Banking system of Pakistan comprises of 38 Commercial Banks, 10 Microfinance Banks and 8 Development Finance Institutions. The banks/DFIs are operating with a network of 11,911 branches across the country. Pakistani banks have international presence in 36 countries around the globe, in almost all regional territories with 106 branches, 9 subsidiaries and 15 Representative Offices.
The financial system of the country is dominated by banking sector with private banks holding around 78% of the total assets of the banking system. Public sector banks and foreign banks hold 20% and 2% share in total assets respectively.
The balance sheet of the banking sector has increased to Rs. 9.9 trillion and its financial position is as under:
- Total Equity - $ 8.4 billion
- Total Liabilities - $ 89 billion
- Total Assets - $ 99 billion
The commercial banks listed on stock market posted an after tax profit of $ 1.18 billion, showing a 9% growth year on year.
To acquire Commercial Banking License and Microfinance Banking License, Banking Policy & Regulations Department, State Bank of Pakistan may be contacted.
Investment Growth Potential
- Pakistan has been transformed into a country with liberalized Foreign Exchange regime to attract Foreign Direct Investment in the country. Pakistan’s investment policy provides complete freedom of investment and repatriation of profits/ dividends/ dis-investment proceeds to the foreign investors in line with the overall investment policy of Government of Pakistan. The only requirement of SBP with respect to FDI inflows is the registration of FDI with SBP. A foreign investor is free to repatriate profit/ dividend and orderly dis-investment proceeds at any point in time without any approval from Central Bank. Further, with regard to portfolio investment, foreign investors are allowed to make investment in Pakistani stocks, Govt. securities and registered corporate debt instruments listed on Stock Exchanges in Pakistan through Special Convertible Rupee Account (SCRA) opened with an Authorized Dealer (bank).
- Existing outreach and penetration of financial services is low – 7 branches per 100,000 people and 0.22 branches per 1,000 km and 226 bank accounts per 1,000 adults.
- Opportunity of introducing innovative products and innovative banking such as mobile banking etc.
- Equity markets booming with Karachi stock exchange adjudged best stock market based on risk-adjusted-return.