Islamabad, Pakistan – Web Desk: The Asian Development Bank (ADB) has approved a $700 million policy-based loan for Pakistan aimed at reforming and strengthening the country’s insurance sector, according to an official statement.
The program is designed to expand insurance coverage, reduce protection gaps, and boost private sector participation to support sustainable economic growth. It will also help improve financial resilience against climate-related shocks, natural disasters, and economic risks.
ADB said Pakistan’s Insurance Transformation Program will modernize the sector by shifting it from a rules-based framework to a more risk-based and market-oriented system. The reforms are expected to mobilize long-term investment and develop a more inclusive insurance market.
According to the statement, insurance penetration in Pakistan currently stands at just 0.7% of GDP, leaving households, businesses, and farmers vulnerable to environmental, health, and economic shocks.
The loan will support comprehensive resilience measures and disaster-risk financing mechanisms. It will also promote inclusive insurance products, particularly for farmers, women, and low-income households, helping improve financial protection for vulnerable groups.
