Scheduled Banks, DFIs and MFIs are regulated by the State Bank of Pakistan (SBP) whereas NBFCs, Insurance Companies and Modarabas are under the regulatory ambit of Securities and Exchange Commission of Pakistan (SECP).
Pakistan, being an Islamic country, has great potential of growing in Islamic finance industry. Islamic banking and brokerage/IMC in Pakistan has witnessed significant growth during the last decade and now constitutes over 10% of the country's banking system with an asset base of over PKR 900 billion and a network of more than 1,100 branches, and will set to double its market share by 2020.
The overall performance of the banking sector during the last couple of years has been quite impressive. A number of positive developments such as better energy supply and rise in manufacturing activity, improved security conditions, macroeconomic stability, rise in investor confidence, low inflation and commodity prices (particularly, oil prices) besides enabling regulatory environment have been instrumental in making banking sector grow steadily.