational Structure

Attached Departments:

• 1 Staff Welfare Organization (SWO), Islamabad.

• 2 Akhtar Hameed Khan, National Centre for Rural Development (AHK NCRD), Islamabad.

Autonomous bodies / Corporations / Authorities

• 1 Pakistan Academy for Rural Development (PARD), Peshawar.

• 2 Federal Employees Benevolent & Group Insurance Fund (FEB & GIF), Islamabad.

• 3 National School of Public Policy 4 Civil Services Academy

Policy Documents

• 1 Change in promotion Policy-Forfeiture of Promotion rights by senior officers not availing nominations for mandatory training twice

• 2 Change in Rotation Policy for DMG/PSP

• 3 Counting of Service rendered against higher posts under Section 10

• 4 Inter provincial transfer policies

• 5 Promotion policy grant of exemption from training

• 6 Revision of policy for grant of BS21 and BS22 to Technical-Professional officers on account of Meritorious Services

• 7 Induction in Secretariat Group as Joint Secretary BS-20

• 8 Mechanism to Ensure Merit Based Recruitment in the Ministries / Divisions / Sub-Ordinate Offices / Autonomous / Semi-Autonomous Bodies / Corporations / Companies / Authorities

• 9 Occupational Groups and Services (Promotion, Training & Seniority) Rules, 1990

• 10 Posting of married females at place of husband

• 11 Posting of unmarried females at the place of residence of parents/family

• 12 Reservation of 10 % quota for women employment

Medium-Term Outcome(s)

Outcome 1: Improvement in Human Resource Management in Public Service

Output(s) Output 1 Policy formulation and implementation

Office Responsible: Establishment Division (Main), Human Resources Management Policy Reforms Cell, Staff Welfare

Organization

Brief Rationale:

Human Resource Management, Financial & General Administration, Coordination and Parliamentary Business of the

Cabinet Secretariat

Establishment Division

Output(s)

Cabinet Secretariat

Establishment Division

Output(s) Output 8 Financial Relief to incapacitated, retired employees and Office Responsible: Board of Trustees, Federal Employees issuance of benevolent funds, marriage grants, farewell grants and Benevolent & Group Insurance Fund educational stipends

Future Policy Priorities: Future priority to provide immediate relief to the employees and their family members as and when claims are received, as per provision FEB & GIF Act, 1969 and rules made there under.

Output 9 Rural Development support services

Office Responsible: Pakistan Academy for Rural Development & Akhtar Hameed Khan National Centre for Rural Development.

Brief Rationale: To impart in-service training to the administrators in development process with special reference to rural development, Socioeconomic empowerment of rural and the under-privileged for sustainable development. Conduct research in the field of rural development and its administration in order to make the training realistic and meaningful

Future Policy Priorities: Experiment with new techniques of rural development by undertaking actions on research projects and after experimenting, pass them on to the concerned departments.

Performance Indicators and Targets

Cabinet Secretariat

Establishment Division

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Establishment Division

Personnel Plan

Cabinet Secretariat

National School of Public Policy

Principal Accounting Officer

Rector, National School of Public Policy

Goal

Perpetual quest towards attainment of improved governance, effective service delivery and effort to build capacity in Pakistan in the different areas of nation building, Governance & Leadership, Economy, Security, Sustainable Energy, Education, Health and Stabilization

Budget Information

Budget by Outputs

Rs. '000

Budget by Demands

Budget by Inputs

Policy Documents

• 1 National School of Public Policy Ordinance, 2002 No.XCIX of 2002 (Amendment) 2017

• 2 National School of Public Policy (Amendment) Act, 2010

• 3 National School of Public Policy Ordinance, 2002 (No.XCIX of 2002)

Medium-Term Outcome(s) Outcome 1: Administrative Management Training of Civil Servants belonging to Federal / Provincial Governments and Public Sector Organizations (BS-20 Officers, BS-19 Officers, BS-18 Officers)

Cabinet Secretariat

National School of Public Policy

Output(s) Output 1 Post induction-mandatory management trainings for civil servants

Office Responsible: National School of Public Policy (NSPP) and National Institute(s) of Management, Islamabad, Lahore, Karachi, Peshawar and Quetta

Brief Rationale: To develop participants' knowledge, improve attitude & leadership abilities and to develop skills & methods of policy formulation / implementation for continuous improvement of governance at National / Provincial levels.

Future Policy Priorities: To accomplish the mandate and training of at least 850 officers per year

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

National Security Division

Principal Accounting Officer

Secretary National Security Division

Goal

To enhance and institutionalize consensual decision making on national security issues and coordinate effective implementation

Budget Information

Budget by Outputs

Budget by Inputs

Cabinet Secretariat

National Security Division

Budget by Inputs

Medium-Term Outcome(s) Outcome 1: Improved security situation in the country

Output(s) Output 1 A comprehensive national security policy. Collective thinking Office Responsible: National Security Division on key national security issues. Better informed public and key stake holders on national security issues. Improved relation with counterpart agencies in other countries

Brief Rationale:

Serve as Secretariat to the National Security Committee

Future Policy Priorities: Formulation and implementation of Comprehensive National Security Policy

Output 2 Conducting research and analysis - (preparation of Policy notes and recommendations, convene / participation in policy dialogues, Review of Policy / Strategy documents, Participation / Briefing NSC meetings and PM as demanded, Liaison with Ministries / Division, Consultancy and Seminars in the relevant field.)

