World Bank Approves $150 Million Loan Package for Pakistan to Enhance Local Government Services and Financial Capacities in Sindh; Karachi Property Tax Target Set at $85 Million
ISLAMABAD : To strengthen financial capacities, upgrade local government services and enhance the capability of local governments in improving municipal governance, the World Bank has officially approved a loan to Pakistan for the amount of $150 million for the province of Sindh.
In the World Bank project outlines, the funding is intended to bring about a change in urban management. One of the main goals of the programme is to increase the annual collection of property tax in Karachi from $8.5 million to $85 million. In addition, the recovery rate for property taxes throughout the metropolis will be rising from 20 percent to 50 percent.
The World Bank Funding and Sindh Municipal Program can highlight the following:
Property tax revenue: The project will enable the local government and municipal institutions in Sindh to allocate 70 per cent of the property tax revenue for local development and infrastructure projects.
Direct Beneficiaries in Karachi: The comprehensive urban program is expected to directly help the lives of around 3.58 million residents in the 25 Municipal Bodies of Karachi.
Financial Decentralization: The project aims to strengthen the capacity of local administration to generate revenue, so they can be more self-sustaining in providing essential civic services.