KARACHI: Sindh Chief Minister Syed Murad Ali Shah presided over the first meeting of the board of ‘Sindh Fund Management House (SFMH), formally establishing it as the province’s central platform for managing designated government funds, according to a handout issued on Friday.

“This House will ensure that every rupee of public money is invested transparently, professionally, and for the long-term benefit of the people of Sindh,” the CM said.

The meeting was attended by Chief Secretary Asif Hyder Shah, MPAs Shiraz Shaukat Rajpar and Sadia Javed, Chairman Planning & Development (P&D) Najam Shah, Finance Secretary Fayaz Jatoi and other senior officials.

The board reviewed the ‘Sindh Fund Management House Act, 2021, which legally empowers the new entity to act as the primary institutional platform for designated government funds.

Stresses transparency and high returns to workers on provident, pension and welfare funds

The board’s mandate now includes overseeing SFMH operations and approving its annual operational budget; reviewing and recommending rules and investment policies for final approval by Sindh government, and ensuring all activities comply with the SFMH Act and remain within the approved risk parameters.

Currently, the SFMH manages 16 designated funds, including the Sindh Province Pension Fund (established in 2002), the Sindh Social Relief Fund (established in 2006) and the Sindh General Provident Investment Fund (established in 2007).

Mr Shah directed that governance and risk controls must be strictly enforced. “We are custodians of pensioners’ savings, social relief funds and public servants’ contributions. I will not allow speculative or reckless behaviour with these funds,” he said, directing the board to prioritise safety, transparency and long-term returns.

Investment Policy 2026

A major outcome of the meeting was the approval in principle of the Draft SFMH Investment Policy, 2026, which replaces the 2021 guidelines with stronger safeguards and clearer definitions of ‘permissible’ and ‘prohibited’ investments.

The 2026 policy introduces specific limits to protect public capital, including

• Equities: Capped at 15 per cent of total fund size, with no more than 3 per cent exposure to any single scrip

• Mutual Funds: Limited to schemes with a minimum rating of ‘AM2++’ and a fund size of at least Rs5 billion.

• Prohibitions: A complete ban on high-risk activities such as currency speculation, commodities trading and unsecured derivatives.

CM Shah said the new policy is aimed at professionalising public fund management. “Our goal is not short-term gains but long-term fiscal stability. These rules will protect public money and give us predictable, sustainable returns,” he observed, directing the finance department and SFMH to ensure strict implementation.

Investment committee

To ensure timely and professional execution of investment decisions, the CM approved the proposed composition of the investment committee, to be chaired by chief secretary.

The committee will evaluate and recommend investment proposals within the approved policy and risk limits. Manage and periodically review the panel of approved brokers and asset managers, and monitor portfolio performance against approved benchmarks and report regularly to the board.

The board also decided to delegate important operational powers to the investment committee, including the authority to execute bank guarantees and standby letters of credit for government-initiated projects within the defined limits.

The chief minister directed that the committee must meet regularly and document all decisions. “Decisions must be data-driven, and every investment choice should be traceable and auditable,” he said, emphasising that professional fund management practices must match best global standards.

Returns on social relief funds

The board discussed improving returns on the Sindh Social Relief Fund (SSRF). The fund is currently earning 8.5 per cent in a daily product account.

The board reviewed a proposal to shift these balances into short-term Treasury Bills, which are presently offering yields between 10.4pc and 10.5pc.

Approving the direction in principle, the CM said: “Social relief funds must not lie idle in low-yield accounts. Every additional rupee we earn here can support vulnerable families in Sindh. However, we will move carefully, in phases, and strictly within our risk framework”.

CM Shah also instructed the finance department and SFMH to work out a phased transition plan for Treasury Bills, ensuring liquidity needs for relief disbursements are fully protected.

Long-term fiscal sustainability

The chief minister said that the reforms approved in the first SFMH board meeting are part of a broader strategy to strengthen provincial finances. “By professionalising how we manage pension, provident and social funds, we are building a strong financial cushion for Sindh. This will help us meet future obligations without putting additional burden on our people,” he stressed, and directed the board to submit quarterly progress reports with his office.

Published in Dawn, March 14th, 2026