Finance Minister Muhammad Aurangzeb on Monday reaffirmed the government’s commitment to supporting the insurance sector, recognizing its potential for significant private sector investment.
In a meeting with a delegation of chief executive officers from Pakistan’s leading insurance companies, the minister described the insurance sector as a “vital component” of the country’s economic landscape. Noting that the government wished to diversify beyond the banking sector for lending purposes, he urged the insurance industry to take up the charge through expansions focusing on innovation, enhancing productivity, and driving further growth.
The meeting, according to a statement, focused on the growth of the insurance sector and its contributions to the national economy, with an emphasis on its impact on the health system, investments in Pakistan Investment Bonds, capital markets, and long-term investment opportunities.
The delegation shared key proposals and suggestions aimed at boosting the growth and productivity of the insurance sector. In a presentation, they said the industry has total assets of Rs. 2,900 billion and provides 20,000 direct and 234,000 indirect employments. They said Rs. 613 billion in gross written premiums and Rs. 373 billion in claims had been paid to date.
Assuring the delegation the government would continue to work with industry leaders and stakeholders to ensure the sector’s long-term prosperity, Aurangzeb welcomed their presentation. He assured them their proposals would be considered carefully, particularly regarding taxation and policy measures necessary for the future growth of the industry.
The minister noted the consultative process for the upcoming federal budget had been deliberately advanced this year. He said over 90% of the process was already completed, with recommendations, proposals, and suggestions received from various stakeholders, including the insurance sector. He said a team of experts at the Federal Board of Revenue was diligently reviewing each submitted proposal’s impact on the economy. This process, he said, aimed to develop realistic and actionable policy interventions that would foster the growth of the industry and critical sectors of the economy.