KARACHI: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) MianAnjumNisar on Sunday appointed Dr. Murtaza Mughal as convener of FPCCI Central Standing Committee on Insurance for the year 2020.
Dr. Murtaza Mughal has been authorized to nine members in the committee who have experience and expertise in the insurance sector and he has been directed to furnish reports of the meetings of the said committee to the president FPCCI.
Moreover, he has been asked to keep close liaison with the FPCCI secretariat for assistance and guidance.
Speaking at the occasion, Dr. Murtaza Mughal thanked President FPCCI MianAnjumNisar and MianZahidHussain for their confidence and vowed to serve with full dedication and spread awareness about this important sector.
He said that the global economy is under stress due to coronavirus while the Pakistani economy is also facing many challenges. Industry, agriculture and services sector is not in good shape, inflation, low growth rate and inflation has left many businesses bankrupt and million unemployed while major crops are also going down creating food security problems and export issues.
Dr. Mutaza Mughal said that in such a depressing scenario, the importance of insurance has multiplied because it is the best tool to mitigate losses.
The government should encourage all the insurance sub-sectors and announce relaxations so that its volume can be increased which is currently lower than one percent of the GDP, he demanded.
Dr. Murtaza Mughal said that Pakistan lacks reinsurance facilities due to which a large chunk of insurance funds find their way to other countries which should be tackled properly.
There is a perception that insurance is against Islamic teachings, therefore, Islamic insurance called Takaful should be promoted.
He said that insurance companies are mostly focused on urban centres while ignoring rural areas which house almost sixty percent of the population.
The insurance companies have failed to capitalize on CPEC opportunity as expected and their business volume is Rs80 billion while the actual potential is Rs800 billion, he said.
