ISLAMABAD: Pakistan has entered into a $700 million policy-based loan agreement with the Asian Development Bank (ADB) to enhance the country’s financial sector and implement extensive insurance reforms, the Ministry of Economic Affairs announced on Monday.
This funding is part of the initial sub-programme of the Insurance Transformation Programme, with $250 million of the total amount provided on concessional terms, a ministry spokesperson. The agreement was signed by Economic Affairs Secretary Muhammad Humair Karim and ADB Deputy Country Director Hussain Haider.
The financial support aims to back the Securities and Exchange Commission of Pakistan’s (SECP) five-year strategic plan for insurance sector advancement, as well as the “Uraan Pakistan” initiative. Furthermore, the programme is aligned with Pakistan’s National Financial Inclusion Strategy and the National Climate Change Policy.
During the signing ceremony, Karim emphasized that the ADB continues to be a dependable partner for Pakistan, highlighting that the programme will introduce inclusive reforms to strengthen the overall financial framework of the country.
Meanwhile, Hussain Haider described the initiative as a transformative effort designed to reduce barriers for new entrants in the insurance market, thereby promoting healthy competition. The programme also aims to increase private insurance companies’ participation in underwriting public sector assets, while enhancing regulatory supervision and consumer protection mechanisms.
