Sindh Chief Minister Syed Murad Ali Shah on Tuesday presided over a provincial Cabinet meeting focused on public healthcare, institutional reforms, revenue mobilization, and post-flood housing reconstruction. Most notably, the Cabinet decided to make the Mir Raza Ali Inquiry Commission report public.
The major proposals included a World Bank-supported programme to increase property-tax collection in Karachi’s 25 Town Municipal Corporations from Rs2.3 billion to Rs25.5 billion, and a Rs 115 million European Investment Bank financing package for the third phase of Sindh’s flood housing reconstruction project.
The meeting held at CM House was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah and concerned secretaries.
At the outset, the Chief Minister briefed the Cabinet on his recent visit to China, expressing gratitude to the Chinese government for the invitation and highlighting opportunities to expand cooperation in investment, trade, technology, energy, agriculture and development.
Chief Minister Syed Murad Ali Shah briefed the Sindh Cabinet on the outcomes of his recent China visit, highlighting investment opportunities and cooperation in energy, agriculture, water management, education, healthcare, industry and digital technology. The Cabinet directed the relevant departments to follow up on the agreements and proposals and translate them into practical projects, employment opportunities and improved public services.
The Chief Minister informed the Cabinet that Sindh and China’s Hubei province had agreed to deepen their longstanding partnership through a proposed Joint Cooperation Council.
The Shanghai Sindh Investment and Trade Conference attracted over 400 delegates and resulted in 36 MoUs – 12 with the Sindh government, five with Sindh Engro Coal Mining Company and 19 involving private-sector companies. The partnerships cover energy, mining, manufacturing, agriculture, logistics, education and digital infrastructure.
The delegation visited the Three Gorges Dam to study China’s experience in hydropower, flood management and river navigation. Proposals included a sister-city arrangement between Yichang and Sukkur, while Chinese companies were invited to participate in the Sukkur Barrage gates bidding process and explore water-transmission projects.
In the energy sector, discussions with Shanghai Electric Group covered Thar coal value addition, coal-to-chemicals technology, renewable energy, battery storage and the use of mine water for agriculture. Shanghai Electric also agreed to prepare a conceptual proposal for a seawater desalination plant for Karachi. Agricultural cooperation focused on hybrid rice, oilseed cultivation, biofertilisers and research, while the Education Department was directed to pursue partnerships in smart classrooms, AI-based learning, scholarships and teacher training with Central China Normal University.
The Chief Minister also briefed the Cabinet on cooperation with Huawei following his visit to its approximately 1,000-acre technology campus near Shanghai, which accommodates 30,000 to 35,000 employees and includes offices, housing, hospitals, schools and transport facilities. An MoU was signed to promote cooperation in artificial intelligence, cloud computing, smart cities, digital governance and AI-enabled smart parks.
He said Sindh’s progress in digital governance and Karachi’s strategic location and seaports offered opportunities to develop major data infrastructure. Huawei’s president is expected to visit Pakistan, while the Sindh Investment Department was directed to pursue the proposed initiatives.
The Chief Minister expressed gratitude to the Chinese government and reaffirmed Sindh’s commitment to strengthening the historic Pakistan-China friendship. He said the provincial government would focus on converting the visit’s outcomes into investment, technology transfer, economic growth, employment and better public services for the people of Sindh.
In a significant decision concerning transparency and accountability, the cabinet decided to make public the report of the Mir Raza Ali Inquiry Commission, which had been submitted in seven separate envelopes.
The cabinet directed that the report be uploaded to the Home Department’s website on October 20, while a hard copy would also be provided to the affected family.
To ensure follow-up action, Chief Minister Murad Ali Shah constituted a subcommittee comprising Provincial Ministers Ziaul Hassan Lanjar, Syed Nasir Hussain Shah and Saeed Ghani, along with the Advocate General Sindh, to examine the findings and submit recommendations for implementation.
