'As economy stabilises, focus turns to reforms'
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS
Federal Finance Minister Muhammad Aurangzeb has emphasised that the government has achieved macroeconomic stability over the course of 12 months and now it is working on critical reforms.
He expressed these views while addressing the Insure Impact Conference, held under the aegis of the Securities and Exchange Commission of Pakistan (SECP), via Zoom on Wednesday.
Aurangzeb noted that Prime Minister Shehbaz Sharif had an encouraging meeting with the International Monetary Fund (IMF) managing director in Dubai. The IMF chief appreciated the structural reforms implemented by Pakistan's government.
He commented that everyone was aware of economic stability, adding that the government had outlined a vision for "Insured Pakistan," so faster and cheaper insurance would be of paramount importance.
The finance minister said that engaging in business was not the job of the government, nor did the state have the capacity to do so. "The government's job is to provide facilities and a better policy framework to the private sector," he remarked.
"Insured Pakistan is an idea. A lot has been said about where Pakistan stands, but now discussion should be centred around where Pakistan should be," he remarked.
Aurangzeb called the discussion on climate change at the Insure Impact Conference a positive initiative as innovation and high-value solutions were needed in life, healthcare and general insurance.
The government, cabinet and Ministry of Finance were ready to provide all kind of support to the private sector, he stressed, adding that if public sector insurance companies were in loss, they should be privatised and given to the private sector.
Addressing the conference, SCOR Country Representative Moin Fida said that discussion on crop insurance in Pakistan had been continuing till 2008 whereas Europe had implemented crop insurance in the 18th century.
Jubilee Life Insurance CEO Azfar Arshad revealed that the insurance rate in Pakistan was not even 1%.
He pointed out that fire incidents were occurring in shopping malls in Karachi and businesses of citizens were being destroyed, adding that goods could be insured for less than 1% and medium-sized businesses could protect their business for a small amount while considering the associated risks.