Sindh Enforces Mandatory Motor Insurance With Tax Cuts, Exempts Motorcycles

The Sindh Cabinet on Tuesday approved the enforcement of mandatory Motor Third-Party Insurance from the next financial year, coupled with significant tax reductions for policyholders, while exempting motorcycles from the requirement.

In a wide-ranging session presided over by Chief Minister Syed Murad Ali Shah, the provincial cabinet also green-lit a landmark bill for the digitalisation of land records, partnerships to improve municipal schools, and a restructuring of the Inter-Provincial Coordination Department.

The new insurance initiative aims to ensure compensation for third parties affected by road accidents. To facilitate its adoption, the cabinet approved a reduction in stamp duty from Rs 500 to Rs 50 and a decrease in sales tax on third-party motor insurance from 15 per cent to 5 per cent.

Chief Minister Shah directed the Excise department to ensure compensation is payable in incidents involving duly insured vehicles and to establish public facilitation desks. The plan includes standardised premium rates, a 24/7 helpline, and assistance from insurance surveyors to guide victims and their legal heirs. The necessary amendments to the Motor Vehicles Ordinance, 1965, and the Motor Vehicles Act, 1939, will be presented to the Sindh Assembly for final approval.

In another major reform, the cabinet cleared the Sindh Land Revenue (Amendment) Bill, 2025, to introduce an e-Transfer of Land Title System and digitalise property records across the province. The project intends to rewrite and authenticate Records of Rights using a blockchain-based database to enhance transparency and accuracy.

A pilot phase for the land digitalisation is currently underway in Dehs Palijani and Matiari of District Matiari, and Deh Bagerji of District Sukkur. The chief minister termed the legislative move to be in the supreme interest of the public.

On the education front, the cabinet sanctioned Concession and License Agreements between The Citizens Foundation (TCF) and the Town Municipal Corporations (TMCs) of Malir, Chanesar, and Lyari. Under the 25-year pacts, TCF will construct, renovate, and manage 21 municipal schools, providing free quality education, uniforms, and learning materials to thousands of students.

The cabinet also approved a proposal to redefine the mandate of the Inter-Provincial Coordination (IPC) Department. The revised framework aims to remove duplication of tasks, positioning the department as the primary administrative body for the Council of Common Interests (CCI) and a policy think tank offering strategic support to the provincial leadership.

Guidelines for the Provincial and District Annual Development Programme (ADP) for 2026-27 were also endorsed. The directives emphasise climate-resilient development, completion of flood-damaged infrastructure, and the prioritisation of ongoing schemes, which will receive at least 80 per cent of the budget allocation. New projects must focus on key sectors such as healthcare, education, irrigation, and urban connectivity.

Furthermore, the cabinet allocated Rs 2.9 billion for the development of industrial areas across Sindh. The chief minister announced that infrastructure, including roads and drainage systems, in all industrial zones of the city will be repaired and upgraded.

During the meeting, CM Shah also reviewed the performance of open public grievance centres (katcheries) and directed officials to resolve public complaints promptly, announcing that the forums would resume in the second week of January.