KARACHI: The Sindh cabinet has approved releasing 1.265 million metric tons of wheat to flour mills and Chakkies at Rs 9,500 per 100kg bag.
Sindh Chief Minister Syed Murad Ali Shah, presiding over a cabinet, made several decisions, including holding the government servants’ Benevolent Fund notification in abeyance, approving a surrender policy for dacoits in the Katcha area, establishing the wheat release policy for 2025–26, resuming Infrastructure Cess collection from oil companies, regularising LBOD employees and imposing a complete ban on tyre pyrolysis plants across the province.
On the instructions of Chairman PPP Bilawal Bhutto Zardari, and in response to the demands raised by various employee forums through the Sindh Employees Alliance (SEA), the provincial cabinet approved the suspension of the following Finance Department notifications regarding pension reforms, effective from their respective issuance dates: FD(SR-III) 3-230/2013-2022 dated 31st July 2025; FD (SR-III)3-2962/ 2025 dated 6th August 2025, and FD (SR-III)3-2962/ 2025 dated 18th August 2025
The cabinet also instructed the Chief Secretary of Sindh to form a committee comprising officers from relevant departments and representatives of the SEA to evaluate the government employees’ requests. The Secretary of Finance will submit a proposal to the cabinet based on their review.
Regarding the Benevolent Fund, the cabinet agreed in principle to restructure its payment mechanism to align it with GP fund payments upon retirement. The Secretary GA will present a detailed proposal, including financial implications, at the next cabinet meeting.
Additionally, the cabinet directed the Secretary of Finance to consider the employees’ request concerning Group Insurance and to propose a way forward, including an analysis of financial implications, for discussion at the next meeting.
It approved a ‘surrender policy’ for dacoits in the Katcha areas of Sukkur and Larkana Divisions aimed at consolidating peace, upholding the writ of the state, and promoting socioeconomic development in the riverine belt.
The cabinet was informed that, following successful security operations and extensive negotiations with local communities, many dacoits have expressed willingness to surrender voluntarily. The policy establishes a transparent and humane mechanism for surrender under the due process of law.
The main features of the policy include mandatory disarmament, protection of families, rehabilitation and livelihood support, and access to education, healthcare, and vocational training. The government will also revive schools, health, veterinary, and development projects in the Katcha areas to sustain peace and stability.
The chief minister directed the Home Department to ensure transparent implementation through Monitoring and Implementation Committees, and to carry out public awareness campaigns promoting surrender as a path to peace and reintegration.
To stabilise wheat flour prices and ensure financial discipline, the cabinet approved releasing 1.265 million metric tons of wheat to flour mills and chakkies at Rs 9,500 per 100kg bag. Phased releases start in October 2025, with an emphasis on transparency and market stability.
The release policy is designed to achieve two objectives: to stabilise the prices of wheat flour and provide relief to the public, and to ensure financial discipline by using wheat sale proceeds to repay bank loans and reduce liabilities. The Food Department will accordingly notify the policy and commence phased wheat releases from October 2025 onward.
The cabinet considered a summary of the Excise, Taxation Department regarding the collection of Sindh Infrastructure Development Cess (IDC) on the import of petroleum products. It was informed that 36 oil companies, including Pakistan State Oil (PSO), are involved in the matter, with a total cess amounting to Rs. 102.545 billion - Rs. 49.736 billion pertaining to 2022–23 and Rs. 52.809 billion for 2023–26.
It was noted that the Supreme Court of Pakistan has suspended the Sindh High Court’s earlier judgment and directed oil companies to furnish bank guarantees equivalent to the cess amount for the release of petroleum consignments.
The cabinet approved the proposal to withdraw the undertakings earlier submitted by PSO and other oil-importing companies and to resume the collection of bank guarantees as per the Supreme Court’s interim order.
The cabinet approved the regularisation of 78 contingent employees, including 50 petitioners and 28 non-petitioners (Electricians and Mechanics) of the Left Bank Outfall Drain (LBOD) project.
These employees had been serving on a contingent paid basis since the transfer of the LBOD project from Wapda to the Sindh government. Their cases were reconsidered following directives of the Sindh High Court, which observed that their long and satisfactory service, along with the 2018 statute, entitled them to regularisation.
The cabinet approved the complete ban on the operation of tyre pyrolysis plants across the province to curb severe air pollution and protect public health. The firms involved in the business were asked to close their business within a month. The decision, taken on the recommendation of the Sindh Environmental Protection Agency (SEPA), follows reports linking pyrolysis activities to the release of toxic pollutants and hazardous emissions contributing to Karachi’s deteriorating air quality.
The cabinet also approved the “Sindh Environmental Protection Agency (Prevention of Use of Sub-Standard Fuel/ Tyres) Rules, 2025” under the Sindh Environmental Protection Act, 2014, providing a regulatory framework to prohibit the production, sale, and use of substandard fuels, including Tyre Pyrolysis Oil (TPO).
It discussed a major fiscal reform proposal to shift the Urban Immovable Property Tax (UIPT) assessment system from Annual Rental Value (ARV) to Capital Value (CV) basis, aligning with IMF-backed national tax harmonisation efforts and practices adopted by Punjab. It was told that the existing ARV-based system, unchanged since 2001, does not reflect current market realities and excludes open plots. The proposed CV-based system, already used for stamp duty and property transfer taxes, will ensure fairer valuation, a broader tax base, and enhanced revenue generation for local governments.
The transition will follow the Karachi Property Survey under the World Bank-funded CLICK Project, which is expected to add over two million new properties to the tax net by January 2026. A safeguard clause, similar to Punjab’s, will ensure that no taxpayer pays less than the previous year’s liability during the transition phase. The cabinet directed the Local Government Department to prepare a draft law for the cabinet.
The cabinet approved the waiver of the death certificate registration fee for the general public across Sindh at the Municipal, Union Council, and Town Committee levels. The decision follows the earlier cabinet approval of free birth registration in September 2024, in line with Sindh’s commitment to the United Nations and international partners for improving Civil Registration and Vital Statistics (CRVS) coverage.
Under the new arrangement, the Government of Sindh will bear the cost of NADRA’s service charges, ensuring that citizens can obtain death certificates free of cost. This step aims to facilitate citizens, promote digital registration of vital events under the Sindh Local Government Act, 2013, and strengthen the province’s CRVS system.
Copyright Business Recorder, 2025
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