ISLAMABAD (special crosspondent) – The Government of Pakistan has taken a major practical step toward the privatization of the State Life Insurance Corporation of Pakistan (SLIC). The Privatization Commission has formally initiated the process of appointing a financial adviser to structure and oversee the proposed transaction.

Privatization Commission Invites Proposals

Through advertisements issued both domestically and internationally, the Commission has invited interested firms and consortiums to submit technical and financial proposals by August 13, 2026. Once appointed, the adviser will conduct market assessments, engage potential investors, recommend the most suitable privatization strategy, and assist in ensuring a transparent transaction process. This move comes as the Pakistan Expresses Deep Concern Regarding Escalating Regional Tensions and Instability, highlighting the administration’s focus on economic stability through structural reforms.

Legislative Framework and Corporatization

Prior to any sale of shares or privatization, SLIC must be corporatized and converted into a limited company. To facilitate this, the Ministry of Commerce, in consultation with the Ministry of Law, has prepared a draft Insurance Act 2026, which has been forwarded to Parliament following federal cabinet approval. This legislative effort aims to provide the necessary regulatory framework for the state-owned entity, similar to other government efforts to improve institutional efficiency as seen in reports like Prime Minister Shehbaz Sharif Departs for Official Visit to Qatar.

Management Stance on Reform

SLIC’s management has emphasized that comprehensive legal, financial, and strategic due diligence is essential before any final decision is made. While the employees’ union has voiced opposition to the move, the management maintains that the government’s initiative is aimed at attracting greater private-sector investment and aligning Pakistan’s insurance sector with international best practices. These reforms are part of a broader push to modernize state assets, keeping with the government’s recent focus on promoting economic growth and gender inclusivity in corporate governance, as highlighted in initiatives discussed in Pakistan and Saudi Arabia Reaffirm Commitment to Women’s Empowerment Initiatives.