ISLAMABAD: The Asian Development Bank (ADB) has approved a $700 million loan for Pakistan aimed at improving and expanding the country’s insurance sector.
According to official sources, the funding will be used to enhance insurance coverage and strengthen financial protection mechanisms across the country. The initiative is part of an Insurance Transformation Programme designed to increase private sector participation and improve sector efficiency.
The ADB said the reforms are expected to support long-term economic stability and promote sustainable development in Pakistan. It noted that the country’s current insurance penetration remains low, at just 0.7 percent of GDP.
The programme is expected to benefit vulnerable segments of society, including farmers, women, and low-income groups, by improving access to financial protection. It will also introduce specialized insurance products for women and girls.
Officials said the initiative will help reduce financial losses caused by natural disasters and speed up recovery efforts in affected areas. The reforms are also aimed at modernising the insurance sector and shifting it towards a more competitive, market-based system.
