Insurance Sector in Pakistan

Insurance Sector in Pakistan

A Review of Insurance Sector and HRM/HRD Aspects

Prof. Dr. Khawaja Amjad Saeed*

Email: kamjadsaeed@yahoo.com

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Financial Sector

As of November 07, 2007 there were 637 companies which were listed on Karachi Stock Exchange with a total market capitalization of Rs. 4121 billion (66 billion $). This figure has registered an increase now and our Karachi Stock Market is approximately US$ 72 billion. Out of this financial sector constitutes 41% of the total market capitalization of Karachi Stock Exchange. However, the Insurance Sector is a small one and needs immediate attention for its growth, development and rapid expansion to meet the challenge of 21st Century for accelerating socio-economic growth of Pakistan with an emphasis on wider prosperity.

Insurance Sector

Insurance Sector has registered a very slow growth in the history of Pakistan. Based on our research, the following conclusions emerge:

1. Listed insurance sector on Karachi Stock Exchange in terms of companies is only 4.4%.

2. Share of listed insurance sector on total listed companies on Karachi Stock Exchange is only 1.41%.

3. Out of 637 listed companies, only 29 relate to insurance sector.

4. From the birth of Pakistan till now we have added only 29 listed companies- giving us a ratio of less than 0.5 per company per year.

5. Turnover for 10 months (January – October 2007) on the Karachi Stock market was only 1.55% of the total turnover.

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*Principal, Hailey College of Banking & Finance, University of the Punjab, Lahore Pakistan,

Email: kamjadsaeed@yahoo.com – Website: www.kamjadsaeed.edu.pk Mob: 03334363363

Member Governing Council, International Federation of Accountants (IFAC)...