State Bank of Pakistan

State Bank of Pakistan is the Central Bank of Pakistan, responsible for supervising the monetary system of Pakistan. Some of the major activities of State Bank of Pakistan include maintaining currency stability, and low inflation. State Bank of Pakistan is the authority to issue currency. Some other functions of the State Bank of Pakistan are supervising commercial banks, managing exchange reserves etc.

Functions of State Bank of Pakistan

The basic functions of the State Bank of Pakistan include regulating issuance of bank notes, keeping reserves to maintain monetary stability of the country, operating the currency and credit system of Pakistan, efficient utilization of country's resources, supervising financial system and formulating monetary policy.

Some other functions of the State Bank of Pakistan include management of foreign exchange, management of public debt, suggesting Government on policy matters and coordinating with leading financial establishments. Some supplementary functions of the State Bank of Pakistan include development of financial framework, maintaining savings and investment, providing training facilities to bankers, and providing credits to the priority sectors.

Laws, legislation and regulations:

The State Bank of Pakistan regulates the volume and direction of flow of credit to several sectors. Some of the acts, regulations and ordinances are:

Draft Banking Act 2006
Banking Nationalization Act
Payment Systems and Electronic Fund Transfer Act, 2007
Prudential Regulations
The Financial Institutions (Recovery Of Finances) Ordinance, 2001
Banking Companies Ordinance 1962
National Accountability Bureau (NAB) Ordinance 1999
Microfinance Institutions Ordinance, 2001
Micro-Finance Bank Ordinance, 2000

Governor

The principal authority of the State Bank of Pakistan is the Governor. Since 2nd October, 2006, Dr. Shamshad Akhtar is working as the Governor of State Bank of Pakistan. Dr. Akhtar is the first woman and the 14th Governor of the State Bank Pakistan.

Objectives of State Bank of Pakistan

Main objectives of State Bank of Pakistan include developing new financial establishments, encouraging financial intermediation, organizing the use of credit, and developing capital market.