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Pakistan's financial sector is made up of a number of institutions, including banks, non-banking financial institutions, insurance companies, and capital markets. The sector is regulated by the State Bank of Pakistan, which is the central bank of the country.
The financial sector in Pakistan has undergone significant changes over the years. In the past, the sector was dominated by state-owned banks, but in recent decades, private banks have grown in importance. In addition, the government has taken steps to improve the regulatory environment for the financial sector, including implementing new laws and regulations to increase transparency and reduce the risk of financial crimes.
Despite these efforts, the financial sector in Pakistan has faced a number of challenges. These include a high level of non-performing loans, a lack of access to finance for many small and medium-sized enterprises, and a low level of financial inclusion, particularly in rural areas. In recent years, the government has implemented a number of initiatives to address these challenges and improve the stability and efficiency of the financial sector.