The government of Sindh has taken an important step toward strengthening financial management by activating the Sindh Fund Management House as a central platform for managing government funds. The historic first board meeting of the institution was chaired by Syed Murad Ali Shah, Chief Minister of Sindh, where several key decisions were taken to ensure transparency, security, and professional management of public funds.
The meeting focused on improving the investment framework, protecting pensioners’ savings, and ensuring long-term financial stability for the province. With the approval of new investment guidelines and the establishment of oversight mechanisms, the Sindh government aims to manage its financial resources more effectively and responsibly.
Historic First Meeting of the Sindh Fund Management House Board
The first board meeting of the Sindh Fund Management House marked a significant milestone in the province’s financial governance. The meeting was attended by senior government officials, including Asif Haider Shah, along with members of the provincial assembly and other officials.
During the session, the board carefully reviewed the Sindh Fund Management House Act 2021, which provides the legal framework for the institution’s operations. After reviewing the provisions of the law, the board formally activated the Sindh Fund Management House as the main institutional platform responsible for managing designated government funds.
This activation represents a major step toward professionalizing the management of public finances in the province.
Role and Responsibilities of the Sindh Fund Management House
The Sindh Fund Management House has been given the authority to serve as the primary platform for managing and investing government funds. The board will supervise the institution’s operations and approve its annual operational budget.
The institution will also develop investment policies and financial strategies that will be submitted to the Sindh government for final approval. All financial activities of the organization must follow approved risk limits and comply with legal requirements to ensure transparency and accountability.
The goal is to protect public resources while generating sustainable financial returns for the province.
Government Funds Managed by the Sindh Fund Management House
Currently, the Sindh Fund Management House is responsible for managing sixteen designated government funds. These funds play a critical role in supporting public welfare programs and ensuring financial security for government employees and citizens.
Some of the major funds managed by the institution include the Sindh Provincial Pension Fund, the Sindh Social Relief Fund, and the Sindh General Provident Investment Fund.
Chief Minister Syed Murad Ali Shah emphasized that protecting pensioners’ savings and safeguarding public funds remain top priorities for the government. He clearly stated that there will be no compromise when it comes to the safety of public resources.
Approval of the Sindh Fund Management House Investment Policy 2026
During the meeting, the board gave in-principle approval to the draft of the Sindh Fund Management House Investment Policy 2026. This new policy introduces stronger safeguards and clearly defined investment principles to guide financial decisions.
The policy aims to create a professional and transparent system for managing government funds. It focuses on minimizing financial risks while ensuring that investments generate sustainable returns over time.
According to the Chief Minister, the government’s objective is not to achieve quick profits but to build long-term financial stability for the province.
Key Investment Rules and Financial Safeguards
The newly proposed investment policy includes several strict rules to protect public funds and reduce financial risks. One of the key provisions limits investment in equities to a maximum of fifteen percent of the total fund.
In addition, the policy restricts investment in any single company or scrip to three percent of the total fund value. This rule is designed to reduce risk by ensuring diversification.
The policy also allows investment in mutual funds only if they meet strict standards, including a minimum AM2+ rating and a fund size of at least five billion rupees.
To prevent risky financial activities, the policy introduces a complete ban on currency speculation, commodity trading, and unsecured derivative transactions.
These measures are intended to ensure that public funds are invested carefully and responsibly.
Establishment of an Investment Committee
Another important decision made during the meeting was the approval of an investment committee. This committee will be headed by the Chief Secretary and will play a key role in overseeing investment decisions.
The committee will review investment proposals and submit recommendations to the board. It will also supervise a panel of approved brokers and asset managers who will handle investment activities.
In addition, the committee will monitor the performance of the investment portfolio and regularly report its progress to the board.
To improve operational efficiency, some important powers related to investment decisions will also be delegated to the committee.
Measures to Improve Returns of the Sindh Social Relief Fund
The board also discussed ways to increase the income of the Sindh Social Relief Fund. Currently, the fund earns about 8.5 percent profit through a daily dividend-paying account.
However, officials noted that higher returns could be achieved by investing in short-term treasury bills, which currently offer profits between 10.40 and 10.50 percent.
Chief Minister Syed Murad Ali Shah stated that social assistance funds should not remain in low-profit accounts when better options are available.
The board therefore considered transferring the funds to treasury bills in phases while following a defined risk management framework.
The finance department and the Sindh Fund Management House have been directed to prepare a phased transfer plan while ensuring that sufficient liquidity remains available for relief payments to deserving families.
Strengthening Financial Stability in Sindh
The government believes that professional management of pension, provident, and social funds will significantly strengthen the financial system of Sindh.
According to Chief Minister Syed Murad Ali Shah, these reforms will provide strong financial security for the province and help meet future financial obligations without placing additional burdens on the public.
By adopting modern financial management practices and implementing strict investment policies, the Sindh government aims to ensure sustainable economic stability.
Monitoring and Accountability Measures
To maintain transparency and accountability, the board has been directed to submit quarterly progress reports to the Chief Minister’s Office. These reports will provide updates on fund performance, investment activities, and financial outcomes.
The Chief Minister also emphasized that all investment decisions must be data-driven and fully auditable. He directed the authorities to adopt professional fund management practices in line with international standards.
These steps are expected to improve financial governance and strengthen public confidence in the management of government funds.
Conclusion
The activation of the Sindh Fund Management House marks a significant step in improving financial management in Sindh. With new investment policies, strict safeguards, and professional oversight mechanisms, the government aims to protect public funds while generating stable financial returns.
Through these reforms, the Sindh government hopes to ensure long-term financial stability, protect pensioners’ savings, and provide stronger support for social welfare programs across the province.