Commerce Desk
*ISLAMABAD, October 31, 2026* — The World Bank Group’s Board of Executive Directors has approved *US$150 million* for the Sindh Property Revenues Enhancement Program (Sindh PREP), a major initiative to boost urban property tax collection and improve municipal services in Sindh.
The program targets a critical fiscal gap. Currently, Sindh’s local councils depend on provincial transfers for over 95% of their revenues. Karachi, despite being one of the world’s largest cities, collects only about *US$8.5 million* annually in urban immovable property tax (UIPT) — 82 to 350 times less than peer cities.
Sindh PREP aims to increase Karachi’s collection to *US$85 million annually* by raising compliance from 20% to 50%. This will be achieved through a modern UIPT management information system for billing, payment processing, and grievance redress, and rollout of integrated financial management systems across local councils.
A key feature is revenue reinvestment. About *70% of collected UIPT revenues* will be reinvested directly into municipal infrastructure and services in participating councils.
The program will benefit *Karachi’s 25 local councils* and directly impact *3.58 million people*. Funding is results-based: annual performance assessments by an Independent Verification Agent will determine awards for each council to finance climate-resilient infrastructure including drainage, sewerage, schools, fire stations, roads, and street lighting.
An additional *US$40 million Investment Project Financing* component will expand property surveys and UIPT administration to 20 local councils in other urban centers of Sindh, indirectly benefiting *4.5 million people*.
“Cities that can raise their own revenues can plan and invest for the long term,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.
