Banking In Pakistan

Banking is considered as the most significant business in this modern age. Banks play a central part in the financial sector of any country as their role encompasses almost every business. Pakistan’s banking sector is also playing a pivotal role in country’s economy as mobilization of resources, poverty alleviation and controlling public finance. A well organized banking system including Central bank, commercial banks and a large number of institutions working in coordination to provide maximum range of financial services to different sectors. This banking sector took its start soon after independence and a rapid growth progressed all the way.

The central bank known as the State Bank of Pakistan was established in 1948, soon after the independence of country. This bank controls the monetary and credit system and performs the most significant organization to control the entire banking sector. Monetary policies and foreign currency reserves are also controlled by the State bank of Pakistan. The Bank also looks after the stability of the banking sector growth. Few years back the restructuring of financial institutions and the inland banking industry was done, the Government owe only National Bank rather its 80% of assets belongs to private sector. Within last five years the banking assets have gain rise of three-folds.

World Bank has ranked Pakistan on second position within South Asian countries as far as the efficiency and performance is concerned. The working scheduled banks are 68 and top five owe 50% of the market share. The mergers are also evident and a few banks are also, merged into other banks .An average of three mergers is seen in banking industry every year.


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