The Punjab government is devising a regulatory mechanism to bring multinational transportation network companies, Uber and Careem, under the tax bracket, said an official Tuesday, hours after a memo stated the rides are "illegal".

Dr Umar Saif, chairman of the Punjab Information Technology Board, said the issue is being reviewed and a regulatory framework is being devised.

Dr. @umarsaif clarified #Uber & #Careem are not being banned as yet; the issue is being reviewed & regulatory framework is being devised. pic.twitter.com/3g6Mk0vmTD

— PunjabITBoard (@PITB_Official) January 31, 2017

"We are coming up with a formal policy. The letter was an internal memo and has prematurely been made public," Saif told reporters when asked about the fate of the international companies in Punjab.

Earlier, the Punjab Transport Authority declared the services Uber and Careem as "illegal" and announced that strict action will be taken against the mobile-application taxi service providers. 

In a statement, the authority said the cab providers were causing provincial government financial losses. It added that private cars were being used to provide taxi services without the issuance of the mandatory car-fitness certificate and route permit.

The notification said security clearance of drivers was also not sought from the government hence stern action would be taken against such companies.

Sindh government also sprung into action, as the transport secretary wrote a letter to the PTA to block Careem and Uber mobile applications. 

"We wrote five letters to the Careem administration," said Sindh Secretary Transport Taha Farooqui. "However, despite giving them a warning, we received no response in return," he added.

He further said that in order to run a private taxi, the vehicle must be made commercial. He stated that owners of the vehicles must obtain fitness certificate.

"We have sent a notice to the private taxi service company," said Sindh Minister for Transport and Mass Transit Nasir Shah. "We have not banned the private taxi service company like Punjab government," he added.

Nasir Shah further said that had the government wanted to ban the private taxi service company (which he did not name), then the government would have done so by now.

"It is a good service and we want it to operate. However, the company must fulfill all legal requirements," he added.

Nasir Shah disclosed that notices had been sent to the private taxi service company two months earlier as well.