Similarly to Pakistan's otherprovinces, and the country as a whole, Punjab Province - amacrocosm of the country, with more than half thepopulation, and economic activity - is facing a crisis ofpublic service delivery, government finances, publicinstitutions, and governance. Hence, the resulting social,and infrastructure "deficits", have contributed toslower economic growth, slower poverty reduction, and poorsocial indicators in the province. Nevertheless, Punjab hasthe opportunity to turn around its public sector, for theprovincial government seems determined to improve servicedelivery. This report is intended to provide an input forthis process, and, puts forward recommendations for fiscalrestructuring, institutional improvements - including civilservice reform - and, sectoral reforms to improve servicedelivery in education, health, agriculture and irrigation,and roads. Fiscal restructuring needs to focus the publicsector on essential core roles, to include improvedfinancial management; revamping planning, and budgeting;mobilizing revenue from taxes, and user charges; and,implementing fiscal decentralization. Institutionalimprovements, and civil reform would include accountability,and strengthening key provincial economic management,regulatory, and sectoral institutions, while reforms inindividual sectors should improve service delivery , anddevelopment outcomes. The Federal Government should play animportant role in supporting, and facilitating provincialreforms, by guiding the devolution process, stabilizingfederal revenues, and, working closely with the provinces inthe reform process.
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