KARACHI: The Sindh Cabinet, chaired by Chief Minister Syed Murad Ali Shah, has approved major structural reforms across various sectors, focusing primarily on revamping the province’s vehicle registration, taxation, and insurance systems. Under the newly approved policies, owners of destroyed, permanently unusable, or retired vehicles are mandated to submit a written declaration by September 30, 2026, with vehicles carrying unpaid taxes since July 2010 and lacking declarations being classified as off-road. To enforce compliance, off-road vehicles with unpaid dues will face registration suspension after 30 days and complete cancellation after 60 days of continuous non-payment.
Additionally, the cabinet has introduced significant relief for licensed motor dealers by permitting a six-month holding period for vehicles acquired for resale without immediate re-registration. This holding period is extendable twice by three months, capping the total duration at 12 months, subject to a nominal reporting fee of PKR 100 per vehicle and the maintenance of an active dealer license. Furthermore, major amendments have been made to Motor Third-Party Insurance (MTPI), ensuring that an existing insurance policy remains valid until its full expiration date even if vehicle ownership changes, thereby eliminating redundant insurance purchases. These consumer-friendly reforms have also secured the in-principle backing of the SECP, CDC, and the Insurance Association of Pakistan.
