The World Bank’s Board of Executive Directors has approved the Sindh Property Revenues Enhancement Programme (Sindh PREP), a $150 million initiative aimed at improving property tax collection and strengthening municipal services in Karachi.
The programme will cover 25 local councils in Karachi, benefiting approximately 3.58 million residents. Investments will focus on improving service delivery and supporting local infrastructure, according to an announcement by the World Bank’s resident mission in Islamabad on Saturday.
The initiative will assist the Sindh government in enhancing the collection of Urban Immovable Property Tax (UIPT) and strengthening the capacity of selected local councils to deliver municipal services.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said cities with the ability to generate their own revenue could plan and invest in long-term development.
She noted that Sindh’s local councils currently rely on provincial transfers for more than 95 per cent of their revenue. The programme aims to help Karachi collect property taxes from residents and businesses and channel most of the funds back into local services and infrastructure.
Under the initiative, approximately 70 per cent of the collected UIPT revenue will be directly reinvested in municipal infrastructure and services across participating local councils.
World Bank Senior Urban Development Specialist Davison Muchadenyika said Karachi had considerable untapped potential to generate revenue through its property base and use those funds to address the infrastructure needs of residents and businesses.
He added that the programme would help strengthen Sindh’s fiscal sustainability by enabling cities to plan, invest and improve public services through their own revenue sources.
