REPORT

STATE BANK OF PAKISTAN

Functions,Role,Operations, Reserves of pakistan

Submitted To: Sir Ijaz Mustafa Hashmi

Submitted By:

Rumsha Ikram 4121-FMS/BBA/F14

Marva Khalid 4157-FMS/BBA/F14
Aimen Arif 4126-FMS/BBA/F14

Course: Financial Institutions and Markets

Course Code: FIN-505

Batch. No: BBA.31(B)

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Table of Contents
Introduction and Overview of State Bank of Pakistan: ................................................................................ 4
History ....................................................................................................................................................... 5
Management......................................................................................................................................... 5
Functions of state Bank of Pakistan ............................................................................................................ 6
Primary functions ...................................................................................................................................... 6
Secondary Functions ............................................................................................................................. 9
Non Traditional functions11

Role of state bank of Pakistan13

Conclusion.15

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The institution carries out the monetary policy of
Pakistan, works closely with the government of
Pakistan, having means of controlling the banking
system of Pakistan, and above all aiming the
prosperity of Pakistan.

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Introduction and Overview of State Bank of Pakistan:
The State Bank of Pakistan is the central bank of Pakistan. It was established on, July 01,
1948. The father of the Nation Mr. Quaid-e-Azam Muhammad Ali Jinnah inaugurated the State
Bank of Pakistan. At the time of its establishment the state bank of Pakistan was semi-
government institution. Originally laid down in the State Bank of Pakistan Order 1948, remained
basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its
functions was considerably enlarged. The bank started with Rs. 30 million as paid-up capital.
The government held its 51% of the shares and the rest 49% were held by the private sector.
Later the paid-up capital was increased to Rs.100 million. State bank of Pakistan controls the
overall monetary system of the country .All the financial institutions (Banks etc.) have to report
to the state bank of Pakistan regarding their operations. State bank of Pakistan has complete
authority to regulate, monitor and specify rules and regulations for the financial sector of
Pakistan. Being a government bank, SBP has to bear a lot of government pressure, due to
excessive government and other political pressure it often fails to take some necessary strict
actions against certain financial institutions. The current Governor of State Bank of Pakistan is
Mr. Ashraf Mahmood Wathra, Since Jan 31, 2014. The governor is appointed for 5 years.
President of Pakistan appoint the Governor of State Bank of Pakistan.

Vision:
Vision is to develop the State bank of Pakistan into a strong and dynamic institution, equipped
with an efficient and professional human resource base, having the essential technology and fully
capable of providing quality service to stakeholders, while complementing the state bank of
Pakistan in achieving its objective.

Mission:
Mission is to maintain an efficient currency management system and to provide reliable banking
services that are responsive to the changing environment to command trust and respect to
stakeholders.

Headquarters and Offices:

The headquarters are located in the Islamabad, Karachi and offices are 16 all over Pakistan.

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History:
Before independence the Reserve Bank of India was the central bank for both India and
Pakistan. On the 30th of December 1948 the British Government's commission distributed the
Reserve Bank of India's reserves between Pakistan and India -30 percent for Pakistan and 70
percent for India. On May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to
establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the
State Bank of Pakistan commenced operation on July 1, 1948.

Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was charged with the
duty to "regulate the issue of bank notes and keeping of reserves with a view to securing
monetary stability in Pakistan and generally to operate the currency and credit system of the
country to its advantage". When the State Bank of Pakistan Act 1956 was introduced, it
required the state bank to "regulate the monetary and credit system of Pakistan and to promote its
growth in the best national interest with a view to securing monetary stability and the countrys
productive resources".

Management:
The management and supervision of the bank is in the control of the followings:

Central Board of Directors:

This board is consisted of one Governor, one deputy governor and 8 directors. The governor is
appointed for five years. As a chief executive of the bank, the governor is required to devote his
whole time in affairs of the bank. In this capacity he has not only to control and direct the affairs
of the bank on behalf of the bank but also to preside over the meetings of the board. The Central
Board of Directors must have at least six meetings per annum (provide that at least one in each
quarter period). If any director remains absent without any leave from three consecutive
meetings of the board, he may lose his office.

Executive Committee:
This committee is headed by the governor, which controls the day to day business of the bank on
behalf of the central board of directors.

Local boards:
There are two local boards, one at Lahore and the other at Karachi. Each board is consisted at 9
members, which include a secretary (who is the manager of the local branch).

