An Appraisal of Banking Sector Reform in Pakistan: A Case of Commercial Banks

Abstract

Every nation required a bank that will help and supports their financial institutes, for this purpose in our country State Bank of Pakistan is working since 1948. After only one year of independence our leaders and other financial assistance come to this point that we also need a central bank which will help and supports our country financial system. The state bank of Pakistan was established in 1948 and its remains the financial advisor and country central bank. The State Bank of Pakistan plays an important role in the overall growth and development of the financial sector in the country. Major responsibilities of the State Bank of Pakistan are issuance of new currency, hold of gold and currency reserves, government bank, lender of the last resort, and supervisor of the other banks and also handled the national credit policy in the country. By legislation in the year October 1993, it reduced government control of the banks. (Ishrat Husain: Banking sector reforms in Pakistan, The Business People’s Magazine, January 2005.)