Sindh cabinet clears landmark farmers’ collectives law, orders crackdown on wheat hoarding

Karachi


Karachi: The Sindh Cabinet, presided over by Chief Minister Syed Murad Ali Shah, on Tuesday in one of its most significant policy meetings focused on agriculture, food security and rural development, approved the landmark Sindh Farmers’ Agricultural Collectives Act, 2026, ordered strict action against wheat hoarders, initiated reforms to digitise the provincial Food Department and reviewed the draft National Wheat Policy 2026-2030 aimed at transforming Pakistan’s wheat economy.



The cabinet meeting, held at the CM House, also approved a wide range of decisions relating to agricultural modernisation, inclusive education, prison security, revenue reforms, infrastructure development, welfare of Rescue-1122 personnel, fisheries monitoring, and the continuation of Pakistan Rangers’ deployment in Sindh.



Senior Minister for Information Sharjeel Inam Memon, accompanied by Minister for Agriculture Sardar Mohammad Bux Maher, Minister for Food Makhdoom Mahboobzaman, and Minister for Fisheries Mohammad Ali Malkani, addressed a press conference and spelt out the decisions taken by the cabinet.



In a major step towards transforming Sindh’s rural economy, the cabinet cleared the final draft of the Sindh Farmers’ Agricultural Collectives Act, 2026, paving the way for its introduction in the Provincial Assembly.



The proposed legislation seeks to empower small farmers, livestock breeders and fisherfolk by enabling them to pool land, resources and machinery, improve access to finance and technology, and directly connect with high-value markets.



Developed after extensive consultations with farmers’ organisations, the Sindh Chamber of Agriculture, the Sindh Abadgar Board and the State Bank of Pakistan, the bill establishes a comprehensive legal framework for collective farming and agribusiness. It defines small farmers as those owning or cultivating between one and 25 acres and extends the concept of collectives to livestock and inland fisheries.



The legislation introduces a democratic governance structure based on the principle of ‘one member, one vote,’ mandates representation of women and transgender persons, creates transparent profit-sharing mechanisms, and opens opportunities for participation in carbon-credit and ecosystem-services markets.



For regulation and oversight, the bill proposes the establishment of the Sindh Agricultural Collectives Regulatory Authority, which will register and supervise collectives, provide digital governance platforms, facilitate e-commerce linkages, manage climate and pest risks, and resolve disputes.



The government believes the initiative will promote mechanisation, strengthen farmers’ bargaining power, reduce dependence on middlemen and support climate-smart agriculture across the province, the chief minister said.



The cabinet was informed that Sindh faces a projected wheat deficit of 1.59 million tonnes during 2026-27, while wheat prices in the open market have risen significantly above the official support price of Rs3,500 per 40 kilograms.



The food department reported that flour mills, traders and private stockists were holding substantial wheat stocks, contributing to speculation and price increases. Expressing concern over the situation, the chief minister, in consultation with his cabinet, decided to launch a crackdown against hoarding to stabilise flour prices and protect consumers.



As part of broader reforms, the cabinet considered a proposal to establish an Integrated Wheat Management System to digitise procurement, storage, transportation and issuance of wheat across Sindh.



The Science and Information Technology Department endorsed the initiative and recommended involvement of the Sindh Information Technology Company (SITC). The chief minister directed the Food Department to move rapidly towards digitisation, enhance transparency and adopt modern commodity-management practices.



Murad Shah also emphasised greater private-sector participation in wheat operations and called for gradually transforming the Food Department into a lean, technology-driven regulatory body focused on policy, oversight and food security.



Chief Secretary Asif Hyder Shah said that digitisation of the food department was a part of the reform package being introduced in the food department.



The cabinet approved amendments to the Sindh Registration and Regulation of Fishing Jetties Rules, 2022, to strengthen monitoring and enforcement along the province’s coastline following the identification of 64 unauthorised fishing jetties.



Under the amendments, the Marine Fisheries Conservation Police will be renamed the Sindh Fisheries Security Service, headed by a District Fisheries Conservation Officer, to conduct monitoring, control and surveillance of marine resources.



The cabinet also endorsed the already approved expenditure of Rs236.55 million for 300 posts and approved an additional Rs63 million for the purchase of three speed boats to enhance coastal surveillance and enforcement.



Recognising the risks faced by emergency responders, the cabinet approved a policy framework providing financial assistance to families of Rescue-1122 personnel who lose their lives in the line of duty.



The package includes an ex gratia grant of Rs10 million, burial assistance of Rs300,000, continuation of salary or employment opportunities for next of kin, and a group life insurance cover of Rs5 million.