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Functions of state bank of Pakistan:

Traditional:

1. Primary Functions: Including issue of notes, regulation and supervision of the financial
system, bankers bank, lender of the last resort, banker to Government, and conduct of monetary
and credit policy.

1.1 Bank of issue Notes/currency:

The state bank of Pakistan is the only bank which has the right to issue the note. State bank of
Pakistan has monopoly in issuing currency notes. 5, 10, 50, 100 rupee notes are issued by the
bank on 12 July 1976. Note of 500 rupee was issued on 1st April 1986 and 1000 rupee note was
issued on 18th July 1987. The note of Rs.5000 is also issued by the state bank of Pakistan. The
state bank has three offices of issue, situated at Karachi, Lahore and Peshawar. SBP issued notes
on the basis of SBP act 1956. According to this act the notes were issued on a proportional
reserve system. Under this system notes are issued against proportional reserves in the form of
gold, silver or foreign currency. The central bank is required to keep only certain percentage of
notes issued in the form of gold or silver. The reserve proportion is usually from 30% to 40%. It

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means a central bank can issue PKR- 100 note after keeping gold and silver valuating PKR 30
and 40. The essential feature of this system is the provision of proportional metallic reserves
against the notes in circulation. This method of currency regulation is the most affordable system
of the present time. The regulation of the currency is in accordance with the requirements of
business and the general public. Two separate departments deal with the affairs of issuing of
notes.

Issue Department:
Deals with the issue of notes
Banking Department:
Undertakes general banking business

The overall affairs with respect to the issuing of notes are conducted through two notionally
separate departments of SBP, Issue Department which deals with the issue of notes, and the
Banking Department which undertakes general banking business. Under section 30 of the State
Bank Act, 1956 the assets of the Issue Department should at no time fall short of its liabilities,
i.e., total notes issued. Assets are in the form of gold coins, gold bullion, and silver bullion. The
remainder of the assets of Issue Department should consist of rupee coins, rupee securities and
the internal bills of exchange and other commercial papers. There are four issue departments one
each in four provincial capitals viz., Karachi, Lahore, Peshawar and Quetta.

1.2 Conduct of monetary policy:

The SBP has also been entrusted with the responsibility to carry out monetary & credit policy
.The state bank adopts monetary policy to control credit or supply of money in the country. It
is a policy of central bank to control the supply of money with the aim to achieving
macroeconomic stability. For this purpose it runs bank rate variations, reserve requirements
variations, varying margin requirements. SBP controls the demand and supply of money. The
changes in market interest rates influence the cost of borrowing for consumers and businesses as
well as the return on deposits for the savers. The decrease in interest rates reduces the cost of
borrowing and reduces the rate of return on savings.

Investors perspective: Generally, lower interest rates encourage people to save less and
consume more, and when interest rate increases people will save more and invest more. (When
interest rate increases, the money supply will also increase).

Borrowers perspective: lower interest rate encourage people to borrow money, when interest
rate grows then borrowers mostly pends to take loan at high interest (interest rate increases,
money demand decreases ).The interest rates is determined on the basis of interbank offer rate at
which financial institutions lend or borrow from each other. Interbank offering rate is given by
state bank of Pakistan to all the commercial banks of Pakistan so that they charge to their
customers on that basis. If interbank offer rate is low it brings economic stability and economy
works more effectively. KIBOR (Karachi interbank offer rate) is the average interest rate at

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which banks wants to lend money to other banks. The market interest rates are also influenced
by central bank interventions in money and foreign exchange markets. The SBP also regulates
direction of flow of credit; the state bank makes use of both direct & indirect instruments of
monetary management. State bank of Pakistan also controls credit. Its aim is to encourage credit
only to the essential or most desirable sectors and discourage the unessential or less desirable
sectors of economic activity.

1.3 Regulation and Supervision of Financial System: It is a principal task of SBP to make sure
that financial system is efficient. The financial system regulates the flow of fund; it allows the
flow of fund between lenders and borrowers. SBP has been given vast powers under Pakistani
Law to monitor financial system. It is the responsibility of State Bank to systematically monitor
the performance of every banking company to ensure its compliance with the banking rules &
regulations. All the financial institutions (Banks etc.) have to report to the state bank of Pakistan
regarding their operations. State bank of Pakistan has complete authority to regulate, monitor and
specify rules and regulations for the financial sector of Pakistan.

