1- Motivating the Financial Sector In general Financial Institutions will only use their resources for the benefit

of their interest i.e. help to generate profits, either directly or indirectly. The considerations are important because with the help of growth of institutions there is increase in the investment business in the country. With existence of more institutions there will be motivation in the financial sector to perform better and take steps for the strengthening of country. This will leads towards the prosperty in the country by eliminating the risk. 2- Development & Introduction of Niche strategies With the development introduction of FIs we can see the strategies for different sector especially for the niche sector of the country. The institutions develop spread knowledge about financial products to assist the efficiency for the achievement of sustainable economic growth. In !""# union bank introduce the

$%&&' Financing 'cheme$ for the small community of (u)ranwala division engaged in surgical industry. For this approach to offer attractive opportunities for the financial help for growing profitable market segment. '*+ bank introduced +xpress loan scheme for niche sector as well in !"",-"-. 3- Financing the Small Scale Sector .redit is the prime input for sustained growth of small scale sector and its availability is thus a matter of great importance. The provision of short term credit/working capital to small enterprises for its day to day re0uirement for purchasing raw material and other inputs like electricity, water, etc. and for payment of wages and salaries1 and long term credit for creation of fixed assets like land, building, plant and machinery help the '*+ sector to perform better. 4- ailor made schemes With the help of different institutions several tailor made schemes for the betterment of

economic sector of the country are available at door steps. Introduction of country wide schemes cannot give expected growth. &s discussed earlier %&&' Financing 'cheme, +xpress loan, (reen tractor scheme, 2ellow .ap 'cheme etc showed extensive results for the betterment of growth in the country. !- Development and Support Services With the existence of different institutions development and support services in the form of loans and grants to different agencies working for the promotion and development of industries like associations, chambers are available. The main example of import of thermo bonded machines for the production of thermo bonded footballs is possible with the help of banks in 'ialkot. 3ther support was observed in rural industriali4ation, human resource development, technology up-gradation and marketing promotion in the country. "- Micro finance #redit With the development of different institutions

like 567'66&8I 9ank, First *icrofinance 9ank, Tameer *icro finance etc *icro .redit is available to the most poorest sector of country. This proactive step to facilitate growth of the micro finance sector in country is very commendable. It is envisaged to emerge as the apex community by providing a complete range of financial and non-financial services such as loan funds, grant support, e0uity and institution building support. $- Introduction of more Institutions 9anking system and the Financial Institutions play very significant role in the economy. First and foremost is in the form of catering to the need of credit for all the sections of society. The modern economies in the world have developed primarily by making best use of the credit availability in their systems. &n efficient banking system must cater to the needs of high end investors by making available high amounts of capital for big pro)ects in the industrial, infrastructure and service sectors. &t the same

time, the medium and small ventures must also have credit available to them for new investment and expansion of the existing units. %ural sector in a country like :akistan, India can grow only if cheaper credit is available to the farmers for their short and medium term needs. This expected potential help the investors for the introduction of more FIs in the country. %- Mopping up Savings The banks and the financial institutions also cater to another important need of the society i.e. mopping up small savings at reasonable rates with several options. The common man has the option to park his savings under a few alternatives, including the small savings schemes introduced by the government from time to time and in bank deposits in the form of savings accounts, recurring deposits and time deposits. &nother option is to invest in the stocks or mutual funds.

&- 'vaila(ilit) of Financial services to households & individuals Individuals have a ma)or impact on the environment through their activities and consumption of goods and services, and in some cases their impact is proving more intractable than commercial impacts. Financial institutions can have a ma)or impact on the activities of individuals by the provision of suitable financial arrangements - for instance, access to cheap mortgage finance is a prere0uisite of widespread home ownership, and car ownership has been greatly increased by the availability of car loans and hire purchase. In the absence of suitable financing arrangements, products or goods may struggle to achieve sales, particularly if they have high capital costs. 1*- #apital mo(ili+ation .apital mobili4ation is generally one of the most necessary conditions for development. The role played by FIs in the process of financial

integration in developing countries is very vital. With the help of this channel benefit of integration materiali4ed. With the help of capital mobili4ation capacity building, good governance economic reforms can easily be achieved. 11- rade Facilitation ,rogramme The Trade Facilitation :rogramme ;TF:< aims to foster trade in the countries of operations, both intraregional and global. Through the programme, institutions provides guarantees to confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the countries of operations. This pioneering programme remains a vital source of trade finance in many of countries of operations. 12- Insurance and financial services The institutions are supporting a broad range of financial services to help expand local capital markets and develop local financial infrastructure. In !""!-"= there was a strong focus on leasing transactions and investment

with new commitments made to insurance companies1 a pension funds etc I :akistan. The 9ank also participated in a number of structured finance transactions, encouraging the use of capital market products in the region. (rowth in this sector will continue as demand for more varied financial services increases and as improved legislation provides the necessary infrastructure for financial sector development. 13- 'chievement of -ro.th Well developed financial systems allow economies to reach their potential since they allow firms which have successfully identified profitable opportunities to exploit these opportunities as intermediaries by channelling investment funds from those in the economy who are willing to defer their consumption plans into the future. &chievement of growth in country becomes easy with introduction of financial institutions. >ifferent stages of financial development re0uire ade0uate institutional processes to be in place.

14- Financial Innovation >evelopment of FIs helps in focusing on the improvements in technology and its impact on how financial products are delivered. Funds are transferred directly from ultimate savers to ultimate borrowers. With reduction of trust deficit financial innovation is possible on better grounds. We know the flow of short-term funds is facilitated by mone) mar/ets the flow of long-term funds is facilitated by capital mar/ets. These activities also help in financial innovations. 1!- Managing 0is/ in Financial Institutions %isk factor is one of the most critical factors while dealing with finance. The facilitation of issuance of new securities e.g., the sale of new corporate stock or new Treasury securities or facilitation of trading of existing securities e.g., the sale of existing stock etc involve factor of risk. We are not confident either the securities traded in secondary markets are li1uid or

not2 Focusing on risk management in the financial institution is very necessary.