The National Assembly Standing Committee on Commerce last week approved a proposal to divest 20% of the State Life Insurance Corporation of Pakistan (SLIC), the country's biggest life and health insurance company.
The proposal also suggested transforming SLIC into a welfare organisation focused on providing insurance for crops and livestock, according to a Business Recorder report.
During discussions, committee members pointed out the complex nature of insurance procedures and suggested simplifying processes.
The potential for growth in Pakistan’s insurance market is significant, given that insurance contributes 0.6% of Pakistan’s GDP, below the global average of 2.8%.
SLIC is one of several state-controlled companies to be divested by the government as part of reforms to increase economic productivity by reducing market distortions, increasing organisational efficiency and improving the quality of services to the public.