The Asian Development Bank has approved a $700 million policy-based loan to help Pakistan modernize its insurance sector, expand coverage, and strengthen financial protection against natural disasters, health emergencies, and economic shocks.
The Insurance Transformation Program aims to deepen insurance markets and improve financial resilience for households, businesses, farmers, and public finances. The lender said the reforms would help reduce vulnerabilities, support faster recovery following crises, and ease pressure on government finances after disasters.
ADB Country Director for Pakistan Emma Fan said the initiative would shift Pakistan’s insurance industry from a legacy rules-based framework to a modern, risk-based and market-oriented system.
The reforms are also expected to mobilize long term capital, support infrastructure financing, and promote a more competitive and inclusive insurance market.
Pakistan’s insurance sector remains underdeveloped, with penetration standing at just 0.7 percent of gross domestic product, leaving many households and businesses exposed to environmental, health, and economic risks.
The program will support digital distribution channels, satellite-based risk assessment, parametric insurance products, and risk pooling mechanisms, while promoting products tailored for women, farmers, and vulnerable communities.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
