Islamabad : The Asian Development Bank (ADB) has expressed concern over the limited development of the insurance sector in Pakistan and has recommended extensive reforms. In its recent report, the bank said that insurance can play a key role in dealing with natural disasters and financial crises, but the contribution of the private sector in Pakistan is very limited.
According to the report, there is a severe lack of awareness among the public about insurance, due to which the premium range is also narrow. The bank has suggested that the use of insurance in the country be expanded through models such as group insurance.
The report stressed that the government of Pakistan should pave the way for insurance financing in private projects, and make the regulatory environment friendly so that insurance companies can operate effectively.
In addition, the report states that the pension schemes of government employees are certainly attractive, but there is no clear system for their funding. This is why the burden of pension on the government exchequer is constantly increasing.
The Asian Development Bank stressed that the government should also take immediate steps to expand the scope of the EOBI pension scheme so that more and more people get social security.
