Summary The programme will focus on improving drainage, sewerage systems, roads and street lighting in Karachi
KARACHI (Dunya News) - The World Bank has approved $150 million in financing for the Sindh Property Revenue Enhancement Programme, aimed at improving urban property tax collection, strengthening the financial autonomy of local governments and enhancing municipal services across the province.
According to a World Bank statement, the programme seeks to increase Karachi’s property tax payment rate from 20 per cent to 50 per cent and raise annual property tax revenue from $8.5 million to $85 million.
The initiative is expected to benefit 25 municipal authorities in Karachi, providing improved municipal services to around 3.58 million residents. Under the programme, 70 per cent of the revenue generated through property taxes will be allocated to municipal infrastructure and urban services.
The programme will focus on improving drainage, sewerage systems, roads and street lighting in Karachi. Rehabilitation of essential infrastructure, including schools, fire stations, roads and drainage networks, will also be undertaken.
The World Bank said a modern digital management information system would be introduced to improve property tax collection in Karachi. The system will digitise tax billing, payments and complaint resolution processes.
The programme will also introduce property surveys and tax collection systems in 20 other urban local bodies across Sindh, indirectly benefiting around 4.5 million people. It also includes a $40 million investment project for other urban centres in the province.
According to the statement, more than 95 per cent of the revenue of Sindh's local governments currently comes from financial transfers by the provincial government.
Under the new programme, the release of funds to municipal authorities will be linked to their performance, which will be assessed annually by an independent verification agency.
The World Bank said the initiative would also prioritise the development of climate-resilient municipal infrastructure.
It noted that Karachi had significant potential to increase property tax revenue, which could generate additional resources for improving the city's infrastructure and public services.
The programme aims to enable urban local governments in Sindh to finance development projects and deliver municipal services through their own revenue sources, strengthening fiscal sustainability and local government autonomy across the province.
