Islamabad: The Government of Pakistan and the Asian Development Bank (ADB) have signed a Policy-Based Loan for an Insurance Transformation Program, Sub-Program 1, amounting to $700 million, with $250 million offered on concessional terms. The initiative aims to enhance the resilience of Pakistan’s financial sector and promote sustainable finance through comprehensive reforms.

According to Press Information Department, Mr. Muhammad Humair Karim Kidwai, Secretary of the Economic Affairs Division, expressed appreciation for ADB’s role as a development partner and its support to complement Pakistan’s development initiatives. The Insurance Transformation Program seeks to strengthen risk management mechanisms for households and businesses while mobilizing long-term contractual savings to support capital market development and economic growth. The program aligns with Pakistan’s National Economic Transformation Plan (2024-2029), URAAN Pakistan, along with the Securities and Exchange Commission of Pakistan’s five-year roadmap for insurance sector development, National Financial Inclusion Strategy, and National Climate Change Policy.

The Secretary of the Economic Affairs Division commended the collaborative efforts of all stakeholders and acknowledged the contributions of the Ministry of Finance, Ministry of Commerce, Securities and Exchange Commission of Pakistan, State Bank of Pakistan, and the Economic Affairs Division in successfully completing the policy actions under the program. Deputy Country Director, ADB PRM, Mr. Hussain Haider, highlighted the importance of the program, which aims to liberalize market entry, ensure fair competition, expand private insurer participation in public assets, and strengthen regulation and consumer protection.