The Insurance Association of Pakistan (IAP) has presented a set of proposals focusing primarily on taxation and regulatory considerations with respect to the insurance sector.
The submission was made during a consultation meeting with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, to discuss Federal Budget matters relating to the insurance sector for the 2026-27 fiscal year beginning on 1 July, according to a release issued by the Finance Ministry.
The IAP delegation, led by its Chairman, Mr Shoaib Javed Hussain, discussed various aspects of the existing taxation framework, including the interaction between federal and provincial levies, and their implications for the sector. The need for consistency, coherence, and predictability in the overall tax structure was highlighted to facilitate sectoral development.
Discussions also covered the need to ensure clarity in the application of sector-specific laws governing insurance, particularly in relation to the broader taxation framework. The IAP underscored the importance of ensuring that existing legal and regulatory principles remain appropriately aligned with evolving policy and accounting standards.
The delegation further proposed measures aimed at promoting savings and expanding insurance penetration, including the possible restoration of tax incentives for policyholders. Facilitating long-term savings instruments and encouraging wider participation, particularly among salaried individuals, were identified as key areas for consideration.
The participants shared views on strengthening the role of the insurance sector in financial sector development, including through improved alignment of investment frameworks and long-term financial instruments. Continued interaction with regulators and policymakers on sector-specific issues was highlighted as essential.
The Minister acknowledged the proposals presented by the delegation. He reiterated the government’s commitment to advancing the development of the financial sector while maintaining a balanced and sustainable approach to fiscal policy. He emphasised the need for sustained dialogue with key sectors to ensure that policy measures remain aligned with economic priorities and contribute to long-term financial stability and growth.