The World Bank has raised concerns over delays in signing Memorandums of Understanding (MoUs) between the Ministry of Information Technology and Telecommunication (MoITT) and provincial governments under the $78 million Digital Economy Enhancement Project (DEEP). The agreements, required by the financing arrangement, remain pending despite progress in other areas.
According to official World Bank documents, stronger coordination is needed among project implementation entities and service providers at both federal and provincial levels to ensure smooth onboarding of provincial and local government services.
The latest Implementation Status & Results (ISR) report shows the project has achieved notable milestones: three designated accounts have been opened, disbursements have begun, project staff has been recruited, and procurement processes for key consultancies and IT infrastructure are underway.
Priority initiatives include establishing a national data exchange layer and developing a digital identification ecosystem, both essential for improving government efficiency and accessibility.
Pending MoUs Critical for Coordination
The MoUs between MoITT and provincial governments, as stipulated in the Financing Agreement, are considered essential for intergovernmental coordination. Their absence could slow the integration of provincial and local government services into the national digital framework.
Implemented by MoITT in collaboration with the World Bank, DEEP aims to enhance the government’s capacity to deliver digitally enabled public services to citizens and businesses. The project takes a whole-of-government approach to build frameworks and technology for expanding access to digital services nationwide.
It will also establish the Pakistan Digital Government Enterprise Architecture, enabling integration across departments, mapping roles and responsibilities, and setting principles for technology, business, information, and service design.
Once fully implemented, the initiative is expected to improve transparency, reduce processing costs, and strengthen tax collection capabilities; a key priority for the federal and provincial governments.