There is a mini uprising in the financial sector of the economy, in Pakistan.

The liberalization of exchange control, large scale privatization of state enterprises, opening of new banks in the private sector, deregulation of credit controls, conversion to Islamic Banking, etc., etc., have brought about fundamental changes in the banking sector. The banks are rapidly equipping themselves for the new role to be played in meeting the challenges faced by commercial banking. The main competition challenges faced by commercial banking in Pakistan are as under. 1. Change in market needs. Due to privatization of state .owned enterprises, deregulation environment, free capital flow in and out of the banks are now to focus greater attention on meeting the market needs of the customers. The banks which solve the customers problems for enlarging the sale of the product will receive higher reward. The traditional role of providing trade finance only is now relegated to the background. 2. Service to customers. The banks which can provide speedy, accurate and standard service in the delivery of products, loans etc. to the customers will be a success. The others will be chipped away. 3. Regulatory challenge. The banks shall have to work within a regulatory frame work that protects the interest of the depositors and ensures the provision of capital to the customers. 4. Consumer banking. The basic needs of the consumers such as housing, transportation, and other durable are not adequately financed by the banks. There is a challenge to the banking sector as to how the finance could be provided to the consumers so that they could also benefit from the advances in technology and banking. 5. Challenge to new banks in private sector. The new banks in the private sector will have to develop a sound funding base, attracting high quality management, providing high quality service to the customers to meet the new challenges in the banking sector