Karachi: The World Bank Group has approved a $150 million financing initiative aimed at enhancing urban property tax collection and municipal service delivery in Sindh. The Sindh Property Revenues Enhancement Program (Sindh PREP) seeks to empower cities, particularly Karachi, by increasing their fiscal independence and capacity to invest in local infrastructure.

According to the World Bank, the program addresses the current dependency of Sindh’s local councils on provincial transfers, which account for over 95 percent of their revenues. Bolormaa Amgaabazar, the World Bank Country Director for Pakistan, emphasized the necessity of boosting Karachi’s property tax collection, which presently stands at approximately $8.5 million annually—significantly lower than cities of comparable size. The initiative aims to elevate this figure to $85 million annually by enhancing urban immovable property tax collection and compliance.

The program will implement a management information system to streamline billing, payment processing, and grievance handling while deploying integrated financial management systems across local councils. About 70 percent of the increased revenue will be reinvested into municipal infrastructure and services. The primary beneficiaries are the 3.58 million residents of Karachi’s 25 local councils, with funding contingent on annual performance assessments conducted by an independent verification agent.

An additional $40 million investment will expand property surveys and tax administration to other urban centers in Sindh, indirectly benefiting approximately 4.5 million people. Davison Muchadenyika, a Senior Urban Development Specialist at the World Bank, highlighted Karachi’s potential to generate substantial revenues from its property base, thereby enhancing the city’s fiscal sustainability and service delivery capabilities.