ISLAMABAD: The Privatisation Commission (PC) has taken the first major step towards the privatisation of the State Life Insurance Corporation of Pakistan (SLIC) by inviting technical and financial proposals for the provision of financial advisory services for the transaction.
An advertisement in this regard has already been published in leading local and international newspapers. Interested parties seeking appointment as Financial Adviser may submit their proposals—either individually or as part of a consortium—by 3:00 pm on August 13, 2026.
The lead firm or consortium is preferably required to be ranked in internationally recognised mergers and acquisitions league tables and must demonstrate a strong track record of executing large, similar transactions. The selected adviser will be required to constitute a core multidisciplinary transaction team comprising experienced professionals.
A detailed Request for Proposal (RFP), including Terms of Reference (ToRs), evaluation criteria, and a draft Financial Advisory Services Agreement (FASA), has already been made available on the Privatisation Commission’s website.
Following its appointment, the Financial Adviser will undertake sell-side due diligence, conduct market sounding, engage potential investors, structure the transaction, propose an appropriate divestment/ privatisation mode, market the asset, and assist the Commission in ensuring a transparent execution process.
Earlier, the corporatisation of SLIC was also taken up at the policy level. The Cabinet Committee on Privatisation (CCoP) and the Federal Cabinet have approved the divestment of up to 20 percent of the government’s shareholding in the corporation.
Also read: Privatisation: SLIC tells govt due diligence needed before any decision
However, corporatisation of SLIC remains a prerequisite for proceeding with the proposed divestment. The Ministry of Commerce has been tasked with undertaking corporatisation and the necessary legislative process.
Meanwhile, the National Assembly Standing Committee on Commerce, chaired by Jawad Hanif, has cleared the Insurance Bill, 2026, aimed at opening the sector to greater investment.
The proposed legislation seeks to address regulatory gaps, promote the development of the insurance market, strengthen the supervisory powers of the Securities and Exchange Commission of Pakistan (SECP), and align the legal framework with contemporary requirements. It also introduces enhanced safeguards for policyholders, provides for dispute resolution through the Federal Insurance Ombudsperson, allows third-party evaluations under SECP oversight, and establishes a comprehensive regulatory framework for insurance companies, including provisions related to asset and liability management.
After extensive deliberations, the committee recommended the bill for passage by the National Assembly. However, it is yet to be taken up by the Senate Standing Committee on Commerce, headed by Senator Anusha Rahman Khan. The State Life Insurance Corporation has informed the federal government that any decision regarding its corporatisation or privatisation would require detailed legal, financial, and strategic due diligence to be carried out in accordance with the prescribed legislative framework.
At the policy level, the Apex Committee of the Special Investment Facilitation Council (SIFC), in its meeting held on February 2, 2024, endorsed key reforms for the insurance sector, including enhancing competition, facilitating the entry of international insurers, strengthening enforcement mechanisms, and aligning the sector with global standards.
Subsequently, the Ministry of Commerce held consultations with key stakeholders, including the SECP, Finance Division, Insurance Association of Pakistan, and state-owned enterprises. Based on these consultations, proposals for amendments to the Insurance Ordinance, 2000, were formulated.
The matter was later referred to the Ministry of Law and Justice, which advised obtaining in-principle approval from the Federal Cabinet before formal drafting under the Rules of Business, 1973. Accordingly, the Prime Minister approved, placing the proposal before the Cabinet on September 21, 2025.
The Cabinet Committee for Disposal of Legislative Cases (CCLC), in its meeting on December 30, 2025, observed that introducing around 220 amendments to the existing law would complicate the process and instead directed the preparation of a new, comprehensive law. Consequently, the Commerce Division prepared the draft Insurance Act, 2026, in consultation with the Law Ministry.
The draft was vetted by the Ministry of Law and Justice on March 4, 2026, approved by the CCLC on March 10, 2026, and subsequently ratified by the Federal Cabinet on March 31, 2026.
Copyright Business Recorder, 2026
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