Pakistan has signed a $700 million loan agreement with the Asian Development Bank to support financial sector reforms. The deal is aimed at strengthening the insurance sector and advancing policy-based reforms under a broader development programme. The agreement is significant for Pakistan’s economic restructuring and fiscal stability efforts.
According to the Ministry of Economic Affairs, $250 million of the total amount will be provided on concessional terms. The financing falls under the Insurance Transformation Programme’s sub-program SP1. Officials said the initiative is designed to modernise Pakistan’s insurance framework and improve regulatory efficiency.
The agreement was signed by Secretary Economic Affairs Muhammad Humair Karim on behalf of Pakistan. Asian Development Bank Deputy Country Director Husein Haider represented the lender. Both sides described the partnership as a key step toward strengthening Pakistan’s financial sector and expanding investment opportunities.
Officials said the programme will support Pakistan’s broader reform agenda, including the “Uraan Pakistan” initiative and the Securities and Exchange Commission of Pakistan’s five-year roadmap for insurance sector development. It is also aligned with national financial inclusion and climate change policy objectives.
ADB officials said the programme aims to encourage competition in the insurance market and facilitate entry of new companies. It also focuses on increasing private sector participation in insuring public assets while strengthening regulatory systems and consumer protection mechanisms.