The Sindh Cabinet has approved a series of reforms to improve the province’s vehicle registration, taxation, and insurance system. The new measures are designed to increase transparency, improve efficiency, and make vehicle-related services easier for the public.
The meeting was chaired by Chief Minister Syed Murad Ali Shah. Provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, Principal Secretary Agha Wasif Abbas, and senior government officials also attended. During the session, the cabinet reviewed more than 20 agenda items covering governance, public administration, education, healthcare, infrastructure, labour welfare, and economic reforms.
One of the key decisions was the approval of a new de-registration policy for vehicles that are permanently damaged or no longer in use. Under the new policy, owners of destroyed, decommissioned, or permanently unusable vehicles must submit a written declaration by September 30, 2026.
The government also introduced new rules for vehicles that have remained untaxed for several years. According to the policy, vehicles whose owners have not paid motor vehicle tax since July 2010 and have also failed to submit the required declaration will be treated as off-road vehicles.
Their registration will be suspended if outstanding dues remain unpaid for 30 days. If payments are still not made after another 60 days, the registration will be cancelled. Officials believe this step will help maintain accurate vehicle records across Sindh and improve tax collection.
Chief Minister Murad Ali Shah said these reforms are intended to modernize the vehicle registration system. He added that the changes will strengthen administrative oversight and make the overall process more transparent.
The cabinet also approved relief measures for licensed motor dealers. Dealers who purchase vehicles for resale will no longer need to register them immediately. Instead, they will be allowed to keep the vehicles for up to six months before registration.
If more time is required, dealers can apply for two additional extensions of three months each. However, the total holding period cannot exceed 12 months. During this period, dealers must maintain a valid motor dealer licence and pay a reporting fee of Rs100 for each vehicle.
Another major decision focused on motor third-party insurance. Under the revised policy, an existing third-party insurance policy will remain valid until its expiry date even after a vehicle is transferred to a new owner. Buyers will no longer be required to purchase a new insurance policy immediately after ownership changes.
Officials said this change will reduce unnecessary expenses for vehicle buyers and simplify the transfer process. The proposal has already received in-principle support from the Securities and Exchange Commission of Pakistan, the Central Depository Company, and the Insurance Association of Pakistan.
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The Sindh government believes these reforms will improve public convenience and strengthen confidence in the vehicle registration system. By updating registration rules, simplifying insurance procedures, and introducing better monitoring, the province aims to create a more efficient and transparent system for vehicle owners and dealers alike.
