Federal Finance Minister Muhammad Aurangzeb held a detailed meeting with a delegation of the Insurance Association of Pakistan (IAP) to discuss issues related to the insurance sector in the context of Budget 2026–27.
The delegation was led by IAP Chairman Shoaib Javed Hussain.
During the meeting, both sides held extensive consultations on the current challenges faced by the insurance industry, including taxation, regulatory frameworks, and sectoral growth. The finance minister appreciated the budget proposals submitted by the insurance industry and acknowledged its constructive role in the financial sector.
Aurangzeb stated that the government remains committed to strengthening the financial sector and ensuring overall economic stability in the country.
Participants reviewed the existing tax structure along with federal and provincial levies imposed on the insurance sector. The finance minister emphasized the importance of maintaining continuity, harmony, and predictability in taxation policies to support long-term investment and industry growth.
The IAP delegation proposed the restoration of tax incentives for policyholders and also suggested reforms to align insurance sector laws with modern accounting standards.
Discussions further focused on measures to promote savings in the country and expand access to insurance services. Proposals were also presented to increase participation of the salaried class in insurance schemes.
The meeting also included discussions on developing a stronger investment framework to integrate the insurance sector more effectively into broader financial development.
Finance Minister Muhammad Aurangzeb assured the delegation that their proposals would be carefully reviewed and considered during the formulation of Budget 2026–27.