Sindh links fuel subsidy decision to Centre

CM Shah flags fresh economic strain after US-Iran war escalation

KARACHI:

Sindh Chief Minister Murad Ali Shah on Tuesday said fresh challenges had emerged in the wake of renewed hostilities following the US-Iran conflict, adding that a decision on petroleum subsidies would be taken in consultation with the federal government.

Speaking to the media after attending an international insurance conference, the chief minister said his government would continue to enforce limits on fuel consumption introduced in March as part of austerity measures.

He said Sindh had raised objections to the Jalalpur Canal project at the Council of Common Interests (CCI), stressing that the scheme was not new and had previously been contested by the province. "All provinces are bound by the Water Accord, but we have reservations regarding IRSA's procedures," he said, while also accusing India of engaging in "water aggression."

CM Shah announced that a task force would be formed to assess water-related challenges and evaluate potential losses to Sindh.

On agriculture, the chief minister added that wheat production was lower in three provinces compared to Punjab, which typically compensates for the shortfall. He said reduced support prices in Sindh had impacted output despite record national production, questioning the rationale behind wheat imports when sufficient stock was available domestically.

Highlighting reforms in the insurance sector, CM Shah said Sindh had made motor third-party insurance mandatory for all registered vehicles through the enforcement of the Provincial Motor Vehicles (Amendment) Act 2026.

Under the new law, compensation of Rs700,000 has been fixed in case of death and up to Rs500,000 for permanent disability in road accidents, with insurance companies required to settle claims within 45 days. He added that digital motor third-party insurance policies had been issued for all vehicles since March 2026.

Earlier, addressing the conference, the chief minister described the event as "insightful and informative," adding that it brought together local and international experts to share valuable perspectives.

He stressed that strong human resources were key to industrial growth and welcomed the increasing interest of students in actuarial studies. He said the Sindh government recognised the insurance sector's importance in economic development, job creation, and risk mitigation, as well as its contribution to provincial revenue.

CM Shah also highlighted initiatives aimed at farmers' welfare, including exemption of crop insurance from sales tax, acknowledging the growing challenges posed by climate change.

He said the government was expanding social protection programmes through targeted insurance, welfare and healthcare initiatives, citing the Universal Accidental Insurance Scheme under which heirs of citizens aged 18 or above receive Rs100,000 in case of accidental death.

The chief minister added that amendments addressing long-standing sales tax issues in the insurance sector had been introduced through the Finance Bill 2026, reaffirming the government's commitment to working with industry stakeholders to improve policies.

"We aim to make Sindh a business-friendly, fast-growing and sustainable province," he said.