[2] The initiative was part of the provincial government's efforts to utilize its financial resources to support local policy objectives during the resurgence of multi-party democracy in the late 1980s.

[2] The growth was attributed to the country's economic expansion and the bank's strategic use of high-cost deposits from the private sector for lending to politically connected enterprises.

[2] However, the bank's rapid expansion was accompanied by controversies related to imprudent lending practices under Pervaiz Elahi government.

[2] By this time, the bank's balance sheet had suffered extensive damage, leading to a three-year delay in publishing financial statements.

[2] The 2011 financial statements also noted an additional Rs33.1 billion in non-performing loans that were exempt from provisioning by the State Bank of Pakistan, due to an implicit guarantee from the Punjab government.

[2] Ultimately, nearly half (49 percent) of all loans issued by the Bank of Punjab prior to 2008 defaulted, highlighting mismanagement that contributed to the institution's financial crisis.