1.1.

Identification of Research Gap

Hasan (2009) measure the extent of competition in the banking sector of Pakistan in his
paper. This article concluded that banking sector in Pakistan is not that much competitive and
the level of concentration is observed to be decreasing since 2000. On the other hand Bhatti
(2010) did a research to find out the relation among bank performance and market structure in
Pakistan in which it was concluded that concentration in Pakistan Banks is very high and
competition has negative relation to bank profitability. But so far there is no measurements of
relation of competition and bank performance, therefore this research work contributes to find
the impact of competition on the performance of banks in Pakistan and can also help the banks
to regulate accordingly.