1.4 Bank of the Banks/ Bankers Bank:

State bank of Pakistan is the bank of all commercial banks working in Pakistan. State bank
provides loans to commercial banks at the time of need. All the banks are required to keep
prescribed percentage of reserve with the central bank to provide financial protection to the
commercial banks. The ratio of cash reserve can be changed by the state bank if required
according to situation. Maintenance of cash reserve also helps in the process of credit control in
the country. Banks are classified as:

Scheduled Banks: The banks which are registered in the list of central bank are known as
scheduled banks. They are bound to perform banking services according to the policies and
instructions of central bank.

Non-Scheduled Banks: The banks which are not registered in the list of central bank are known
as non- scheduled banks. They are not bound to perform banking services according to the
policies and instructions of central bank.

All the banks in the country are required to keep at least 5% of their deposits as cash
reserves with it.

It provides guidance and direction to the banks to formulate their policies about deposits,
credit, investment and interest rate.

All the banks send weekly statements about their deposits and reserves to the state bank
of Pakistan.

State bank can sell, purchase and hold debentures of any banking company or of any
other financing corporation.

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1.5 Lender of last Resort:

The state bake of Pakistan also acts as the lender of the last resort for the commercial banks.
When commercial banks are in crisis and have shortage of cash, then state bank comes to their
help. State bank may help the commercial banks by rediscounting their bills of exchange and by
advancing loans against securities. The state bank is always ready to rescue scheduled banks.
Whenever, they run short of cash, and are unable to get help from other resources, they
approaches the state bank of Pakistan. The state banks of Pakistan, lends enough funds to ensure
their liquidity and imposes some conditions and charge some interest.

1.6 Banker to the Government:

Central bank acts as banker to the government. It keeps deposits of the government. It receives
taxes and makes payments on behalf of the government. It advances short-term loans to the
government. It acts as an adviser to the government in economic and monetary matters as
controlling inflation and deflation. Foreign Exchange is also regulated and controlled by it on
behalf of the government. The government does not take any step in monetary affairs without the
consultation of the bank. Its functions are:

Bank issued new notes on the behalf of government.

Bank accepts the government cheques and drafts.

State bank responsible for transferring government funds from one place to the other.

Bank provides short-term loans to the government.

Bank receives no commission form the government.

Collects taxes to increase the government revenue.

State bank is liable for the payment of salaries and pension to government employees.

2 Secondary Functions: Including public debt management, management of foreign

exchange, advisor to government, relations with IFIs.

2.1 Public Debt Management:

The Bank is responsible for the management of government debt under sub-section 13(e) of
section 17, and section 21 of the SBP Act, 1956. The Public Debt Act 1944 also defines the
responsibilities of SBP for public debt management. The following actions are involved in this
regard: Subscribing Federal and Provincial governments securities at the time of their issue
Sale/purchase of such securities in the Money Market (through auction, OMO or discount
window) payments of interest to holders of public debt instruments.

In order to efficiently manage the public debt, a department namely, Securities Department was
set up in December, 1990 for the business of government securities. This department was

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subsequently merged with foreign exchange dealing room and a new department Exchange &
Debt Management Department (EDMD) was created in February, 2000.

For the auction of Treasury Bills and government bonds, a primary dealer system is developed.
The securities are offered for sale on fortnightly basis in case of Market Treasury Bills (MTBs)
and on quarterly basis in case of Pakistan Investment Bonds (PIBs) to primary dealers. Primary
dealers are then allowed to undertake the business of government securities in secondary market.

The State Bank undertakes draws of prize bonds along with their sale/purchase. It also carries out
the sale, purchase and interest payments on some of the saving schemes; however the overall
management of prize bonds and saving schemes lies with the Central Directorate of National
Savings. The State Bank is entitled to receive commission on the transactions of government
savings certificates. The State Bank also has an advisory role with regard to government loans,
terms and timings for their floatation.

2.2 Management of Foreign Exchange

Being responsible for maintaining the external value of the currency, the State Bank of Pakistan
assumed the charge of management and administration of the exchange system of the country
in line with the Foreign Exchange Regulation Act, 1947 which was originally enacted by the
British Government and subsequently adopted by Pakistan. As an agent to the Government, the
Bank has been authorized to purchase and sell gold, silver or foreign exchange and transactions
of special drawing rights with the International Monetary Fund under sub-sections3(a) and
13(a,f) of section 17, and section 23 of the SBP Act, 1956.

