Key Takeaways
- Sindh Cabinet approved a new de-registration policy for off-road and permanently damaged vehicles.
- Vehicles with unpaid motor vehicle tax since July 2010 will be classified as off-road after 90 days of non-payment.
- Reforms aim to improve transparency, efficiency, and administrative oversight in the province’s vehicle registration system.
The Sindh Cabinet has approved a series of reforms aimed at enhancing the province's vehicle registration, taxation, and insurance systems. These changes were discussed during a meeting chaired by Chief Minister Syed Murad Ali Shah.
One key reform involves the de-registration process for off-road and permanently damaged vehicles. Owners are required to submit a written declaration by September 30, 2026, or their vehicles will be classified as off-road after 30 days of non-payment and cancelled after another 60 days if dues remain unpaid.
The chief minister stated that these reforms aim to make the vehicle registration system more transparent and efficient while improving administrative oversight. The measures are expected to streamline processes and reduce unnecessary costs for vehicle buyers.
In a related development, licensed motor dealers will be allowed to keep vehicles they purchase for resale without immediate registration for up to six months, with two further extensions of three months each. During this period, dealers must pay a reporting fee of Rs100 per vehicle and maintain a valid motor dealer licence.
The cabinet also approved reforms to the Motor Third Party Insurance system. Under the revised policy, existing third-party insurance will remain valid until expiry even after a vehicle changes ownership, eliminating the need for buyers to purchase a new policy immediately after transfer.
Officials noted that these measures have already received in-principle support from the Securities and Exchange Commission of Pakistan, the Central Depository Company, and the Insurance Association of Pakistan. The reforms are expected to improve public convenience and strengthen transparency within the province’s vehicle registration system.
Chief Minister Syed Murad Ali Shah emphasized that the new policies will benefit both the public and dealers by reducing administrative hurdles and costs associated with vehicle ownership.
