Financial Sector Reforms and its Impact on Economy of Pakistan

Abstract

AbstractDuring past two decades government of Pakistan has made prominent attempts to transform its financial system through various reforms. Being chief element of macroeconomic policy, financial reforms are anticipated to fetch considerable economic benefits mostly through efficient utilization of resources and recruitment of national savings. Analyzing the effectiveness of financial sector reforms the findings of this investigation demonstrates considerable and noteworthy effect on the economy of Pakistan, however still the gap of improvement exits. From the analysis it can be suggested that to make the financial sector reforms in more effective way, the information gap between micro-macro prudential should be bridged to ensure the safety and soundness of individual institutions that encompasses all activities aimed at monitoring the exposure of systemic risk and identifying potential threats to financial stability arising from macroeconomic and financial sector reforms.