Under the programme, Karachi aims to increase its property tax payment rate from 20 per cent to 50 per cent and raise annual property tax revenue from $8.5 million to $85 million.
The initiative will benefit 25 local government bodies in Karachi, with around 3.58 million residents expected to gain from improved municipal services. About 70 per cent of the revenue generated through property taxes will be allocated to municipal infrastructure and urban services.
Planned improvements include drainage, sewerage, roads and street lighting. A modern digital management information system will also be introduced to improve property tax collection, billing, payment processing and the handling of public complaints.
The programme will extend property surveys and tax collection systems to another 20 urban local government bodies across Sindh, potentially benefiting around 4.5 million people in other cities. It also includes a $40 million investment initiative for additional urban centres in the province.
According to the World Bank, more than 95 per cent of the revenue of Sindh's local governments currently comes from provincial government transfers, limiting their financial autonomy.
Under the new programme, funding for local bodies will be linked to their performance, which will be assessed annually by an independent verification agency.
The initiative will also support the rehabilitation of schools, fire stations, roads and drainage systems, with particular emphasis on developing municipal infrastructure that can withstand the effects of climate change.
The World Bank said Karachi had considerable potential to increase its property tax revenue. The programme aims to help cities generate their own resources and use them to finance development projects and improve public services.
The bank expects the initiative to strengthen fiscal sustainability, enhance the financial autonomy of local governments and improve the quality of urban services across Sindh.