The Asian Development Bank (ADB) has approved a $700 million loan for Pakistan to overhaul its insurance sector and enhance financial resilience. The “Insurance Transformation Programme” aims to broaden insurance coverage, currently at a low 0.7% of GDP, and reduce financial vulnerabilities to disasters and economic shocks. Key reforms will shift Pakistan’s insurance system from a rules-based to a risk-based, market-oriented model, encouraging private sector involvement and sustainable growth. The program will focus on expanding financial protection for households, businesses, farmers, and public finances against risks like extreme weather events. Specific attention will be given to developing insurance products tailored for women, girls, and vulnerable populations, utilizing digital access and targeted design. The ADB anticipates these changes will lessen the burden on public finances following crises and accelerate recovery efforts.