The Asian Development Bank on Thursday approved a $700 million policy-based loan to support reforms aimed at strengthening Pakistan’s insurance sector, expanding coverage and reducing protection gaps while encouraging private sector participation and sustainable economic growth.
According to the ADB, the Insurance Transformation Program will deepen insurance markets and enhance financial protection for households, businesses, farmers and public finances against extreme weather events, natural disasters and other risks. The reforms are also expected to reduce financial vulnerabilities, speed up recovery from shocks and ease pressure on public finances.
“This program supports the transformation of Pakistan’s insurance sector from a legacy, rules-based 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,” she added.