SECP Report Calls for Health Insurance Reform to Ease Pakistan’s Healthcare Burden

SECP Releases Strategic Report to Reform Pakistan’s Healthcare Financing Model

The Securities and Exchange Commission of Pakistan (SECP) has published a comprehensive report titled “Healthcare Ecosystem in Pakistan,” offering a critical analysis of the country’s healthcare financing challenges and proposing bold reforms to expand insurance coverage and reduce household financial strain.

Out-of-Pocket Spending Alarmingly High

According to the report, 47% of Pakistan’s total healthcare expenditure comes directly from patients’ pockets—far exceeding regional benchmarks:

• Malaysia: 38%
• Sri Lanka: 40%
• China & Indonesia: 33%

This heavy burden underscores the urgent need for a more inclusive and resilient health financing system.

A Roadmap to an Insured Pakistan

As part of its five-year reform initiative, “Journey to an Insured Pakistan,” SECP recommends:

• Expanding the health insurance market through innovative product development
• Improving pricing, underwriting, and regulatory oversight
• Increasing private sector engagement to diversify coverage options

The report calls for targeted policy interventions to make insurance more accessible and effective.

Tax Relief to Boost Individual Coverage

One of SECP’s key recommendations is for the Federal Board of Revenue (FBR) to exempt personal-line health insurance from sales tax. This move would:

• Lower costs for individuals
• Encourage uptake of retail health insurance
• Reduce reliance on corporate-sponsored plans

Currently, 99% of health insurance premiums come from corporate coverage, while retail insurance accounts for just 1%—a gap SECP aims to close.

Leadership Advocates Collaborative Reform

SECP Chairperson Akif Saeed emphasized the importance of integrating primary healthcare with universal health coverage, while Commissioner of Insurance Mujtaba A. Lodhi called for a stakeholder-driven roadmap to achieve sustainable reform.

Together, they envision a healthcare system that balances affordability, accessibility, and resilience—one that empowers individuals and strengthens national health outcomes.