The federal government has set a target to increase Pakistan’s insurance coverage from less than one percent of GDP to 2–3 percent over the next five years.
The target was announced by Adviser to the Finance Minister Adnan Pasha while addressing the 1st IAP & PSOA International Insurance Conference 2026 in Karachi.
Pasha said Pakistan’s improving macroeconomic conditions provide an opportunity to shift focus from economic stabilisation to long-term resilience through wider insurance adoption.
He said expanding insurance coverage would help protect households, businesses and the broader economy from climate-related disasters and other emerging risks.
Pasha urged the insurance industry to develop parametric crop insurance products that can be integrated with the government’s digital agricultural financing platform Zarkhez-e. He said technology-driven insurance solutions can improve farmers’ access to finance while providing quicker compensation for climate-related losses.
The adviser also proposed the development of a sovereign parametric climate insurance framework to strengthen Pakistan’s disaster financing system and ensure faster financial support following floods and other natural disasters.
He also urged insurance companies to leverage existing national data platforms, similar to how banks integrated with NADRA, SUPARCO, and LIMS, to develop new products and improve market penetration.
Pasha asked industry stakeholders to prepare time-bound action plans and working groups to implement the conference’s recommendations, saying measurable progress should be demonstrated by next year’s event.
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