The National Assembly Standing Committee on Commerce has approved a proposal to divest 20 percent of the State Life Insurance Corporation of Pakistan (SLIC) shares.
The proposal suggests transforming SLIC into a welfare organization focused on providing insurance for crops and livestock.
Chairman of the Committee, MNA Jawed Hanif Khan, emphasized the importance of converting SLIC into a more inclusive welfare entity to cater to middle and upper-middle-income groups. SLIC’s current profits, which are largely distributed among policyholders, amount to substantial reserves, including Rs 2.50 billion in cash dividends to the government and Rs 119.70 billion allocated to policyholders as bonuses.
During discussions, Committee members pointed out the complex nature of insurance procedures and suggested simplifying the process for broader public access. SLIC’s CEO highlighted the company’s plans to explore new business avenues such as asset management and life reinsurance companies over the next 12 months.
SLIC also faces challenges from provincial sales taxes on life insurance premiums, which adversely affect both policyholders and overall market growth. Despite these challenges, the potential for growth in the insurance market is significant, with only 0.6 percent of Pakistan’s GDP currently generated from insurance, far below the global average of 2.8 percent.
The Committee also approved an increase in registration fees for trade associations and discussed enhancing the budget for the Directorate General Trade Organizations (DGTO).
