World Bank approves $150m for Sindh’s municipal services

KARACHI: The World Bank has approved $150 million in financing for a programme aimed at improving municipal services, strengthening property tax collection and enhancing local government systems across Sindh.

The programme seeks to increase revenue generation and improve the delivery of essential public services in Karachi and other urban centres of the province.

According to the World Bank, the initiative has set a target of increasing Karachi’s annual property tax collection from $8.5 million to $85 million. It also aims to raise the property tax payment rate in the city from 20 per cent to 50 per cent.

A total of 25 municipal councils in Karachi will benefit from the programme, which is expected to directly improve services for approximately 3.58 million residents.

The World Bank noted that more than 95 per cent of the revenue of Sindh’s municipal councils currently depends on transfers from the provincial government, limiting their financial independence and capacity to provide essential services.

Under the programme, 70 per cent of the additional property tax revenue will be allocated to improving municipal facilities and services.

The initiative will cover several essential sectors, including drainage systems, sewerage networks, school facilities and road rehabilitation. Improvements to fire stations and street lighting are also included in the programme.

To strengthen tax collection in Karachi, a modern digital system will be introduced to improve property tax administration, expand the tax base and increase payment compliance.

The programme will also extend to 20 municipal councils in other cities across Sindh, where property surveys will be conducted to identify properties and improve tax collection.

According to the World Bank, around 4.5 million people in other urban areas of the province are expected to benefit indirectly from the initiative.

An allocation of $40 million has been earmarked for developing and strengthening property tax systems in these additional urban centres.

The programme is intended to help municipal authorities generate more local revenue, reduce their dependence on provincial transfers and improve the quality of public services for millions of residents across Sindh.