World Bank approves 150 million dollar loan to boost property tax revenue in Sindh

The programme will focus on improving drainage, sewerage systems, roads and street lighting in Karachi. Rehabilitation of essential infrastructure, including schools, fire stations, roads and drainage networks, will also be undertaken. The World Bank said a modern digital management information system would be introduced to improve property tax collection in Karachi.

The system will digitise tax billing, payments and complaint resolution processes. The programme will also introduce property surveys and tax collection systems in 20 other urban local bodies across Sindh, indirectly benefiting around 4.5 million people.

It also includes a $40 million investment project for other urban centres in the province., more than 95 per cent of the revenue of Sindh's local governments currently comes from financial transfers by the provincial government.

Under the new programme, the release of funds to municipal authorities will be linked to their performance, which will be assessed annually by an independent verification agency. The World Bank said the initiative would also prioritise the development of climate-resilient municipal infrastructure.

It noted that Karachi had significant potential to increase property tax revenue, which could generate additional resources for improving the city's infrastructure and public services. The programme aims to enable urban local governments in Sindh to finance development projects and deliver municipal services through their own revenue sources, strengthening fiscal sustainability and local government autonomy across the province.