There is a common perception that the privatisation process turned a lethargic, moribund, non-performing Pakistani banking sector into a dynamic, modern and outward looking one, which is not only profitable and efficient but also contributing heavily to the country's growth. In this article the authors challenge this perception, showing how between 2000 and 2012 privatisation accompanied by highly indulgent regulatory policies in fact enabled the new owners to earn enormous profits at the expense of the country's economic development. The analysis raises serious questions for policymakers charged with safeguarding the public interest.