Presently there are five banks which have been given the status of Authorized Derivative Dealers by SBP. The derivatives market is being regulated under SBP’s Financial Derivatives Business Regulation and covers interest rate swaps and forward rate agreements, in Pak Rupee and other currencies (after SBP approval). IV. Risks to financial stability  19.
The financial sector of Pakistan has experienced an extraordinary growth in recent years. Financial assets have grown to $ billion and are now equivalent to 125% of GDP (compared to 95% of GDP at end-1997) reflecting strong growth in banking sector assets  4  BIS Review 56/2008  and stock market capitalization. The substantial growth in financial sector brings with it associated risks.