30.7 billion to offset the losses incurred by these banks and recapitalized them. Professional bankers were appointed as Chief Executives and persons from the private sector enjoying a reputation of competence and integrity were nominated on the Board of Directors and ultimately the banks were privatized. Besides the privatization, fresh licenses were also issued to private sector sponsors to set up new commercial banks.
These new banks provided the necessary competitive stimulus in the 2  BIS central bankers’ speeches  system, and have contributed to the enhancement of banking services in Pakistan. Resultantly the overall share of private sector owned commercial banks in the banking sector assets increased from almost negligible in 1991 to about 80 percent by June 2004.