The World Bank Group’s Board of Executive Directors approved $150 million in financing to improve urban property tax collection and municipal service delivery in Sindh.
Bolormaa Amgaabazar stated that cities capable of raising their own revenues can plan and invest for the long term. Amgaabazar also noted that Sindh’s local councils currently rely on provincial transfers for more than 95 per cent of their revenues.
The programme intends to raise Karachi’s annual property tax collection to $85 million by increasing compliance from 20 to 50 per cent. The initiative would benefit 25 local councils in Karachi, covering a population of 3.58 million people.
Davison Muchadenyika said, "Karachi has significant untapped potential to generate revenues from its property base and use those resources to fund the infrastructure its residents and businesses need." Muchadenyika added that the programme would help Sindh strengthen fiscal sustainability, enabling cities to plan, invest and deliver services effectively through their own resources.
