NA panel defers MoC’s ‘The Life Insurance Nationalisation (Amendment) Bill’

ISLAMABAD: A National Assembly panel on Wednesday deferred the Commerce Ministry’s The Life Insurance Nationalisation (Amendment) Bill, 2026, which seeks to convert the corporation into a company in preparation for privatisation.

The panel comprising Dr Mirza Ikhtiar Baig, Asad Alam Niazi, and Shaista Pervaiz Malik, questioned the Commerce Ministry’s team about the proposed amendments to the SLIC law and rationale the reasons behind them.

Director General, Ministry of Commerce, Muhammad Ashraf, gave a presentation to the panel on the proposed amendments. He stated that the insurance sector has evolved significantly in terms of regulatory standards, governance norms, and market competition. He further explained that the proposed amendments aim to align SLIC with the SOE Act 2023 and restructure it into a corporatised entity to enhance governance and efficiency.

Initially, the Commerce Ministry’s team maintained that the amendment to the SLIC law had nothing to do with privatisation. However, panel member Asad Alam Niazi questioned this stance, arguing that the ultimate purpose of the amendment was to privatise SLIC as a company and queried as to why the Ministry was attempting to conceal this. His viewpoint was endorsed by other members of the panel.

After observing the panel’s mood, the Director General acknowledged that while the amendment may eventually lead to privatisation, the immediate objective was to align SLIC with the SOE Act.

A representative of the SLIC Union opposed the corporatisation or privatisation of the entity, stating that the government’s share stood at just 6 per cent, while approximately 96 per cent of the stakes — amounting to Rs 1.93 trillion — was owned by policyholders, including people from lower-income groups. He argued that SLIC’s purpose was to serve the public, not to divest its shares. He also shared a clause-by-clause response to the proposed amendments.

The panel asked Chief Executive Officer SLIC, Shoaib Javed Hussain, to submit a para-wise reply to the concerns and claims raised by the union representative so that a middle ground could be explored. However, when the CEO initially refused to comment on the union’s report, the panel took a strong view of his attitude. Panel member Asad Alam Niazi censured the CEO for failing to comply with the National Assembly panel’s direction.

Later, the CEO tendered an apology, clarifying that he had not intended to defy the panel and assuring members that he would submit the company’s response within three weeks.

Dr Mirza Ikhtiar Baig, Asad Alam Niazi, and Shaista Pervaiz Malik argued that since a decision had already been taken to convert SLIC into a company for further corporatisation and possible privatisation, it would be better for both the entity and its employees to be on the same page to create a win-win situation.

After detailed discussion, the panel decided to defer the matter for some time to allow the CEO of SLIC to submit responses to the questions and concerns raised by the union.

Copyright Business Recorder, 2026