KARACHI – Sindh Cabinet on Wednesday approved a series of reforms to the vehicle registration, taxation and motor insurance systems.
The move is aimed at improving transparency, reducing unnecessary costs and streamlining administrative procedures.
The decisions were taken at a cabinet meeting chaired by Sindh Chief Minister Syed Murad Ali Shah.
Provincial ministers, advisers, special assistants, Chief Secretary Asif Haider Shah, Principal Secretary Agha Wasif Abbas and senior officials from relevant departments attended the meeting.
The cabinet approved proposals submitted by the Excise Department for reforms to vehicle registration, taxation and insurance.
It also approved a policy for deregistering off-road, destroyed and permanently unusable vehicles.
Under the new policy, owners of destroyed, permanently unusable or system-excluded vehicles will be required to submit a written declaration by September 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.
Registration of off-road vehicles with outstanding dues will be suspended after 30 days. If the dues remain unpaid, their registration will be cancelled after 60 days.
The cabinet also approved relief in the holding period for licensed motor dealers. Vehicles acquired for resale may be kept without immediate registration for an initial period of six months. The holding period can be extended twice for three months each, but the total period cannot exceed 12 months.
During the holding period, dealers will be required to pay a reporting fee of only Rs100 per vehicle, while maintaining a valid motor dealer licence will remain mandatory.
The cabinet also approved reforms concerning Motor Third-Party Insurance (MTPI). Under the new arrangement, existing third-party insurance coverage will remain valid until its expiry even if ownership of the vehicle changes.
The measure is intended to eliminate the need for buyers to obtain a new insurance policy for the same vehicle following a change in ownership and reduce unnecessary costs for consumers.
The chief minister was briefed that the proposed insurance reforms have received in-principle support from the Securities and Exchange Commission of Pakistan (SECP), Central Depository Company (CDC) and Insurance Association of Pakistan.
Murad Ali Shah approved the reforms, stressing the importance of public convenience, transparency and a more efficient administrative system.
