Country Briefing Note: Pakistan (NM)

With the fifth largest population in the world and 181m people categorised as “emerging consumers”, Pakistan represents a significant opportunity for the inclusive insurance sector, particularly as the country faces various social, economic, political and environmental risks. Insurance has been an evolving area due to low penetration, high climate risk vulnerability and gender gaps in financial access.

● The 2022 floods highlighted the immediate need to strengthen financial preparedness for disasters in Pakistan, focusing on insurance and other risk transfer instruments.

● Among the major sectors, agriculture is projected to be most impacted, with floods causing damage to crops, livestock and property.

● Lower agricultural and industrial productivity is expected to directly affect low-income households that are highly dependent on these sectors for employment.

● The government has made significant progress in digitisation and provision of digital financial services as part of National Financial Inclusion Strategy objectives.

● Better gender disaggregated data and product offerings are needed to bridge the gender gap in access to financial services.

● Pakistan is one of the first recipients of the Global Shield support and, as a Pathfinder country, it will benefit from support packages through the implementation of in-country processes.