Pakistani President Arif Alvi said on Wednesday that his country needed to focus on improving the insurance sector to strengthen the national economy.

"There is a great need to strengthen the insurance sector, and necessary measures should be taken towards further enhancing the contribution of the insurance sector to the gross domestic products of the country," the president said during a conference on insurance in the country's southern Karachi city.

Emphasizing that bringing greater transparency in the insurance sector would increase the quantum of public investments, Alvi said that good insurance and banking products would enhance the trust of the people.

"The insurance sector can offer profitable products for the general public to incentivize savings by individuals for profitable investments and to support the economy simultaneously ... Also, the money parked in the real estate sector would move to other productive sectors of the economy to keep the wealth of the nation in circulation," he said.

He added that new products like crop insurance and social insurance should be introduced in the wake of the current climatic situation.

The president also highlighted that it is the duty of the state to provide a regulatory framework to the banking and insurance industry to bring growth and transparency.