A complete descriptive presentation on SBP with possible Quiz ..

2. Group 1
MUHAMMAD WAQAS RAFIQ (MCM-40)
IJAZ MALIK (MCM-48)
KAMRAN BHUTTA (MCM-09)
ABBAS ASHRAF (MCM-14)
LARAIB MUNIR (MCM-28)
MUHAMMAD ASLAM (MCM-30)

3. STATE BANK OF PAKISTAN

4. Mission statement
• To provide reliable banking services to
Government, financial institutions, public and
to act as an operational arm of State Bank of
Pakistan

5. Vision statement
• Our vision is to develop the SBP BSC (Bank) into
a strong and dynamic institution, equipped with
an efficient and professional human resource base,
having the requisite technology and fully capable
of providing quality service to stakeholders, while
complementing the State Bank of Pakistan in
achieving its objectives.

6. STATE BANK OF PAKISTAN
HISTORY
Reserve bank of India was the central bank of both
Pakistan and India.
On 30 Dec 1948 British Govt commission distributed
the reserve bank if India's reserve between Pakistan and
India with ratio of 30:70.
The losses incurred in the transition to independence
were taken from Pakistan’s share a total of 230 million.
In May,1948 M. Ali Jinnah took steps to established
SBP.
That idea were implemented in June 1948
SBP commenced operation on July 1, 1948

7. Amendments
 A large section of duties were widened when
the State Bank of Pakistan Act 1956 was introduced
 ". In February 1994, the State Bank was given
full autonomy, during the financial sector reforms.
 On January 21, 1997, this autonomy was further
strengthened when the government issued three
Amendment Ordinances (which were approved by
the Parliament in May 1997).
 Those included
State Bank of Pakistan Act, 1956,
Banking Companies Ordinance,
1962 and Banks Nationalization Act, 1974.
 These changes gave full and exclusive authority to
the State Bank to regulate the banking sector, to
conduct an independent monetary policy and to
set limit on government borrowings from the
State Bank of Pakistan.

8. Amendments
Banks Nationalization Act brought the end of
the Pakistan Banking Council
Allowed the jobs of the council to be
appointed to the Chief Executives , Boards of
the Nationalized Commercial Banks (NCBs)
and Development Finance Institutions (DFIs).
The State Bank having a role in their
appointment and removal amendments also
increased the autonomy and accountability of
the chief executives, the Boards of Directors of
banks and DFIs.

9. Function of state bank of Pakistan
The State Bank of Pakistan also performs both
the traditional and development functions to
achieve macroeconomic goals.

10. Function of state bank of Pakistan
Primary function
• Issue of notes,
• Regulation and supervision of the financial
system,
• Bankers’ bank,
• Lender of the last resort,
• Banker to Government,
• Conduct of monetary policy.

11. Function of state bank of Pakistan
Secondary function
Agency functions like
Management of public debt,
Management of foreign exchange,
Advising the government on policy matters
Maintaining close relationships with
international financial institutions.

12. Function of state bank of Pakistan
Non-traditional
 Development of financial framework,
 Institutionalization of savings and investment
 Provision of training facilities to bankers,
 Provision of credit to priority sectors.
 Islamization of the banking system.

13. Central Board of Directors
The Central Board consists of nine members:
the Governor (who is Chairman),
The Secretary, Finance Division, Government of
Pakistan and eight Directors, including one
Director from each Province, to be nominated
by the Federal Government. The Directors are
appointed for terms of up to three years.

14. Central Board of Directors
Chairman: ( Governor SBPAshraf Mahmood Wathra)
Dr. Waqar Masood Khan (Secretary Finance)
Mirza Qamar Beg
Khawaja Iqbal Hassan
Mr. Iskander Mohammed Khan
Mr. Shahid Ahmed Khan
Mr. Mehmood Mandviwalla
Mr. M. Nawaz Tiwana
Mr. Muhammad Hidayatullah
Mr. Zafar Masud

16. State bank of Pakistan departments
• Agriculture credit and microfinance department
• Banking inspection departments
• Banking police and regulation department
• Banking surveillance department
• Consumer protection department
• DFIS and exchange companies inspection
department
• Exchange policy department
• Finance department
• Economic police review department
• Legal service department

17. State bank of Pakistan departments
• HRM department
• Information system and technology
department
• Internal audit and compliance department
• Islamic banking department
• Monitory policies department
• Office of the corporate secretary department
• Research department
• Statistics and data warehouse department
• Treasury operations department
• Payment system department

18. THE ROLE OF STATE BANK OF
PAKISTAN IN ECONOMIC
DEVELOPMENT OF PAKISTAN?
• ECONOMIC DEVELOPMENT
“It refers to the process whereby the total supply
of goods and services of the society increases
leading towards improved living standards.”

19. THE ROLE OF STATE BANK OF PAKISTAN
IN ECONOMIC DEVELOPMENT OF
PAKISTAN?
• 1) Issue of Notes
• 2) Banker to the Government
• 3) Banker’s Bank
• 4) Clearing House
• 5) Advisor to Government
• 6) Lender of Last Resort
• 7) Controller of Credit
• 8) Economic Growth
• 9) Growth of Credit Institutions

20. THE ROLE OF STATE BANK OF PAKISTAN
IN ECONOMIC DEVELOPMENT OF
PAKISTAN?
• 9) Growth of Credit Institutions
• 10) Growth of Money Market
• 11) Value of Rupee
• 12) Special Funds for Development
• 13) Debts Management
• 14) Foreign Exchange Reserves
• 15) Exchange Centre
• 16) International Relations
• 17) Economic Information

21. Banking
• State Bank’s Shariah Board approves essentials and model
agreements for Islamic modes of financing
• Procedure for submitting claims with SBP in respect of
unclaimed deposits surrendered by banks/DFIs
• Banking sector supervision in Pakistan
• Microfinance
• Small and medium enterprises (SMEs)
• Minimum capital requirements for Banks
• Remittance facilities in Pakistan
• Opening of foreign currency accounts with banks in
Pakistan under new scheme
• Handbook of corporate governance
• Guidelines on risk management
• Guidelines on commercial paper
• Guidelines on securitization
• SBP Scheme for agricultural financing

22. ACCOUNTABILITY TOOLS
• Parliament Reports:
State Bank provide report to Parliament
important contribution in an assessment of the
performance of the central bank. The reports
aim to provide a candid and objective review
of economic policies.

23. ACCOUNTABILITY TOOLS
• Cabinet:
• The Governor, State Bank of Pakistan is invited to
participate
• Cabinet meetings on Annual Budget,
• Trade Policy and other economic and financial issues.
Attends the meetings of the National Economic
• Council headed by the Prime Minister of Pakistan,
Export Development Board, Economic Advisory
Council and other similar forum.

24. ACCOUNTABILITY TOOLS
• External Audit:
• In terms of SBP Act 1956, the accounts
• are required to be audited every year by practicing
Chartered Accountancy firms.
• Two firms of Chartered Accountants audit the
financial record and statements of State Bank.
• Firms are selected from the top five practicing firms
in the field and the sub-committee of the Central
Board independently approves their appointment.

25. ACCOUNTABILITY TOOLS
• Auditor General of Pakistan:
State Bank of Pakistan is an autonomous body
and falls under the purview of audit by the
Auditor General of Pakistan.

26. CONTENT ANALYSIS
OF
SBP WEBSITE

33. Thank You