To Achieve Balanced Growth

Pakistan is historically an agricultural country. About 50% of the population is connected with agriculture. Historically, agriculture sector has had a dominant share in GDP. One major objective of economic planning is to achieve balanced growth in the economy by achieving growth in all sectors of the economy.

Money is a Store of Value

Money is a medium of exchange as well as a store of value. People not only demanded money to buy, they also demand money to save. In other words, all money is not used as a medium of exchange, some is also used as a store of value. While money is used with two different characteristics, it can never bring an exact proportional effect on prices.

Inefficient Debt Management

Debt Management is one of the most important function in the banking industry. But, in nationalized banks, there was no set criterion and mechanism through which loan was granted. This led to a huge increase in bad debt in the loan portfolio of these banks.

Consumers Suffers:
Consumers suffer from the hands of public sector monopoly. They don't have choices and substitutes and they have to remain satisfied with whatever quality they are provided and whatever price they are charged with against goods and services.