Pakistan’s economic strength has gradually eroded in 2021, and it now faces a critical crisis. Record-breaking inflation has rendered the most basic items unaffordable to many Pakistanis, and government debt is growing alongside it, while exports remain stubbornly steady. How can Pakistan get back on an ascending financial flight path?
The financial crisis of 2007-08 hit the global market hard and also impacted the Pakistan banking industry. The slowdown in the banking industry was witnessed in the final quarter of 2008, when the deposits of Pakistan banks started falling.
The Pakistan banking industry constitutes a total of around 31 banks, of which five are public-sector and four are foreign, while there are 22 local private banks. The majority of the banking business is concentrated in a select few in the industry—six banks are the largest competitors in the economy and hold a major stake of the banking assets in Pakistan.