Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, convened a meeting with the Insurance Association of Pakistan (IAP) at the Finance Division to discuss key issues pertaining to the insurance sector in the context of the Federal Budget 2026-27. The delegation was led by Mr. Shoaib Javed Hussain, Chairman of the IAP.

According to Press Information Department, the Finance Minister acknowledged the insurance industry’s role in the budget consultation process and stressed the importance of ongoing dialogue with key sectors to align policy measures with economic priorities, ensuring financial stability and growth. The IAP delegation presented proposals focusing on taxation and regulatory aspects, emphasizing the need for a coherent and predictable tax structure to foster sectoral development.

Discussions examined the interaction between federal and provincial levies and the clarity of sector-specific laws in relation to the broader taxation framework. The delegation proposed measures to promote savings and expand insurance penetration, such as restoring tax incentives for policyholders, and highlighted the importance of aligning legal and regulatory principles with evolving standards.

The meeting also explored the insurance sector’s role in financial sector development, advocating for improved alignment of investment frameworks and long-term financial instruments. The Finance Minister assured that the proposals would be reviewed for the upcoming budget and reiterated the government’s commitment to advancing the financial sector while maintaining fiscal sustainability.

The meeting concluded with a consensus on the necessity for continued engagement between the government and the insurance industry to inform policymaking and enhance the sector’s contribution to economic growth. Senior officials from the IAP and the Ministry of Finance, including the Director General of the Tax Policy Office, participated in the discussions.