Approves framework to receive 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 non-Annual Development Program (ADP) mega-infrastructure projects in Karachi, along with Rs8.825b for water supply and sanitation across the province.
According to a press release from the Chief Minister’s House, the Sindh Cabinet, headed by CM Shah, also approved a wide range of development, energy and governance measures, including new reforms in the management of gas royalty and new allocations to health and safety institutions.
According to the statement, the meeting was attended by provincial ministers, advisers, special assistants, the chief secretary and senior officials.
Sindh Cabinet gives green light for major development boost:
Rs8.82 billion. for water and drainage schemes across Sindh
Rs11.2 billion. to Karachi roads, bridges.
New policy to take 12.5% gas royalty in kind.
Nursing Workforce Policy 2026-2040
Great focus on infrastructure, health and revenue reforms. pic.twitter.com/mxjRPsb18w— Sindh Chief Minister House (@SindhCMHouse) June 2, 2026
Rs11.198 billion was approved for 11 major non-ADP projects under Karachi’s 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 to Clifton’s coastal roads linked to the Marine Drive project.
The meeting also approved several major transport and connectivity schemes, including the upgrading of Meharan and Pajero roads in Scheme 33, the development of Korangi Creek Airbase Road and the Gulzar-e-Hijri widening of Jinnah Avenue, the construction of a bridge at Power House Chowrangi in North Karachi and a flyover at K-4 Chowrangi, Surjani Town, Surjani.
The Cabinet approved additional funding of Rs8,825b for water supply and sanitation across the province. Officials said the allocations would be drawn from ADP block allocations and other development funds.
According to the press release, Rs560 million was released for the initial phase of new schemes.
CM Shah said timely completion of development projects and transparent use of public funds remained a top priority. “Improving urban infrastructure is among the government’s top priorities,” he said, according to the statement.
Read: Government approves development plan for Rs4.3tr
He added that the government would ensure efficient delivery of public services and strict monitoring of development expenditure.
Regarding the energy sector, the Cabinet approved a framework to receive 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-dependent prices and potentially generate over Rs26b in additional annual revenue.
A committee was formed under the energy secretary to develop a detailed mechanism for collection, distribution and commercialization of royalty gas, with recommendations within 30 days.
The cabinet approved 395 million Rs. 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 nursing workforce strategy (2026-2040) aimed at addressing staff shortages, improving educational 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 capabilities, the Cabinet approved changes to the procurement plan for the Counter Terrorism Department worth over Rs8.57b, including direct contracting with the National Radio and Telecommunication Corporation for advanced equipment.
The cabinet also approved a Rs485m development plan for Sehwan, including restoration works at the shrine of Hazrat Lal Shahbaz Qalandar, Lal Bagh and civil infrastructure upgrades. An initial tranche of Rs 242.5 million. was sanctioned for the project, which aims to improve the facilities around the shrine and surrounding areas.
Separately, the cabinet approved the appointment of retired judge Rashida Siddiqui as legal consultant for three years and approved the appointment of lawyer Syed Ghulam Shabbir Shah as Sindh’s attorney general.



