South Asian Business news and information

A decade ago, Pakistan's Banking sector was one of the weak points of the Pakistani economy. Just 10 years ago, Pakistani Banks were finding it tough to survive and now they are posting a very high profit. Muslim Commercial Bank has achieved 267% net profit for 2005. In terms of money it was $148 million. Most of the publicly listed banks are expected to post more than 100% profit for 2005. Inspired by this success, some Pakistani banks are now contemplating on the idea of opening branches in other countries- particularly in the Middle East where thousands of Pakistanis work in the different Arab countries.

 This is really a dramatic turnaround considering the fact that in 1997, Pakistani banks passed a crisis time and were forced to layoff 20,000 workers. What is the secret behind success in such a gigantic proportion? The recent economic growth in Pakistan means that more and more entrepreneurs are taking loans from the banks. A very strong demand in consumer loans like car loans has also contributed in the growth of the banking sector. For example this Fiscal year (ending in June 2006) 250,000 cars will enter in the Pakistani market. 

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For reading the story in detail you can visit the website of The Financial Express.