SECP unveils strategic roadmap on future of Takaful in Pakistan

June 05, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has published a comprehensive study titled “Future of Takaful in Pakistan – A Diagnostic Study”, which assesses the current landscape of the Takaful sector and outlines a strategic roadmap to reshape the Takaful sector in Pakistan.

The study provides a detailed analysis of the Takaful sector’s performance, market share trends, and comparison with conventional insurance, as per the press release issued today.

It also emphasizes the evolution of the regulatory framework since the introduction of Takaful in Pakistan in 2005.

It also benchmarks Pakistan’s Takaful sector against international markets, including Malaysia, Saudi Arabia, Sudan, and Indonesia.

Despite being part of the insurance sector for nearly two decades, Takaful currently constitutes only around 12% of the total insurance contributions in Pakistan.

The study identifies key challenges impeding the sector’s growth, such as limited public awareness, trust deficits in governance, inadequate product positioning, and human resource constraints.

Additionally, regulatory gaps and limited domestic Retakaful capacity further hinder the sector’s development.

Recognizing the broader shift toward Islamic finance, the study proposes a series of targeted policy recommendations and action points to support this transition.

These include regulatory reforms, awareness initiatives, and stakeholder collaboration.

The report can be accessed on the SECP's official website.SECP encourages all stakeholders—including policymakers, regulators, insurers, and Shariah governance professionals—to review the study.

They are urged to actively participate in the collective effort to build a vibrant takaful ecosystem in Pakistan.