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LOANS
There has been alarming increase in the amount of non-performing loans (NPLs) during
the last 30 months of the present government. According to the latest figures available in
the Ministry of Finance the stock of NPLs to Rs. 290 billion by end 2001 from Rs. 207
billion in 2000 and Rs. 185 billion in the year 1999. According to the latest country report
of the World Bank this amount may increase to Rs 384 billion by end of the current year.
Recovery of stuck up loans was one of the prime objectives of General Musharraf, when
he took over in October 1999, the then previous government. The recovery drive
launched by the National Accountability Bureau (NAB) made wholesale arrests of the
businessmen, even on circumstantial defaults, resulting in severe backlash and further
loss of confidence. NAB was able to recover few billions rupee from the erring
industrialists, but during the process many industries fell sick. The contracting economic
activity in the country fuelled further failures, and more loans were categoried as non-
performing
TABLE OF CONTENTS
Section Page
1. Introduction……………………………………………………….. 3
1.1 General Description……………………………………………. 3
1.2 Problems to be studied………………………………………… 3
1.3 Objectives of the Research Project……………………………. 3
1.4 The relevance of the Research……………………………........ 3
2. Background & Literature Review…………………………………. 4
3. Methodology ………………………………………………………
1. Introduction
Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial
market in the world, with a daily average volume of over US $1 trillion. 42 billion into
the banking sector and Turkey's gross domestic product stood 5.5% lower then in 1998.
The Pakistani financial system has been in a transitional period from a predominantly
administered system to a market oriented one since the early 1980s. The Pakistani
banking system, in particular, faced a number of bottlenecks that were similar to those of
other countries of comparable development like India, Bangladesh and even Turkey. A
fundamental problem was the large volume of non-performing loans (NPLs) that have
accumulated since the nationalization of the banking system in the 1970s.