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Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reaffirmed the government’s commitment to supporting the insurance sector, recognizing its potential for significant private sector investment.
He emphasized the need to diversify beyond the banking sector for lending purposes, urging the insurance industry to step up and meet the growing demand. This, he noted, requires the sector to focus on innovation, enhance productivity, and drive further growth.
During a meeting with a delegation of chief executive officers from Pakistan’s leading insurance companies, the Minister discussed the expansion of the insurance sector and its contributions to the national economy. The discussion particularly highlighted the sector’s impact on the health system, investments in Pakistan Investment Bonds (PIBs), capital markets, and long-term investment opportunities.
He assured the delegation that the government would continue to collaborate closely with industry leaders and stakeholders to ensure the long-term prosperity of the insurance sector, acknowledging it as a vital component of Pakistan’s economic landscape.
Earlier in the meeting, the delegation presented key proposals and suggestions aimed at boosting the growth and productivity of the insurance sector. The presentation outlined current industry statistics, revealing assets worth Rs 2,900 billion and employment figures of 20,000 direct and 234,000 indirect jobs. It also highlighted the sector’s significant contributions, with Rs 613 billion in gross written premiums and Rs 373 billion in claims paid to date.
Senator Muhammad Aurangzeb welcomed the delegation’s insights and expressed appreciation for their valuable input. He assured them that the government would carefully consider their proposals, particularly those related to taxation and policy measures essential for the sector’s future growth.
He also underscored that the consultative process for the upcoming federal budget had been advanced this year, with over 90% of the process already completed. Various stakeholders, including the insurance sector, have submitted recommendations, proposals, and suggestions for review.
The Minister further highlighted that a team of experts at the Federal Board of Revenue (FBR) is diligently reviewing each proposal submitted by different sectors. This rigorous evaluation process aims to ensure that policy interventions are both realistic and actionable, fostering the growth of the insurance industry and other critical sectors of the economy.
