The government of Pakistan and the Asian Development Bank (ADB) signed a $700 million Policy-Based Loan (PBL) agreement for the Insurance Transformation Program (ITP), Sub-Program 1 (SP 1), including $250 million on concessional terms.
Secretary, Economic Affairs Division Muhammad Humair Karim Kidwai expressed appreciation for ADB’s role as a trusted development partner and its continued support to Pakistan to complement its development initiatives, said a news release here on Saturday.
He emphasized that the ITP aimed at strengthening the resilience of Pakistan’s financial sector and promote sustainable finance through comprehensive reforms.
The program seeks to enhance risk management mechanisms for households and businesses while mobilizing long-term contractual savings to support capital market development and economic growth.
The Secretary emphasized that the Program is aligned with National Economic Transformation Plan (2024-2029), i.e. URAAN Pakistan, along with the Securities and Exchange Commission of Pakistan’s 5-year roadmap for insurance sector development, Pakistan’s National Financial Inclusion Strategy, and National Climate Change Policy.
He commended the collaborative efforts of all stakeholders and acknowledged the valuable contributions of the Ministry of Finance, Ministry of Commerce, Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), and the Economic Affairs Division in successfully completing the policy actions under the program.
Deputy Country Director, ADB PRM, Hussain Haider, expressed appreciation for government of Pakistan’s strong commitment to this program.
He emphasized the significance of this transformational program as it aims to liberalize market entry, ensure fair competition, expand private insurer participation in public assets, and strengthen regulation and consumer protection.