Financing totaling $150 million has been greenlit by the World Bank Board of Executive Directors to enhance municipal services and property tax collection throughout Sindh, placing special emphasis on Karachi.
According to a news release published on Saturday, the Sindh Property Revenues Enhancement Program (Sindh PREP) will assist the provincial administration in boosting urban immovable property tax (UIPT) collections while bolstering the service delivery abilities of specific local councils.
Annual property tax collections in the provincial capital currently sit at roughly $8.5 million, falling well short of similar urban areas. The initiative seeks to elevate this figure to $85 million every year by pushing compliance levels up from 20 to 50 per cent.
A property tax management information system handling billing, payment processing, and grievance redressal will be established to reach this goal. Integrated financial management systems will likewise be deployed across participating local councils.
Roughly 70 per cent of the generated revenue will be channeled back into infrastructure and services spanning 25 local councils inside Karachi, impacting approximately 3.58 million residents. These resources will target roads, drainage, sewerage, schools, fire stations, and street lighting, dependent upon annual performance evaluations.
An investment component worth $40 million is also part of the initiative to expand tax administration and property surveys to 20 local councils located in other urban areas across Sindh, an effort anticipated to indirectly impact about 4.5 million individuals.
Bolormaa Amgaabazar, who serves as the World Bank Country Director for Pakistan, noted that local councils rely on provincial transfers for upwards of 95 per cent of their income. She explained that the initiative will assist municipalities in creating independent revenue streams to fund essential public services and infrastructure.
Davison Muchadenyika, World Bank Senior Urban Development Specialist, stated that Karachi holds massive unrealized potential for generating income through its property assets to support infrastructure and services.
