The Sindh cabinet traffic law amendments were approved to tighten control on vehicle safety and registration.
Chief Minister Sindh directed ministers to consult all assembly members before enforcing the new traffic laws.
The cabinet imposed a 0.5 percent registration fee and Rs 1,000 annual tax on heavy vehicles under the updated framework.
A fitness certificate will now be mandatory for commercial vehicles, with violators facing a Rs 10,000 fine.
The cabinet also announced a ban on inter-provincial movement of vehicles older than 20 years and inter-district travel for those over 25 years old.
Substandard rickshaws and loader vehicles will be completely banned, and a new licensing system has been introduced for vehicle assembly.
Local manufacturers must pay Rs 3 million annually for a license, with a Rs 1 million yearly renewal fee.
As a deterrent against illegal practices, fines of up to Rs 1 million will be imposed for fake or unauthorized vehicle assemblies.