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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.


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