Approves a framework to receive a 12.5% gas royalty “in kind” instead of cash from selected gas fields
KARACHI:
The Sindh cabinet on Tuesday approved a Rs11.198 billion package for 11 mega non-annual development program (ADP) infrastructure projects in Karachi, along with Rs8.825 billion for water supply and sanitation projects across the province.
According to a press release from the Chief Minister’s House, the Sindh cabinet, chaired by CM Shah, also approved a wide range of development, energy and governance measures, including new reforms in the management of gas royalties and new allocations for health and security institutions.
According to the statement, the meeting was attended by provincial ministers, advisors, special assistants, chief secretary and senior officials.
Sindh Cabinet gives green light to major development initiative:
8.82 billion rupees for water and drainage projects across Sindh
Rs11.2 billion for Karachi’s roads and bridges.
New policy to collect a 12.5% gas royalty in kind.
Nursing workforce policy 2026-2040
Big emphasis on infrastructure, health and income reforms. pic.twitter.com/mxjRPsb18w– Sindh Chief Minister’s House (@SindhCMHouse) June 2, 2026
11.198 billion rupees have been approved for 11 major non-ADP projects under the Karachi Mega Infrastructure Program, including rehabilitation of key roads such as Haji Ibrahim Essa Road, Haji Camp Road and Korangi Link Road, as well as upgrading of Clifton coastal roads linked to the Marine Drive project.
The meeting also approved several major transport and connectivity projects, including upgrading of Meharan and Pajero roads under Project 33, development of Korangi Creek Air Base Road and extension of Gulzar-e-Hijri on Jinnah Avenue, construction of a bridge at Power House Chowrangi in North Karachi and a flyover at K-4 Chowrangi in Surjani Town.
The cabinet approved additional funding of Rs8,825b for water supply and sanitation projects across the province. Officials said allocations would come from ADP block allocations and other development funds.
According to the press release, Rs 560 million has been released for the initial phase of the new projects.
CM Shah said timely completion of development projects and transparent utilization of public funds remained a top priority. “Improving urban infrastructure is among the government’s main priorities,” he said, according to the press release.
Read: Government approves Rs4.3tr development plan
He added that the government would ensure efficient delivery of public services and strict control of development expenditure.
Regarding the energy sector, the cabinet approved a framework to receive 12.5% gas royalties “in kind” instead of cash from selected gas fields. Officials said the system would allow the province to take physical gas, sell it at market-related prices and potentially generate more than Rs26 billion in additional annual revenue.
A committee has been formed under the Energy Secretary to develop a detailed mechanism for the collection, distribution and marketing of royal gas, with recommendations expected within 30 days.
The cabinet approved Rs 395 million for integrated health services to clear outstanding payments for outsourced health facilities, including rural health centers and tehsil hospitals.
According to the statement, Sindh also approved a long-term strategic nursing workforce policy (2026-2040) aimed at addressing staff shortages, improving training standards and expanding nursing education infrastructure.
The meeting noted that Sindh currently has around 34,817 registered nurses and midwives, with officials highlighting a significant gap from the World Health Organization benchmarks.
To strengthen counter-terrorism capacity, the cabinet approved amendments to the procurement plan of the Department of Counter-Terrorism worth over Rs8.57b, including direct contracts with the National Radio and Telecommunication Corporation for state-of-the-art equipment.
The cabinet also approved a Rs485m development plan for Sehwan, including restoration works of Hazrat Lal Shahbaz Qalandar shrine, Lal Bagh and upgradation of civic infrastructure. An initial tranche of Rs 242.5 million has been approved for the project, which aims to improve facilities around the shrine and its surrounding areas.
Separately, the cabinet approved the appointment of retired judge Rashida Siddiqui as legal consultant for three years and cleared the appointment of lawyer Syed Ghulam Shabbir Shah as attorney general of Sindh.
