MODERN BANKING MAKE HEADWAY IN BALOCHISTAN.

Byline: SYED FAZL-E-HAIDER

Pakistan's banking sector witnessed unprecedented growth after 2001 due to low interest rate and product innovation in consumer financing. Like other provinces, Balochistan is also the beneficiary of the current low interest rate, particularly in consumer financing, which has emerged out as one of most prolific aspects of banking in Pakistan. Consumer financing products include credit cards, personal loans, auto loans and housing mortgage. It not only contributes towards facilitating the life patterns of consumers, but it also proves to be a source of improvement for the image of banks. A need is strongly felt to strengthen the regulatory mechanism for strengthening the consumer financing sector in the province. The banking sector in Balochistan still needs to take effective measures for improving and strengthening its competitive position vis-a-vis other provinces. Basically, a tribal society, the province lacks an urbanized middle class. Truly speaking, the relative wealth increases among the population

when a burgeoning middle-class brings greater demand for banking facilities and investors and business also look for more supportive financial services, with a demand for financing solutions, hedge funds, and asset-based securities.

Information and communication technologies (ICT) have brought about a revolutionary change in the financial sector. This revolution finds manifestations today in shape of innovative banking products and services such as Automated Teller Machines (ATMs), internet banking, tele-banking and so on. In major cities of Balochistan, the online banking has introduced non-traditional channels of delivering services in the banking industry. Balochistan, the country's least developed province, is also benefiting from online banking, which has accelerated financial inclusion gradually changing the financial landscape in the province. During the last five years, the banks have expanded their online branch networks, ATM networks andPOS networks across Balochistan. Electronic payments continued to show a rising trend as both the number and value of such transactions increased in past three years particularly in the provincial capital Quetta.

The private banks are mostly concentrated in Quetta, which has the presence of many private banks like Standard Chartered, Al-Falah Bank, Al Habib Bank, KASB Bank, Faisal Bank, Prime Bank, Soneri Bank and Meezan Bank.

Private banks are practicing customerfocused...