Sindh PREP aims to increase Karachi’s annual property tax revenue from $8.5 million to $85 million, with 70% of collections reinvested in municipal infrastructure and public services.

Islamabad, October 31, 2026: The World Bank’s Board of Executive Directors has approved $150 million in financing for a programme to improve property tax collection and municipal service delivery in Sindh, particularly Karachi.

The Sindh Property Revenues Enhancement Programme (Sindh PREP) will help the provincial government strengthen urban immovable property tax (UIPT) collection and improve the service delivery capacity of selected local councils, according to a World Bank announcement issued on Saturday.

World Bank Country Director for Pakistan Bolormaa Amgaabazar said Sindh’s local councils currently depend on provincial transfers for more than 95% of their revenues.

She said the programme would help cities generate their own income and invest in essential infrastructure and public services.

Despite its size, Karachi collects around $8.5 million annually in property taxes. The programme aims to increase annual collections to $85 million by improving tax compliance from 20% to 50%.

The initiative will introduce a property tax management information system covering billing, payments and grievance redressal, alongside integrated financial management systems for local councils.

Around 70% of property tax collections will be reinvested in municipal infrastructure and services across Karachi’s 25 local councils, benefiting approximately 3.58 million people.

Planned investments include drainage, sewerage, schools, fire stations, roads and street lighting, with funding linked to annual performance assessments.

The programme also includes a $40 million investment financing component to extend property surveys and tax administration improvements to 20 local councils in other urban centres of Sindh, indirectly benefiting around 4.5 million people.