2.3 Advisor to Government

The State Bank of Pakistan also acts as an advisor to the Government on financial and economic
matters particularly with reference to their monetary aspects. The bank counsels the Government
on loan operations and advises it with regard to the timings, terms and conditions and rate of
return on these loans. The advice is also tendered on matters like agricultural credit, cooperative
credit, industrial finance, exchange regulations, banking and credit control, mobilization of
savings, financial aspects of planning and development and similar other economic issues. State
Bank of Pakistan also tenders advice to the Government on debt management issues. The
advisory role of the Bank has been made mandatory in accordance with the Section 9A (d,e) of
the SBP Act 1956.

2.4 Relationships with International Financial Institutions

Pakistan is the member of International Monetary Fund. The State Bank of Pakistan deals with
the IMF on behalf of the Government of Pakistan (sub-sections 13(f) and 15 of Section 17 of the
act). As a member of the Fund, the Government accepted the obligations of Article-VIII,
Sections 2, 3 and 4 of the IMF Articles of Agreement w.e.f. July 1, 1994. As a result of which
Pak-rupee was made convertible on current international transactions. The Governor State Bank
accompanies the Minister of Finance in annual general meeting of the IMF and World Bank. The
Bank officials also participate in negotiations with IMF missions in Pakistan and at IMF Head
Office. The State Bank of Pakistan also deals with other international financial organizations
including Bank for International Settlement, the World Bank, Central Banks of foreign countries,

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etc. Almost all the agreements of Provincial and Federal Government with International
Financial Institutions (IFIs) are executed through the State Bank of Pakistan.

3.Non-traditional Functions:
Responsibilities of the State Bank of Pakistan go well beyond the conventional functions that
have been discussed above. The scope of Banks operations has been widened considerably by
including the economic growth objective in its statute under the State Bank of Pakistan Act,
1956. In fact, the Bank has been involved in developmental and promotional activities even
before the enactment of SBP Act, 1956. The Banks participation in the development process has
been in the form of rehabilitation of banking system in Pakistan, development of new financial
institutions and debt instruments to promote financial intermediation, establishment of
Development Finance Institutions (DFIs), directing the use of credit according to development
priorities, providing subsidized credit, and development of capital market.

3.1 Development of the Banking System

The most significant contribution made by the State Bank of Pakistan towards facilitating and
fostering economic development in Pakistan was the rehabilitation of the banking system in
Pakistan. At the time of independence the commercial banking system in Pakistan had virtually
collapsed with the closure of large number of bank offices which were run and managed by non-
Muslims who migrated en-mass to India. Also there was no independent monetary authority, and
the Government of Pakistan had to resort to the Reserve Bank of India for its currency and
monetary affairs. Thus a tremendous task before the State Bank was to strengthen its own
institution as a central bank besides overall development of banking industry in the country.

3.2 Training Facilities to Bankers

Keeping in view an acute shortage of trained bankers at the time of the independence, the State
Bank introduced "Bank Officers Training Scheme" within one month of its establishment. On
July 2 1948, the Central Board of Directors of the Bank approved a comprehensive scheme for
university graduates especially with mathematics, economics and commerce backgrounds. For
clerks, State Bank introduced departmental examinations system in 1950 to enhance the s of the
existing staff in the banking industry.

3.3 Development of Specialized Financial Institutions

The State Bank has actively participated in setting up a number of specialized credit institutions
designed to meet the long and medium-term financing needs of various sectors of the economy.
These institutions include Pakistan Industrial Credit and Investment Corporation of Pakistan
(PICIC), Industrial Development Bank of Pakistan (IDBP), National Development Finance
Corporation (NDFC), Agricultural Development Bank of Pakistan (ADBP), Federal Bank for
Co-operatives (FBC) and House Building Finance Corporation (HBFC). These institutions were
established to provide credit to industrial, agricultural and other sectors. The Bank also
subscribed to the share capital of the People's Finance Corporation - renamed subsequently as
Small Business Finance Corporation (merged in to the present Small and Medium Enterprise
Bank), the Equity Participation Fund and Banker's Equity. These institutions were designed to
provide finance to small businesses and the major sectors of the economy.

