The federal government has unveiled a plan to significantly expand Pakistan’s insurance sector, targeting an increase in insurance penetration from below one percent of GDP to between 2 and 3 percent over the next five years.

The goal was announced by Adnan Pasha, Adviser to the Finance Minister, during the 1st IAP & PSOA International Insurance Conference 2026 in Karachi.

Addressing government officials, insurers, actuaries, and financial experts, Pasha said Pakistan’s improving economic outlook presents an opportunity to move beyond macroeconomic stabilisation and focus on building long-term resilience against climate and financial risks.

He noted that broader insurance coverage would help safeguard households, businesses, and key sectors of the economy from increasingly frequent climate-related disasters.

Pasha identified agriculture as a priority sector and called for the development of parametric crop insurance linked to the government’s digital agricultural financing platform, Zarkhez-e. He said such products could provide farmers with quicker payouts after weather-related losses while improving access to financing.

He also proposed creating a sovereign climate insurance framework that would enable faster financial support following floods and other natural disasters, strengthening Pakistan’s disaster risk financing system.

The adviser urged insurers to work with the government on regulatory and legislative reforms needed to expand the industry’s reach and introduce innovative insurance products.

He further encouraged companies to utilise existing national data platforms, including NADRA, SUPARCO, and LIMS, to improve risk assessment and widen insurance access, similar to the banking sector’s use of digital data.

Pasha called on industry stakeholders to prepare concrete action plans with clear timelines, saying progress should be visible by the time the conference is held next year.