• Approves amendments to motor vehicle law to exempt motorcycles from mandatory insurance
• Orders establishment of facilitation desks to guide accident victims
• TCF to manage 21 municipal schools in Karachi

KARACHI: The Sindh cabinet reviewed the implementation of mandatory Motor Third-Party Insurance in the province and decided to enforce the initiative from the next financial year (FY).

The initiative aims to ensure compensation for third parties affected by road accidents and provide insurance coverage to drivers of private and commercial vehicles across Sindh.

The meeting, chaired by Sindh Chief Minister Syed Murad Ali Shah, was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah and concerned secretaries.

Amendments to the Motor Vehicles Ordinance, 1965, were proposed to be placed before the Sindh Assembly for approval. Additionally, amendments to Sections 19 and 20 of the Motor Vehicles Act, 1939, have been proposed, primarily to exempt two-wheelers (motorcycles) from mandatory third-party insurance.

On the instructions of the chief minister, the Excise department held consultations with the Insurance Association of Pakistan (IAP) to simplify the claim payment process.

The chief minister directed the Excise department to ensure that compensation is payable in cases involving duly insured vehicles. He also directed the department to facilitate the public, ordering the establishment of insurance facilitation desks, with standardised premium rates across the industry.

A 24/7 helpline and assistance by insurance surveyors will also be provided to guide victims and legal heirs.

The chief minister, in consultation with the cabinet, decided that Motor Third-Party Insurance will be enforced from the next FY.

He also approved proposals to reduce stamp duty from Rs500 to Rs50 and sales tax on third-party motor insurance from 15 per cent to 5pc.

He further approved exemptions for motorcycles from mandatory insurance proposed through amendments to the Motor Vehicles law.

Once approved by the Sindh Assembly, these amendments will provide the legal framework for enforcing Motor Third-Party Insurance in the province from the next FY.

TCF partnership for management schools

During the meeting, the cabinet approved Concession and Licence Agreements between the town municipal corporations (TMCs) of Malir, Chanesar and Lyari and The Citizens Foundation (TCF) for the management of selected municipal schools across Karachi.

The initiative, aligned with the Sindh Right of Children to Free and Compulsory Education Act, 2013, will ensure free quality education, including tuition, uniforms and learning materials, for students in 21 schools.

Under the agreements, TCF will handle construction, renovation and management of the schools for a 25-year term, extendable by mutual consent, while TMCs will provide land and buildings free of cost.

Cabinet’s approval allows immediate renovation and operationalisation of the selected schools, benefiting thousands of students in Karachi.

Revised role of IPC department

The cabinet, after detailed discussion, approved a proposal to update the Sindh Government Rules of Business, 1986, redefining the mandate of the Inter-Provincial Coordination (IPC) Department to remove duplication and strengthen inter-provincial coordination.

Under the revised framework, the IPC Department will serve as the administrative department for the Council of Common Interests (CCI), Inter-Provincial Coordination Committee (IPCC) and other inter-provincial forums, while also functioning as a policy think tank to provide research-based advice and strategic support to the chief minister and chief secretary.

The cabinet was informed that other departments, including Agriculture, Industries, Investment, Mines and Minerals, Culture, IT and STEVTA, were previously performing several IPC functions. The updated rules aim to streamline responsibilities and improve coordination with the federal government and other provinces.

The Law Department has endorsed the proposal, while the Services, General Administration and Coordination Department recommended assigning CCI matters exclusively to IPC and deleting the existing overlapping entry.

The Cabinet approved the changes, paving the way for more effective policy coordination and representation of Sindh at inter-provincial and federal forums.

Package for industrial areas

The cabinet also approved Rs2.9 billion for the development of industrial areas across the province.

Speaking on the occasion, CM Shah said that roads and drainage systems in all industrial areas of the city will be repaired and upgraded.

He reaffirmed the Sindh government’s commitment to industrial development and announced that separate packages will be announced for industrial areas and estates in other cities of the province. The Industries Department is actively working on the development of these estates, and once the plans are finalised, the packages will be formally announced, he added.

Land revenue law

The cabinet approved amendments in the Sindh Land Revenue (Amendment) Bill to enable digitalisation of land records and introduce an e-Transfer of Land Title System across the province, and referred the bill to the Sindh Assembly.

The cabinet was informed that the project, approved earlier on July 8, 2025, aims at rewriting and authenticating Records of Rights, digitising land data through a blockchain-based database, and developing an e-transfer system for land titles.

The pilot phase is being implemented in Dehs Palijani and Matiari of district Matiari, and Deh Bagerji of district Sukkur.

To provide legal cover, amendments have been proposed in the Sindh Land Revenue Act, 1967, including the addition of ICT-related definitions, expansion of the definition of Record of Rights to include digital records, and insertion of a new Section 42-A to empower the government to frame rules for digitalisation and e-transfer of titles.

The cabinet appreciated the efforts of the Board of Revenue and Sukkur IBA. The implementation of the law, after passage of the bill by the assembly, will be a milestone.

The chief minister termed the law to be in the supreme interest of the public, transparency and accuracy.

Published in Dawn, December 31st, 2025