World Bank Approves $150 Million for Sindh Property-Tax Reform
The World Bank approved $150 million for the Sindh Property Revenues Enhancement Program, which will improve urban property-tax administration and municipal service capacity. [9] The program aims to raise Karachi’s annual property-tax collection from approximately $8.5 million to $85 million and compliance from 20% to 50%, with about 70% of collected revenues reinvested in participating councils’ infrastructure and services. [9]
The program connects local revenue collection to services for 3.58 million people in Karachi’s 25 participating councils, including drainage, sewerage, roads, schools, fire stations, and street lighting. [9] Its design makes council funding conditional on independently verified performance rather than distributing all awards unconditionally. [9]
Key insights
- Karachi’s current annual property-tax collection is approximately $8.5 million; the World Bank says similarly sized cities collect 82 to 350 times more. [9]
- The proposed collection target is ten times the current amount, while the compliance target rises from 20% to 50%. [9]
- New systems will cover billing, payments, grievance handling, and council financial management, addressing administration as well as compliance. [9]
- A $40 million component will extend property surveys and tax administration to 20 councils in other Sindh urban centers, indirectly benefiting approximately 4.5 million people. [9]