Sindh Plans New Insurance Schemes to Strengthen Financial and Climate Resilience Across Health, Agriculture
The Sindh government plans to introduce multiple insurance schemes in partnership with the private sector to expand financial protection, strengthen social safety nets, and improve access to insurance across the province, Chief Minister Syed Murad Ali Shah announced at Pakistan’s largest international insurance conference in Karachi.
Speaking as chief guest at the 1st IAP & PSOA International Insurance Conference 2026, Murad Ali Shah said the provincial government is supporting the insurance industry through business-friendly policies, including tax reductions and budget allocations for insurance premiums. He added that new initiatives in health, agriculture, and accident insurance are being developed to improve financial security for residents.
Sindh Expands Insurance Coverage
The chief minister said Sindh became the first province in Pakistan to introduce mandatory third-party motor vehicle insurance, providing financial compensation to road accident victims.
Under the scheme:
- Rs700,000 will be paid in the event of death.
- Rs500,000 will be provided for permanent disability.
He also announced that the provincial government is working on an accidental death insurance scheme that would provide Rs100,000 in coverage for every Sindh resident aged 18 years and above.
Focus on Health and Agriculture
Murad Ali Shah said additional insurance initiatives are being designed for the health and agriculture sectors to protect households, farmers, and businesses from financial losses.
The planned programmes are expected to strengthen resilience against health emergencies and agricultural risks while expanding insurance access across the province.
Federal Government Seeks Insurance Reforms
Prime Minister’s Coordinator on Commerce Rana Ahsan Afzal Khan said the federal government is upgrading the country’s agricultural financing programme by adding new insurance features to better protect Pakistan’s farming sector.
He also proposed using Pakistan’s large mobile phone user base to expand micro digital insurance, making insurance products more affordable and accessible.
Rana Ahsan called for a joint committee to identify and remove legal and regulatory barriers limiting the insurance industry’s growth.
Insurance Can Boost Pakistan’s Economy
Adviser to the Ministry of Finance and Revenue Adnan Pasha said increasing Pakistan’s insurance penetration from its current level to 2% of GDP could generate billions of rupees in additional economic activity and strengthen the country’s financial system.
He said government programmes supporting agriculture, housing, small and medium-sized enterprises (SMEs), and electric vehicles are expected to stimulate economic growth while creating new opportunities for the insurance sector.
Industry Calls for Faster Growth
Insurance Association of Pakistan (IAP) Chairman Shoaib Javed Hussain said Pakistan’s insurance penetration remains well below regional and global averages.
According to the IAP:
- Pakistan’s insurance-to-GDP ratio stands at 0.9%, compared with around 4% in many regional economies and approximately 6% in developed countries.
- Pakistan’s insurance density is about $14 per capita, compared with the global average of roughly $60 per capita.
He said the country’s low insurance coverage represents a significant opportunity for growth, particularly among Pakistan’s young population, and called for continued regulatory reforms, innovation, and stronger public-private partnerships.
More than 500 insurance executives, actuaries, regulators, policymakers, and international experts attended the 1st IAP & PSOA International Insurance Conference 2026 in Karachi, held under the theme “Reimagining Pakistan’s Resilience: Building a Sustainable Future through Insurance.”
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