Karachi: The World Bank (WB) is preparing a USD 150 million programme to modernise Sindh’s urban property tax system, aiming to boost revenue collection, strengthen municipal finances and improve service delivery across 45 local councils.
According to a World Bank project document, the proposed Sindh Property Revenues Enhancement Program is scheduled for technical review on August 31, 2026, and is expected to be presented for approval later this year.
The programme will be financed through the International Bank for Reconstruction and Development (IBRD) using a Program-for-Results (PforR) instrument, which links funding to measurable improvements in tax collection and expenditure management.
The initiative seeks to improve Urban Immovable Property Tax (UIPT) collection and expenditure management by introducing a digitised property tax management system, strengthening tax administration and compliance, and modernising financial management systems in local councils.
The programme will also support priority urban infrastructure projects, institutional capacity building and reforms to property tax and land administration systems in Karachi and other major cities across Sindh.
The World Bank noted that Pakistan’s property tax remains significantly underutilised, with revenues amounting to only 0.13% of GDP, well below the levels achieved by comparable low- and middle-income countries. It added that the reforms are intended to help local governments generate more sustainable revenues for public services and infrastructure development.
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