“INVESTMENT BANKING ISSUES IN PAKISTAN”

Abstract

Investment banks help in the development of strong economy in any country by helping its corporate sector through different services, by trading in capital market and money market products etc. In Pakistan investment banks start working in 1987 after the issuance of a notification named SRO 585(1) 87. After the commencement of these banks they are struggling hard for their growth and for the economic betterment of the country. Since their commencement these non-banking financial companies are facing different problems that are affecting their performance and creating hurdles in their smooth progress. That results in mergers and winding up of investment banks. Major problems faced by investment banks are less public awareness, high cost of funds, small network of branches and stiff competition among different financial institutions. The problems investment banks have, are affecting the expansion and performance of investment banks. These problems are identified as a great hindrance in the development of these financial institutions in Pakistan. This research aims at presenting highlighting these problems. For that purpose I have made different sessions of discussion with directors and employees of Securities and Exchange Commission. A questionnaire has also been designed to know the viewpoints of employees of investment banks regarding these problems. If investment banks cope up with these problems through different strategies and steps, they can develop further very rapidly and will contribute dynamically in the economic and financial system of the country.