The Sindh Cabinet on Wednesday approved several reforms to the vehicle registration, taxation and motor insurance systems to improve transparency, reduce unnecessary costs and streamline administrative procedures.
The decisions were made during a cabinet meeting chaired by Sindh Chief Minister Syed Murad Ali Shah. The 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 cabinet approved proposals submitted by the Excise Department to reform the vehicle registration, taxation and insurance systems.
It also approved a new policy for deregistering off-road, destroyed and permanently unusable vehicles.
Under the policy, owners of destroyed, permanently unusable or system-excluded vehicles must submit a written declaration by Sept. 30, 2026.
Vehicles for which taxes have not been paid since July 2010 and whose owners fail to submit the required declaration will be classified as off-road vehicles.
The registration of off-road vehicles with outstanding dues will be suspended after 30 days. If the dues remain unpaid, the registration will be canceled after 60 days.
The cabinet also approved relief for licensed motor dealers by extending the holding period for vehicles purchased for resale. Such vehicles may be kept without immediate registration for an initial period of six months. The holding period may be extended twice for three months each, but the total period may not exceed 12 months.
During the holding period, dealers will pay a reporting fee of Rs100 per vehicle. Maintaining a valid motor dealer license will remain mandatory.
The cabinet also approved reforms related to Motor Third-Party Insurance, or MTPI. Under the new system, an existing third-party insurance policy will remain valid until it expires, even if ownership of the vehicle changes.
The change is intended to eliminate the need for buyers to purchase a new insurance policy after buying a vehicle and reduce unnecessary costs for consumers.
Officials informed the chief minister that the proposed insurance reforms have received in-principle support from the Securities and Exchange Commission of Pakistan, the Central Depository Company and the Insurance Association of Pakistan.
Murad Ali Shah approved the reforms and emphasized the importance of improving public convenience, ensuring transparency and creating a more efficient administrative system.
