The Banking Sector of Pakistan: The Case of Its Growth and Impact on Revenue Generation 2007 to 2012

Abstract

The banking sector of Pakistan played an important role in the growth and development of the economy of Pakistan. This study aims to find the reasons behind the growth of the banking sector and how it can influence the revenue generation of the sector. The reasons are investigated and the current state of the banking sector is also reviewed to study the growth patterns. The historical evidence is first collected and then analyzed, so the current survival of the sector could be studied even after the Global Financial Crisis. Financial Soundness Indicators provide further indept analyses of the factors which contributed towards the growth of the banking sector of Pakistan. The reforms in the banking sector which are the real reasons for the growth in the banking sector are summarized under the rationale behind growth in the banking sector of Pakistan. The banking sector of Pakistan is the only sector of the economy which survived the Global Financial Crisis. So, this study provides evidence that Pakistan's banking sector is still resilient and is profitable which suggests that it's still a healthy sector for the investors to make safe investments with reliable and consistent returns. The government and the common man both can be benefited by the positive performance of the banking sector of Pakistan.