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State Bank

State Bank

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Hailey college of banking and finance



In order to cater to information needs of the personnel of Research Departments and other
employees of the State Bank of Pakistan, a library was setup in 1949 at Central Directorate, Karachi.
Ever since establishment, the library remained administratively associated Research Departments till
March 2005 when it was placed with Corporate Services Department as a result of restructuring and
business process re-engineering in the SBP. The library remained housed at 5th floor of the main
building till 1996 when it was shifted in the old magnificent building originally constructed by the
Imperial Reserve Bank of India adjacent to main SBP building. .Later on, it was moved in the newly
renovated building of Learning Resource Centre (LRC) adjacent to the main SBP building in

The SBP library has a rich collection of books, technical reports, Government documents,
periodicals and magazines mainly relating to the subjects of Economics, Banking, Finance,
Management, Commerce, etc. Besides, sufficient reading material on Islam (in English, Urdu,
Arabic, and Persian languages) and literary works in National and Regional languages are also
available in the library. Over the years, the library has grown into one of the biggest and well-
stocked libraries of the country on these subjects. The library facilities have been so designed that
the latest as well as archival materials on the subjects related to Economics, banking, finance and
allied subjects are readily within easy access of the readers. In addition to printed resources, the
library provides online access to research journals and a host of digital resources to the readers, and
provides the adequate modern facilities and services to its readers in a very friendly & conducive


The State Bank library has ever been financed adequately through annual budget as well as special
grants for procurement of books and periodical literature. The library adheres to policy of spending
its annual and special grants, keeping a ratio of 75:25 between specialized subjects (economics,
banking, finance, commerce, management, information technology, etc.) to subjects of general
interests like Islam, history, geography & travel, social sciences, literature, science & technology
disciplines, in order to maintain balance, evenness and comprehensiveness in collection to cater to
information and reading requirements of all the bank employees. A Books Selection Committee,
comprising highly qualified and experienced researchers and bankers, meets on monthly basis to
select the latest books received from different local booksellers.

Hailey college of banking and finance


The State Bank library has historical collections of books; periodical literature; annual
reports of central and commercial banks, financial institutions and industrial undertakings; budgets,
gazettes and other publications of federal and provincial governments; the publications of United
Nations’ organs like the World Bank, IMF, FAO, UNDP, WTO, ESCAP etc.; local and foreign
newspapers; and clipping files pertaining to economic, financial and political issues.

A brief overview of our collection is given below:


No. of Books


Economics, Banking, Finance and Commerce


Management, Accountancy and Information




General and Applied Sciences


History, Biographies, Geography and Travel


Art and Literature


Laws, Political Science, Agriculture, Education,
Sociology, Psychology, etc.


(English on all subjects)






Regional languages


(Punjabi, Pashto, Sindhi, Balochi)
Rare books


(Urdu & English on history of Indo-Pak and Islam)

Government Publications:

The books and reports issued by various agencies of the federal government, periodically or
occasionally, have been organized in the separate section. Being the sources containing primary and
official data or view point on different socioeconomic aspects, these books are extensively consulted
by the SBP researchers, statisticians and executives as well as the outsiders including bankers,
university students, journalists and free lancers visiting the library in connection with their reference
& research work. The library has almost complete archive of renown government publications

Hailey college of banking and finance

•Economic Survey 1948 to 2004-05
•Pakistan Statistical Yearbook 1947 to 2005
•Population and Housing Census Reports 1951, 1961, 1971, 1981 and 1998
•Population Growth Surveys 1968 to 1979
•Pakistan Demographic Survey 1984 to 2001
•Pakistan Basic Facts 1949 to 1985
•Some Socioeconomic Trends 1980 to 1983
•Census of Agriculture, Agricultural Machinery and Livestock 1960, 1972, 1980, 1990, 1994

and 2000

United Nations Publications:

The library has a historical collection of regular publications issued by different organs of the
United Nations including the World Bank, International Monetary Fund, World Trade
Organization, UNCTAD, WTO, ESCAP, FAO, etc. Besides a large number of research reports,
analyses, surveys, staff papers, working papers, etc. issued by these agencies under different
programmes, the library has complete and updated records of the following periodic publications
of these bodies:

Direction of Trade Statistics Yearbook 1981 to 2004

•Balance of Payments Yearbook 1947 to 2005
•International Financial Statistics 1979 to 2005
•International Trade Statistics Yearbook 1955 to 2004
•World Trade 1976 to 1995

General Reference Works:

In addition to Government & United Nations Publications, the latest sources of information such as
Yearbooks like World of Learning and Europe World Yearbook, general and subject Encyclopaedias
and Dictionaries published by reputed local and foreign publishers, Directories, Almanacs, Atlases,
etc. are also available in the reference section.


