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alings on plastic card of which 1687 million were by credit cards.[4]

The present era of cutthroat competition, it becomes a requirement to success to have a huge and successful selection of products and services through which the banks can encourage and then triumph their customers. In consumer banking they offer such as loans, credit cards, simple installments and many more. Not each bank could offer a credit card and not every one of the banks could provide the services so consistently that do currently. There were few international banks that attempted to provide anything remotely similar to consumer banking. International banks such as standard chartered, Citibank and ABN AMRO have the hold up of the information base and finances of their overseas principals which are made them first to bring in consumer products in Pakistan. UBL, HBL and MCB were the recently privatized banks which have engaged in consumer financing actions not only in big cities but also smaller ones too. Due to their massive branch set-up they generated high volumes of dealing but also at the identical time reducing the prices of their products and services they offer. In year 2002, HBL's consumer banking range was value less than a billion rupees but at the end of year 2004, it is value 17 billion.[5]

Commercial banks had entirely ignored consumer financing as an action Form almost fifty-four years in Pakistan, There was negligible realization of the matter that the trademark of healthy economies is not idealistically high dependence on exports but on demand nationally, and expansion of indigenous resource and industrial bases that favors domestic utilization. The big desirability in extending financing services to the passive consumer sector is the vision of earning high interest rate, because consumers are flexible targets as far as haggling over interest rates taxable to them are concerned. Banks are belatedly trying to rectify this huge macroeconomic structural inequality but given the remarkable pattern of economic developments, but their efforts to promote consumer finance. While lesser interest rates have definitely enhanced borrowers' capability to borrow and service consumer loans, the recently created demand is approaching prices of consumer durables to out of reach.

Consumer finance is an uncertain ball game. The well-known yellow cabs system was the only big test in consumer finance in Pakistan, which was definitely a bad experience for nearly all banks who took part in it. Admittedly, political twists played a giant role in the breakdown of the system but operational inadequacies of banks played a superior role in this enormous failure. A key factor in that failure was the operational deficiencies in banks, mainly in assessing an individual's future refund capability keep in view his or her varying circumstances.[6]

In Pakistan, consumer finance regardless of fast growth in early period of 2-3 years has moved towards declining. It has absolutely raised a lot of questions about its further prolongation and growth in coming years. The mainly important query is: can it work as a medium of economic development mainly at a time when exports have revealed slow growth, state saving rate is low, inflationary stress is determinedly there over the three years, national and international markets and economic group of actors have become extremely aggressive and banking sector is highly concerned to de