World Bank okays $150m plan to boost property tax collection in Karachi

The World Bank has authorized a $150 million initiative to assist the Sindh government in enhancing urban property tax collection and improving municipal services in 25 Karachi towns. The Sindh Property Revenues Enhancement Programme (Sindh PREP), approved by the World Bank's executive board, will directly benefit 3.58 million residents in these 25 local councils.

The primary focus of this programme is to bolster the Sindh government's capacity to collect urban immovable property tax (UIPT) and strengthen the service delivery capabilities of selected local councils. Bolormaa Amgaabazar, the World Bank's Country Director for Pakistan, emphasized the importance of self-reliant cities in planning and investing for the long term. Currently, local councils in Sindh rely on provincial transfers for over 95% of their revenues.

With this programme, approximately 70% of the collected UIPT revenues will be reinvested in municipal infrastructure and services within participating local councils. This initiative aims to unlock Karachi's untapped potential in generating property-related revenues, which can then be utilized to fund essential infrastructure projects.

Davison Muchadenyika, a senior urban development specialist at the World Bank, highlighted that by enabling cities to plan, invest, and deliver services from their own resources, this program will bolster Sindh's fiscal sustainability.