What happened
The Sindh cabinet on Tuesday, 27 January 2026, approved the relief and rehabilitation package announced last week for the families of the victims of the Gul Plaza inferno in Karachi, including Rs10 million in financial compensation, according to Dawn.
Chief Minister Murad Ali Shah had announced the compensation on 19 January. The fire erupted on the night of 17 January at the mall, took nearly two days to be fully extinguished and has claimed at least 73 lives, leaving more than 1,100 shops in ruins. After nine days of scouring the rubble for the remains of the dead and missing, the search operation concluded on Sunday.
What the cabinet approved
During the meeting, the cabinet expressed grief over the loss of lives and approved Rs10 million for the families of the deceased, alongside Rs10 million in “interest-free loans” for shopkeepers affected by the blaze. A further Rs500,000 per shopkeeper will be provided as immediate subsistence support to cover household and utility expenses.
The chief minister said “there can be no compromise on human life. Relief, justice, and prevention must go hand in hand”, and directed that alternative commercial spaces be provided within two months so shopkeepers could resume business.
The cabinet also approved the constitution of a high-level subcommittee — including ministers Sharjeel Inam Memon, Nasir Hussain Shah, Saeed Ghani and Ziaul Hassan Lanjar — to review the inquiry committee’s report on the incident. “No negligence will be overlooked. Those found responsible will be held accountable,” the chief minister was quoted as saying. The inquiry committee, announced on 19 January, is headed by Karachi Commissioner Hassan Naqvi.
Road package
Separately, the cabinet approved Rs19.116 billion for the “immediate execution” of six major road infrastructure projects in the metropolis. These include the Star Gate flyover, the Malir Halt underpass, the Sohrab Goth flyover and the reconstruction of arteries linking the M-9 to Malir and Main Korangi Road to Khayaban-e-Saadi.
“These projects are essential for easing congestion, improving road safety, and supporting Karachi’s economic activity,” Murad said.
Why it matters
The package is the first formal compensation framework for a disaster that has become one of Karachi’s deadliest urban fires and a test of the provincial government’s handling of building safety and emergency response. The parallel road package ties relief to infrastructure spending in the same city, and the subcommittee’s review will determine whether officials or building owners face consequences.
Sources & reporting notes
This is a synthesis of published material, not eyewitness reporting. Sources were reviewed on 27 January 2026.
- Dawn — Sindh cabinet approves compensation package for families of Gul Plaza victimsPublished 27 January 2026 · Contemporaneous report: confirms the Rs10m compensation for bereaved families, the Rs10m interest-free loans and Rs500,000 subsistence support for shopkeepers, the subcommittee members, the inquiry committee headed by Karachi Commissioner Hassan Naqvi, and the Rs19.116bn road package.
- Dawn — Search operation begins to locate over 50 missing people at Karachi's Gul PlazaJanuary 2026 · Context on the 17 January blaze and the search operation.
