KARACHI: Sindh Chief Minister Syed Murad Ali Shah convened the inaugural meeting of the Sindh Fund Management House (SFMH) Board, marking a significant step in the province’s fund management strategy. The meeting resulted in the approval of the 2026 Investment Policy, designed to enhance fund governance and ensure fiscal sustainability.
According to Chief Minister Sindh, the SFMH Board, now the primary institutional platform for managing government-designated funds, reviewed and endorsed various strategic measures. These include the Sindh Fund Management House Act, 2021, which grants SFMH the authority to oversee operations, approve budgets, and recommend investment policies. The SFMH currently manages 16 funds, including the Sindh Province Pension Fund and the Sindh Social Relief Fund.
A key outcome of the meeting was the endorsement of the Draft SFMH Investment Policy, 2026. This policy introduces stringent investment limits to safeguard public funds, such as capping equities at 15 percent of the total fund size and imposing a complete ban on high-risk activities like currency speculation and commodities trading. The Chief Minister emphasized the importance of professionalizing fund management to achieve long-term fiscal stability and protect public resources.
The Board also established the Investment Committee, chaired by the Chief Secretary, to oversee investment proposals and manage broker and asset manager panels. The committee is tasked with ensuring decisions are data-driven and align with global best practices. Additionally, discussions on enhancing returns for the Sindh Social Relief Fund included a proposal to transition balances to short-term Treasury Bills, aiming to increase returns while maintaining liquidity for relief disbursements.
Chief Minister Shah highlighted the broader strategy to strengthen provincial finances through these reforms, aiming to build a robust financial cushion for Sindh. The Board is expected to submit quarterly progress reports to the Chief Minister’s office, ensuring ongoing oversight and accountability.