SECP commits to strengthening Takaful industry framework

October 16, 2025 (MLN): Reaffirming its commitment to promote Islamic finance and financial inclusion, the Securities and Exchange Commission of Pakistan (SECP) emphasized the need for collective ownership and collaboration to drive the country’s transition toward Shariah-compliant insurance.

The remarks came during a roundtable discussion titled “The Future of Takaful in Pakistan”, organized by the SECP in Karachi as part of its five-year strategic initiative, Insured Pakistan.

The session brought together Shariah advisors, international insurance brokers, including AON and Guy Carpenter, and representatives from the insurance industry to explore strategies for expanding the Takaful market.

Commissioner Insurance Mujtaba Ahmed Lodhi underscored the SECP’s commitment to creating a facilitative regulatory environment and assured full institutional support for the industry’s growth.

Meanwhile, Mufti Ehsan Waqar, member of SECP’s Shariah Advisory Board, highlighted the importance of transitioning to Shariah-compliant insurance in light of recent constitutional reforms.

He called for close collaboration between the regulator and industry participants to develop clear and practical guidelines for the conversion process.

The SECP team outlined key challenges faced by the Takaful sector, including limited re-Takaful capacity, product conversion hurdles, and the need for stronger regulatory and governmental backing.

International insurance brokers shared insights on global reinsurance and re-Takaful practices, suggesting ways Pakistan can align with international standards.

The session concluded with an open discussion on innovation, capacity building, and enhanced cooperation within the sector.

Participants commended SECP’s proactive approach and reaffirmed their commitment to collectively advancing the Takaful industry in support of a fully insured and financially inclusive Pakistan.

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