Financial sector reforms have led to improvement in the following areas: •  Financial depth has increased as Bank Assets to GDP ratio has improved from 49.1% in 1997 to 55.6% in 2005 whereas money supply (M2) to GDP ratio has also improved from 36% in FY 00 to 44% in FY 06.
Private credit to GDP which reveals the extent to which the banking sector is efficiently allocating funds to the productive sector of the economy has increased from 18% in FY 2000 to 27.4% in FY 2006. However despite improvements Pakistan lags behind its regional peers. •  Profitability as well as efficiency has increased in the banking sector.