“The Impact of Banking Sector Reforms in Pakistan”

Abstract

Although banking sector development is important at the early stage of economic growth, general liberalization presuming a homogeneous bank role may not necessarily promote growth. This paper is aimed at drawing lessons from the recent experience of Pakistan in the implementation of financial sector reforms. Financial sector development and economic development are inter-related and a healthy banking sector is directly related to the economic growth of Pakistan. This paper has tried to unfold why there was a need for such reforms, some of the major reforms introduced and the role of State Bank and other Regulatory authorities in the implementation of such reforms. Finally the impact of these reforms on the financial, or to be more specific, the Banking sector of Pakistan has been discussed.