Takaful Sector Constitutes 12% Share in Pakistan’s Insurance Sector: SECP 

Despite being part of the insurance sector for nearly two decades, Takaful currently constitutes only around 12% of the total insurance contributions in Pakistan, according to a study published by the Securities and Exchange Commission of Pakistan (SECP) on “Future of Takaful in Pakistan – A Diagnostic Study”, which assesses the current landscape of the Takaful sector, and outlines a strategic roadmap reshaping the takaful sector in Pakistan. The study provides a detailed analysis of the Takaful sector’s performance, market share trends, and comparison with conventional insurance, while highlighting the evolution of the regulatory framework since the introduction of Takaful in Pakistan in 2005. It also benchmarks Pakistan’s Takaful sector against international markets, including Malaysia, Saudi Arabia, Sudan, and Indonesia. The study identifies key challenges impeding the sector’s growth, such as limited public awareness, trust deficits in governance, inadequate product positioning, human resource constraints, regulatory gaps, and limited domestic Retakaful capacity. Recognizing the broader shift toward an Islamic financial the study proposes a series of targeted policy recommendations and action points to support this transition, including regulatory reforms, awareness initiatives, and stakeholder collaboration. The report can be accessed on the SECP’s website. SECP encourages all stakeholders—including policymakers, regulators, insurers, and Shariah governance professionals—to review the study and actively participate in the collective effort to build a vibrant, takaful ecosystem in Pakistan.