World Bank Approves US$150 Million to Support Municipal Development in Pakistan's Sindh Province

en.Wedoany.com Reported - On October 30, the World Bank's Board of Executive Directors approved US$150 million in financing for Pakistan's Sindh Province to implement the Sindh Property Tax Revenue Enhancement Program (Sindh PREP), strengthening urban immovable property tax collection and municipal service capacity. The program covers 25 local councils in Karachi, with approximately 3.58 million people expected to benefit directly. The funds will support the rehabilitation of drainage, sewage, roads, street lighting, and public service facilities.

The financing arrangement links municipal infrastructure investment to local government performance assessments. Participating local councils must undergo annual performance evaluations conducted by an independent verification agency, with the results determining the funding allocation each council receives. Supported works include climate-resilient drainage and sewage networks, schools, fire stations, roads, and street lighting rehabilitation.

On property tax reform, the program aims to increase Karachi's annual urban immovable property tax revenue from the current approximately US$8.5 million to US$85 million, and raise the tax compliance rate from 20% to 50%. Sindh will deploy an immovable property tax management information system covering tax billing, payment processing, and complaint and appeal handling, while promoting an integrated financial management information system in local councils. Under the program, approximately 70% of collected immovable property tax revenue will be directly invested in municipal infrastructure and public services in participating areas.

The US$150 million financing also includes a US$40 million investment project financing component to expand property survey and tax administration modernization to 20 local councils in other cities of Sindh Province, with an estimated indirect beneficiary population of approximately 4.5 million. Related work involves property information collection, tax management system development, and local government institutional capacity building.