Pakistan Banking Sector
Pakistan
Banking sector
Compiled by:
Consulate General of Switzerland
Karachi, 25th February 2011
1. ECONOMIC OVERVIEW:
Pakistan’s economy has been predominantly agrarian. Since Pakistan came into existence, the contribution of the agricultural sector to the GDP has declined gradually from over 50 percent in
1949-1950 to about 22 percent in the fiscal year 2009-10 (July 2009-June 2010). However, agriculture still remains the major sector of the GDP composition. Other economic sectors include industry and services, contributing to the GDP about 25 percent and 53 percent respectively.
Since its independence in 1947, Pakistan has transformed itself from a low skilled agrarian economy to a semi-industrialized economy. On the other hand, Pakistan has a long way to go in economic and social development as a large portion of its 180 million inhabitants is still living below poverty line.
During the last decade, economic developments in Pakistan have been - to a significant extent influenced by the Government’s Program for poverty reduction and the development of markets and the real economy. Following the liberalization of markets and the implementation of economic reforms, the following developments in the economic and social sector have been identified:
High GDP growth resulting from output and sales growth;
Monetary stability;
Developments of money and securities markets;
Improvements in the standard of living and poverty reduction (based on economic growth);
Development and reinforcement of the banking sector and enhancement of its role in the social and economic development of the country.
However, the economic development has been slowed down since 2008, as the macroeconomic situation deteriorated significantly owing to adverse security developments, large price increase of some commodities such as oil and food, global financial turmoil, and national political and security issues. Other challenges being faced by Pakistan’s economy include
Banking sector
Compiled by:
Consulate General of Switzerland
Karachi, 25th February 2011
1. ECONOMIC OVERVIEW:
Pakistan’s economy has been predominantly agrarian. Since Pakistan came into existence, the contribution of the agricultural sector to the GDP has declined gradually from over 50 percent in
1949-1950 to about 22 percent in the fiscal year 2009-10 (July 2009-June 2010). However, agriculture still remains the major sector of the GDP composition. Other economic sectors include industry and services, contributing to the GDP about 25 percent and 53 percent respectively.
Since its independence in 1947, Pakistan has transformed itself from a low skilled agrarian economy to a semi-industrialized economy. On the other hand, Pakistan has a long way to go in economic and social development as a large portion of its 180 million inhabitants is still living below poverty line.
During the last decade, economic developments in Pakistan have been - to a significant extent influenced by the Government’s Program for poverty reduction and the development of markets and the real economy. Following the liberalization of markets and the implementation of economic reforms, the following developments in the economic and social sector have been identified:
High GDP growth resulting from output and sales growth;
Monetary stability;
Developments of money and securities markets;
Improvements in the standard of living and poverty reduction (based on economic growth);
Development and reinforcement of the banking sector and enhancement of its role in the social and economic development of the country.
However, the economic development has been slowed down since 2008, as the macroeconomic situation deteriorated significantly owing to adverse security developments, large price increase of some commodities such as oil and food, global financial turmoil, and national political and security issues. Other challenges being faced by Pakistan’s economy include