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| EconomyOfPakistan » Banking Sector in Pakistan |
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Banking Sector in Pakistan |
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The nation of Pakistan is today a rapidly developing country. After its independence in 1947, the country has slowly emerged out of the shackles of poverty. Facing a number of challenges on both political and economic fronts, along with imprudent policies over the years, Pakistan’s economic growth rate has fluctuated considerably. However, the recent introduction of expansive economic reforms has resulted in a stronger economic outlook as a whole. This has also resulted in accelerated growth in several sectors, particularly in the manufacturing and financial services sectors. The Banking Sector in Pakistan is also one such sector that has undergone significant changes over time, playing a salient role for the economy of the country.
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The country of Pakistan is one of the key emerging markets of South Asia with a total population of over 140 million people. While its GDP is expected to grow at 7% (2007 est.), several factors such as macroeconomic stability and financial sectors reforms are all aimed at having a positive and significant impact on the real economy. Since 1997, the banking sector in Pakistan has been undergoing a comprehensive and complex process of restructuring. The reason behind this was to make these institutions financially set as well as to establish firm links within the sector for promotion of savings, investment and growth. Today some signs of improvement are visible within the banking sector; however a complete reversal, performance wise, is not projected until the completion of reforms.
The banking sector in Pakistan is highly regulated. The State Bank of Pakistan (SBP) is the Central Bank of Pakistan. It regulates the banking sector with complete autonomy, and is also responsible for licensing, directing, supervising, controlling and inspecting banks, as well as exercises various monetary control policy measures. The Securities and Exchange Commission of Pakistan also monitors the operations of the listed banks related to public shareholding matters. The banking sector in Pakistan also consists of Commercial Banks and Specialized Banking Institutions. Commercial banks operating in Pakistan can be divided into four broad categories, namely Nationalized Commercial Banks, Privatized Banks, Private Banks and Foreign Banks. Receiving assistance from the International Monetary Fund (IMF) as well as significant debt-relief from the United States, Pakistan’s banking sector also encompasses assistance from trade organizations and treaties such as ECO, SAFTA, ASEAN, WIPO and WTO. Highlighting key areas of improvement, the growth of non-agricultural sectors as well, has changed the structure of the economy.
The Pakistani banking sector has seen several changes and trends owing to its reform measures. Besides improved financial performance, the other trends include mergers and acquisitions activities with local private banks, expansion of branch networks of private and foreign banks, Rationalization of branches by nationalized banks, focus on consumer finance and local rupee deposits, emphasis on automation and customer service, Reduction in non performing loans and inward remittance channels.
Browse down through the links provided below to seek more informative details about the Banking Sector of Pakistan:
- Central Bank
- Nationalized Scheduled Banks
- Specialized Banks
- Private Scheduled Banks
- Foreign Banks
- Development Financial Institution
- Investment Banks
- Discount and Guarantee Houses
- Housing Finance Companies
- Venture Capital Companies
- Micro Finance Banks
- Islamic Banks
- Upcoming Financial Institutions or Ventures
- World Bank and Pakistan
For further information on other categories relating to Pakistan’s Economy keep browsing through the links at www.economyofpakistan.com
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