The decision marks an important step towards making the inquiry’s findings accessible to the public and determining the measures required in response to its recommendations.
The cabinet approved a package of reforms to the Sindh Public Service Commission following concerns raised by candidates over recruitment procedures and examination arrangements.
Under the approved measures, the upper age limit for the Combined Competitive Examination (CCE) has been increased from 30 to 33 years, while the number of permissible attempts has been raised from three to five.
The cabinet also approved reducing the screening-test passing threshold for CCE-2026 from 40 per cent to 33 per cent. Computer-based testing will be introduced for one-paper examinations, with results printed immediately after the tests.
Interview marks will also be revised in line with the Federal Public Service Commission ratio.
The agenda further included proposals for a Cabinet Reforms Committee to develop information technology-enabled and artificial intelligence-based reforms for the SPSC, along with safeguards against retaliatory action against candidates who participated in protests and a mechanism to review allegations of candidates being targeted during interviews.
The reforms are intended to improve access to competitive examinations, strengthen transparency and build greater confidence in the recruitment process.
The cabinet approved the negotiated package for the World Bank-supported Sindh Property Revenue Enhancement Programme (Sindh-PREP), a major initiative to modernise property-tax collection, improve compliance and strengthen municipal financial management.
The programme carries World Bank financing of $150 million, comprising $110 million for the Programme-for-Results component and $40 million for investment project financing.
The programme aims to increase urban immovable property-tax collection across Karachi’s 25 Town Municipal Corporations from Rs2.3 billion to Rs25.5 billion during its implementation.
It also envisages modernising property taxation in other urban councils, building institutional capacity across 45 selected local councils and introducing an Integrated Financial Management Information System.
The negotiated package includes financing and implementation agreements, a results framework, verification protocols and environmental and social commitments. The World Bank’s Board consideration was scheduled for October 30, 2026.
The programme is expected to strengthen local governments’ revenue base and improve their capacity to finance municipal services.
The Cabinet considered the additional financing package from the European Investment Bank (EIB) for Phase III of the Sindh Flood Emergency Housing Reconstruction Project.
The package comprises €115 million, including a €100 million loan and a €15 million grant. It is aligned with the project’s PC-I of Rs42.09 billion, approved by ECNEC in November 2025, comprising Rs35.075 billion in EIB financing and a Rs7.015 billion contribution from the Sindh government.
Under the financing arrangement, the federal government will act as borrower, the Sindh government as intermediary and the Sindh Peoples Housing for Flood Affectees (SPHF) as the implementing entity.
The Cabinet ratified the already signed Finance Contract and Project Implementation Agreement and approved the draft On-Lending Agreement before its execution. The proposed agreement would formalise the transfer of financing from the federal government to Sindh and subsequently to SPHF under the Sindh Public Finance Administration Act, 2020.
The project is central to the province’s efforts to support flood-affected families in rebuilding their homes and recovering from the devastating effects of past floods.
The cabinet approved handing over the management of District Headquarters Hospital Sujawal to the Medical Emergency Resilience Foundation (MERF) for five years under a public-private partnership arrangement.
It also approved a five-year extension of MERF’s management of DHQ/Teaching Hospital Thatta and seven health facilities in Thatta district, effective July 1, 2026.
A departmental committee recommended the arrangement in view of MERF’s experience in managing the Thatta hospital and associated facilities. The proposed framework includes measurable performance indicators, independent technical and financial audits, and funding linked to performance.
The first-year financial requirement for DHQ Hospital Sujawal for 2026-27 is approximately Rs1billion, covering salaries, operating expenses, renovation and equipment.
The arrangement is aimed at strengthening hospital management, improving service delivery and ensuring that public healthcare facilities provide more reliable services to patients.
The cabinet also approved the operationalisation of Chanesar Dispensary and Maternity Home through the Indus Hospital and Health Network (IHHN).