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3.4 Credits to Priority Sectors
The Bank has also introduced various credit schemes to channel resources towards priority
sectors like export finance scheme, mandatory credit for agriculture, small business and small
industries, etc. Before 1990s, mandatory and concessionary credit to priority sectors remained
about 50 per cent of the total private sector credit. However, with the start of liberalization
process in the financial sector, its share is declining as a result of deliberate policy stance. The
underlying objectives are to increase efficiency in all the sectors of the economy and to let the
market forces decide the proper allocation of resources.

3.5 Islamisation of the Banking System

The State Bank has also been involved in the process of Islamisation of the economy in general
and the banking system. The State Bank had been making efforts since its inception to evolve
and introduce a financial system based on the norms of the Shariah. While inaugurating the State
Bank of Pakistan, the Father of the Nation, Quaid-e-Azam Muhammad Ali Jinnah, and later on
the first Governor of the Bank, late Zahid Hussain, gave a direction to make efforts to build the
economic and financial system of the country on the lines dictated by Islam. However, the work
could not be started forthwith as the experts in Islamic jurisprudence and the modern economics
both were not available. A unit was created in the Research Department of the Bank in late 1950s
that was subsequently developed into a full-fledged Division, to undertake research work on
economic system of Islam. Considerable amount of research work was undertaken in Islamic
Economics Division (I.E.D) of the Bank during 1960s and1970s. This particularly included the
nature and connotation of Riba, the Sharieposition of present day interest based financial
system, various alternatives to interest and the fiscal system of Islam. Similarly in 2001 an
Islamic Banking Division was established in Banking Policy Department to deal with the
regulatory and supervisory issues in Islamic Banking. To meet the challenges of developing a
dynamic, responsive and viable Islamic banking system, a new Islamic Banking Department has
been established in the Bank in September, 2003through the merger of Islamic Economic
Division and Islamic Banking Division.

Operations:
The central bank operations can also be categorized into macroeconomic function and
microeconomic function. The macroeconomic function is to preserve the value of the currency,
that is, maintain price stability and the micro economic function is to maintain stability in the
king system.

ROLE OF STATE BANK OF PAKISTAN

State bank of Pakistan plays a vital role in the development of the financial environment of the
country. Following are the achievements and performance of the State bank:

1. QUANTITY OF MONEY:
The state bank has regulated the supply of money according to its demand to avoid from increase
in price level (inflation) and deflation.

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 2. EXPANSION OF BANKING SYSTEM:
At the time of independence of Pakistan there were only two (Muslim) banks _Habib bank and
Australasia bank. These two had a few branches, which were quite incapable to meet the banking
need of our expanding economy. The efforts of the state bank of Pakistan for expanding
commercial banking facilities have come forth successfully, as if it is compared to only 81
branches of the banks in 1948, there is now a network of more than 8000 branches is spread all
over the country. Further, there are nearly 150 branches of our home banks in the foreign
countries.

3. ESTABLISHMENT OF FINANCIAL INSTITUTIONS:

The State Bank has provided a valuable help in establishment of financial institutions. These
institutions include Agriculture Development of Pakistan (ADBP), Industrial Development Bank
of Pakistan (IDBP), Pakistan Industrial Credit and Investment Corporation (PICIC), House
Building Finance Corporation (HBFC), National Development Finance Corporation (NDFC),
and Banker Equity (BE), etc. which provide easy and medium/long term loans to develop a
sector of the economy. For this purpose, the State Bank provides them adequate funds.

4. BALANCED DISTRIBUTION OF CREDIT:

State bank of Pakistan has taken steps to distribute the credit equally among different sectors of
the economy and classes of the people to develop a balanced ecenomy.it also helps in the
implementation of government credit plans.

5. CONCENTRATION OF LOANS:
In the past Pakistan, has faced the problem of concentration of bank credit in a few hands. Some
industrial groups and prominent families obtained a major part of loans. The State bank controls
and removes this practice successfully through its credit distribution policy. Regarding these
policy commercial banks provides enough amounts for small loans at easy terms.

6. SPECIAL FINANCING SCHEMES:

The bank has introduced many schemes, which are to provide special financing facilities to small
enterprise in agriculture, business, and industry. These schemes are:

1. Small loans scheme for businessman and industrialists.

2. Scheme for agricultural loans by commercial banks.
3. Schemes for financing sales and exports of local produce.
4. Credit guarantee scheme to cover the risk of commercial banks in case of small loans. If
the banks are unable to get back any loan the state bank bears 50% of the loss.
5. Export finance scheme to provide finance at very low rate of interest to the exporters.
6. Self-employment scheme of the government for unemployed persons in implemented
through the State Bank.

