Big Daddy LIC manages money nearly double the size of Pakistan's economy

Pakistan's GDP, on the other hand, is only about $338.24 billion, according to the IMF. At $616 billion, LIC's mountain of money is now nearly double as big as Pakistan's .

The size of the PSU insurance behemoth's fund, which has been praised by Prime Minister in the Parliament, is also bigger than the combined GDPs of three neighbours - Pakistan ($338 billion), Nepal ($44.18 billion) and Sri Lanka ($74.85 billion).

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Weakening Pakistan

While India is seen emerging as an economic superpower in the impending problem-ridden global financial landscape, debt-laden Pakistan has been struggling to make ends meet and narrowly escaped a sovereign debt default last month.

The (IMF) has expressed serious concerns about Pakistan's ability to repay its debts saying that high political uncertainty and resurgence of social tensions could undermine economic stabilisation policies.

According to the IMF, Pakistan requires gross financing of $123 billion over the next five years, with the country expected to seek $21 billion in fiscal year 2024-25, $23 billion in 2025-26, $22 billion in 2026-27, $29 billion in 2027-28, and $28 billion in 2028-29.

LIC's increasing might

In FY24, reported a profit of Rs 40,676 crore and total premium income of Rs 4,75,070 crore. During the financial year, it allocated a bonus of Rs 52,955.87 crore to participating policyholders.

With a market share of nearly 59% in the Indian life insurance business, LIC is now looking to foray into the health insurance sector, and is currently assessing potential acquisition prospects.

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On the exchanges, LIC is the 7th largest stock by . Last valued at Rs 6.46 lakh crore, shares of the company have grown by nearly 52% in 6 months.

Through the President of India, the Indian government owns a 96.5% stake in LIC. Removing the OFS overhang on the stock, markets regulator Sebi has extended the timeline for LIC to achieve 10% public shareholding till May 2027 and 25% public holding till 2032.

Being a government-owned entity, LIC has also been the topic of political discussions with Prime Minister Narendra Modi telling the Parliament in February that the Opposition used to spread 'bhootiya bangla' type fake stories on the insurance behemoth.

"They (Opposition) used to make all kinds of statements on LIC. They said all negative things about LIC. The trick is if you want to destroy someone, spread rumours and false stories. In a village, if someone has a big bungalow and someone else wants to acquire it, people spread rumours that it is a 'Bhootiya Bungalow' (haunted house). When nobody else buys, they buy it," PM Modi had told the House in February.

LIC shares ended Tuesday's session lower by 1.4% at Rs 1,021.4 on . Global brokerage firm has upheld its 'Overweight' rating on LIC with a target price of Rs 1,340.

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