KARACHI: The World Bank has approved a $150 million programme to improve municipal services across Sindh, strengthen local government institutions and modernise the province’s property tax collection system.
According to the World Bank’s announcement, the initiative aims to significantly increase annual property tax revenue in Karachi from $8.5 million to $85 million. It also seeks to improve tax compliance by raising the property tax payment rate from the current 20 per cent to 50 per cent through administrative reforms and digital technology.
The programme is expected to benefit approximately 3.58 million residents across Karachi’s 25 municipal councils. A modern digital property tax collection system will also be introduced to improve revenue assessment, payment processing and the overall efficiency of local taxation.
Under the initiative, 70 per cent of the revenue generated through property taxes will be allocated to improving municipal infrastructure and essential public services. Priority areas include drainage systems, sewerage networks, schools, road rehabilitation, fire stations and street lighting facilities.
The World Bank highlighted that more than 95 per cent of the revenue of Sindh’s municipal councils currently depends on financial transfers from the provincial government. The programme aims to strengthen the financial independence of local governments by improving their own-source revenue generation.
In addition to Karachi, property surveys will be conducted in 20 municipal councils across other cities of Sindh. Approximately 4.5 million people in these urban areas are expected to benefit indirectly from the initiative. An allocation of $40 million has been earmarked to improve property tax systems in these additional urban centres.
Funding will be provided to municipal councils following annual performance assessments, linking financial support with measurable improvements in governance and service delivery.
