Senate passes bill paving way for possible privatisation of State Life Insurance Corporation

Pakistan’s Senate passed an amendment on Thursday that would let State Life Insurance Corporation be reorganised as a company, clearing a legal obstacle to possible privatisation later. The bill had already cleared the National Assembly and changes the framework established by the Life Insurance (Nationalisation) Order, 1972. It does not approve a sale or signal that the government has decided to privatise the insurer.

If the federal government later approves a sale and meets the applicable legal requirements, the new framework would permit it. A successor company would take over State Life’s assets, liabilities, rights and obligations, while existing policyholders’ interests and employees’ service conditions, including retirement benefits, would be protected. The measure also aims to give the state-owned insurer greater operational flexibility and align its structure with company and state-owned enterprise laws. Profit by Pakistan Today reported that the Senate passed eight bills during the session.