World Bank Approves $150 Million for Municipal Services in Sindh

The World Bank has approved $150 million in financing for a programme aimed at improving property tax collection and municipal services across Sindh.

The Sindh Property Revenues Enhancement Programme (Sindh PREP) will help the provincial government modernise property tax administration and strengthen the financial capacity of local councils.

Karachi to Receive Major Share of Programme Benefits

The programme will cover Karachi's 25 local councils, with approximately 3.58 million residents identified as its primary beneficiaries.

Karachi currently collects around $8.5 million annually in property taxes. The World Bank aims to increase this figure to $85 million a year and raise tax compliance from 20 per cent to 50 per cent.

Around 70 per cent of the property tax revenue collected under the programme will be reinvested directly into municipal infrastructure and services.

Roads, Drainage and Sewerage Systems Included

The financing will support improvements in essential public facilities, including drainage and sewerage networks, roads, street lighting, schools and fire stations.

The programme will also introduce digital systems for property tax billing, payments and complaints, helping local councils improve revenue collection and financial management.

A separate $40 million component will extend property surveys and tax administration improvements to 20 local councils in other urban centres across Sindh. This expansion is expected to indirectly benefit around 4.5 million people.

Funding Linked to Performance

The World Bank programme will link funding allocations to the performance of participating local councils. Annual assessments by an independent verification agency will help determine the funds awarded to each council.

The initiative is intended to reduce local governments' dependence on provincial transfers and give them more resources to maintain infrastructure and deliver public services.