The Asian Development Bank (ADB) will provide $700 million to Pakistan under the Insurance Transformation Program Sub-Program SP-1.

According to a spokesperson for the Ministry of Economic Affairs, a policy-based loan agreement of $700 million has been signed between Pakistan and the Asian Development Bank (ADB) under the Insurance Transformation Program Sub-Program SP-1.

The spokesperson said that out of this amount to be received from the ADB, $250 million will be provided on concessional terms. The agreement was signed by Secretary Economic Affairs Muhammad Hameer Karim on behalf of Pakistan while Deputy Country Director Hussain Haider on behalf of the Asian Development Bank.

Speaking on the occasion, Secretary Economic Affairs Muhammad Hameer Karim described the Asian Development Bank as a reliable partner of Pakistan.

He said that the Insurance Transformation Program aims to strengthen Pakistan’s financial sector and introduce comprehensive reforms in it.

He said that this program will support the five-year roadmap of Udaan Pakistan and the Securities and Exchange Commission of Pakistan (SECP) for the development of the insurance sector.

Muhammad Hameer Karim added that this program is fully aligned with the goals of the National Financial Inclusion Strategy and the National Climate Change Policy, which will help in improving the financial system and achieving the goals of sustainable development.

ADB Deputy Country Director Hussain Haider said that this is an important and revolutionary program that aims to facilitate the entry of new companies into the insurance sector and promote fair competition in the industry.

He said that the participation of private insurance companies in the insurance of government assets will also be increased under the program.

Hussain Haider said that this program will further strengthen the regulatory system of the insurance sector while making consumer protection measures effective, which will increase the overall performance of the sector and public confidence.