
Sindh Cabinet Approves $150 Million Property Tax Reform Package, Targets Rs 25.5 Billion Annual Collection in Karachi
▫️ World Bank supported Sindh Property Revenue Enhancement Programme aims to digitise property records, modernise tax administration
The Sindh cabinet has approved the negotiated financing and implementation package for the $150 million Sindh Property Revenue Enhancement Programme (Sindh-PREP), advancing a major initiative to modernise urban property taxation and strengthen the financial management of local governments.
The programme seeks to improve the accuracy of urban property records, strengthen tax administration, increase revenue collection and develop more effective financial management systems for municipal institutions across the province.
The decision was taken during a provincial cabinet meeting chaired by Sindh Chief Minister Syed Murad Ali Shah on October 20, 2026.
According to the approved framework, one of the programme's principal objectives is to increase annual Urban Immovable Property Tax (UIPT) collection across Karachi's 25 Town Municipal Corporations from the current Rs 2.3 billion to a target of Rs 25.5 billion during implementation.
The proposed increase represents an additional Rs 23.2 billion in annual property tax revenue, equivalent to approximately 11 times the existing collection level.
However, the target is dependent on the successful implementation of administrative reforms, accurate property assessments, broader tax coverage and improved collection efficiency.
Under the proposed financing structure, the World Bank will provide $150 million, comprising $110 million through a Programme-for-Results (PforR) component and $40 million through Investment Project Financing (IPF).
The Programme-for-Results mechanism links financing to the achievement and verification of specified performance targets, while the investment financing component is intended to support technical systems, institutional development and reform implementation.
The Sindh government will also provide a counterpart contribution equivalent to 20 percent of the Programme-for-Results component.
The cabinet approved the negotiated package covering financing and implementation arrangements, the programme's results framework, performance verification procedures and environmental and social commitments.
Beyond Karachi, the initiative is intended to strengthen property tax administration in other urban areas of Sindh.
The programme includes institutional capacity-building measures for 45 selected local councils and the introduction of an Integrated Financial Management Information System.


























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