Banking Privatization and Profitability in Pakistan: A Time Series Analysis

Abstract

Determining the effect of bank privatization on its profitability is the main goal of this study. In this study, we demonstrate how some Pakistani banks' efficiency increased as a result of bank privatization. Here, we outlined how privatization affected both employee and customer services and performance. There has been a significant improvement in Pakistan's performance, productivity, efficiency, and profitability since the process of privatization, but there have also been some setbacks in the country's banking industry, such as theft of taxes and threats to national security. In this essay, we attempt to ascertain the actual outcome of Pakistan's privatization of the banking sector. Here, we gather MCB bank and ABL bank pre- and post-data. The efficiency and profitability of Pakistani banks have increased since the privatization of the banking sector. Numerous banks have not had a significant impact from privatization.