Financial System and Economic Development – Pakistan 2011

The emerging organizational, structural, institutional as well as regulatory and policy developments relating to economic, finance and economic growth in an era of globalization for Pakistan is seen as important to an understanding of the transition from national financial markets to well integrated parts of the global market and of the implication of this process for the national economy. Shakil Faruqi’s book – financial System and Economic Development – Pakistan (hereafter referred as FSED) is thus, a welcome addition to the field. This book seeks to examine the growing volume of integration between financial system and economic growth within globalization in developing countries, in general, and for Pakistan, in particular. Since no such book is available in the Pakistan’s context, therefore the FSED offers, perhaps the most comprehensive descriptive statistics on recent trends in Pakistan’s financial sectors available in one book. For anyone who would like to understand developments in financial sector of the country, this is indispensable reading. Indeed, it may be informative for all types of readers. The book’s discussion is set against the issue of financial markets and makes it more than useful as a basic text book, for the general readers, research scholars, and students of business and finance The introductory chapter provides an overview about the role of financial system, its structure and importance for economic development of an economy. In Chapter II the author discusses the thematics, which takes care of some basic concepts, definition approaches of Macro-financial Analysis. The remaining chapters of the book look into the money and banking rationales including the relationship between interest rate and the economy, mobilization of savings, and deposits, and credit system of banking sector. The author actually try to bring all the concepts, even the micro ones at one place and also touches the Islamic banking realizing importance as the SBP has made it mandatory to have a branch of the Islamic banking for all banks.