Office Responsible: Strategic Policy Planning Cell (NSD)

Brief Rationale: Serve as Cell for research and analysis Future Policy Priorities: Conduct meetings of Policy, Strategy, briefing NSC & PM as demanded Policy Dialogue, Review Policy Strategy Liaison with Ministries & Consultancy

Performance Indicators and Targets

Cabinet Secretariat

National Security Division

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Prime Minister's Office (Public)

Principal Accounting Officer

Secretary to the Prime Minister

Goal

Smooth functioning of the Prime Minister's Office according to Rules of Business

Budget Information

Budget by Outputs

Budget by Demands

Budget by Inputs

Medium-Term Outcome(s) Outcome 1: Improved Governance

Personnel Plan

Cabinet Secretariat

Prime Minister's Office (Public)

Personnel Plan

Cabinet Secretariat

Prime Minister's Office (Internal)

Principal Accounting Officer

Military Secretary to the Prime Minister's Office (Internal)

Goal

Efficient and smooth functioning of the Prime Minister's Office according to rules of business

Budget Information

Budget by Outputs

Budget by Demands

Budget by Inputs

Medium-Term Outcome(s) Outcome 1: Improved Governance

Cabinet Secretariat

Prime Minister's Office (Internal)

Output(s)

Personnel Plan

Cabinet Secretariat

Board of Investment

Principal Accounting Officer

Secretary, Board of Investment

Goal

Promoting domestic and foreign investment to enhance Pakistan's economic development. Increase in investment to GDP from 5.5% (2019-20) to 20% (2020-21).

Budget Information

Budget by Outputs

Rs. '000

Budget by Demands

Budget by Inputs

Policy Documents

• 1 Investment Policy 2013

• 2 Foreign Direct Investment Strategy 2013-17

• 3 Special Export Zones Act 2012

• 4 Special Export Zones Rules 2013

Medium-Term Outcome(s) Outcome 1: Improved investment climate for domestic and foreign investments in Pakistan.

Cabinet Secretariat

Board of Investment

Improvement in Pakistan's rank on Ease of Doing Business index by 10 points annually (current rank: 128), supported by the coordination and facilitation role of the Board of Investment.

Output(s)

Output 1 Investment advisory and facilitation services

Office Responsible: Office of the Director

Brief Rationale: To make Pakistan attractive for domestic and foreign investors

Future Policy Priorities: To simplify the procedures, reduce time/cost for ease of doing business to attract the foreign/ local investment in the country. Pak-China Economic Corridor which spreads from Khunjerab to Gwadar which will promote regional trade with China, South Asia, Central Asia and Middle East countries. This corridor will provide a link to deliver goods to the international markets through the Gwadar port and generate investment & business activities in the country. Special Economic Zones Act promulgated in 2012. The purpose of SEZs is to facilitate domestic and foreign investors to invest in the manufacturing sectors of the country.

Performance Indicators and Targets

Cabinet Secretariat

Board of Investment

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Prime Minister's Inspection Commission

Principal Accounting Officer

Chairman, Prime Minister's Inspection Commission

Goal

The Commission shall if so directed by the Prime Minister to carry out the inspections and may conduct inquiries in respect of any Ministry/Division/Department/Office/Corporation and employee on various charges / allegations and any other assignments given by the Prime Minister.

Budget Information

Budget by Outputs

Rs. '000

Budget by Demands

Budget by Inputs

Medium-Term Outcome(s) Outcome 1: To improve transparency in Government Business.

Output(s) Output 1 To observe/ensure transparency in Ministry/Division/Department

Office Responsible: Prime Minister's Inspection Commission

Brief Rationale: The Prime Minister Inspection Commission is a statutory body established under Martial Law Ordinance (MLO-58) of 1978 which is validated under the Article 270-A of the Constitution 1973. It functions under the general orders and supervision of the Prime Minister.

Cabinet Secretariat

Prime Minister's Inspection Commission

Output(s)

Output 1 To observe/ensure transparency in Ministry/Division/Department

Office Responsible: Prime Minister's Inspection Commission

Future Policy Priorities: Inspection/Monitoring of assigned projects/ Inquiries by PM

Performance Indicators and Targets

Personnel Plan

Cabinet Secretariat

Pakistan Atomic Energy Commission

Principal Accounting Officer

Chairman, Pakistan Atomic Energy Commission

Goal

Research and Development for Energy and Social Sector

Budget Information

Budget by Outputs

Budget by Demands

Budget by Inputs

Medium-Term Outcome(s)

Outcome 1: Improved Power / Health / Food & Agriculture / Science & Technology sectors through research and development

Enhancement of power generation, improvement in agricultural production, advancement in science & technology and improvement in health facilities through research and development in these sectors.

Output(s)

Output 2 Research, trainings and capacity building

Office Responsible: Nuclear Sciences Division

This sector of PAEC is advancing to achieve the goals of advance research and development in nuclear science, engineering

Cabinet Secretariat