The current caretaker federal government has made the decision to boost the paid-up capital of the State Life Insurance Corporation, aiming to avoid a fine in the United Arab Emirates.
Insiders have informed ProPakistani that the authorized capital is set to rise from Rs. 8 billion to Rs. 9 billion, with the paid-up capital increasing from Rs. 6.2 billion to Rs. 8 billion.
This move is prompted by the regulatory requirements of the United Arab Emirates, where insurance companies are mandated to maintain a minimum paid-up capital of AED 100 million. The State Life Insurance Corporation found itself below this threshold due to the depreciation of the Pakistani Rupee against the United Arab Emirates Dirham.
It’s worth noting that State Life Insurance operates in the UAE through its Gulf branch.
