The study looked at how efficient and technologically advanced banks in Pakistan are. They found that foreign banks are more efficient than domestic ones. Small banks, especially foreign ones, benefit from economies of scale. All banks showed technological progress, with foreign banks leading the way. The big five banks are losing market share, but interest rates are fluctuating. Mergers between small domestic banks and foreign banks could reduce costs and improve efficiency without creating monopolies. Encouraging these mergers could help stabilize the financial sector in Pakistan.