Karachi (HRNW)- The Sindh Cabinet has approved major reforms related to the vehicle registration, tax, and insurance system during a meeting chaired by Sindh Chief Minister Syed Murad Ali Shah.
The provincial cabinet meeting was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Haider Shah, Principal Secretary Agha Wasif Abbas, and senior officials from relevant departments.
The meeting reviewed more than 20 agenda items covering governance, public administration, infrastructure, education, health, workers’ welfare, and economic reforms.
The cabinet approved proposals submitted by the Excise Department to reform the vehicle registration, taxation, and insurance system. It also approved a de-registration policy for off-road and permanently damaged vehicles, while the Chief Minister endorsed measures to make the vehicle registration system more transparent and efficient.
Under the new policy, owners of damaged, permanently unusable, or scrapped vehicles must submit a written declaration by September 30, 2026. Vehicles that have neither paid taxes nor submitted declarations since July 2010 will be classified as off-road.
According to the approved reforms, the registration of off-road vehicles with unpaid dues will be suspended after 30 days, while their registration will be cancelled after 60 days of continued non-payment.
The Sindh Cabinet also approved holding period relief for licensed motor dealers. Vehicles purchased for resale may now remain unregistered for an initial period of six months, with two extensions of three months each, provided the total holding period does not exceed 12 months.
During this period, dealers will only be required to pay a Rs100 reporting fee per vehicle, while maintaining a valid motor dealer’s licence will remain mandatory.
The cabinet also approved significant reforms to ensure the continuity of Motor Third Party Insurance (MTPI).
Under the new policy, an existing motor third-party insurance policy will remain valid until its expiry even if ownership of the vehicle changes, eliminating the need for buyers to purchase new insurance immediately after transfer.
The Chief Minister was informed that the insurance reforms would substantially reduce unnecessary costs for vehicle buyers. Officials also noted that the proposed reforms have received in-principle support from the SECP, CDC, and the Insurance Association of Pakistan.
Sindh Chief Minister Syed Murad Ali Shah approved the reforms, stating that they are aimed at improving public convenience, transparency, and administrative efficiency.
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