World Bank approves $150 million program for property tax in Karachi — Dawn

In Karachi, Pakistan, the World Bank has approved a $150 million program to help the government of Sindh province improve the collection of urban property tax and strengthen the capacity of municipal services. This was reported by Dawn.

Program for 25 local councils

The Sindh Property Revenues Enhancement Programme, or Sindh PREP, was approved by the World Bank’s Board of Executive Directors. It will cover 25 local councils in Karachi, home to 3.58 million people. Investments in municipal service delivery will be financed in these communities.

The initiative is intended to improve the collection of the Urban Immovable Property Tax. The program also provides for strengthening the capacity of selected local councils in Sindh to deliver municipal services.

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Funds for local infrastructure

According to the World Bank, about 70% of revenues from the collected Urban Immovable Property Tax will be reinvested directly in municipal infrastructure and services in the communities participating in the program.

World Bank Country Director for Pakistan Bolormaa Amgaabazar noted that Sindh’s local councils depend on transfers from the provincial government for more than 95% of their funding. Davison Muchadenyika, the bank’s senior urban development specialist, said that Karachi has significant untapped potential to generate revenue from its property tax base and direct these resources toward infrastructure needed by residents and businesses.