Discuss The Role Of Allied Bank In The Economy Of

Pakistan?

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Allied Bank of Pakistan plays an important role in the economic development of
Pakistan. The bank is bringing a rapid growth in various sectors of the Pakistani economy
by their efficient, effective and disciplined mechanism in banking systems. Few of its
roles are:
1. Rising Financial Resources: The bank encourages its customers' saving habit by giving
various types of incentives on their savings. The bank is gaining more and more
recourses by spreading its network throughout Pakistan, and it has over 7,000 branches in
the country's rural and urban areas. The bank is also supporting the business community
which make use of resources for productive purposes in Pakistan's economic
development.
2. New Investment Opportunities: Businessmen usually hesitate to invest their money in
new enterprises. The Allied Bank of Pakistan provides the opportunities to the
businessmen to invest their money in new enterprise where the bank's financial analyst
guides them about which sector suite them. For adopting new technologies and
production method, the bank also provides short-term and medium-term loans on very
low interest rate along with financial assistance. This provision of timely credit increases
the productive capacity of the Pakistan economy.
3. Promotion Of Trade Of Industry: The bank always seeks to promote the country's trade
and industry by providing many facilities such as allied online, bank demand draft,
claques over drawn facility, bill of exchange, foreign currency account, allied bank
master card, etc to revolutionized both national and international trade.
4. Development Of Different Regions: It plays a key role in development various regions
in Pakistan. The bank helps the government transfer the surplus capital from one region
to another by announcing different schemes. Then traders and industrialists of less
developed region are able to get adequate capital for meeting their business needs. This,
in return, increases investment, trade and production in the country.
5. Export Promotion Cell: The bank set up its export promotion cell to increase the
country's export. They provide information about general trade and economic condition
of the country and government policies about customers' interest both inside and outside.
The bank's management understands the demand of global customers. To rectify their
difficulties, they introduce online banking services along with latest information network
into international banking.

What Is The Brief History Of The Allied Bank Of Pakistan?

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If we look into historical background, than in the early 1940 the Muslim community was realize
to have participation in the field of commerce. Hindus believe that banking was unsuited
profession for Muslims. But Khawaja Bashir who was the chairman of bank make the Muslims
realize that they could be successful in field of banking. So, he established Muslim bank in
Punjab by the name of Australian bank Limited. It works from 1940 till 19 73 as fully Muslim
bank.

At the time of independence all the branches in India, include these main cities Amritsar, Batala,
Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in
Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it network
spread to Multan & Quetta.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches when East Pakistan
was separated. The bank did well in despite losing lot of its assets. By the end of 1973 the bank
had 186 branches in West Pakistan. But at the end of 1973 the Australian bank was dissolve and
the name was changed as Allied Bank of Pakistan.116 branches was opened. It also works on
agricultural and sports departments. It has three branches in United Kingdom as well. In 1993
the "First Allied Bank Modaraba (FABM) was floated. It had become a premier institution after
privatization.

Management of the family properties led to the business of managing other people estates &
the new bank soon encountered opposition from the established banks.
ALLIED BANK OF PAKISTAN LIMITED is the first Muslim bank established on the territory of
Pakistan, on December 3, 1942, as the Australasia Bank at Lahore with a paid up share capital of
Rs: 0.12 million under the chairmanship of Khawaja Bashir Bukhsh. The bank had attracted
deposits equivalent to Rs: 0.431 million in its first eight months of the business.
The bank's history may be divided into several distinct phases. The 1970s was a difficult decade
for all Pakistani banks. Australasia bank lost more then 50 branches & deposits worth Rs: 54.444
million.
Realizing the robust financial strength of the Australasia bank limited among all the nationalized
financial institution, the government decided to merge three financial weak institutions, namely
SARHAD BANK LIMITED, LAHORE COMMERCIAL BANK LIMITED and PAK BANK LIMITED into
AUSTRALASIA BANK LIMITED and re-named it as ALLIED BANK OF PAKISTAN LIMITED.
In September 1991, Allied bank entered in a new phase of its history, as world's first bank to be
owned and managed by its employees. The shares at different stock exchange of Pakistan are:
Islamabad Stock Exchange 8th August 2005
Lahore Stock Exchange 10th August 2005
Karachi Stock Exchange 17th August 2005

Now all shareholders of Allied Bank Limited can trade in the shares of the Bank at their free will.

The Allied Bank of Pakistan is situated in Lahore. It was set up in the year 1942. It is one of the
largest banks and it has over 700 branches. Over the period of time, right from the time of
establishment of the bank, it has been going at very fast rate.

In the 1940's the Muslim community felt the urgent need of a bank so that can boost their trade
as well as the industries. Khawaja Bashir Bux laid the foundation of a bank exclusively for fellow
Muslims so that in December 1942. Australasia Bank was the only successful and functional
bank for Muslim which was established in 1947. The bank made good progress. In 1970, about
101 branches were launched whereas 51 were lost due to the partition of Pakistan and
neighbouring countries. In 1974, this bank was given a new name called the Allied Bank; around
748 banks were established by 1991. It also established around three banks in UK. It was
privatized in the September 1991.