The World Bank has approved $150 million in financing for Pakistan to improve property tax collection and strengthen municipal services in Sindh, with a particular focus on Karachi.
The funding will support the Sindh Property Revenues Enhancement Program (Sindh PREP), which aims to help the Sindh government increase urban property tax revenue and improve the financial capacity of local councils. The World Bank announced the approval on October 30, 2026.
Karachi Property Tax Revenue Target Set at $85 Million
Karachi currently collects approximately $8.5 million annually in property taxes, despite being one of the world’s largest cities.
Under the new programme, the World Bank aims to help increase annual property tax collection to $85 million, representing a tenfold rise. The initiative also seeks to improve tax compliance from the current 20% to 50%.
To achieve these targets, the programme will introduce a digital property tax management system covering billing, payment processing and complaint resolution.
70% of Property Tax Revenue to Be Reinvested in Local Services
Around 70% of the property tax revenue collected through the programme will be reinvested directly into municipal infrastructure and public services across participating local councils.
The initiative will cover Karachi’s 25 local councils and is expected to directly benefit approximately 3.58 million residents.
Planned infrastructure improvements include:
-
Drainage and sewerage systems
-
Roads and street lighting
-
Public schools
-
Fire stations
-
Climate-resilient municipal infrastructure
Funding allocations will depend on annual performance assessments conducted by an independent verification agency.
Additional $40 Million for Other Cities in Sindh
The programme also includes a separate $40 million investment financing component to expand property surveys and improve tax administration in 20 local councils across other urban centres in Sindh.
This expansion is expected to indirectly benefit approximately 4.5 million people by improving local revenue collection and strengthening municipal service delivery.
World Bank Highlights Financial Challenges Facing Sindh’s Local Councils
World Bank Country Director for Pakistan Bolormaa Amgaabazar said Sindh’s local councils currently depend on provincial government transfers for more than 95% of their revenue.
She explained that improving property tax collection would give local governments greater financial resources to plan infrastructure projects and deliver essential public services.
The programme is designed to help cities generate more revenue independently and reinvest a significant portion of those funds in services required by residents and businesses.
Read more similar news in our finance category.
What the $150 Million Programme Means for Karachi
The initiative aims to improve Karachi’s ability to generate revenue from its property sector while strengthening the financial position of local councils.
If its targets are achieved, the programme could provide additional funding for roads, drainage, sewerage, schools and other essential municipal facilities. Its success will depend on improved tax compliance, transparent administration and the effective use of collected revenue.
If you want to read more news like this visit supernews.pk