What Are The Main Problems Of Money Market And Capital Market In Pakistan?

There is a lack of coordination between the various financial institutions. They adopt different policies and due to this lending and borrowing become difficult. There is overlapping and delays in creating the needs of industrial and trade sector.

The economic policies are framed by the bureaucrats instead of technocrats, so they create many problems. Many financial institutions are controlled by the bureaucrats and they have no technical skill, so they lacks decision making.

The professional and skilled persons in the financial institutions are leaving the country and getting employment in Middle East for higher wages. The large scale migration of skilled persons has created a gap of talented persons in the financial institutions.

The branches of the financial institutions are not opened in the rural areas to collect the savings of the villages.

In advancing loans financial institutions compete with each other to show better performance. Some times they lend the money to those people who can not repay. So before advancing loans they must be careful in checking the character and financed condition of the borrower.

The complaints about of default in loan repayments both by the public and private sector is increasing day by say. Poor quality of manpower is employed in the financial institutions which causes low production. In the financial institutions bribery and malpractices are common.Government should make strict rules to eradicate corruption.