As a regulator and supervisor as well as adviser to the Government, the SBP carried out diagnostic studies, prioritized the constraints facing the banking sector, designed the reform strategy and action plan, sought the assistance of the Government of Pakistan and international financial institutions, monitored the progress and made policy, regulatory and institutional changes to facilitate the process.
Where does the Government come in the picture and what did it do? The Musharraf Government made some critical policy decisions, i.e. they will not keep the banks under Government ownership and control but privatize them. Politically tough problems such as reducing the labour force and closing down redundant and unprofitable branches were dealt with boldly. The Government injected Rs.