Besides the need for broadening and deepening of reforms, we need to further enhance the efficiency of financial markets and institutions to lower intermediation costs.
By and large, Pakistan’s financial sector has performed fairly well within the South Asian context as the system has benefited from the (i) privatization of banks, (ii) consolidation of the banking sector, (iii) strengthening of the prudential regulations for the banking industry; and (iv) introduction and enforcement of corporate governance.