In this study an attempt has been made to evaluate the impact of privatization of banks on the economic
growth of Pakistan that is whether the phenomenon has had any valuable outcomes in the country. To
measure this, we consider a sample of seven Pakistani banks that went to privatization during 1990 to 2005;
three of them were then selected purposively. A number of sources were consulted to obtain the data
including the bank records, government and semi- government publications along with the monograph
issued by the state bank of Pakistan. Our results show that privatization changes the magnitude of profit
and paid capital of banks. The results indicate that privatized banks can exercise most up to date technology
and specialize in the most profitable segment of the economy. Moreover, the costs and revenue efficiencies
of privatized banks are better than public sector banks. Our findings reveal that performance and
profitability of banks can be further improved with the strategic use of the phenomenon to benefit
taxpayers and to balance risks and rewards. It is concluded that the involvement of the allied stakeholders
and competition in the process would ensure successful privatization ventures.
Arshad Ali, Umar Hayat, Shahid Ali. (2013) An Economics Analysis of The Impact Privatization of Banks on the Economics Growth of Pakistan, , Volume-07, Issue-1.
