The State Bank of Pakistan (SBP) is the central bank of Pakistan. It was established in 1947 after the partition of India. SBP is responsible for monetary policy, managing foreign exchange reserves, supervising commercial banks, and providing banking services to the government. As an independent institution since 1997, SBP aims to achieve price stability and full employment through tools like interest rates, cash reserve ratios, and open market operations. It also regulates the financial system, acts as the lender of last resort, and advises the government on economic and financial matters.

1. STATE BANK OF PAKISTAN
Group members
Adeel Shahzad
Farah Gul
Muhammad Irfan
Wagma anwar

2. INTRODUCTION
•Concept of central Bank
•State Bank of Pakistan

3. Historical Background Of SBP
•Reserve bank of India
•Distribution of RBI’s reserve after
independence
•Establishment of SBP

4. Facts and figures
Central Bank of: Pakistan
Established:1947
Headquarter s:Karachi & Islamabad
Governor: Mr. Yaseen Anwar

5. Structure of SBP

6. SBP Independence
•According to Act 1997 SBP is fully independent.

7. Objectives:
Full employment
Price stability

8. Core functions of SBP

9. Primary functions
•Issuance of notes
oSbp has monoply according to act
1956
oTwo departments:
Issue departmant
 banking dep

10. Cont;
o Min. amount of reserve for issue of notes is
1.2 bil (30%)
o Issue offices: located in Karachi, Peshawar,
Lahore& a number of currncy chest all over
the country

11. Primary functions
• Conduct of monitory and credit policy
– Tools of formulating monitory and credit policy:
o 3day repo
o T-bills
o Open market operations
o Cash reserve ratio
o Statutory reserve ratio

12. Primary functions
• Regulation & Supervision of financial system:
• Pakistani law has given power to SBP to monitor
financial system
• SBP has issued prudential Regulation to insure
safety and soundness of banks/DFI
• SBP can monitor banking activities through:
o off-site inspection
o On-site inspection

13. Primary functions
• Bankers bank
• Bankers of Last resort
– Provide loans and discount facility to bank
– Prevent banks from liquidity
– Mostly provide short term loans to meet
temporary requirements of funds.

14. Primary functions
• Bankers to Government:
SBP provides following services to the government:
– Accept cash deposits, checks and drafts by the government
– Federal & provisional governments keeps their deposits
with SBP free of interest
– Federal & provisional governments obtain advances from
SBP
– SBP does not charge any commission
– SBP purchase gold, silver, securities etc on behalf of
government.

15. Secondary functions
• Public debt management
– SBP is responsible for public debt (act 1956)
– Responsible for payment of interest to public debt
– Sources
– Need
– objective
– Securities department(1990)

16. Secondary functions
• Management of foreign exchange
– SBP is responsible for foreign exchange (act 1947)
– SBP prevent country currency from wide
fluctuations

17. Secondary functions
• Advisor to Government
– Advise on financial and economic matters particularly on
monitory policy
– Advise on loan operations
– Participate in economic policy making
– Monitory and fiscal policy coordination board (MFPCB)
– MFPCB coordinate fiscal, monitory, trade policy &
exchange rate policy

18. Secondary functions
• Relationship with IFI’s
– SBP deals with IMF on behalf of Government of
Pakistan
– Deals with other international financial organizations
like world bank, bank of international settlement