This new edition provides a comprehensive analysis of developments within the financial and monetary system in Pakistan from 1947 till 2003. This book provides a historical record of the growth and development of banking in Pakistan. It chronicles important events in the field of monetary management and critiques monetary and fiscal policies pursued in Pakistan since independence. Part One presents the major schools of monetary theory and assesses their policy recommendations in the Pakistani context. Part Two describes the institutional structure, the impact of the financial sector on economic development, and assesses monetary policy. It also includes a review of several empirical studies on monetary and financial sector development in Pakistan. This book covers graduate and undergraduate courses in Economics, Finance and Banking, and Business Studies. It also serves as a textbook for MBA, ICAP, IBP, and ICMAP course of studies. It is essential reading for those taking the Institute of Bankers and similar professional examinations. Policy-makers and researchers seeking a comprehensive overview of Pakistans financial sector will find this new edition an essential reference.