KARACHI – The Sindh Cabinet has approved a series of reforms aimed at improving the province’s vehicle registration, taxation, and insurance system. The new measures are intended to increase transparency, simplify procedures, and strengthen administrative oversight.
The meeting was chaired by Chief Minister Syed Murad Ali Shah. Provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, Principal Secretary Agha Wasif Abbas, and senior officials also attended the session.
During the meeting, the cabinet reviewed more than 20 agenda items. These covered governance, public administration, infrastructure, education, healthcare, labour welfare, and economic reforms across Sindh.
One of the key decisions was the approval of a new de-registration policy for off-road and permanently damaged vehicles. Under the policy, owners of destroyed or permanently unusable vehicles must submit a written declaration by September 30, 2026.
Officials said vehicles with unpaid motor vehicle tax since July 2010 will also be affected if owners fail to submit the required declaration. These vehicles will be classified as off-road under the revised policy.
According to the approved framework, vehicle registrations will be suspended after 30 days if outstanding taxes remain unpaid. If the dues are still not cleared after another 60 days, the registration will be cancelled.
Chief Minister Murad Ali Shah said the reforms are designed to make the vehicle registration process more efficient. He added that the changes would improve record management and strengthen government oversight.
The cabinet also introduced relief for licensed motor dealers. Dealers purchasing vehicles for resale will no longer be required to register them immediately. Instead, they may keep such vehicles without registration for up to six months.
The policy also allows two additional extensions of three months each. However, the total holding period cannot exceed 12 months. During this period, dealers must maintain a valid motor dealer licence and pay a reporting fee of Rs100 for each vehicle.
Another important decision involved changes to the Motor Third Party Insurance system. Under the revised policy, existing third-party insurance will remain valid even after a vehicle changes ownership until the policy expires.
This change means buyers will not need to purchase a new insurance policy immediately after ownership is transferred. Officials believe the measure will reduce unnecessary costs and make the transfer process easier for vehicle owners.
The proposed insurance reforms have already received in-principle support from the Securities and Exchange Commission of Pakistan, the Central Depository Company, and the Insurance Association of Pakistan.
The Sindh government said these reforms will improve public convenience while making the vehicle registration system more transparent and reliable. Officials believe the changes will also enhance tax compliance and simplify administrative procedures for motorists and dealers alike.
In other news read more about Sindh To Launch Facial Recognition Teachers’ Attendance From Aug 17
The cabinet expressed confidence that the new policies will modernize vehicle management across the province and provide long-term benefits for both the government and the public.