The SBP library is expanding its resource base by procuring the electronic resources. Library is
presently subscribing to 31 online research journals. SBP library has also to access the following
websites through HEC Digital Library Program:
EBSCOHOST, which provides access to over 17250 abstracted and indexed journals of which
over 1300 are available as full-text with over 4700 of these being fully peer-reviewed.
SPRINGLERLINK, which provides access to 503 full-text Springer-Verlag journals and
738 full-text journals formerly published by Kluwer Academic Press.

Hailey college of banking and finance

The SBP library is also subscriber of World Bank Online Resources (including WB-e-library,
Global Development Finance & World Development Indicators).


The library follows different schemes for classification and effective organization of different
kinds of literature. The book collections have been classified according to Dewy Decimal
Classification System (001-999) and arranged systematically subject-wise in different sections in the
main hall for instant retrieval by the users. The library has adopted open shelf system for offering
full, free and independent browsing facility to the users for scanning all books, journals, reports, files
etc. available in different sections meeting their requirements. The library has implemented
computerized relational database management system comprising modules for cataloguing of books,
serial control, circulation routines, clippings, gazettes, etc. developed in Oracle for efficient storage
and retrieval services since 1997. The online public access catalogue (OPAC) has been made
available for readers for independent searching of the library databases. The OPAC designated as
“Library Online” is available bank-wide to all users having access to SBP Electronic Board.


In this era of information and economic crunch when there is exponential rise in literature
especially in the disciplines of economics, banking, finance, management, information technology,
etc., costs of books and research journals are soaring and paucity of funds prevails, it has become
virtually impossible for the libraries individually to cater to growing needs of readers.

Hailey college of banking and finance

Hailey college of banking and finance


OUR GUIDER and DCM of Banking Department of SBP,

SIR VED JAIQBAL MARATH we have taken annual report and balance sheets from SBP
and also the strategic plan so it is difficult to send you by soft copy.


Wheat prices likely to rise despite bumper crop: SBP

* Central bank forecasts growth close to 7%, inflation above
6.5% target in 2006-07
* Says expansionary fiscal policy compounds risk to economy

* Advocates new dams

By Sarfaraz Ahmed

KARACHI: The State Bank of Pakistan expects wheat prices
to rise in 2006-07 and the average inflation rate to go above
the 6.5 percent annual target. The bank also forecast economic
growth of “close to 7 percent”.

“The inflation rate, perhaps would slip beyond the 6.5 percent
target,” State Bank Governor Dr Shamshad Akhtar told a press conference on Saturday

According to the bank, the rise in inflation emanates from the risk of reversal of the downtrend in
house rent index (HRI) inflation in the second half of FY 2006-07 due to high international
commodity prices, robust domestic demand for construction inputs, the risk of a rise in food prices
following strong domestic demand of key staples such as milk, and an up-trend in international
prices of key food items such as edible oil and wheat.

“In particular, domestic wheat prices may rise despite an anticipated bumper crop if speculators seek
to take advantage of the rising oil prices,” the central bank said in its report for 2005-06, release on

The bank said while farmers would benefit from high prices, an excessive rise due to speculative
activities could lead to a “net welfare loss to the economy”. The bank also said it may be necessary
for the government to defer wheat exports until the crop size is known and until buffer stocks are in

The bank said the economy grew by 6.6% in FY 2005-06 and based its optimism for an increase in
growth in FY2006-07 on “a recovery in agriculture and industry as well as yet another robust
performance in the services sector”.

While advocating the continuation of a tight monetary policy in FY2006-07, the central bank warned
of the inherent danger of excessive tightening hurting the momentum of growth.

Hailey college of banking and finance

According to the central bank, an expansionary fiscal policy has further compounded the risks to the
economy. “On the one hand, it adds to inflationary pressures by stimulating demand, and on the
other hand, the government’s higher funding requirement induces more pressures to raise interest
rates to curb incremental pressures on the economy.

“The probability of this risk materialising depends crucially on the nature of the expenditure growth,
the manner in which the government finances its fiscal deficit,” the bank said, adding that an
increase in government spending could raise inflationary pressures. However, if the greater part of
the higher expenditure is for development, the long-term gains through crowding-in investment and
increased economic productivity may outweigh the short-term cost of inflationary pressures.