Located in Union Council 8 and serving approximately 122,000 residents, the facility has been renovated and is awaiting operationalisation. Under the approved proposal, it will function as a 24-hour primary healthcare and maternal, neonatal and child health centre.
Services will include normal deliveries, family planning, immunisation, specialised outpatient clinics, diagnostic support, digital medical records and community engagement.
The proposal carries a one-time capital expenditure of Rs27 million and operating expenditure of Rs66.9 million for 2026-27, taking the first-year financial requirement to Rs93.9 million. Annual operating expenditure of Rs66.9 million has been proposed for the following four years.
The initiative is expected to improve access to essential healthcare, particularly for women, children and families requiring round-the-clock medical assistance.
The Cabinet considered the draft Sindh Government Lands Management Act and its proposed implementation framework, covering the allotment, leasing and management of government land for industrial, residential, commercial and public purposes.
The deliberations focused on transparent allotment procedures, competitive auctions, clear lease terms, protection of lawful existing rights and safeguards for public assets, parks, amenity plots and heritage sites.
The Cabinet also discussed the treatment of existing leases, development timelines, public-private partnership projects and mechanisms for appeals and legal compliance.
A committee headed by the Chief Minister was constituted to review the draft legislation and submit its recommendations at the next Cabinet meeting.
The Cabinet approved amendments to the Sindh Councils Unified Grades (Service) Rules, 2020, to update provisions governing the posting of officers and officials in local councils.
The amendments concern officers in BPS-16 to BPS-19 and officials in BPS-11 to BPS-14 of the Administration Branch, allowing them to be posted against equivalent-grade positions in local councils specified in the relevant Schedule of Establishment notified on June 16, 2023, or as subsequently amended by the Administrative Department.
The changes are intended to align the service rules with the applicable establishment schedule and provide greater clarity in administrative postings across local councils.
The Cabinet approved ex post facto approval for letters addressed to the Governor of the State Bank of Pakistan and relevant federal authorities seeking restoration of Sindh’s 30 per cent share of the total sugar export quota.
The Agriculture, Supply and Prices Department had presented a proposal concerning the export of 200,000 metric tonnes of sugar and the province’s share in the quota.
The proposal also called for distribution of Sindh’s allocation among sugar mills through the established provincial mechanism.
The Forest and Wildlife Department presented a progress report on the proposed declaration of 405,002 acres of intertidal land in Sujawal district as protected forests to promote mangrove growth and environmental conservation.
A committee examining government land records in Dehs Ghando, Sari and Lakha presented options concerning the identified land, including declaring the entire area a protected forest, protecting government land after accounting for existing allotments, or retaining the Zulfikarabad Development Authority’s land title while arranging mangrove plantation through the Forest Department.
The cabinet directed the relevant departments to complete the necessary formalities and undertake a feasibility study. The Chief Minister also constituted a committee under Provincial Minister Jam Khan Shoro to review the future of the project.
The initiative is linked to the conservation of mangroves, protection of the coastal ecosystem and strengthening the environmental resilience of the Indus Delta.
The Cabinet approved the Sindh Policy for Receipt and Disposal of Natural Gas Royalty In-Kind 2026, enabling the provincial government to explore receiving its constitutional 12.5 per cent natural gas royalty in gas rather than cash, subject to commercial viability and protection of existing provincial revenue.
Under the policy, the Energy Department will oversee implementation, while Sindh Energy Holding Company Limited (SEHCL) will act as the designated provincial commercial and implementing entity. A hybrid approach will allow the government to retain cash royalty while selectively adopting in-kind payments on a field-by-field basis, ensuring that the province’s net financial returns are not lower than its existing cash entitlement.
The policy provides for two disposal models involving transparent competitive bidding: direct allocation of royalty gas to qualified consumers or a public-private partnership with SEHCL. Gas-sale proceeds will be deposited into the provincial government’s account, with financial safeguards, due diligence and Cabinet approval required before final agreements are executed.
