The National Assembly has approved a bill to convert the State Life Insurance Corporation (SLIC) from a statutory corporation into a company, paving the way for potential restructuring and possible privatisation in the future.
Minister of State for Finance and Railways Bilal Kayani presented the legislation, which received majority support following a clause-by-clause review. The move replaces State Life’s existing legal structure, established after the nationalisation of Pakistan’s life insurance industry in 1972, with a framework governed by the Companies Act, 2017.
According to the government, the change will improve operational flexibility, strengthen corporate governance and align the insurer with modern financial-sector regulations and the State-Owned Enterprises Act, 2023.
However, the bill does not authorise an immediate privatisation. Any future sale of government shares or transfer of ownership will require federal government approval and compliance with the relevant legal procedures.
The legislation also ensures continuity of State Life’s operations by transferring its existing assets, liabilities, contractual rights and obligations to the new company. It includes safeguards for policyholders and guarantees the continuation of employees’ existing service conditions and retirement benefits.
Additional provisions cover property transfers, administrative arrangements and applicable exemptions from stamp duty and registration charges to facilitate the transition.
The draft legislation was cleared by the Cabinet Committee for Legislative Cases on December 24, 2025, and approved by the federal cabinet on December 26, 2025, before being presented to parliament.
The bill’s passage marks an important step in restructuring State Life, while any decision regarding the government’s future ownership stake remains subject to a separate approval process. During the same session, the government also presented the Privatisation Commission (Amendment) Bill, 2026, which was referred to the relevant parliamentary committee for review.