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7. TRAINING:

Training of staff is pre-requisite for the growth of banking. The State Bank has realized this fact
from the very beginning. Thus, it is imparting training in the banking practices to many its own
personnel as well as of the commercial banks.

8. PROMOTING OF BANKING HABIT:

To promote banking habit among the people and for mobilizing savings, the State Bank has set
up a banking publicity board.

9. ISLAMIC BANKING:

The state bank has been actively cooperating in the government policy of introduction of Islamic
banking. To achieve this end, interest-free banking (PLS accounts) has been started in 1980-81.
The bank also holds the amount collected under zakat funds, which is distributed among the
beneficiaries through Bait-ul-Mal.

10. ESTABLISHMENT OF STOCK MARKET:

A well-developed money market performs very useful function for the financial stability and
economic development of a country. In beginning, there were no stock exchange markets, bill
markets or capital markets. Therefore, no facilities were available for the purchase and sale of
bills, securities, and shares. The state Bank:

a. Establishes stock exchange at Karachi, Lahore, and recently in Islamabad.

b. Establishment action market for short-term.
11. PROFIT OF THE STATE BANK:

Although the main objective of the working of the state bank is the economic stability of the
country, yet it earns profit. For example, in 1990-91 it earned Rs.1395 million as profit.

12. RECOVERY OF LOANS:

During past few years billions of loans have been paid back Rs.130 billion were outstanding
against the defaulter till March 2000.This situation has put many commercial banks in difficulty
and some of them are facing the danger of failure. Now the state bank is making all efforts to
help the banks to recover these loans. In this connection recovery laws, have also improved by
the state bank.

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Pakistan - Total reserves

Total reserves (includes gold, current US$)

The latest value for Total reserves (includes gold, current US$) in Pakistan was $17,829,730,000
as of 2015. Over the past 55 years, the value for this indicator has fluctuated between
$17,829,730,000 in 2015 and $165,486,100 in 1967.

Definition: Total reserves comprise holdings of monetary gold, special drawing rights, reserves
of IMF members held by the IMF, and holdings of foreign exchange under the control of
monetary authorities. The gold component of these reserves is valued at year-end (December 31)
London prices. Data are in current U.S. dollars.

Source: International Monetary Fund, International Financial Statistics and data files.

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Year Value
1960 $327,400,600
1961 $261,302,500
1962 $269,316,900
1963 $307,832,200
1964 $254,226,700
1965 $230,344,700
1966 $208,453,000
1967 $165,486,100
1968 $258,389,100
1969 $332,933,100
1970 $194,529,600
1971 $198,501,900
1972 $323,798,300
1973 $590,281,600
1974 $688,502,100
1975 $562,995,200
1976 $684,140,400
1977 $715,701,800
1978 $795,941,400
1979 $1,144,047,000
1980 $1,567,771,000
1981 $1,455,323,000
1982 $1,812,777,000
1983 $2,682,849,000
1984 $1,610,426,000
1985 $1,429,437,000
1986 $1,464,869,000
1987 $1,440,835,000
1988 $1,192,694,000
1989 $1,302,247,000
1990 $1,046,430,000
1991 $1,219,792,000
1992 $1,523,791,000
1993 $1,995,446,000

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 1994 $3,715,827,000
1995 $2,527,544,000
1996 $1,307,464,000
1997 $1,794,514,000
1998 $1,625,676,000
1999 $2,117,469,000
2000 $2,087,168,000
2001 $4,218,132,000
2002 $8,795,803,000
2003 $11,815,610,000
2004 $10,718,170,000
2005 $11,109,360,000
2006 $12,878,020,000
2007 $15,798,070,000
2008 $9,024,014,000
2009 $13,606,120,000
2010 $17,255,570,000
2011 $17,697,930,000
2012 $13,688,480,000
2013 $7,651,260,000
2014 $14,306,810,000
2015 $17,829,730,000

Conclusion:
All above points are showing that state bank of Pakistan has an important position in our
economic and financial infrastructure. Without an effective role of state bank, economic
development is impossible.

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