The Sindh Cabinet has approved a set of reforms to improve the province’s vehicle registration, taxation and insurance system.
Chief Minister Syed Murad Ali Shah chaired the meeting, which was also attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, Principal Secretary Agha Wasif Abbas and senior officials from relevant departments.
The cabinet discussed more than 20 agenda items related to governance, public administration, infrastructure, education, healthcare, labour welfare and economic reforms.
The cabinet approved a new de-registration policy for off-road and permanently damaged vehicles. Owners of destroyed, permanently unusable or decommissioned vehicles will have to submit a written declaration by September 30, 2026.
Under the policy, vehicles whose owners have not paid motor vehicle tax since July 2010 and have also not submitted the required declaration will be classified as off-road.
Their registration will be suspended after 30 days if dues remain unpaid and cancelled after another 60 days of continued non-payment.
Murad Ali Shah said the reforms aim to make the vehicle registration system more transparent and efficient while improving administrative oversight.
The cabinet also approved relief for licensed motor dealers. Dealers buying vehicles for resale will be allowed to keep them without immediate registration for up to six months, with two further extensions of three months each. The total holding period, however, will not exceed 12 months.
During this period, dealers will have to pay a reporting fee of Rs100 per vehicle and keep a valid motor dealer licence.
The cabinet also approved reforms to the Motor Third Party Insurance system. Under the revised policy, existing third-party insurance will remain valid until expiry even after a vehicle changes ownership, removing the need for buyers to purchase a new policy immediately after transfer.
Officials said the reforms will reduce unnecessary costs for vehicle buyers and 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 chief minister said the measures will improve public convenience, strengthen transparency and streamline the province’s vehicle registration system.
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