ISLAMABAD, June 22: Securities and Exchange Commission of Pakistan (SECP) has directed 14 insurance companies to submit their plans for raising their paid-up capital to Rs80 million for which the deadline is December 31, 2004.

The objective, says an SECP press release, was to enhance the claims paying ability of insurance companies, as required under the Insurance Ordinance, 2000. Out of 37 local non-life/general insurance companies operating in Pakistan, according to SECP press release, 23 have fulfilled this requirement.

Incidentally, these companies account for 90 per cent of the insurance business in the country. The remaining 14 companies, which have been directed to ensure compliance with the statutory requirement of the Ordinance, by the prescribed date, are mostly small ones.