5th International Young Scientist Congress (IYSC-2019).  International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

The Impact of Financial Liberalization on the Credit System of Pakistan: Historical Perspective

Author Affiliations

  • 1 Lahore School of Economics, PAKISTAN

Res. J. Recent Sci., Volume 2, Issue (3), Pages 74-80, February,2 (2013)


This paper provides an assessment and evaluation of impact of financial reforms on the structure of credit system of Pakistan. The analysis covers reform period of decade of 1990s, and post reform period of 2000-2007. Financial reforms have involved a paradigm shift in policy regime affecting changes in the structure of credit system, and governing its operations. The key factor has been a shift from nationalized financial system governed by administrative fiat to a privatized system whose operations are governed by deregulated and largely market based system. As a result the liberalized credit system intensified borrower concentration to the neglect of priority sectors.


  1. Afzal A. and Mirza N., Size, Diversification and Risk: Preliminary Evidence from Commercial Banks in Pakistan, Pakistan Journal of Commerce and Social Sciences, 6(2), Fothcoming (2012)
  2. Afzal A. and Mirza N., Interest Rate Spreads in an Emerging Economy: The Case of Pakistan’s Commercial Banking Sector, Economic Research, Forthcoming, (2012)
  3. Faruqi S., Pakistan’s Financial System. The Post Reform Era; Maintaining Stability and Growth, The Lahore Journal of Economics, 12(SE), 67–96, (2007)
  4. Khawaja I. and Din M., Determinants of Interest Rate Spread in Pakistan, Pakistan Development Review, 46(2), 129-143 (2007)
  5. Lepetit L., Nys E., Rous P. and Tarazi A., Bank Income Structure and Risk: An Empirical Analysis of European Banks, Journal of Banking and Finance, 32, 1452-1467 (2008)
  6. Berger A., Hasan I. and Zhou M., The effects of focus versus diversification on bank performance: Evidence from Chinese Banks, Journal of Banking and Finance, 34, 1417–1435 (2010)
  7. Elsas R., Hackethal A. and Holzhauser M., The Anatomy of Bank Diversification, Journal of Banking and Finance, 34, 1274 – 1287 (2010)
  8. Saunders A. and Schumacher L., The Determinants of Bank Interest Rate Margins: An International Study, Journal of International Money and Finance, 19, 813–832 (2000)
  9. State Bank of Pakistan. Banking System Review, SBP Publications (1990 - 2000), (2000)