Pakistan and the Asian Development Bank (ADB) have signed a $700 million policy-based loan agreement aimed at supporting reforms in the country's insurance sector.
The financing will be utilized under the SP-1 sub-program of the Insurance Transformation Program, which seeks to strengthen and modernize Pakistan’s insurance framework.
According to the Economic Affairs Division, the Asian Development Bank will provide $700 million to Pakistan under the policy-based loan agreement.
The funds are earmarked for the SP-1 sub-program of the Insurance Transformation Program, a key initiative designed to improve the performance and reach of the insurance sector.
$250 million to be provided on concessional terms
An Economic Affairs Division spokesperson said that $250 million of the total financing package will be provided on concessional terms.
The concessional component is expected to ease the financial burden while supporting the implementation of reforms under the program.
Agreement signed by senior officials
Secretary Economic Affairs Hameer Karim signed the agreement on behalf of Pakistan.
The agreement was signed on behalf of the Asian Development Bank by Hussain Haider, Deputy Country Director of ADB, according to the Economic Affairs Division spokesperson.
Speaking on the occasion, Hameer Karim described the Asian Development Bank as a trusted development partner of Pakistan and acknowledged its continued support for the country's economic reform agenda.
ADB Deputy Country Director Hussain Haider said the program aims to facilitate the entry of new companies into the insurance sector, helping expand the market and improve access to insurance services.
