Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reaffirmed the government’s commitment to supporting the insurance sector, citing its potential for increased private sector investment and noting the need to diversify beyond traditional banking for lending.

According to Press Information Department, the Minister’s remarks came during a meeting with chief executive officers from leading insurance companies in Pakistan. The discussions centered on the industry’s growth and contributions to the national economy, particularly in areas like the health system, investments in Pakistan Investment Bonds (PIBs), and long-term economic opportunities.

The Minister assured the delegation that the government would maintain close collaboration with industry leaders to ensure the sector’s prosperity, highlighting its significance in Pakistan’s economic landscape.

The delegation presented proposals aimed at boosting the insurance sector’s growth, emphasizing current industry statistics, which include assets worth Rs 2,900 billion and employment for 20,000 direct and 234,000 indirect workers. The sector has generated Rs 613 billion in gross written premiums and paid out Rs 373 billion in claims to date.

Senator Aurangzeb welcomed the insights and assured the group that the government would consider their proposals, especially on taxation and policy measures for future growth. He noted that the consultative process for the upcoming federal budget had progressed significantly, with over 90% completed and various stakeholders, including the insurance sector, having submitted recommendations.

The Minister emphasized the role of the Federal Board of Revenue (FBR) experts in reviewing proposals from different sectors, ensuring economic and revenue impacts are thoroughly assessed. This process aims to develop effective policy interventions that will foster growth in the insurance industry and other critical economic sectors.