—Banks indulge in catering the needs of
government, public sector organization and private businesses.
Government of Pakistan introduced several financial reforms
for the improvement of banking sector. State Bank of Pakistan
(SBP) has taken many influential steps in order to increase
performance of the banking sector in Pakistan. This study
aimed to enlist the major financial reforms undertaken by the
Government of Pakistan and explore their impact on economic
growth of Pakistan; furthermore it has explored correlation
among economic growth, deposits, lending, real interest rate,
savings, and inflation, taking data of thirty six years (1973-
2008). Regression analysis using E-Views was applied and
explored a positive impact of financial reforms on economic
growth. It is recommended to remove the interest rate ceiling
and overcome the problem of inflation.
—Financial Sector Reforms, Economic Growth,
Inflation, Real interest Rate.
Waliur Rehman is with the Institute of Engineering and Management
Goher Fatima is with the Department of Economics, Foundation
University College of Liberal Arts and Sciences,
Waqar Ahmad,Prospect Research Scholar-Graduated from BU,
Cite:Waliur Rehman, Goher Fatima, and Waqar Ahmad, "An Empirical Analysis of Financial Reforms in Pakistan: Does it Affect Economic Growth?," International Journal of Trade, Economics and Finance vol.2, no.4, pp. 341-345, 2011.