The World Bank (WB) is preparing a USD 150 million programme to modernise Sindh’s urban property tax system, aiming to improve revenue collection, strengthen municipal finances, and enhance public service delivery across 45 local councils in the province.
According to a World Bank project document, the proposed Sindh Property Revenues Enhancement Program is scheduled for a technical review on August 31, 2026, with final approval expected later this year. The initiative is designed to support long-term reforms that will improve the efficiency, transparency, and sustainability of urban property taxation.
The programme will be financed through the International Bank for Reconstruction and Development (IBRD) using the Program-for-Results (PforR) financing model. Under this approach, funding is linked to measurable improvements in property tax collection, financial management, and institutional performance, encouraging better governance and accountability.
A key component of the initiative is the introduction of a digitised property tax management system to modernise the collection of Urban Immovable Property Tax (UIPT). The programme will also strengthen tax administration, improve taxpayer compliance, and upgrade financial management systems within local councils to make property tax services more efficient and transparent.
In addition to tax reforms, the programme will support priority urban infrastructure projects, strengthen institutional capacity, and introduce improvements to property tax and land administration systems in Karachi and other major cities across Sindh. These measures are expected to help local governments manage urban growth more effectively while improving public services.
The World Bank noted that Pakistan’s property tax remains significantly underutilised, with collections accounting for only 0.13% of the country’s GDP, considerably lower than many comparable low- and middle-income economies. Through these reforms, the programme aims to increase sustainable local revenues, enabling municipalities to invest more in infrastructure, urban development, and essential public services.
If approved, the initiative could mark a significant step toward creating a more transparent, technology-driven, and efficient property tax system in Sindh, benefiting local governments, property owners, and investors while supporting the province’s long-term urban development goals.
