ISLAMABAD: Pakistan and the Asian Development Bank (ADB) signed a $700 million policy-based loan agreement on Monday aimed at strengthening the country’s financial sector and driving comprehensive insurance reforms, the Ministry of Economic Affairs said.
Under the first sub-programme of the Insurance Transformation Programme, the ADB will provide $700 million, which includes $250 million extended on concessional terms, the ministry spokesperson said in a statement.
Economic Affairs Secretary Muhammad Humair Karim and ADB Deputy Country Director Hussain Haider signed the agreement.
The financial package is designed to support the Securities and Exchange Commission of Pakistan’s (SECP) five-year roadmap for insurance sector development and the “Uraan Pakistan” initiative.
It also aligns with the country’s National Financial Inclusion Strategy and National Climate Change Policy.
“The ADB remains a reliable partner for Pakistan,” Karim said during the signing ceremony, adding that the programme would introduce inclusive reforms to reinforce the country’s broader financial framework.
ADB’s Hussain Haider characterised the initiative as a transformative program aimed at lowering entry barriers for new firms in the insurance market to foster healthy competition.
The programme also seeks to enhance the involvement of private insurance companies in underwriting public sector assets, while strengthening regulatory oversight and consumer protection mechanisms, Haider added.
