ISLAMABAD: Pakistan has signed a $700 million policy-based loan agreement with the Asian Development Bank (Asian Development Bank) under Subprogram-1 of the Insurance Transformation Program.
A spokesperson for the Ministry of Economic Affairs said that out of the total package, $250 million will be provided on concessional terms.
The agreement was signed by Secretary Economic Affairs Muhammad Humair Karim on behalf of Pakistan, while Deputy Country Director Hussain Haider represented the Asian Development Bank.
Officials said the program aims to strengthen Pakistan’s financial sector through comprehensive reforms, with a particular focus on modernizing and expanding the insurance industry.
It is also intended to support the “Uraan Pakistan” initiative and the Securities and Exchange Commission of Pakistan’s (SECP) five-year roadmap for insurance sector development.
According to the Ministry, the reform program is aligned with Pakistan’s national financial inclusion strategy and climate change policy goals. It is expected to improve financial system stability and promote sustainable economic growth.
Speaking on the occasion, Secretary Economic Affairs Muhammad Humair Karim described the Asian Development Bank as a trusted development partner of Pakistan. He said the program would help introduce structural reforms in the insurance sector and strengthen overall financial governance.
ADB’s Deputy Country Director Hussain Haider termed the initiative a transformative program, noting that it will ease market entry for new insurance companies, encourage fair competition, and expand the role of private insurers in covering public sector assets.
