World Bank Approves $150 Million for Sindh Property Tax Reform

The World Bank Group approved $150 million in financing for the Sindh Property Revenues Enhancement Program (Sindh PREP) to strengthen financial autonomy and municipal services in Sindh, Pakistan. The initiative aims to increase Karachi's annual property tax collection from $8.5 million to $85 million by raising the payment compliance rate from 20% to 50%.

To achieve these targets, the program will deploy a digital management information system for billing and payment processing across 25 local councils in Karachi. A $40 million component of the funding is dedicated to expanding property surveys and tax administration to 20 other urban centers within the province. Funding releases to municipal authorities will be tied to annual performance assessments conducted by an independent verification agency.

Under the program, municipal bodies will retain 70% of collected property tax revenues to reinvest in climate-resilient infrastructure, including drainage, sewerage, roads, street lighting, schools, and fire stations. The reforms are expected to benefit approximately 3.58 million residents in Karachi and 4.5 million people across other urban centers. Bolormaa Amgaabazar, the World Bank Country Director for Pakistan, noted that the program seeks to reduce the heavy reliance of local councils on provincial transfers to enable long-term investment.