Karachi(The COW News Digital) The World Bank has approved a $150 million programme to improve municipal services across Sindh and strengthen the property tax collection system, aiming to enhance urban infrastructure, increase local government revenues and improve service delivery for millions of residents.
According to a World Bank statement, the programme will focus on improving property tax collection in Karachi, where annual revenue from the tax is targeted to increase tenfold, from $8.5 million to $85 million.
The initiative also aims to raise the property tax payment rate from the existing 20 per cent to 50 per cent through improved collection mechanisms and the introduction of a modern digital taxation system.
The programme is expected to benefit approximately 3.58 million residents across 25 municipal councils in Karachi. The World Bank said the initiative would help local governments strengthen their financial capacity and improve essential public services.
Under the programme, 70 per cent of the revenue generated through property taxes will be allocated to municipal services. Priority areas include drainage systems, sewerage networks, rehabilitation of schools and roads, improvements to fire stations and the installation and maintenance of streetlights.
The World Bank highlighted the financial challenges facing local governments in Sindh, noting that more than 95 per cent of municipal councils’ revenues currently depend on financial transfers from the provincial government.
The programme seeks to reduce this dependence by improving local revenue generation and strengthening the financial management capacity of municipal institutions.
Beyond Karachi, the initiative will also support property surveys in 20 municipal councils in other cities across Sindh. These surveys are expected to indirectly benefit approximately 4.5 million people living in the targeted urban areas.
According to the World Bank, $40 million has been allocated specifically to improve property tax systems in these additional urban centres. The initiative is expected to help local authorities identify taxable properties, expand the tax base and improve revenue collection.
The disbursement of funds to municipal councils will be linked to annual performance assessments. This mechanism is intended to encourage local governments to meet specific targets, improve institutional efficiency and ensure that allocated resources are used effectively.
Climate resilience is another important component of the programme. The World Bank said the initiative would support the rehabilitation of municipal infrastructure designed to withstand the growing impacts of climate change.
The focus on drainage, sewerage and other essential urban facilities is particularly significant for densely populated areas facing infrastructure pressures and climate-related challenges.
The $150 million programme represents a major investment in strengthening local government institutions and improving urban services across Sindh.
By expanding property tax collection, introducing digital systems and linking financial assistance to performance, the initiative aims to create more financially sustainable municipal councils while improving the quality of life for millions of residents.
