Pakistan’s banking industry has seen brisk growth in banking assets which today stand at over $ billion. Bank’s profitability is at an all time high and unprecedented, reaching close to Rs 95 billion by end 2005.
Finally, there has been an increase in measures of long-term inflation expectations derived from financial market indicators. While these indicators should be interpreted with caution, the recent upward trend calls for particular vigilance. Moving on to the monetary analysis, we have seen increasing evidence of a normalisation of the portfolio behaviour of private investors.