Pakistan and Asian Development Bank sign policy-based financing agreement to strengthen the financial sector and modernize the insurance industry.
ISLAMABAD: Pakistan and the Asian Development Bank (ADB) have signed a major policy-based financing agreement under the Insurance Transformation Program, securing $700 million to support reforms and strengthen the country’s financial sector.
According to the Ministry of Economic Affairs spokesperson, the ADB will provide the funds under Subprogram One of the Insurance Transformation Program. Out of the total amount, $250 million will be provided on concessional terms.
The agreement was signed by Economic Affairs Secretary Muhammad Hameer Karim on behalf of Pakistan, while ADB Deputy Country Director Hussain Haider represented the development institution.
Speaking at the ceremony, Secretary Muhammad Hameer Karim described ADB as a reliable development partner and said the program aims to introduce comprehensive reforms to improve Pakistan’s insurance sector.
He added that the initiative will support the five-year roadmap for insurance sector development under the Uraan Pakistan initiative and the Securities and Exchange Commission of Pakistan (SECP).
ADB Deputy Country Director Hussain Haider termed the program an important and transformative initiative, saying it will facilitate the entry of new companies into the insurance market and promote fair competition.
The program will also increase private sector participation in insuring government assets while strengthening regulatory mechanisms and consumer protection.
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