STRUCTURE & FUNCTIONS OF

STATE BANK OF PAKISTAN

‫دولت اکستان‬
‫پ‬ ‫ب ینک‬
INTRODUCTION
A universal monetary institute in modern times

Constitutes the apex of the money structure of an

economy.

 Acts as the leader of the money market .

Supervises, controls and regulates the activities of

commercial banks.
DEFINITION

“Institute charged with the

responsibility of managing the
expansion and contraction of the
volume of money in the interest of the
general public welfare.”
GOVERNOR
The principal officer of the SBP is the
Governor. The current Governor of State
Bank of Pakistan is “Syed Salim Raza” who
took over from “Dr. Shamshad” in January
2009 for a three year term. He is a retired
professional from Citibank and was the
Chairman of Pakistan Business Council.
 ADMINISTRATIVE ORGANIZATION
To run and monitor the bank it is divided into three parts.

 CENTRAL BOARD OF DIRECTORS

(High Level of Management)

 CENTRAL DIRECTORS
(Middle Level of Management)

 FIELD OFFICE
(Low Level of Management)
CENTRAL BOARD OF DIRECTORS
This board comprises :
GOVERNOR 1
DEPUTY GOVERNOR 1
DIRECTORS 8
TOTAL 10

Governor, Deputy Governor and seven directors

are nominated by Federal Government. The
either director is the head of ministry of Finance.
CENTRAL DIRECTORS
The central directorate consist of fifteen
department and every department is headed
by a director.
Public Relationship and Secretary’s department
are directly accountable to deputy Governor.
Research & Statistic department work under
economics advisor.
The remaining eleven department work under
four executive director.
FIELD OFFICE

The Head office of the bank is in Karachi.

 SHARE CAPITAL
At the time of its establishment the “State Bank
of Pakistan” was semi-government.

Its 51% shares were held by the government and

49% by the general public.

At the time of Nationalization in 1974 its paid up

capital was Rs. 30 Million.
IMPORTANCE
To control credit.

To issue Paper currency.

To iron out economic crisis.

To implement Monetary and financial Policies.

FUNCTIONS OF SBP
Issuer of Paper Currency Bank’s Supervision

Bankers to Government Implement the

Banker’s To Bank Monetary Policy

Acts as a Clearing House
Exchange Rate

Management

Non-traditional Role
 CREDIT CONTROL MEASURES

GENERAL CREDIT CONTROLS SELECTIVE CREDIT CONTROLS

Bank Rate Ceiling on Credit

Open market Margin Requirements

operations
Directives
Cash Reserve Ratio
Moral Suasion
Statutory Liquidity Ratio
 CONCLUSION
o State Bank of Pakistan is not a Profit
Hunting Institution. Profit is its secondary
objective. Its Primary function is to
stimulate economic growth of the Country.
o It reveals complete Transparency, &
Prudence in Nations Economy.
o So it clearly Justifies the Need &
Importance of The State Bank of Pakistan .
FEDERAL URDU UNIVERSITY
Department Of Economics
(2009-2010)

Course Instructor : Miss Nargis

MEF Semester I

Prepared By:
Mohammad Sarwat Jawaid
Mohsin Toufeeq
THANK YOU !!!!