Finance Minister Aurangzeb reviews insurance sector budget 2026-27 proposals

Finance Minister Muhammad Aurangzeb met a delegation from the Insurance Association of Pakistan on May 5, 2026, in Islamabad to discuss sector proposals ahead of the Federal Budget 2026-27. The Finance Division said the meeting covered taxation, regulatory issues, and measures to expand insurance penetration.

What did the insurance sector propose for Pakistan's Federal Budget 2026-27?

The Insurance Association of Pakistan called for greater consistency in the tax structure, clarity in sector-specific laws, and the restoration of tax incentives for policyholders. The delegation also proposed measures to promote long-term savings and expand insurance penetration, with a focus on increasing participation among salaried individuals.

The delegation was led by IAP Chairman Shoaib Javed Hussain. Aurangzeb welcomed the proposals and said continued engagement with key sectors is important to ensure policy measures align with economic priorities. He reaffirmed the government's commitment to developing the financial sector while maintaining fiscal balance.

What tax and regulatory concerns did the insurance industry raise?

Participants discussed the existing taxation framework, including the interaction between federal and provincial levies and their effect on the sector. The delegation called for greater predictability in the tax structure to support sectoral development. It also sought clarity in the application of sector-specific laws, particularly in relation to evolving policy and accounting standards.

The delegation identified stronger alignment of investment frameworks and long-term instruments as a priority for deepening the insurance sector's role in financial sector development. Participants also emphasized the importance of continued engagement with regulators and policymakers. Aurangzeb said the proposals would be reviewed in the context of the upcoming budget.

The meeting was attended by senior IAP officials and representatives from the Ministry of Finance, including officials from the Tax Policy Office and Inland Revenue.