Finance Minister Senator Muhammad Aurangzeb has indicated that the government is considering the restoration of tax-related incentives for salaried individuals investing in insurance products, as part of discussions for Budget 2026–27.

He made the remarks during a meeting with a delegation of the Insurance Association of Pakistan (IAP), where proposals for taxation reforms and regulatory adjustments in the insurance sector were reviewed.

The delegation, headed by Shoaib Javed Hussain, proposed measures aimed at increasing insurance penetration and encouraging long-term savings. Among the key suggestions was the revival of tax incentives for policyholders, particularly members of the salaried class, to strengthen participation in insurance-based investment products.

The discussion also covered issues related to the existing tax framework, including coordination between federal and provincial levies and their impact on sector growth. Participants stressed the need for a stable and predictable tax regime along with clearer alignment of insurance regulations with broader fiscal policy.

Broader themes included enhancing long-term financial savings channels and improving the role of the insurance sector in capital formation and investment planning.

The finance minister said the proposals would be evaluated in the context of the upcoming budget and reaffirmed the government’s focus on maintaining fiscal balance while supporting development of the financial sector.

Both sides agreed to continue consultations in the run-up to the budget to further refine policy proposals affecting the insurance industry.