Some bankers have been nabbed but some are still absconding after their nefarious role in approving shady loan applications and doubtful financial transactions in connivance with the politicians in power. 

There was little justification for nationalizing the banks but that was done in the seventies whimsically and party workers were given employment without regard to merit and political supporters got loans on dubious grounds most of which are said to be in default.
 

As a result of nationalization there were short-term gains for the 
politicians in power But the banking culture was badly mauled and the role of the banks in developing the economy suffered. 

Now under the World Bank's advice the banks would go back to the
private sector. The World Bank does not rely on the ability of the 
Government either here or anywhere else to run commercial organizations.

Last regime in the name of Right Sizing fired many experienced and
qualified bankers and hired on fabulous salaries so called experts
having political links who have made banking expensive and inefficient.

Credit Cards
In the pre-nationalization period the leading Pakistani banks had 
credit/debit cards. They were accepted at hotels and various other 
establishments and the charges were quite low.

Vigorous efforts were not launched to promote credit card culture in our country.   But when the foreign credit card companies came, credit card became popular despite heavy charges.And Pakistani banks continued their outdated and over cautious approach and  soon started to rely on foreign credit cards instead of developing their own network.

Cheque Book is costly
In the good old days Pakistani banks neither charged any service fee for  issuing chequebooks, nor they penalized the poor account holders for Maintaining the balance below a prescribed level.

After nationalization their service has deteriorated from bad to worse. 
The previous regime inducted so called professionals at exorbitant
salaries and perquisites almost hundred times higher than a Ph.D.
lecturer in the University.

Over 50% pa compound Interest on Credit Card balances!

These political protégés (so called experts) have adopted practices
 more   cruel than the Shy locks and Muhajans. Believe it or not, one bank
charges 3.50% per month interest in the name of service fee on credit card balances - almost 2 to 3 times higher than USA where in many States legal restriction exist so that bank may not charge more than 12% or so per annum. But why State Bank is keeping mum is anybody's guess!

Exorbitant charges are levied for issuing chequebook.

Exorbitant Service Fee
RS. 50/- ir so  per month service charge is levied if the account balance is less than RS. 5000/- which is higher than the monthly pension of most of the victims. It is reliably learnt that after many hue and cries the State Bank is asking the bank to be lenient.What is more surprising is that some banks started charging it even on dormant accounts and none of the account holders were sent any sort of notice!

Lethargic Clearance of cheques
In this age of electronic exchange of info the clearance of cheque is 
done at snails pace. Ordinarily it may take two to three days and much
longer period - many days if the cheque pertains to out station.

Most of the Highly Paid experts sitting there in the palatial offices do not seem to be interested in utilizing Internet Or Intranet or secure servers to
modernize banking.

No Need to Send Debit / Credit Advices!
Most of the banks in public sector have abandoned the practice of 
sending debit or credit advice or even monthly statement..

Now that an outstation cheques take about a week or two, some
traders try to send money by bank draft or Pay order. It must be 
Shylock's spirit that advised that on such bank drafts heavy withholding tax should be collected. The bank drafts are now rarely used and travelers' cheques are becoming popular.

Poor Conditions for Utility Bills Collection

The plight of people who flock to pay the Utility Bills to the branches
of authorized banks has many times been mentioned in press but half
hearted efforts have not made any difference. The people are made 
to stand in a queue out side the bank premises in scorching heat and
dust and wasting their time.

The role of the Finance Ministry and State Bank has been disappointing
in protecting the interests of the account holders specially the senior 
citizens. They seem to have totally forgotten what the father of the 
nation had said in his inaugural address in the Opening ceremony of 
the State Bank of Pakistan.

Shah Nawaz Khan, A.C.I.I. (Associate of Chartered Insurance Institute< London retired as General Manager and Executive Director of State Life Insurance Corporation of Pakistan after 30 years service and now publishes electronic newsletter and writes for them. His articles on variety of subjects appear on Internet at http://clix.to/shah