Performance of Banking Industry After Privatization in Pakistan: A Case Study of Mcb Bank Limited

This research work aims to investigate the impact of privatization on the performing efficiency of MCB Bank Limited Privatization and the phenomenon of denationalization after the failure of socialism and communism globally. As the direction of enteritis was predetermined by state which in long term affected the performance of state-owned entities on many fronts even they reached at the verge of collapse and state was compelled to inject capital for their survival. Ultimately the state took drastic steps and initiated the process of denationalization and privatization to keep the industry intact in the changed scenario. In 1974, during Z.A. Bhutto regime Pakistan’s banking industry was nationalized with prime objective to address the issues of backward segments of economy but unfortunately after privatization industry was used for political motives and witnessed poor performance and financial indiscipline due to frequent interference in the affairs of banks particularly in lending activities and hiring of inefficient human resources. Resultantly banks failed to deliver as per expectation of masses and could not deliver quality customer services on one hand and accumulation of infected portfolio on the other which in turn swallowed the profitability and the capital of banks. It is revealed that bank has tremendously performed in all Key Performing Indicators, it has improved its profitability manifold, deposit base is significantly enhanced and became more liquid and solvent.

Poverty, Environmrnt and Economic Growth in South Asia: An Economic Analysis

Poverty alleviation, improved environmental managements, and achievement of accelerated economic growth are critical goals of all the South Asian nations and other developing economies of the World. Therefore, for reducing poverty and environmental degradation for the achievement of accelerated economic growth, it is imperative to explore the relationship among these complex issues. This study is an attempt to explore the relationship between poverty, environment, and economic growth in South Asian lower middle income countries (i.e. Pakistan, India, Sri Lanka, and Bangladesh) with the help of annual time series data covering the time span 1976 to 2014. The study has applied the Augmented Dickey Fuller (ADF) Unit-Root Test, Asymptotic t-test, Approximate F-Test, Wald Test, Lagrange Multiplier Test and System Residual Normality Tests to fulfill the preconditions of the time series analysis and to specify Simultaneous Equation System. To overcome the flaws related with the methodologies adopted by the earlier studies, this study applies the Three-Stage Least Square (3SLS) system estimation methodology to explore the relationship between poverty, environment and economic growth in the South Asian economies. To capture the association between poverty, environment, and economic growth in South Asia, panal data analysis is conducted. Findings of panel data analysis indicate that impact of environmental degradation on economic growth is negative and impact of economic growth on environmental degradation is positive, poverty and economic growth are inversely related with each other, poverty and environmental degradation positively affect each other. In control variables, capital formation has positive impacts on economic growth, energy consumption and urbanization are positively affecting environmental degradation, and population growth and inflation positively affect the poverty. To investigate the relationship between poverty, environment and economic growth in Pakistan, India, Sri Lanka, and Bangladesh, the study has also conducted the time series analysis. Results of time series analysis demonstrate that impacts of environmental degradation on economic growth are negative, relationships between poverty and economic growth are found negative, relationship between poverty and environment is positive across the South Asian countries. The impact of economic growth on environmental degradation is positive in Pakistan, India and Bangladesh with the exception of Sri Lanka where economic growth has negative impact on environmental degradation which indicates that Sri Lanka has crossed the stage of Environmental Kuznet Curve beyond which growth relieves the environmental degradation, whereas, Pakistan, India, and Bangladesh are lagging behind that stage. The study concludes that South Asian countries do not follow the identical trends and patterns of poverty, environment and economic growth. So, it is not possible to suggest identical policy implications for all the countries. Majority of the results of system equations are found to be theoretically supportive across South Asian countries. Nevertheless, the findings of the study imply that the relationships among poverty, environment and economic growth are critical challenges for policy makers, researchers and the leaders as well, so that bad impacts of poverty and environmental degradation could be controlled in order to accelerate economic growth. Therefore, by recognizing the links between poverty, environment and economic growth, it is suggested that South Asian leaders, researchers and policy makers should devise an integrated economic development strategies that provide a prominent role to poverty alleviation and reducing environmental degradation. The achievement of accelerated economic growth may become the ultimate source to provide a window of opportunities for eradicating poverty and reducing environmental dreadful conditions and lead to a virtuous circle.