ADB approves $700m loan for insurance reforms

ISLAMABAD: The Asian Development Bank has approved a $700 million policy-based loan for Pakistan to back reforms in the insurance sector, according to a press release issued on Thursday.

The lender said the programme is intended to strengthen insurance coverage in the country, narrow protection gaps and encourage greater private sector participation. It added that the initiative is also aimed at supporting sustainable economic growth.

Under the Insurance Transformation Program, the ADB said the reforms will deepen insurance markets and widen financial protection for households, businesses, farmers and public finances. The programme is designed to improve resilience against extreme weather events, disasters and life-cycle risks.

According to the press release, the measures are expected to lower financial vulnerabilities, help speed up recovery after shocks and reduce pressure on public finances in the aftermath of disasters and other crises.