Aurangzeb Reaffirms Govt’s Commitment to Supporting Insurance Sector

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb Monday reaffirmed the government’s commitment to supporting the insurance sector, recognizing its potential for significant private sector investment. He further noted that the government seeks to diversify beyond the banking sector for lending purposes, urging the insurance industry to step up and meet the growing demand. This includes expanding the sector by focusing on innovation, enhancing productivity, and driving further growth. The minister expressed these views during a meeting held today with a delegation of chief executive officers from Pakistan’s leading insurance companies. The discussion focused on the growth of the insurance sector and its contributions to the national economy, with a particular emphasis on its 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 work closely with industry leaders and stakeholders to ensure the long-term prosperity of the insurance sector, which is a vital component of Pakistan’s economic landscape. Earlier, the delegation presented to the minister and his team key proposals and suggestions aimed at boosting the growth and productivity of the insurance sector. The presentation also highlighted the current statistics of the industry, which boasts assets worth Rs. 2,900 billion, alongside 20,000 direct and 234,000 indirect employments. The sector’s contributions were underscored, with Rs. 613 billion in gross written premiums and Rs. 373 billion in claims paid to date. Aurangzeb welcomed the delegation’s presentation and expressed his appreciation for the valuable insights provided. He assured the group that the government would carefully consider their proposals, particularly regarding taxation and policy measures necessary for the future growth of the industry. He highlighted that the consultative process for the upcoming federal budget had been deliberately advanced this year. Over 90% of the process has already been completed, with recommendations, proposals, and suggestions received from various stakeholders, including the insurance sector. The minister emphasized that a team of experts at the Federal Board of Revenue (FBR) is diligently reviewing each proposal submitted by different sectors, ensuring that the impact on the economy and revenue is thoroughly evaluated. This process aims to develop realistic and actionable policy interventions that will foster the growth of the industry and critical sectors of the economy.