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Explain The Developments In Banking Sector Of Pakistan?

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At the time of independence, there were only two Pakistani banks that were Habib Bank Limited and Australia Bank. At this stage, Pakistan had 631 branches of scheduled bank and 411 offices of non-scheduled banks.

It was not possible to set up the central bank immediately after independence, hence it was agreed that Reserve Bank of India will act as central bank of Pakistan till 30th September 1948. But it fails to safeguard the interest of Pakistan's banking affairs. It was now felt that establishment of the country's own central bank is the only situation for the removal of financial difficulties and for sound development of banking system in the country.
State Bank of Pakistan, in addition to its normal duties as Central Bank, played a very important role in the development, controlling and modernizing the bank system of the country. With this development, new commercial banks with country wide branches were established.

A privatization commission was set up in January 1991, who privatized allied bank ltd. In addition to this policy, government has allowed the establishment of new private bank in August, 1991 as a result of many new banks like INDUS BANK, MEHRAN BANK and SONERI BANK are established having their branches almost in all important cities of the country with the largest banking facilities and efficient administration

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