Islamabad: The Government of Pakistan has fast-tracked consultations for the upcoming federal budget, with over 90% of the process already completed, according to Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The move aims to ensure a more inclusive and well-structured financial framework by incorporating input from key economic sectors, including the insurance industry.
Strategic Budget Planning for Economic Growth
Speaking on Monday, the Finance Minister emphasized that the Federal Board of Revenue (FBR) is meticulously reviewing proposals submitted by various industries. This comprehensive review process ensures that all policy recommendations are economically viable and contribute to revenue generation.
Insurance Sector’s Expanding Role in Economic Development
Aurangzeb underscored the importance of Pakistan’s insurance sector in the country’s financial ecosystem, particularly its potential for attracting private sector investment. He stressed the need to reduce over-reliance on the banking sector by leveraging insurance as an alternative financing mechanism to spur economic activity.
A delegation of leading insurance company CEOs met with the Minister to discuss strategies for enhancing the industry’s role in economic development. Topics of discussion included:
- Growth of the insurance sector and its contribution to the national economy.
- Expanding investments in Pakistan Investment Bonds (PIBs) and capital markets.
- Strengthening health insurance and long-term financial security.
Key Statistics & Industry Contributions
During the meeting, the insurance sector’s representatives highlighted the industry’s significant contributions:
- Total assets of Rs 2,900 billion
- 20,000 direct and 234,000 indirect employment opportunities
- Gross written premiums of Rs 613 billion
- Claims paid totaling Rs 373 billion
Government’s Commitment to Policy Support
The Finance Minister assured stakeholders that the government is committed to formulating policies that foster the growth, stability, and innovation of the insurance sector. He welcomed the delegation’s proposals, particularly on taxation and regulatory reforms, and affirmed that they would be carefully considered in the upcoming budget.
A Forward-Looking Approach
With the budget process already in its final stages, Pakistan’s business community is encouraged to prepare for potential reforms that could reshape the financial and insurance landscape. The government’s proactive engagement with key stakeholders signals its dedication to economic expansion and sustainable development.
