World Bank Approves $150 Million for Sindh Property Tax Reforms and Urban Infrastructure

The World Bank has approved $150 million in financing for the Sindh Property Revenues Enhancement Program (Sindh PREP), according to reports published on October 31, 2026. The programme aims to modernise property tax collection and improve municipal infrastructure across Sindh. The improvements listed below are programme objectives. They are not completed works. The reports we have seen do not announce any increase in property tax rates. The bank describes its Pakistan work on its country page.

The Targets

Karachi's annual property tax collection is targeted to rise from $8.5 million to $85 million, which would be ten times the present level (our own calculation). The programme aims to raise tax compliance from 20 percent to 50 percent. About 70 percent of the property tax revenue collected will be reinvested in municipal services. The reports do not say by when these targets are meant to be met.

Who Is Covered

In Karachi the programme covers 25 local councils, which have about 3.58 million residents. A $40 million component will support property surveys and tax administration in 20 additional local councils elsewhere in Sindh. The reports do not say how the remaining part of the $150 million is divided, so we do not state it. Provincial announcements are published by the Government of Sindh.

Digital Systems and Services

New digital systems will support property tax billing, payments and the handling of complaints. Planned improvements to services include drainage, sewerage, roads, streetlights, schools and fire stations. The reports do not say which of these will be built first or where.

What Is Not Known

The reports do not give the loan terms, the programme's length or the conditions attached. They also do not say how the survey will value properties or whether rates will change as a result. We make no prediction about tax bills.

Why This Matters for Property

Digital property records and stronger tax enforcement could increase compliance requirements for owners, and no immediate increase in rates has been announced. Better drainage, roads and sewerage could improve living conditions in participating areas, and improved municipal services could help businesses. Infrastructure work may create opportunities for contractors. The reports do not link the programme to property values.

What This Means for Owners, Tenants and Contractors

Owners in Karachi should expect property surveys and should keep their ownership and tax records up to date. Tenants should ask landlords how any change in tax is shared. The signals to watch are the start of the property surveys, the launch of the digital billing system, any change in valuation or rates and the first municipal works funded from the revenue.

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Sources

• World Bank, Pakistan
• Government of Sindh