Sindh govt okays Rs10.56bn interest-free loan to provide water to DHA

The Sindh cabinet on Tuesday approved an interest-free loan of Rs10.56 billion for the Karachi Water and Sewerage Corporation (KW&SC) to implement a dedicated water supply project for the Defence Housing Authority (DHA) in Karachi.

The decision was taken during a meeting of the provincial cabinet chaired by Chief Minister Syed Murad Ali Shah at the CM House. According to officials, the project includes the construction of a 36-kilometre pipeline from Dumlottee to DHA, along with supporting infrastructure such as a pumping station, forebay, and filtration plant.

The project was initially cleared by KW&SC’s board in February 2025 and is expected to be completed within 11 months.

DHA City Karachi signs MoU with NUTECH

The cabinet also approved a range of other development and regulatory measures:

Flood relief

The cabinet increased the allocation for the Flood Emergency Response Component (FERC) from Rs21.56 billion to Rs27.67 billion.

The revised funds will support 151,147 farmers affected by the 2022 floods. A sum of Rs6.1 billion has been earmarked for the remaining verified cases.

An additional Rs2.37 billion in savings will be disbursed through the Benazir Hari Card.

Benazir Hari Card implementation:

Approval was given to the Agriculture Department to sign an MoU with Sindh Bank to operationalise the Benazir Hari Card, which aims to facilitate subsidies on agricultural inputs, soft loans, and disaster-related financial support.

Over 237,000 farmers have registered; 88,871 applications have been verified for processing.

DHA City Karachi breaks ground on new infrastructural development in Sector 3

Rail link for Thar Coal transport:

The cabinet sanctioned Rs45.02 billion for a 105-km railway line connecting the Thar coalfield (Islamkot) to Chorr.

The federal government has allocated Rs7 billion for the project in the PSDP 2025–26. The plan includes a 9-km dual track from Bin Qasim to Port Qasim and a coal unloading terminal.

E-stamping reforms:

An amendment to the Sindh E-Stamp Rules, 2020, was approved, removing the requirement for physical e-stamp paper in areas where e-registration is active.

The integration of digital systems is intended to reduce delays in property transactions.

Agricultural income tax rules:

The cabinet endorsed the Sindh Agricultural Income Tax Rules, 2025. Key provisions include mandatory registration, e-filing of returns, and record maintenance in Urdu, Sindhi, or English. Losses due to natural disasters may be carried forward.

Industrial enclave in Hyderabad:

A decision was made to establish industrial enclaves on 951 acres in Hyderabad under a public-private partnership model.

Land will be transferred to the Sindh Economic Zones Management Company (SEZMC), and the Finance Department will allocate Rs3.54 billion for this purpose. The project is projected to generate over 55,000 jobs.

Land allotment for M-6 Motorway:

The cabinet approved the transfer of 248 acres of land for the Hyderabad-Sukkur Motorway (M-6) project, valued at Rs667.23 million. Additional land allotments were authorised across several districts including Jamshoro and Sukkur.

The cabinet meeting covered a total of 52 agenda items, most of which were approved with directives for prompt implementation.

Senior provincial ministers, advisors, and officials including the Chief Secretary attended the session.