Historical perspective The current structure of the financial sector in Pakistan is the result of several policy shifts and developments. The eras of financial sector developments in Pakistan can broadly be segregated into 1947–70, 1971–90 and 1991 to date period. Prior to 1971, the primary focus was on developing commercial banks in the private sector and creating development finance institutions backed by the government.
The private sector development, however, almost clogged during the period 1971–1990, owing to the nationalization policy of the government. During this period, the banking sector came under the government’s control. Since 1990s, more liberal and market-based reforms have been followed.