The federal government has announced a new plan to significantly increase Insurance Coverage across Pakistan over the next five years. The target is to raise insurance penetration from less than one percent of the country’s Gross Domestic Product (GDP) to between two and three percent.
The announcement was made by Adviser to the Finance Minister Adnan Pasha during the 1st IAP & PSOA International Insurance Conference 2026 in Karachi. He said the country’s improving economic conditions provide an opportunity to strengthen long-term financial resilience through wider Insurance Coverage.
According to Adnan Pasha, Pakistan has made progress in stabilizing its economy. He said the next step is to improve financial protection for households, businesses, and key sectors by expanding access to insurance services.
He explained that broader insurance adoption can help reduce the financial impact of natural disasters and other unexpected risks. Better insurance protection can also support faster recovery after floods, droughts, and other climate-related events.
The adviser emphasized that climate change has increased the need for stronger financial safeguards. He said wider Insurance Coverage would help families and businesses recover more quickly from losses caused by natural disasters.
During his address, Adnan Pasha urged the insurance industry to develop parametric crop insurance products. These products provide compensation when specific weather or climate conditions are met instead of relying on traditional damage assessments.
He proposed integrating these products with the government’s digital agricultural financing platform, Zarkhez-e. Officials believe this approach can improve farmers’ access to financial services while ensuring faster compensation for climate-related losses.
The adviser also recommended creating a sovereign parametric climate insurance framework. Such a system would strengthen Pakistan’s disaster financing mechanism and provide quicker financial support after floods and other major emergencies.
Technology was another important focus of his speech. Adnan Pasha encouraged insurance companies to use existing national digital platforms to improve their services. He referred to successful data integration models already adopted by banks through organizations such as NADRA, SUPARCO, and LIMS.
According to him, better use of digital data can help insurance providers introduce new products and improve market penetration. Digital innovation may also make insurance services more accessible to people in different parts of the country.
The adviser called on insurance companies and industry representatives to prepare practical action plans based on the conference discussions. He also suggested forming dedicated working groups to implement the proposed recommendations.
Officials expect measurable progress before the next international insurance conference. The government believes closer cooperation between regulators and the private sector will support the expansion of insurance services nationwide.
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The latest initiative reflects Pakistan’s broader efforts to strengthen financial resilience and improve protection against climate-related and economic risks. If the proposed measures are successfully implemented, wider Insurance Coverage could improve financial security for households, businesses, and farmers while supporting sustainable economic growth over the coming years.
