Transport, policing, wheat and Thar rail: Sindh Cabinet approves financial, uplift package

KARACHI: Sindh Chief Minister Syed Murad Ali Shah, presiding over a cabinet meeting, approved a wide-ranging financial and development package covering public transport, policing, wheat price relief, Thar coal connectivity, internal audit reforms, social protection and the establishment of an IT Tower in the city.

The meeting, held at CM House on Tuesday, was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, Principal Secretary to CM Agha Wasif and other concerned officers. It also confirmed the minutes of the Cabinet Committee on Finance presented by Local Government Minister Syed Nasir Hussain Shah.

Among the major approvals, the cabinet sanctioned Rs964.4 million for the procurement and operation of public transport buses under a non-ADP scheme, Rs1 billion for the production of films, dramas and documentaries for public awareness, and Rs5.84 billion for the procurement of arms and ammunition to strengthen the capacity of Sindh Police.

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The cabinet also approved funds for sports events, including assistance for the IMC Over-40s T20 Cricket World Cup, grants for SOS Children’s Village in Tharparkar, establishment of a Project Implementation Unit under STEVTA, creation of posts in newly established colleges, procurement of vehicles for Sindh Prisons, and support for cultural initiatives, including the 10th Adab Festival.

Additionally, funds were cleared for emergency water supply schemes in Malir, construction of an additional ramp at Korangi Causeway, renovation of a government girls’ school in Saddar, and hosting of the 2nd Joint CPA Asia and CPA South-East Asia Regional Conference at the Sindh Assembly.

The chief minister directed all departments to ensure the timely utilisation of funds and strict adherence to transparency and financial discipline.

Wheat issue price revised

The Sindh Cabinet approved a revision of the Wheat Release Policy for 2025–26, allowing the immediate release of government wheat at an issue price of Rs8,000 per 100 kg bag to flour mills, Chakkis, and traders, thereby reducing the price from Rs9,500 per 100 kg.

The decision aims to ensure market stability. The CM noted that early release would help maintain wheat quality, free up storage space and support affordable flour prices for the public.

A sub-committee was constituted to closely monitor wheat prices and, if required, recommend adjustments to the government wheat issue price for cabinet consideration.

Internal audit regulatory framework

The Sindh Cabinet approved the Regulatory Framework for Internal Audit under the Sindh Public Finance Administration Act, 2020, aimed at strengthening financial discipline, transparency and governance across government departments.

It also cleared the creation of a cadre of Chief Internal Audit Officers (CIAOs) in the Finance Department and 45 CIAO posts, on contract/market-based remuneration, in the secretariat side of all administrative departments. These will be regulated by the Finance Department.

PPP sales tax exemption

The cabinet discussed the issue of Sindh Sales Tax exemption for Public-Private Partnership (PPP) projects following the expiry of the general exemption on 30 June, 2025.

The cabinet was informed that the lapse of exemption has increased project costs and the Sindh government’s financial obligations due to ‘change in law’ provisions in PPP agreements. While recognising the importance of PPP projects in infrastructure and public service delivery, the cabinet decided that a blanket sales tax exemption for all PPP projects from 1 July 2025 to 30 June 2030 could not be granted.

However, it agreed that sales tax exemption may be considered on a project-to-project basis. The matter was referred to the Cabinet Committee on Finance to examine the financial implications and submit recommendations to the next cabinet meeting.

Funds for Thar Railway Project:

The Sindh Cabinet approved the release of over Rs6.6 billion as the provincial counterpart share for the Islamkot–Chhor railway line, Bin Qasim–Port Qasim double track and coal unloading facility project, being executed as a 50:50 joint venture between the Sindh government and the federal government through the Ministry of Railways.

The cabinet noted that the project is aimed at facilitating the transportation of Thar coal to power plants and industrial consumers across Pakistan. It was further decided that a cabinet committee will visit the project site to review progress and submit a report.

Pension fund managers’ agreement for DC pension scheme

The cabinet approved the draft Pension Fund Managers Agreement for the Sindh Defined Contribution Pension Scheme (DCPS) 2024, applicable to all employees recruited on or after 1 July 2024.

The agreement will be executed by the Finance Department on behalf of the Sindh government with SECP-registered Pension Fund Managers, in accordance with the Voluntary Pension System Rules, 2005 and Sindh DCPS Rules, 2025.

Under the scheme, Pension Fund Managers will administer four sub-funds - money market, debt, equity index and equity - while providing insurance coverage of Rs1 million for natural death or disability and Rs2 million for accidental death, with annual indexation of 10 per cent.

Wireless communication system in prisons

The cabinet approved a proposal of the Home department (Prisons) - for the procurement of a wireless communication system for Sindh Prisons, citing national interest and security considerations.

Copyright Business Recorder, 2025