The Sindh Cabinet has approved a series of reforms aimed at improving the province’s vehicle registration, taxation and insurance system during a meeting chaired by Chief Minister Syed Murad Ali Shah, it was reported on Wednesday.
The meeting was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, Principal Secretary Agha Wasif Abbas and senior officials from relevant departments. More than 20 agenda items relating to governance, public administration, infrastructure, education, healthcare, labour welfare and economic reforms were discussed.
The cabinet approved a new de-registration policy for off-road and permanently damaged vehicles. Owners of destroyed, permanently unusable or decommissioned vehicles will be required to submit a written declaration by 30 September 2026.
Under the new policy, vehicles whose owners have neither paid motor vehicle tax since July 2010 nor submitted the required declaration will be classified as off-road. The registration of such vehicles will be suspended after 30 days if outstanding dues remain unpaid and cancelled after a further 60 days of continued non-payment.
Chief Minister Murad Ali Shah said the reforms were intended to make the vehicle registration system more transparent and efficient while improving administrative oversight.
The cabinet also approved a holding period relief package for licensed motor dealers. Dealers purchasing vehicles for resale will be allowed to retain them without immediate registration for an initial period of six months, with two further extensions of three months each. However, the total holding period may not exceed 12 months. During this period, dealers will be required to pay a reporting fee of Rs100 per vehicle and maintain a valid motor dealer’s licence.
In addition, the cabinet approved significant reforms to the Motor Third Party Insurance (MTPI) system. Under the revised policy, an existing third-party insurance policy will remain valid until its expiry even if ownership of the vehicle changes, removing the need for buyers to purchase a new policy immediately after a transfer of ownership.
Officials told the cabinet that the reforms would reduce unnecessary costs for vehicle buyers and had received in-principle support from the Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC) and the Insurance Association of Pakistan.
The chief minister said the measures would enhance public convenience, strengthen transparency and improve the overall administration of the province’s vehicle registration system.
