Sindh Cabinet approves employee relief package, extends health Insurance

Sindh Chief Minister Syed Murad Ali Shah, presiding over a meeting of the provincial cabinet, approved a wide-ranging package of policy, governance and development initiatives, including relief measures for government employees, extension of the provincial health insurance scheme, establishment of four strategic task forces, reforms in the education sector, key health and infrastructure decisions, and measures to strengthen food security across the province.

The meeting, attended by provincial ministers, advisers, special assistants, the Chief Secretary and senior officials, considered 22 agenda items covering governance reforms, public service delivery, infrastructure development, education, health, investment promotion and economic management.

Senior Minister for Information and Transport Sharjeel Inam Memon briefed the media on the decisions taken in the cabinet.

At the outset, the chief minister directed the Food Department to further intensify operations against hoarders and profiteers, retrieve concealed wheat stocks, closely monitor market conditions and take all necessary steps to stabilise atta prices and protect consumers from artificial price hikes, Sharjeel Memon disclosed.

Wheat stocks and operation against hoarders

The Cabinet reviewed the province’s wheat stock position, market trends, flour prices and a proposal by the Food Department to procure 220,665 metric tonnes of wheat from PASSCO to strengthen strategic reserves and stabilise market prices.

The cabinet was informed that Sindh produced 4.7 million metric tonnes of wheat during 2025-26 and, along with carry-forward stocks, had a total availability of 4.84 million metric tonnes against an estimated annual consumption requirement of 6.53 million metric tonnes, indicating a projected deficit of 1.69 million metric tonnes. It was observed that the province could face a wheat shortfall of approximately 2.11 million metric tonnes by March 2027 if current consumption patterns continue.

The Food Department briefed the cabinet on ongoing anti-hoarding operations launched under the Sindh Food Grains (Licensing Control) Order, 1957. As a result of the crackdown, 225,135 metric tonnes of illegally hoarded wheat have been seized, while total wheat stocks available with the department, including carry-forward and procured stocks, stand at 446,947 metric tonnes.

The cabinet was also informed that PASSCO has offered to sell 220,665 metric tonnes of Crop-2024 wheat stored in various districts of Sindh at a rate of Rs4,150 per 40 kilograms. The cabinet emphasised the need to maintain adequate wheat reserves, ensure market stability and protect consumers from unwarranted increases in flour prices while safeguarding public resources through prudent procurement decisions.

The CM decided that the provincial government would procure 5 lakh tonnes of imported wheat if the federal government imports the grain, and directed the food department to further intensify operations against hoarders to retrieve hidden wheat stocks and control atta prices in the market.

Increase in Differential and Conveyance Allowances

The Cabinet approved a package of relief measures for government employees by enhancing differential and conveyance allowances with effect from July 1, 2026. The cabinet approved the grant of Differential Allowance 2026 at the rate of 2 per cent on the frozen Basic Pay Scale-2022 (as on June 30, 2026) for employees in BPS-01 to BPS-16. The allowance is intended to address the disparity that emerged after the Sindh Government granted a higher salary increase to employees in these grades in 2025 compared to the corresponding increase announced by the Federal Government.

The cabinet also approved a 50 per cent increase in Conveyance Allowance for all provincial government employees. Under the revised rates, the allowance for employees in BPS 1-4 has been increased from Rs1,785 to Rs2,678, for BPS 5-10 from Rs1,932 to Rs2,898, for BPS 11-15 from Rs2,856 to Rs4,284, and for BPS 16 and above from Rs5,000 to Rs7,500 per month.

In a further measure aimed at supporting differently abled employees, the Cabinet approved an increase in the Special Conveyance Allowance from Rs6,000 to Rs10,000 per month, in addition to the normal conveyance allowance already admissible to them.

The approved measures will take effect from July 1, 2026, under the existing terms and conditions. However, the Cabinet did not approve the proposal relating to the grant of an Executive Allowance; Minister Information briefed the media.

Four Strategic Task Forces Approved

The cabinet also approved the constitution of four sector-specific task forces on Economy, Finance and Industry, Water Sector, Climate Change and Sindh AI, Digital Transformation and Virtual Assets.

The task forces will comprise technical experts, academicians and industry representatives to advise the government on long-term policy, legal and institutional reforms.

A three-member committee headed by the Chief Minister, along with the Chief Secretary and the concerned minister/adviser, will finalise the composition of each task force.

The task forces have been assigned comprehensive terms of reference, including strengthening economic growth and investment, accelerating digital transformation and AI adoption, advancing climate resilience and climate finance, and safeguarding Sindh’s water rights in light of emerging challenges related to the Indus Waters Treaty and downstream water availability.

The cabinet noted that the task forces would provide expert guidance and strategic recommendations to support evidence-based policymaking and sustainable development across the province.

Crackdown on Gutka, Mawa and Manpuri

The Cabinet approved the Sindh Control of Narcotic Substances (Amendment) Bill, 2026, aimed at strengthening legal action against the manufacture, sale, possession and transportation of gutka, mawa, manpuri and similar harmful substances.

