State Bank of Pakistan
| Headquarters | Karachi , Pakistan |
| founding | July 1, 1948 |
| president | Reza Baqir (Governor of the bank since 2019) |
| country | Pakistan |
| currency | |
| ISO 4217 | PKR |
| Currency reserves | US $ 15.424 billion (October 2019) |
| Website | |
| List of central banks | |
The State Bank of Pakistan (SBP) ( Urdu : بینی دَولتِ پاپستان) is the central bank of Pakistan . The head office is in the Pakistani financial capital Karachi . SBP has a wholly owned subsidiary called SBP Banking Services Corporation (SBP-BSC), which is the operational arm of the central bank and has offices in 15 cities across Pakistan, including the capital Islamabad and the four provincial capitals. Their main office is also in Karachi.
The bank has the sole right to issue the Pakistani rupee and manages the country's gold and foreign exchange reserves.
history
At the time of the partition of India , the new state of Pakistan was without a central bank and there was almost no proper banking system. Most of the banks were headquartered in India . Of the 3,496 bank branches, only 631 were in Pakistan. Most of the banks were also dominated by Hindus , who withdrew their capital after the establishment of the Muslim state of Pakistan. Since Pakistan did not have its own central bank, it was decided to transfer the relevant tasks to the Reserve Bank of India for a period of one year (until September 30, 1948). Due to the deteriorating political relations between the two states, it was finally decided to found their own central bank.
In May 1948, Muhammad Ali Jinnah (founder of Pakistan) took steps to create the State Bank of Pakistan. These were implemented in June 1948 and the State Bank of Pakistan began operations on July 1, 1948. Much of the State Bank's functions expanded when the State Bank of Pakistan Act of 1956 was introduced. She called on the state bank to "regulate Pakistan's monetary and credit system and promote its growth in the best national interest in order to ensure currency stability and greater use of the country's productive resources." In 1974 the bank was finally nationalized under the government of Zulfikar Ali Bhutto .
In February 1994, the State Bank of Pakistan was given full autonomy during the reforms of the financial sector. On January 21, 1997, this autonomy was further strengthened when the government issued three amending regulations (approved by Parliament in May 1997). These included the State Bank of Pakistan Act of 1956, the Banking Ordinance of 1962, and the Nationalization of Banks Act of 1974. These amendments gave the SBP full and exclusive power to regulate the banking sector and conduct independent monetary policy.
structure
The board of directors (formerly known as the central board) consists of ten members: the governor (who is chairman), the secretary, the finance department, and the government of Pakistan - and eight directors, including a director from each province, who are nominated by the federal government. The directors (and the governor) are appointed for a three-year term. Traditionally, these directors (other than secretary, finance department) are reappointed for a second term, although this is not required by law and there have been some exceptions to this practice.
Individual evidence
- ^ Pakistan Foreign Exchange Reserves . tradingeconomics.com. Accessed November 24, 2019
- ^ History of banking in Pakistan - of humble origins and vast potential. Retrieved December 14, 2019 .
- ^ State Bank of Pakistan. Retrieved December 14, 2019 .