Pakistan have been significantly strengthened, and strict enforcement of
prudential regulations have led to widespread recapitalization and a consequent
improvement in the efficiency and profitability of banking system. More than 80
percent of banking assets are now owned and managed by the private sector.
The ratio of net Non-Performing Loans (NPLs) to total advances in
Pakistan has been brought down to less than 5 percent through a variety of
strategic measures. An asset management company, the Corporate and
Industrial Restructuring Corporation (CIRC), has taken over a large volume of
non-performing loans of NCBs and DFIs at a discount and disposed them off to
third party buyers.
Development Financial Institutions (DFIs) have been restructured through
mergers and acquisitions, closure, liquidation and reorganization. Auction of
Pakistan Investment Bond (PIB) for tenures of five to ten years government
paper and a burgeoning corporate bond market has begun to emerge bringing
together long term institutional investors and borrowers interested in long term
sources of financing.
Economic Governance:
The most dramatic shift introduced by the military government is in
promoting good economic governance. Transparency, consistency, predictability
and rule-based decision-making have begun to take roots. Discretionary powers
have been significantly curtailed. Freedom of press and access to information
has had a salutary effect on the behaviour of decision makers.
Pakistan’s history provides ample evidence that foreign enterprises have
never been expropriated or taken over by any government during the last 57
years. Even when the Z.A. Bhutto government nationalized domestic
manufacturing, banks, insurance companies, etc. the foreign companies were
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