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order or otherwise.5 (1) and 5(B)Banking Co’s Ordinance. Accepting for the purpose of lending or investment of deposits of money from public. (sec. 1962 of Pakistan) . draft. repayable on demand or otherwise and withdrawal by cheque.

 Habib Bank. until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. For nearly a year after partition. Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially. . Allied Bank and National Bank were amongst the first to start operations with strong support from the central bank.

Under the nationalization policy implemented by Zulfikar Ali Bhutto’s government. Commercial banking grew favorably in Pakistan until 1974.  thirteen banks were brought under full government control. and consolidated into six nationalized banks .

the financial sector grew to serve primarily large corporate business. and many billions of rupees were unsurprisingly funneled out of the financial system as “bad loans”.  Board of Directors and CEOs were not independently appointed. . Over time. Lending decisions were not always commercially motivated. politicians and the government.

and 23 banks were established – of which ten were domestically licensed  By 1997. there were still four major state-owned banks. but they now faced competition from 21 domestic banks and 27 foreign banks. the Bank Nationalisation Act was amended. . By 1991.

The central bank’s regulatory powers were restored via amendments to the Banking Companies Ordinance (1962) and the State Bank of Pakistan Act (1956) . transformational reforms were pushed through. After privatization.

 EasyPaisa.25 domestic private banks. six foreign banks and four specialised banks.348 bank branches spread throughout the country. Buoyed by the spirit of liberalisation. the sector’s landscape has changed significantly. there were five public commercial banks. Omni Bank And Different Type of Short Banks Introduce in Pakistan . catering to the needs of some 28 million deposit account-holders. By 2010. There are now 9.

50% 0.50% 5.50% 8.50% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 .50% 7.INTREST RATE 9.50% INTREST RATE 2.50% 6.50% 3.50% 1.50% 4. Indicators From   .worldbank. 246517 History Of Banking Published in Tribune by Amna Khalabat Dated: November 4. 2011 Link: http://tribune.webs.