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The financial sector in Pakistan is too bank-centered and there is aneed to develop other financial intermediaries and markets.

The development of non-bank financing will require a combinationof official policies, market competition and business opportunities.

Non-bank financial intermediaries have substantial growth potential.

The equity market has provided little new corporate financing in

recent years. The equity market has tremendous scope to grow.

Private debt securities have the biggest growth potential.

The basic structures for issuing and trading private securitiesalready exist but need to be updated and strengthened.

Government financing in the domestic debt market and through NSSneeds to be reviewed.

The above reforms in the broader financial system require actions bythe SECP and GOP.

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Infrastructure under control of SBP The wholesale payment system is being

upgraded and renewed.

The retail payment system is next in line tobe modernized.

The electronic Credit Information Bureau.

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The human resource base needs to be developedto meet the needs of an expanded financialsystem.

SBP is planning to take some initiatives to

support a broadly based effort to train financialsector professionals.

Credit rating agencies need to be promoted.

Land and property registries need modernization.

The judicial system needs reform for the efficientfunctioning of the financial system.

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The global capital market is defined as thecumulative collection of markets where global capitalsupply is matched by global capital demand.

McKinsey sums together bank deposits the marketvalue of publicly traded equities, and the outstanding

face value of debt securities. The data base covers more than 100 countries.

Debt securities divided into private and government.

The database includes GDP data for each country to

allow calculation of the value of financial assets. The definition does not include the value of real

estate or other illiquid assets.

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1. To incorporate spirit of Basel Core Principles.2. Structured process for resolution of troubled banks.3. Framework for Payments System and e-banking.4. Enforcement powers to check illegal banking and deposit

taking.5. SBPs powers to issue prudential regulation.6. Islamic Banking.7. Entry and Exit - banking business8. Ownership & management reforms.9. Prohibited & permissible businesses10. Supervisory powers of SBP

11. Judicial challenges to SBP12. Outdated/ non-functional provisions of BCO13. Fit and proper criteria

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14. Anti-money laundering.

15. Inspection, audit and reporting.

16. Deposit protection fund.

17. Cooperation between SBP and SECP19. Regulatory powers of SBP