Transforming Governance through Performance Agreements

Mohammad Shehzad Arbab

How do you transform a traditional government machinery that is shackled by complex

processes into an effective, outcome-driven vehicle?

Those were the thoughts in my mind when I joined Prime Minister Imran Khan’s government - a
government with an ambitious reform agenda - in August 2018 as Advisor on Establishment. I
was just over one year into retirement, having bid farewell to a bureaucratic career spread over
36 years.

I was clear on the fact that introducing any structural change without due attention to changing
our behavior within the bureaucracy will only get us so far. During my service, I saw a gradual
decline in the overall sense of responsibility of officers – responsibility towards the office they
were occupying and, moreso, towards the citizens we are meant to serve. If somehow, I could
rekindle that sense of responsibility, all other reforms were merely a matter of time.

Three years later, as I look back at the journey my team and I have undertaken, one particular
initiative that I have led in my capacity as the Special Assistant to the Prime Minister on
Establishment stands tall. Performance Agreements are a sign-off between the Prime Minister
and his Federal Ministers on a set of initiatives their Ministry commits to delivering over a
specified period of time. On the face of it, the Performance Agreements sound technical and
unexciting, but it was a necessity. The platform holds government officers accountable and
introduces transparency in a way that will improve government performance and efficiency. It’s
a sophisticated governance tool that will introduce change that is not just specific and measured,
but citizen-centered.

All divisions of the Federal Government have not only listed the initiatives they aim to achieve
by the end of each fiscal year, but have also broken them down into quarterly targets. The entire
Federal Government is now on one single digitized portal that captures a total of almost 1100
initiatives, which range in issues – from achieving quarterly export targets, to progress of Bhasha
and Mohmand dams, to rolling out e-offices across all ministries. The system does not only
require ministries to list their initiatives, but also allows them to identify which ministry,
province or any other entity the delivery of their initiative is dependent upon. Listing out these
details in one format intrinsically creates a sense of responsibility amongst all involved.

While governments may be credited for rolling out new plans, they are surely to blame for losing
focus during implementation. This causes more harm than good. In this case, once the
Agreements are signed between the Prime Minister and his Ministers, a review is carried out on a
quarterly basis to gauge progress across the entire federal government. Institutionalizing this
routine is providing officers much needed predictability, in turn, improving public service
delivery. The other action that is also improving delivery is the attempt to address the age-old
siloed approach. Ministries not only have to achieve their own targets, but have to help other
ministries as well. For example, the Establishment Division is not only being evaluated for
ensuring that rotation of officers is implemented as per policy according to the timeline in its
agreed target, but is also responsible for helping Ministry of Industries and Production deliver its
target of developing an Internal Audit Plan for the State-Owned Enterprises by appointing a
Chief Internal Auditor in consultation with the Auditor General of Pakistan.

When the Cabinet approved the development of the Performance Agreements in September
2019, sustainability was the prime concern as the roll out was being designed. A pilot was run
with a limited number of ministries first. The process was refined along the way, tailored exactly
to our actual requirements. The aim consistently has been to integrate this tool such that it results
in improving the overall management of ministries. While our government may still not be fully
implementing its manifesto promise of tenure protection of officers, the regularity of review is
surely helping officers in protecting continuity of key initiatives. The Secretaries may change,
but it is clear that they have to deliver against the targets set out for their specific ministries.

Performance also needs to be rewarded. As we evolve the system, we are looking towards
introducing a performance bonus for the top performing ministries. Criteria and methodologies
are being drawn out, but for the first time in Pakistan, an attempt is being made to distinguish
between the achievers and the laggards within the bureaucracy – a behavioral shift, paving the
way for continuous improvement in the public sector. Similarly, while performance must be
rewarded, non performance should entail consequence. In this spirit, as a first step, performance
of all ministries against their agreed targets will be made public in January 2022.

Transforming deep rooted archaic governance structures into efficient delivery systems is no
easy task. Transformation of any nature requires two key ingredients: Strategic direction and
operational clarity.

While the Performance Agreements as a governance tool may have seemed perfect on paper,
pushing our process-based system into action without any strategic direction and ownership of
Prime Minister Imran Khan would have been a futile effort. For the first time, the performance of
ministers – and by extension, their entire teams – is being measured against an agreed baseline,
in clear numbers. Taking keen interest in the quarterly assessment, the Prime Minister is
personally reviewing the performance of his ministers.

The operational clarity to implement a reform of this scale has been led by a small dedicated
team brought on board from the very beginning. Consistently improving the system, this team
works closely with each ministry, facilitating quarterly review and helping them highlight key
problems to the Review Committee headed by Deputy Chairman Planning Commission for quick
resolution.

As a system that has evolved significantly over the last two years, it is my hope that our
Performance Agreements will genuinely take root within the governance structure of not only the
Federal Government, but at the provincial level as well. Without a doubt, the performance
agreements are making a transformational shift from a mere process-oriented approach to an
outcome-based, time-bound delivery mechanism – one that is so dearly required by all
governments that attain power through an electoral process, and bring with them ambitious
agendas to implement.

The author is Special Assistant to the Prime Minister on Establishment, and a retired civil
servant.