Competition concentration and market structure of consumer banks in pakistan

The long-promised auction of 3G frequencies has been repeatedly delayed over the last several years. The Industrial Property Order safeguards industrial property in Pakistan against compulsory acquisition by the government without sufficient compensation, even in the public interest, in accordance with provisions of the law.

Certain records are restricted from public access, including classified documents, those that would be harmful to a law enforcement case or an individual, or those that would cause grave and significant damage to the economy or the interests of the nation.

PIA continues to struggle and is criticized for poor management, excessive staffing, inefficient operations, and a non-completive market strategy. This act and the Economic Reforms Act are the primary statutory safeguards for the rights of foreign investors.

The NAB struggles with poor funding and limited staffing. The only significant area of U. A previous dispute between a major U. The SEZ Law aims at creating industrial clusters with liberal incentives, infrastructure and investor facilitation services to reduce cost of doing business.

With changing consumer preferences and introduction of new payment methods, it has become imperative for banks to transform the payments and card PCI industry digitally.

Corporate Social Responsibility CSR Awareness of corporate social responsibility among both producers and consumers in Pakistan is growing and foreign and some local enterprises generally follow accepted CSR principles.

Despite these measures, the threat to western diplomats, executives, and tourists in Pakistan will likely remain high over the medium term. Moreover, Pakistan is now reportedly being used as conduit for infringing products transiting from Russia, Malaysia, Singapore, China, Bangladesh, and Sri Lanka for onward distribution to third countries.

The GOP offers incentives for other categories of export manufacturing. The National Accountability Bureau NABorganized under the National Accountability Ordinance, serves as the highest-level anti-corruption organization, with a mandate to eliminate corruption through awareness, prevention, and enforcement.

Parliament has not yet voted on either piece of legislation, and it is unlikely to take up the legislation in the short term. Portfolio investments, capital gains, and dividends can be fully repatriated. Corruption is pervasive in politics and government, and various politicians and public office holders faced allegations of corruption, including bribery, extortion, cronyism, nepotism, patronage, graft, and embezzlement.

With the end of licensing regimes, the rationalization of bureaucratic controls, and broad-based market liberalizations, market entry barriers have been reduced but not fully eliminated. Conversion and Transfer Policies The SBP maintains tight control on the exchange rate and imposes informal controls on transferring foreign exchange De jure, there are no limits on dividends, remittance of profits, debt service, capital, capital gains, returns on intellectual property, or payment for imported inputs; however, banks report that they must justify all outward flows of foreign currency with underlying trade documents.

Print piracy consists of smuggled books from Iran and Afghanistan by land, or overruns by legitimate printers in Pakistan. The same year, the GOP also eliminated requirements that foreign investors seek provincial government clearance for project location.

Publishers report that reference books, online journals, and trade books are being digitized and provided by schools. Bribes to avoid charges are commonplace. Many of these licenses and permits have been removed over the last several years. Pakistan does not enforce intellectual property rights for genetically modified organisms GMO.

Pakistan is also an extensive exporter of labor, particularly to the Middle East. There are also a number of special courts and tribunals to deal with specific types of cases, such as taxation, banking, and labor. This law codified the mandate of the CCP into law, and revised the appeals process to include an Appellate Tribunal in Islamabad consisting of a retired judge and three private sector participants, who are tasked to deliberate and issue decisions within six months.

The Lahore High Court eventually ruled in favor of the U. The current Prime Minister has promised to carry out the Supreme Court orders.

Implementing rules to enforce these ordinances remain incomplete. In mid, the Supreme Court directed that legislation replace the executive ordinance establishing the NAB, but as of Decemberthe National Assembly has yet to pass the legislation. While Pakistani law provides for recourse against adverse administrative decisions, the legal system remains backlogged and long court delays are common.

European Union competition law

However, despite the substantial incentives offered, most of these zones have failed to attract significant investment. IPO, a semi-autonomous body under the administrative control of the Pakistani Cabinet, consolidates into one government agency the authority over trademarks, patents, and copyrights — areas which were previously handled by offices in the three separate ministries.

Foreign investors are permitted to bid on state-owned industries and financial institutions on terms equivalent to those offered to local investors. With the advances in technology, the number of frauds and forgeries are also increasing, thereby increasing the need for a solution which is difficult to duplicate.

Headed by the Finance Minister and with representation from the Privatization Commission, the body has identified eight SOEs for complete restructuring. Previously, competition law in Pakistan was under the jurisdiction of the Monopoly Control Authority, an independent regulatory authority that lacked enforcement capacity.

Internet use continues to rise in Pakistan, and online piracy in Pakistan is also a problem. Terrorists committed a number of fatal attacks on buses in Balochistan and the Kohat and Gilgit-Baltistan areas carrying Shia pilgrims to and from Iran.

In addition, the GOP has not implemented patent linkages, effectively authorizing the sale of pharmaceuticals without requiring checks to confirm that another firm does not hold an active patent on the compound.

Often the same individual sits as both a district and sessions judge.Instead of relying on the changes in the market structure indicators (like concentration ratio), we employ widely used Panzar and Rosse H statistic as a formal test of competition. In a comparative study of banks in India and Pakistan, Ataullah et al.

Financial Sector Assessment

examined the evolution of TE during financial market liberalization from to and found improvements in TE in the two countries during the period.

between observed market concentration and true market power; in an environment with free entry, banks that attempt to exploit apparent monopoly power will inspire entry by outside competitors.

The varied paths of market structure across local MSAs during the s and s and the state. Pakistan’s banking industry has gone through significant transformation from being in a heavily state regulated and controlled environment to a more liberalized market structure in recent years.

U.S. Department of State

This liberalization of banking industry in Pakistan has raised concerns over the dominant banks. Ex-ante regulation is mainly concerned with market structure, that is the number of firms and level of market concentration, entry conditions.

Hasan () assess the market structure of consumer banks of Pakistan. The writer’s main aim is to know whether the banks of Pakistan are competing in a perfectly competitive situation, Monopoly or Monopolistic competition etc.

for analysis twenty six banks is being taken.

Competition, Concentration and the Relevance of New Banks’ Entry in the Indian Banking System Download
Competition concentration and market structure of consumer banks in pakistan
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