World Bank approves $150 million for Sindh property tax and municipal services
The World Bank has approved $150 million for the Sindh Property Revenues Enhancement Program. It aims to raise Karachi's property tax collection from about $8.5 million to $85 million a year.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- World Bank approved $150 million for Sindh PREP on October 30, according to its statement.
- Karachi's annual property tax collection is targeted to rise from $8.5 million to $85 million.
- About 70% of collected revenue will go back into local services.
- $40 million is set aside for 20 councils in other Sindh urban centres.
The World Bank has approved $150 million in financing for the Sindh Property Revenues Enhancement Program, known as Sindh PREP. The programme is meant to improve urban property tax collection and the delivery of municipal services in Sindh.
According to a statement, the Board of Executive Directors of the World Bank Group approved the financing on October 30. Geo reported the details of the statement.
The World Bank said Karachi currently collects around $8.5 million a year in property tax, and that cities of similar size collect between 82 and 350 times more. The programme aims to lift Karachi's annual collection to $85 million and to raise the share of taxpayers who pay from 20% to 50%.
To support this, a management information system for billing, payment processing and grievance redress will be introduced for urban immovable property tax. Integrated financial management information systems will also be rolled out across local councils. Daily Pakistan described this as a modern digital collection system.
Around 70% of the property tax revenue collected will be reinvested in municipal infrastructure and services in the participating councils. The World Bank said Sindh's local councils earn more than 95% of their income from transfers by the provincial government, according to Daily Pakistan's report of the statement.
The programme covers Karachi's 25 local councils, and 3.58 million people are identified as primary beneficiaries. Funding will be tied to results. An Independent Verification Agent will carry out annual performance assessments, and these will determine the awards each council receives.
The awards will finance climate-resilient municipal infrastructure and services, including drainage, sewerage, schools, fire stations, roads and street lighting.
The programme also has a $40 million Investment Project Financing component. It will extend property surveys and property tax administration to 20 local councils in other urban centres of Sindh, where around 4.5 million people are expected to benefit indirectly. Bolormaa Amgaabazar, the World Bank Country Director for Pakistan, said: "Cities that can raise their own revenues can plan and invest for the long term,"
Why it matters
Residents of Karachi's 25 local councils and of 20 councils in other Sindh cities are among those covered, with funds tied to services such as drainage, sewerage, roads and street lights.
