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)

STATE BANK OF PAKISTAN

Mission statement

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

Pakistan

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.

STATE BANK OF PAKISTANHISTORY

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 1948SBP commenced operation on July 1, 1948

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.

AmendmentsBanks 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.

Function of state bank of Pakistan

The State Bank of Pakistan also performs both the traditional and development functions to

achieve macroeconomic goals.

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.

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.

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.

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.

Central Board of Directors

Chairman: ( Governor SBPAshraf Mahmood Wathra)Dr. Waqar Masood Khan (Secretary Finance)Mirza Qamar BegKhawaja Iqbal HassanMr. Iskander Mohammed KhanMr. Shahid Ahmed KhanMr. Mehmood MandviwallaMr. M. Nawaz TiwanaMr. Muhammad HidayatullahMr. Zafar Masud

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

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

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.”

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

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

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

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.

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.

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.

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.

CONTENT ANALYSISOF

SBP WEBSITE

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