ISLAMABAD, May 5, 2026 – Pakistan’s insurance sector held detailed consultations on budget proposals for 2026-27 with Finance Minister Muhammad Aurangzeb, focusing on taxation reforms and long-term sector development.
The meeting took place on Tuesday between the Ministry of Finance and a delegation of the Insurance Association of Pakistan (IAP), led by its Chairman Shoaib Javed Hussain.
Focus on Taxation and Regulatory Framework
During the meeting, the delegation presented a range of proposals centered on taxation and regulatory challenges faced by the insurance industry.
Participants discussed the interaction between federal and provincial taxes and emphasized the need for a more consistent, predictable, and coherent taxation structure to support sector growth.
Promoting Savings and Insurance Penetration
The delegation highlighted the importance of restoring tax incentives for policyholders to encourage savings and expand insurance coverage across the country.
They also proposed measures to promote long-term savings instruments and increase participation, particularly among salaried individuals.
Aligning Legal and Policy Frameworks
Discussions also covered the need for clarity in the application of sector-specific laws and their alignment with evolving accounting standards and policy frameworks.
Industry representatives stressed that a stable and transparent regulatory environment is essential for sustainable growth and investor confidence.
Strengthening Financial Sector Role
The participants underscored the role of the insurance sector in broader financial sector development, including improving investment frameworks and expanding long-term financial instruments.
They also emphasized the importance of continued engagement between regulators and industry stakeholders.
Government Response
Finance Minister Aurangzeb appreciated the constructive input from the insurance sector and assured that the proposals would be carefully reviewed during the formulation of the Federal Budget 2026-27.
He reiterated the government’s commitment to strengthening the financial sector while maintaining a balanced and sustainable fiscal approach.
Meeting Participation
The meeting was attended by senior IAP officials, including Muhammad Hisham, Omer Farooq, and Asim Nagi, along with senior officials from the Ministry of Finance.
Both sides agreed on the importance of continued dialogue to support informed policymaking and enhance the sector’s contribution to economic growth.