A dedicated Welfare Compensation Committee will determine eligibility and oversee disbursement of benefits.



The cabinet approved completion of the long-delayed Shaheed Mohtarma Benazir Bhutto Flyover Project in Hyderabad through the Works and Services Department.



The project, originally launched in 2016-17, had stalled despite significant progress, including construction of 24 bridge girders. The remaining work will now proceed after structural validation and compliance with legal and technical requirements



The cabinet reviewed the draft National Wheat Policy 2026-2030, circulated by the federal Ministry of National Food Security and Research.



The proposed policy seeks to transition from a government-led wheat procurement model to a market-based system, reduce subsidy burdens, encourage regulated private storage, maintain limited strategic reserves and modernise agriculture through improved seeds, mechanisation and better inputs.



To formulate Sindh’s response, the chief minister constituted a committee comprising the secretaries of Food, Agriculture and Law to examine the policy and submit recommendations to the cabinet.



The cabinet also discussed IMF observations regarding deregulation of the sugar sector and reaffirmed Sindh’s opposition to the establishment of new sugar mills.



The province maintained that regulatory authority over licensing, pricing and oversight should remain with provincial governments while supporting conditional deregulation, phased trade liberalisation and stronger competition safeguards to protect growers, consumers and environmental interests.



The cabinet authorised the Department of Empowerment of Persons with Disabilities (DEPD) and Aga Khan University’s Institute for Educational Development to sign a five-year agreement aimed at promoting inclusive education across Sindh.



The initiative will establish a Special Education Unit at AKU-IED, train more than 2,000 educators, develop model schools and learning resources, and benefit approximately 24,000 students. The Sindh government will contribute Rs278.56 million, while AKU-IED will provide Rs160.65 million.



The cabinet granted permission to the Inspector General of Sindh Prisons to procure 212 units of Chinese Submachine Guns (SMGs) from the Pakistan Ordnance Factory (POF).



The decision resolves a procurement delay dating back to the 2016-17 fiscal year, when the prison department initially paid Rs. 46,394,886 to POF for 535 units of Russian AK-103 rifles. Due to international sanctions imposed on Russia, POF was unable to fulfil the original contract and offered the Chinese SMGs as an alternative. Due to inflation and a higher per-unit cost of Rs. 218,820, the original paid amount will now cover the procurement of 212 units.



DHA Phase VII Extension Stamp Duty



The Board of Revenue presented a finalised mechanism regarding the recovery of stamp duty for the lease of 262 acres of land situated at DHA Karachi, Phase VII Extension.



The cabinet confirmed a legally finalised Deferred Payment Plan to recover the total stamp duty of Rs. 2,496,532,500. Rather than full or partial exemption, the arrangement ensures the realisation of the entire chargeable amount to protect the provincial exchequer. The recovery will span a maximum period of three years, divided into six equal bi-annual instalments of Rs. 416,088,750, commencing in July 2026 and concluding in January 2029.



The cabinet approved a revised financial framework for the NED Science and Technology Park, a flagship Public-Private Partnership project of the Sindh Government.



The project was originally based on obtaining Special Technology Zone (STZ) status and related federal incentives, but could not proceed after new STZ approvals were halted due to IMF-related fiscal restrictions.



Under the approved alternative model, the Sindh Government will make a contingent commitment to purchase up to 40 per cent of the project’s unoccupied saleable area at market value, only if occupancy remains below the agreed threshold three years after commercial operations begin. The cabinet also approved necessary amendments to the concession agreement and authorised the concerned departments to move forward with implementation of the project.



Three-year SLA with Pakistan Single Window (PSW)



The cabinet deliberated and approved the execution of a new three-year Service Level Agreement (SLA) between the Board of Revenue and Pakistan Single Window (PSW).



Following the expiration of the previous agreement with Pakistan Revenue Automation Ltd (PRAL) in 2025, and the system’s transition to PSW, the new agreement covers the digital collection of the Rs 2,000 stamp duty charged on Bills of Entry (Goods Declarations).



The approved service fee rates (excluding SST) per paid bank challan are set at Rs. 40 for the 2025-26 financial year, and Rs. 44 for both the 2026-27 and 2027-28 financial years. To ensure robust revenue reporting, the agreement incorporates specific safeguards requested by the Finance Department, including real-time monitoring, view-only access integration, and customised reconciliation reports through the E-Pay Sindh platform.



Rangers’ deployment extended



The cabinet ratified the extension of the deployment of Pakistan Rangers in Sindh for another year, from July 20, 2026, to July 19, 2027, to assist Sindh Police in maintaining law and order.