Sindh Proposes Settlement Plan for Rs342 Billion Cess Dispute

The Sindh Cabinet has endorsed a settlement framework aimed at resolving a protracted legal dispute over the Infrastructure Cess, potentially unlocking approximately Rs342 billion currently held in bank guarantees across 635 court cases.

According to a statement issued from the Sindh Chief Minister House today, under the proposal, which has been referred to the provincial assembly, petitioners would settle their admitted liability by paying 15 per cent in three phases through 2026 and 2027, with the remainder to be paid in 12 equal annual instalments. The framework also suggests a reduced tax rate of 0.8 per cent for compliant non-petitioners and those settling their full liability before 30 March 2026.

In another major decision, the provincial body sanctioned a land-use modification for the Karachi Bus Rapid Transit (BRT) Red Line project. The plan involves utilising 18 acres of the former Alladin Park for an at-grade bus depot, a change expected to save Rs4 billion and shorten the construction timeline compared to a previously proposed underground facility.

To facilitate the Pakistani diaspora, the cabinet cleared the Sindh Registration (Amendment) Bill, 2025, which will introduce digital property registration. This will exempt overseas Pakistanis from appearing physically at registration offices, with verification handled through a NADRA-integrated e-Registration system using biometric data at Pakistani missions abroad.

The meeting also authorised the designation of existing Consumer Courts in every district as Traffic Courts. This measure, taken in consultation with the Sindh High Court, is intended to ensure the speedy trial of traffic-related offences and e-tickets under the Provincial Motor Vehicles (Amendment) Act, 2025, without needing new judicial infrastructure.

To address environmental concerns, ministers declared 163,902 hectares of intertidal land in the Sujawal district as ‘Protected Forests.’ The expansion aims to bolster the region’s natural defence against cyclones and increase its “blue carbon” storage capacity.

A transition of the provincial e-Stamping system from the Punjab Information Technology Board to the Sindh Information Technology Company (SITC) was also sanctioned. A five-year service agreement with SITC has been proposed, which includes future system upgrades such as a mobile application and paperless stamp duty.

In regional developments, the establishment of a fruit and vegetable market in Larkana at an estimated cost of Rs4.8 billion was approved. The project will feature a secure boundary wall, a comprehensive drainage system, and modern facilities for traders, including an administrative block and banking services.

The cabinet further approved changes to police jurisdictions, upgrading the police post at Girhor Sharif to a full-fledged police station while downgrading the Malak Police Station to a police post under the control of PS Korai.

Finally, the provincial body ratified the ex-cadre appointments of two senior District and Sessions Judges. Mr Naushad Ali Mughal was posted as the presiding officer of the Anti-Encroachment Tribunal in Hyderabad, and Mr Rehmatullah Mooro was appointed a judicial member of the Sindh Revenue Board’s Appellate Tribunal.