Under the proposed legislation, gutka, mawa and manpuri have been classified as ‘restricted substances’ under a newly introduced Schedule-IV of the law, bringing them under a stronger regulatory and enforcement framework alongside narcotic drugs and psychotropic substances.

The cabinet was informed that the law would be renamed the Sindh Control of Narcotics and Restricted Substances Act, 2024.

The amended law introduces a quantity-based penalty regime for possession and trafficking of restricted substances. Possession of up to five kilograms would be punishable with imprisonment of up to six months and a fine of up to Rs50,000. For quantities between five and 25 kilograms, the punishment would extend to one year imprisonment and a fine of up to Rs200,000. Possession of 25 to 100 kilograms would carry imprisonment of up to three years and a fine of up to Rs500,000.

The cabinet noted that the amendment would consolidate the legal framework against hazardous chewable substances and strengthen enforcement efforts to protect public health, particularly among young people.

Anti-Corruption rules amended to streamline handling of external cases

The cabinet, after thorough deliberations, approved amendments to Rules 8-A and 8-B of the Sindh Enquiries and Anti-Corruption Rules, 1993, to establish a clearer legal framework for handling complaints, enquiries, investigations and references received from other departments, agencies, authorities and courts.

The cabinet was informed that the Anti-Corruption Establishment has received 108 references and 29 investigations from NAB, highlighting the need for procedural clarity in dealing with cases transferred from external entities.

Under the approved amendments, Rule 8-A has been expanded to cover complaints, enquiries, and investigations received from outside agencies, requiring E and ACE to process such matters under the relevant anti-corruption laws and to submit reports to the Prosecutor General Sindh for opinion and further action.

The CM noted that the amendments would remove procedural ambiguities, improve coordination among institutions and expedite the disposal of corruption-related cases transferred from other agencies and courts.

Health Insurance Facility Extended

The cabinet approved a six-month extension of the health insurance scheme being provided through the State Life Insurance Corporation (SLIC) to ensure uninterrupted healthcare coverage for government employees until the completion of a competitive bidding process for the next contract period.

The revised proposal covers 4,805 employees with an annual contract value of Rs485.305 million, compared to the previous arrangement costing Rs510.624 million. The basic health coverage limit of Rs700,000 per employee will remain unchanged. For the six-month extension period from July 1 to December 31, 2026, the contract value has been fixed at Rs242.652 million. The CM directed the S and GAD to initiate the bidding process for the next financial year.

Sindh Forest Act, 2026 referred to committee

The Sindh Cabinet reviewed a Forest and Wildlife Department proposal to introduce the Sindh Forest Act, 2026, as a comprehensive overhaul of the colonial-era Forest Act, 1927. The new law is designed to modernise forest governance in line with contemporary environmental challenges such as climate change, biodiversity loss, rapid urbanisation, sustainable forest management, ecosystem restoration and carbon sequestration.

Prepared in consultation with the Agriculture, Irrigation, Environment, Climate Change and Coastal Development departments, the draft expands the legal framework from 86 to 102 sections, introduces 74 definitions and adds new provisions on forest protection, public-private partnerships, forest funds, marine protected areas, co-management mechanisms and the creation of a Sindh Forest Force.

After detailed discussion, the cabinet decided the draft required further scrutiny and formed a committee comprising the Adviser to the Chief Minister on Forests and the Minister for Local Government to review the proposed law and submit recommendations.

RBUT Shikarpur Hospital declared teaching hospital

The cabinet also approved the declaration of RBUT Hospital, Shikarpur, as a Teaching Hospital, paving the way for its clinical attachment with Ziauddin Medical College (ZMC), Sukkur.

The decision will facilitate undergraduate and postgraduate clinical training under Ziauddin University’s academic framework and help strengthen healthcare services, medical education and medical training opportunities in upper Sindh.

The cabinet approved the constitution of a Hospital Management Board.

The cabinet also approved the formation of an expert committee headed by Prof. Dr Saeed Qureshi to assess human resource, infrastructure, equipment and financial requirements for the hospital’s transition into a teaching institution.

Registrar office for Private Security Act

The Sindh Cabinet considered a proposal of the Home Department regarding the establishment of the Office of the Registrar under the newly enacted Sindh Private Security Act, 2026, which provides a comprehensive regulatory framework for the licensing, oversight and regulation of private security companies, training institutes and security guards across the province.

The cabinet was informed that the proposed office would be responsible for licensing and registration, verification of security personnel, audits and inspections of private security companies and training institutes, and enforcement of compliance with the law. Home Department officials stated that the office would regulate approximately 306 private security companies and an estimated 60,000 private security guards.

The Home Department sought approval for the creation of essential staff positions and allocation of Rs98.8 million for the financial year 2026-27 to meet salary, operational, information technology, and office accommodation requirements.

After deliberations, the cabinet decided to refer the matter to the Cabinet Sub-Committee on Finance for detailed examination.