The Sindh Transport department, on Monday, decided to regularize the app-based ride-hailing companies. Uber and Careem have received a notice from the Sindh Minister to obtain their Karachi route permits from the provincial government within seven days or risk termination of services.

The companies now have seven days time from Sindh Government to obtain their Karachi route permits. Sindh Transport Minister Owais Shah revealed that the news to ban ride-hailing services in the province is unfounded and baseless. However, all ride-hailing services included Careem and Uber will be regulated as government bring them under the legal framework. Now, all services should register themselves with the Transport Department within seven days so the government can regularize them. Owais Shah said that reports about the closure of Careem and Uber are based on hearsay. However, the government decided to regulate them.

Last year, it was agreed that the online ride-hailing apps will obtain permits under the Motor Vehicles Ordinance, 1965, in order to continue operating as a service provider. It was also reported that the Sindh government and the transport ministry had prepared a draft legislation aimed at addressing the issue of ride-hailing services and bring them under the ambit of the law.

Earlier, the Provincial Minister revealed that the Sindh government signed a memorandum of understanding regarding route permits with the ride-sharing service three years ago. However, he claims that the two companies have not been complying with the MOU and are instead operating under their own rules without government approval. He also said they will ban Uber and Careem if they do not accept the Sindh governments route permits within the next seven days.