The bank expressed concern over the government decision to increase long-term borrowings through
National Saving Schemes instruments, saying this would likely raise government reliance on non-
banking borrowings, but also have negative implications for the development long term debt capital
markets, and consequently for efforts to attract private capital for long-term investment.
The bank said “an extraordinary trade deficit” was the major reason behind the growth of the current
account deficit in recent years, and undertook to adopt a “corrective policy” of reducing import
growth and fostering export growth.

The bank also underscored the need for construction of reservoirs in order to overcome the energy
deficit. New dams could be a medium to long-term solution, but these could be supplemented by
increasing reliance on alternative energy sources, including by expanding nuclear power capacity,
negotiating multiple gas import options (including the pipeline from Iran), and developing domestic
coal resources (particularly the That deposits).

The central bank said Pakistan’s economy overcame the unexpected weak harvest of key crops, the
impact of the October 2005 earthquake, a tight monetary policy and an unprecedented rise in oil
prices, to register real GDP growth of 6.6 percent during FY2005-06.

Hailey college of banking and finance



Hailey college of banking and finance

In terms of Section36(1) SBP Act, 1956, every scheduled bank is required to maintain
with State Bank a balance the amount of which shall not at the close of business or
any day be less than such percentage of Time & Demand Liabilities in Pakistan as
may be determined by State Bank.

Presently the requirement is 5% on weekly average basis subject to daily minimum of
4% of Time & Demand Liabilities (reference BPRD Circular No.27 dated 2nd July,


In terms of Section 29(1) of Banking Companies Ordinance, 1962 every banking
company shall maintain in Pakistan in cash, gold or un-encumbered approved
securities valued at price not exceeding "the lower of cost or the current market price"
an amount which shall not at the close of business in any day be less than such
percentage of the total of its time & demand liabilities in Pakistan, as may be notified
by State Bank from time to time.

Presently the requirement is 15% (excluding 5% statutory cash reserve) of the total of
its time and demand liabilities in Pakistan (BPRD Circular No.26 dated 2nd




In terms of Rule 6 of NBFIs Rules of Business, all NBFIs are required to
invest 14% of their liabilities defined in the Rule, in Government Securities, NIT
Units, shares of listed companies or listed debt securities in the prescribed manner.
For the purpose of this rule, liabilities shall not include NBFIs equity, borrowings
from financial institutions including accruals thereon, lease key money, deferred
taxation not payable within 12 months, dividend payable within two months, advance
lease rentals and deposits from financial institutions. In addition, they are also
required to maintain cash balance with State Bank, which shall not be less than 1% of
their liabilities as defined above.


Hailey college of banking and finance

Under Rule 17 of NBFIs Rule of Business, all NBFIs are required to invest to submit
their annual audited accounts within a period of 6 months after the close of their
accounting year.


At the expiration of each calendar year every banking company incorporated in
Pakistan, in respect of all business transacted by it, and every banking company
incorporated outside Pakistan, in respect of all business transited through its branches
in Pakistan, shall prepare with reference to that year a balance-sheet and profit and
loss account as on the last working day of the year in the prescribed forms(Section 34
of Banking Companies Ordinance, 1962).


The accounts and balance-sheet referred to in section 34 together with the auditor’s
report as passed in the annual General Meeting shall be published in the prescribed
manner, and three copies thereof shall be furnished as returns to the State Bank within
three months of the close of the period to which they relate (Section 36 of Banking
Companies Ordinance, 1962).


In terms of Section 13 of Banking Companies Ordinance, 1962 no banking company
shall commence business unless it has a minimum paid up capital as may be
determined by the State Bank or carry on business unless the aggregate of its capital
and unencumbered general reserves is of such minimum value within such period as
may be determined and notified by the State Bank from time to time for banking
companies in general or for a banking company in particular.

As present, all banks operating in Pakistan are required to maintain capital and
unencumbered general reserve, the value of which is not less than 8% of their risk
weighted assets. Additionally they are also required to maintain a minimum paid up
capital of Rs.500 million

Hailey college of banking and finance


Monopoly of note issuing

World’s best-automatic Microsoft system due to participation of TABS.

Have no competitors and works for national interest.

It’s a guarantor of all the Commercial Banks


No effective control over inflation

Credit control is not effectively handled.


Growing banking industry.

Having effective monetary management

Effective control over consumer financing on behalf of commercial banks.


Danger of increasing trade deficit, which causes inflation.

According to BASEL – II accord by BIS all banks should have Rs.3 million
paid up capital. If not than these should be merged.

10 banks have already been merged and danger of producing competitors of SBP by creating

Sources used for Assignment:

state bank website(www.sbp.org.pk)

visit to state bank Lahore office


Hailey college of banking and finance

www.weikipedia .com

MBF book by pro.Riaz Ahmad Mian

Hailey college of banking and finance

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