Commerce Ministry is reportedly facing pressure to liberalize the insurance sector for international investment and divestment of insurance companies. SECP Chairman Akif Saeed revealed that a draft Insurance Ordinance has been shared with the Ministry of Commerce, suggesting a move towards opening up the sector.
This development emerged during a meeting of the Working Group of the Special Investment Facilitation Council (SIFC), chaired by Secretary Finance, Imdad Ullah Bosal. Chairman SECP Akif Saeed expressed readiness to assist the Ministry in promptly examining the draft ordinance.
The divestment process falls under the jurisdiction of the Ministry of Commerce, while SECP is tasked with expediting regulatory recommendations. The Ministry of Commerce responded affirmatively, stating that the draft ordinance is under examination in consultation with stakeholders. SECP Chairman offered further assistance for the timely completion of this process.
The sources revealed that the SIFC has endorsed policy objectives aimed at reforming the insurance sector, including increasing competition, facilitating access for international companies, enhancing enforcement, and corporatization/divestment of public sector insurance companies to align with global practices.
The Commerce Ministry has been directed to expedite efforts towards achieving these policy objectives and involve SECP in the consultative process. Additionally, discussions are scheduled between the Ministry of Commerce, Finance Division, and SECP to explore investment possibilities in the insurance sector, with updates to be provided in subsequent meetings.
Regarding pending payments to international entities, including the Digital Cooperation Organization (DCO), the Additional Finance Secretary (External Finance) reported progress in data consolidation. An amount of $43.606 million has been released by the Finance Division, with further cases under consideration.
Furthermore, the meeting addressed additional financial requirements for the Ministry of IT&T and negotiations with M/s Etisalat, emphasizing the coordination efforts of relevant ministries and departments to ensure timely progress.
In conclusion, the meeting outlined steps for evaluating equity funds, progressing with agri-stock monetization, and coordinating with the Government of Kuwait for investment in agri-warehouses, underscoring a concerted effort towards economic development and investment facilitation.
