The Securities and Exchange Commission of Pakistan (SECP) has organised a roundtable discussion to identify policy and regulatory measures to enhance the takaful industry's market share and promote Shariah-compliant financial inclusion, thereby contributing to economic growth and ongoing regulatory reforms.
The event, titled “The Future of Takaful in Pakistan”, was part of the SECP’s ‘Insured Pakistan’ five-year strategic plan, said a statement released by the financial regulator. The SECP targets the share of takaful contributions to exceed 30% of the total industry premiums by 2028. This goal aligns with the decision of the Federal Shariah Court of April 2022, requiring the conversion of Pakistan into an equitable, asset-based, risk-sharing and interest-free economy by December 2027.
The half-day roundtable, held on 16 October, brought together Shariah advisors, international insurance brokers (Aon and Guy Carpenter), and insurance industry representatives.
In his welcome address, Mr Mujtaba Ahmed Lodhi, Commissioner of Insurance, emphasised the importance of collective ownership in driving the transition toward takaful. He reaffirmed the SECP’s commitment to providing a facilitative regulatory environment and extended full support to the industry for implementing the future roadmap.
Mr Mufti Ehsan Waqar, a member of the SECP’s Shariah advisory board, highlighted the importance of transitioning to Shariah-compliant insurance in light of recent constitutional reforms. He outlined key industry challenges and urged both the SECP and market participants to collaborate on developing clear guidelines to facilitate this transition.
The SECP team outlined the takaful sector’s key challenges and strategic priorities, while also highlighting its broader efforts to promote Islamic finance across the financial industry. Representatives of the Insurance Association of Pakistan identified potential issues, including the limited availability of retakaful capacity, the conversion of conventional insurance products, and the support required from the regulator and government to address them.
Representatives of international insurance brokers shared valuable insights on global reinsurance and retakaful trends, outlining challenges and opportunities for Pakistan’s takaful sector in aligning with international best practices.
The roundtable concluded with an open discussion where participants shared their views on the way forward.
In June 2025, the SECP released the report, “The Future of Takaful in Pakistan -- A diagnostic study”, aimed at establishing a foundation for informed discussions on takaful among industry participants, regulators, policymakers, Shariah scholars, industry experts, consumers, and other key stakeholders. The insights provided are intended to drive concrete actions to strengthen the Shariah-compliant insurance ecosystem and conversion towards an interest-free economy.