ADB Approves $700 Million Loan for Pakistan to Strengthen Insurance Sector
ISLAMABAD: The Asian Development Bank (ADB) has approved a $700 million loan for Pakistan to support reforms in the insurance sector and expand insurance coverage across the country.According to the ADB, the program aims to increase insurance penetration, reduce financial protection gaps, and strengthen the country’s resilience against economic shocks and natural disasters.The initiative will…
ISLAMABAD: The Asian Development Bank (ADB) has approved a $700 million loan for Pakistan to support reforms in the insurance sector and expand insurance coverage across the country.According to the ADB, the program aims to increase insurance penetration, reduce financial protection gaps, and strengthen the country’s resilience against economic shocks and natural disasters.The initiative will support policy and regulatory reforms designed to improve access to insurance services for individuals, businesses, and vulnerable communities, enabling them to better manage financial risks.ADB noted that insurance coverage in Pakistan remains relatively low, leaving many households and enterprises exposed to unexpected financial losses. The program seeks to promote a more inclusive and sustainable insurance market while enhancing the regulatory framework.
Experts say the initiative could help strengthen Pakistan’s financial system and improve its capacity to cope with climate-related disasters, economic disruptions, and other emergencies.