The Energy Department will coordinate with the federal Petroleum Division, Finance Division and OGRA to address regulatory and operational matters and ensure effective implementation of the policy.
The Cabinet granted post-facto approval to the Home Department’s notification declaring Mitha Ram Hostel, near Pakistan Chowk, Karachi, as a sub-jail for the safe custody of five accused persons allegedly involved in the KTC attack cases.
The hostel was declared a sub-jail through a notification issued on September 7, 2026, following a request by the Inspector General of Police, Sindh.
The Home Department sought post-facto approval for detention orders issued under Section 3(1) of the Maintenance of Public Order Ordinance, 1960, concerning 64 persons from eight districts of Karachi.
According to the department’s presentation, the orders followed requests from the Inspector General of Police, Sindh, relating to alleged activities considered capable of disrupting public order, including road blockages and sit-ins.
The matter was placed before the Cabinet for post-facto approval in view of the urgency cited by the department.
The Cabinet reviewed the record of its October 1 meeting and decisions taken through circulation on October 8 regarding the release of government wheat.
Under the approved policy for 2026-27, government wheat is to be released at an issue price of Rs12,500 per 100-kilogram bag for all categories, without a government subsidy. Releases to functional flour mills and atta chakkies were scheduled to commence on October 15.
The policy provides for flour mills to lift PASSCO or imported wheat from designated sites against prepaid challans, using their own transport under the Food Department’s management.
Where mills are reluctant to lift wheat or quantities exceed their monthly quotas, the Food Department may arrange transportation to government godowns. Stocks from surplus districts are to be directed towards districts facing shortages, while seized wheat is to be moved to the nearest procurement centres.
The arrangements are intended to improve stock distribution and help maintain the supply of wheat and flour across the province.
The Cabinet approved the proposal to convert Murtaza Abad village in Deh Simno and New Gud village in Deh Shahbeg, Taluka Bakrani, Larkana district, into katchi abadis under the applicable legal framework.
Departmental reports indicated that Murtaza Abad is situated on land recorded as forest land, while New Gud is reported to be located on state or revenue land.
The proposal was presented by the Land Utilisation Department for approval under the relevant legal provisions.
Alongside the hospital management decisions, the Cabinet approved extending the second tenure of Professor Dr Nabila Najam Soomro as Executive Director of the Sindh Institute of Physical Medicine and Rehabilitation (SIPM&R) until August 10, 2028.
The Department of Empowerment of Persons with Disabilities cited progress in clinical services, academic programmes, postgraduate training and research.
Plans include operationalising a new unit in Larkana during the current financial year and expanding rehabilitation services to Shaheed Benazirabad, Hyderabad and Rohri, improving access to rehabilitation services for persons with disabilities across the province.
The Cabinet approved the appointment of Mr Mehboob Ali Dayo, a retired District and Sessions Judge, as Presiding Officer of the Special Court (CNS-V), Karachi, under the Sindh Control of Narcotic Substances Act, 2024, as amended up to 2025.
The cabinet also ratified the de-notification of Ms Saima Imdad Mangi, former Assistant Advocate General, Sindh.
The Cabinet approved the renewal of the contract of Maj. (R) Syed Muhammad Abbas, Chief Executive Officer and pilot of the Sindh government’s VIP Flight service, for two years,.
The Cabinet approved the induction of Dr Hassan Abbas and Ms Tara Uzra Dawood as independent directors on the Board of the Sindh Peoples Housing for Flood Affectees.
Cabinet decisions Focus on Public Services and Institutional Accountability The Cabinet’s decisions covered a wide range of provincial priorities, from improving access to healthcare and strengthening recruitment procedures to mobilising municipal revenue, supporting flood-affected households, protecting coastal ecosystems and updating
government rules.
The decisions also addressed the need for transparency and follow-through on the Mir Raza inquiry report, with the Chief Minister directing its public release and establishing a committee to recommend implementation measures.