The Sindh Cabinet has approved a series of reforms to the province’s vehicle registration, taxation, and insurance system, including the cancellation of registrations for vehicles whose owners fail to pay taxes.
The decisions were taken during a meeting chaired by Chief Minister Murad Ali Shah. Under the new policy, owners of damaged, scrap, or unserviceable vehicles must apply for deregistration by September 30, 2026.
Vehicles that have not paid taxes or submitted any declaration since July 2010 will be classified as off road. Their registrations will be suspended after 30 days if outstanding dues remain unpaid and permanently canceled after 60 days of continued nonpayment.
The cabinet also approved a holding period facility for licensed motor dealers, allowing them to keep vehicles purchased for resale without registration for an initial six months. Dealers may obtain two additional three month extensions, with the total holding period capped at 12 months. During this period, dealers must pay a reporting fee of Rs. 100 per vehicle and maintain a valid dealership license.
In addition, the cabinet approved changes to third party motor insurance rules. Under the revised policy, insurance coverage will remain valid until its expiry date even after ownership of a vehicle is transferred, eliminating the need for buyers to purchase duplicate insurance.
The reforms were supported by the Securities and Exchange Commission of Pakistan, the Central Depository Company, and the insurance industry, and are aimed at improving transparency, administrative efficiency, and public convenience.
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