The Pakistan Senate has passed a legislation to convert the state-owned State Life Insurance Corporation into company under Companies Act, 2017, while shielding policyholders and employees, reported the Profit.
The Life Insurance (Nationalisation) (Amendment) Bill, 2026, was approved by the National Assembly, and passed by the Upper House. The proposed law updates the Life Insurance (Nationalisation) Order, 1972, to give the insurer more operational freedom and modernise its corporate governance. The bill's statement of objects and reasons states that the amendments are intended to fix operational and structural flaws to make the corporation more efficient, transparent, and better managed.
The life insurer was established as a statutory organisation under the 1972 nationalisation framework, but subsequent changes in the financial sector and the introduction of new regulatory standards have prompted a review of its existing legal structure.
The proposed changes allow the corporation to transition into a company governed by the Companies Act, 2017. Its operations will also align with the State-owned Enterprises Act, 2023, alongside other relevant laws. The bill creates a legal framework for future privatisation or the sale of government assets, requiring federal government approval and compliance with applicable laws.
This legislation does not approve the privatisation of State Life or confirm a government decision to sell its shares. Instead, it simply removes the legal barriers that would block a sale if the government decides to pursue one in the future. The amendments also provide for the transfer of the corporation's assets, liabilities, rights and obligations to a successor company to maintain continuity during the restructuring process. Measures are in place to protect current policyholders and safeguard employee benefits, working conditions, and retirement plans.