ISLAMABAD: The Asian Development Bank (ADB) has approved a $700 million policy-based loan to support reforms to strengthen the insurance sector in Pakistan.
In an official announcement on Thursday, the Manila-based lending agency said the Insurance Transformation Programme seeks to expand insurance coverage and reduce protection gaps. It will also help stimulate private sector participation and support sustainable economic growth.
It said the programme will strengthen Pakistan’s financial resilience by deepening insurance markets and expanding financial protection for households, businesses, farmers and public finances against extreme weather events, disasters and lifecycle risks.
The reforms are expected to reduce financial vulnerabilities, support faster recovery from shocks, and lessen pressure on public finances following disasters and other crises, it said.
‘This programme supports the transformation of Pakistan’s insurance sector from a legacy, rulesbased framework to a modern, risk-based, and market-oriented system,’ said ADB Country Director for Pakistan, Emma Fan.
‘The reforms will help mobilise patient capital for development, expand financial protection for households and businesses, and support a more competitive, inclusive, and resilient insurance market,’ the official added.Khaleeg Kiani