Finance Adviser urges time-bound action to expand Pakistan’s Insurance Coverage

Karachi
Adviser to the Federal Minister for Finance and Revenue Adnan Pasha on Tuesday called for time-bound action to significantly expand Pakistan’s insurance coverage in priority sectors, stressing that a stronger insurance ecosystem is essential for improving economic resilience and climate preparedness.
Delivering the keynote address at the 1st IAP & PSOA International Insurance Conference 2026 in Karachi, jointly organized by the Insurance Association of Pakistan (IAP) and the Pakistan Society of Actuaries (PSOA), the adviser highlighted the critical role of insurance in supporting sustainable economic growth and strengthening the country’s resilience against climate-related risks. The conference was inaugurated by Sindh Chief Minister Syed Murad Ali Shah and attended by around 800 delegates.
Referring to Pakistan’s improving macroeconomic outlook, Adnan Pasha said the country’s economic stabilization has created an opportunity to pursue a new generation of structural reforms focused on resilience and risk management.
He emphasized that long-term growth would depend on establishing effective mechanisms to protect businesses, households and the economy from climate and other emerging risks.
The adviser noted that insurance penetration in Pakistan currently remains below one percent of GDP and urged the industry to work with the government to increase coverage to between two and three percent of GDP over the next five years through innovation, improved access and supportive public policies.
Identifying agriculture as a priority sector, he encouraged the development of parametric area-yield insurance products that could be integrated with the government’s digital agricultural financing platform, Zarkhez-e. He said technology-driven insurance solutions would enhance farmers’ resilience, improve access to finance and provide timely protection against climate-related losses.
Adnan Pasha also called for the establishment of a sovereign parametric climate insurance framework to strengthen Pakistan’s disaster risk financing system.
He urged insurers, reinsurers and development partners to collaborate in designing innovative products capable of providing rapid financial assistance during floods and other climate-induced disasters.
Inviting the insurance industry to work closely with the government on legislative and regulatory reforms, the adviser reaffirmed the government’s commitment to creating an enabling environment for innovation and expanding insurance coverage. He also stressed the need for greater investment in human capital and the use of integrated data platforms to develop innovative insurance products.
Calling for practical implementation of the conference recommendations, Adnan Pasha urged participants to establish dedicated working groups with time-bound action plans and expressed hope that measurable progress would be achieved before next year’s conference.