ISLAMABAD: The National Assembly on Thursday passed a bill to turn state-owned State Life Insurance Corporation (SLIC) into a company, paving the way for greater operational flexibility and possible privatisation in the future.
The bill was moved by Minister of State for Finance and Railways Bilal Kayani and passed by the House by a majority vote after clause-by-clause reading.
According to the statement of objects and reasons accompanying the bill, the proposed amendments aim to address structural and operational constraints faced by the state-owned insurer and improve its efficiency, transparency and corporate governance.
The existing legal framework, rooted in the Life Insurance (Nationalisation) Order, 1972, established the nationalisation of the life insurance business and constituted State Life as a statutory entity.
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However, changes in the financial sector and the introduction of modern regulatory and governance standards have necessitated a review of the corporation’s legal and operational structure.
The amendments seek to facilitate the transformation of State Life into a company under the Companies Act, 2017, giving it greater operational flexibility and bringing its legal framework in line with the State-Owned Enterprises Act, 2023, and other relevant laws.
The proposed legislation also provides a framework for possible future divestment or privatisation, subject to approval by the federal government and compliance with applicable laws.
However, the amendments do not themselves constitute a decision to privatise or divest State Life. According to the statement of objects and reasons, they are intended to remove legal impediments should the government decide to pursue either option in the future.
The bill provides for the transfer of assets, liabilities, rights and obligations to the successor company to ensure continuity during the transition.
It also seeks to safeguard policyholders’ interests and protect employees’ existing terms and conditions of service, including retirement benefits.
Other provisions deal with transitional and consequential arrangements to facilitate the restructuring, resolve legal and procedural ambiguities, and provide exemptions from stamp duty and registration fees, where applicable.
According to the statement, the proposed amendments were finalised in consultation with relevant stakeholders and vetted by the Law and Justice Division.
The draft was approved by the Cabinet Committee for Legislative Cases on December 24, 2025, and ratified by the federal cabinet on December 26, 2025.
The House Privatization Commission (Amendment) Bill, 2026, was also laid before the House, which was referred to the relevant committee for further consideration.
The Oil and Gas Regulatory Authority (Amendment) Ordinance, 2026, was laid before the House, under clause (2) of Article 89 of the Constitution. The ordinance had earlier been laid before the Senate on October 13.
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