Govt to Increase Paid-up Capital of State Life Insurance Corporation

The caretaker federal government has decided to increase the paid-up capital of the State Life Insurance Corporation to avoid a fine in the United Arab Emirates. Sources told ProPakistani that the authorized capital will be increased from Rs. 8 billion to Rs. 9 billion while the paid-up capital will be increased from Rs. 6.2 billion to Rs. 8 billion. The increase was necessary due to the regulatory requirements of the United Arab Emirates. Under the regulations, the paid-up capital of insurance companies in UAE has to be at least AED 100 million. The paid-up capital of State Life Insurance Corporation had slipped below the required level due to the depreciation of the Pakistani Rupee against the United Arab Emirates Dirham. It is pertinent to mention here that State Life Insurance operates in UAE through its Gulf branch.