[1] Professional management structures and independent boards were introduced, resulting in workforce downsizing and branch closures to reduce costs.
[1] These banks, which were nationalized in the 1970s, faced problems such as bureaucratic corruption, politically motivated lending, and inefficiencies, leading to significant financial losses and overstaffing.
[1] The pace of these reforms slowed in 1998 under Prime Minister Nawaz Sharif's administration and remained stagnant until Pervez Musharraf's government revitalized them around 2000.
[1] This revival brought in professional managers from international banks, leading to improved operational efficiency and financial health.
With the support of an additional $300 million World Bank loan, this phase focused on restructuring and privatization.