World Bank Approves $150 Million for Sindh Property Tax and Municipal Services Programme
Sindh PREP World Bank approves $150 million to improve property tax collection and municipal services.
The World Bank Group’s Board of Executive Directors has approved $150 million in financing for the Sindh Property Revenues Enhancement Programme (Sindh PREP).
The programme aims to improve urban property tax collection and strengthen municipal services across Sindh. It will help the provincial government increase urban immovable property tax (UIPT) revenues and improve the capacity of selected local councils.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said stronger local revenue systems would help cities plan and invest for the long term.
Sindh’s local councils currently depend on provincial transfers for more than 95% of their revenues, she said. The programme will help Karachi collect property taxes from residents and businesses. It will also direct most of the revenue towards improving local services and infrastructure.
Karachi Property Tax Collection Target Set at $85 Million
Despite its size, Karachi collects only around $8.5 million annually in property taxes. Cities of similar size collect between 82 and 350 times more.
Sindh PREP aims to increase Karachi’s annual property tax collection to $85 million. It also seeks to raise tax compliance from 20% to 50%.
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The programme will strengthen tax collection, compliance and administration. It will introduce a UIPT management information system to improve billing, payment processing and grievance redress.
It will also roll out integrated financial management information systems across participating local councils.
Around 70% of the property tax revenue collected will go directly back into municipal infrastructure and services in participating councils.
Programme to Benefit 25 Karachi Local Councils
The programme will cover Karachi’s 25 local councils. Its primary beneficiaries will be the 3.58 million people living in these areas.
Funding will depend on each council’s performance. An independent verification agent will conduct annual assessments to determine the awards.
The councils will use these funds to rehabilitate climate-resilient infrastructure and improve essential services.
Planned investments include:
- Drainage and sewerage systems
- Schools and fire stations
- Roads and street lighting
- Other municipal infrastructure and services
The performance-based funding model aims to encourage better financial management and more effective service delivery.
Additional $40 Million for Other Urban Centres
Sindh PREP also includes a $40 million Investment Project Financing component.
This component will expand property surveys and improve UIPT administration in 20 local councils across Sindh’s other urban centres. It is expected to indirectly benefit around 4.5 million people.
The broader programme will support stronger property records and more effective revenue collection beyond Karachi.
World Bank Highlights Karachi’s Untapped Revenue Potential
Davison Muchadenyika, the World Bank’s Senior Urban Development Specialist, said Karachi had significant untapped potential to generate revenue from its property base.
He said the programme would help Sindh strengthen fiscal sustainability. It would also enable cities to plan, invest and deliver services more effectively using their own resources.
The initiative links improved property tax collection with investment in local infrastructure. It aims to give municipal councils greater financial capacity while improving services for residents and businesses.
