Approves framework to receive 12.5% gas royalties ‘in kind’ instead of cash from selected gas fields
KARACHI:
The Sindh Cabinet on Tuesday approved a package of Rs 11,198 crore for 11 non-annual development program (ADP) mega infrastructure projects in Karachi, along with Rs 8,825 crore for water supply and sanitation schemes across the province.
According to a press release from the Chief Minister House, the Sindh cabinet, chaired by CM Shah, also approved a comprehensive set of development, energy and governance measures, including new reforms in gas royalty management and new allocations for health and security institutions.
According to the statement, the meeting was attended by provincial ministers, advisors, special assistants, the chief secretary and senior officials.
Sindh cabinet gives green light to major development push:
8,820 crore for water and drainage projects across Sindh
11.2 billion rupees for Karachi roads and bridges.
New policy to receive 12.5% gas royalty in kind.
Nursing staffing policy 2026-2040
Strong focus on infrastructure, health and income reforms. pic.twitter.com/mxjRPsb18w– Sindh Chief Minister House (@SindhCMHouse) June 2, 2026
11,198 crore was approved for 11 major non-ADP projects under the Karachi mega infrastructure programme, including rehabilitation of key roads such as Haji Ibrahim Essa Road, Haji Camp Road and Korangi Link Road, as well as upgrades of Clifton coastal roads linked to the Marine Drive project.
The meeting also approved several important transport and connectivity plans, including improvement of Meharan and Pajero roads in Plan 33, development of Korangi Creek Airbase 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, Surjani Town.
The cabinet approved an additional funding of Rs 8,825 million for water supply and sanitation schemes across the province. Officials said the allocations would be sourced from ADP block allocations and other development funds.
According to the press release, Rs 560 crore has been released for the initial phase of new plans.
CM Shah said timely completion of development projects and transparent utilization of public funds remain a top priority. “Improving urban infrastructure is among the government’s top priorities,” he said, according to the statement.
Read: Government approves Rs 4.3 trillion development plan
He added that the government would ensure efficient delivery of public services and strict monitoring of development spending.
Regarding the energy sector, the cabinet approved a framework to receive a 12.5% gas royalty “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-linked prices and potentially generate more than 26 billion rupees in additional annual revenue.
A committee was formed under the direction of the Ministry of Energy to develop a detailed mechanism for the collection, distribution and marketing of royalty gas, with recommendations to be submitted within 30 days.
The cabinet approved Rs 395 crore for integrated health services to clear pending payments of outsourced health facilities, including rural health centers and tehsil hospitals.
According to the statement, Sindh also endorsed 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 compared to World Health Organization benchmarks.
To strengthen counter-terrorism capability, the cabinet approved amendments to the Anti-Terror Department’s procurement plan worth over Rs 8.57 billion, including direct procurement with the National Radio and Telecommunications Corporation for advanced equipment.
The cabinet also approved a Rs 485-crore development plan for Sehwan, which includes restoration works at Hazrat Lal Shahbaz Qalandar shrine, Lal Bagh and civic infrastructure improvements. An initial tranche of Rs 242.5 million has been approved for the project, which aims to improve facilities around the shrine and its environs.
On the other hand, the cabinet approved the appointment of retired judge Rashida Siddiqui as legal consultant for three years and authorized the appointment of lawyer Syed Ghulam Shabbir Shah as attorney general of Sindh.
