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Monetary Policy in a Developing Country: A Case of Pakistan

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DOI: 10.1177/09728201211028719

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Case

Monetary Policy in a Developing Asian Journal of Management Cases

18(2) 144–155, 2021
Country: A Case of Pakistan © 2021 Lahore University of
Management Sciences
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DOI: 10.1177/09728201211028719
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Ummad Mazhar1 and Fahd Rehman1

Abstract
The State Bank of Pakistan (SBP) has to fulfil multiple objectives in Pakistan’s monetary policy.
The choice of policy objectives is an old theme that acquired a renewed importance after the financial
crisis of 2007–2009. Most of the textbooks do not discuss the debate around objectives, rather they
discuss monetary policy objectives from the lens of a developing country. The choice of objectives
should be seen in the context of the country’s overall level of economic development. With historical
illustration of Pakistan during the 1970s and 1980s, the case has shown how the credit-starved sectors
were helped through government-directed credit. With the opening of the trade and financial sector,
the economic liberalization reforms increased the private sector’s role, and authorities adopted a more
market-based approach towards monetary management. Various small businesses and entrepreneurs
are faced with credit constraints. Private sector financial institutions cannot relax these credit constraints
given their concern with creditworthiness, a condition that small businesses and entrepreneurs cannot
satisfy. The SBP Act states that it has to pursue potentially conflicting goals of economic development
and stable prices. The conflicting goals create tension in the case of whether SBP should control
credit supply to various sectors of the economy or determine the cost of credit through interest rate
targeting. It compares the two intermediate targets: monetary and interest rate. Finally, it also highlights
the difficult trade-offs faced by policymakers in developing countries.

Keywords
Development, monetary policy, Pakistan

Discussion Questions
Q1. What are the critical objectives targeted by the SBP?
Q2. What are the different roles adopted by the SBP over the period?
Q3. How does the interest rate affect the amount of available credit?
Q4. How does the SBP implement the monetary policy?

1
Suleman Dawood School of Business (SDSB), Lahore University of Management Sciences (LUMS), Lahore, Pakistan.

Corresponding author:
Ummad Mazhar, Suleman Dawood School of Business (SDSB), Lahore University of Management Sciences (LUMS), Lahore,
Pakistan.
E-mail: ummad.mazhar@lums.edu.pk
Mazhar and Rehman 145

Introduction
On June 6, 2017, Nasir completed ten years of his service as HSA Cooperative Housing Society’s bus
driver. For the last many years, Nasir was contemplating the idea of getting his commercial vehicle.
He realized that his job as an HSA Society’s bus driver was inadequate to change his living standard, and
he could not afford a decent education for his children. He could not afford the loans offered by private
banks for commercial vehicles. The high premiums and stiff mortgage requirements were beyond the
meagre means of an ordinary person like Nasir. He had no understanding of the wide gap between the in-
terest rates announced by the State Bank of Pakistan every two months and the interest rates charged by
the commercial banks. Thus, when in 2016, the government announced a scheme offering low-interest
loans for commercial vehicles, Nasir got excited.1 The scheme provided loans at subsidized rates, with
no instalments required in the first year. He was delighted to know the affordability of the instalments.
The National Bank of Pakistan launched the scheme. The available credit allocated for the purpose
was limited, and applicants were numerous. Nasir was apprehensive that only limited applications could
be entertained due to the lack of the allocated credit.
Nasir was puzzled why the other big banks, which had a network of branches and magnificent build-
ings, did not have such schemes? He had come across promising entrepreneurs with brilliant ideas who
were never able to finance their plans. He recalled the failed attempts of his father to get bank credit for
fertilizers he desperately needed for his crops. There were talks about increasing price levels and high-
interest rates in the coming months in media and business circles. His boss, a blue-collar officer, was
planning to avail a car loan to get the lower premiums. What was the link between interest rates and the
cost of business? Was there a link between interest rates and the prices of goods like vegetables or
pulses? What caused changes in the policy rates announced by the SBP? His mind raced, but he was
unable to find answers.

Monetary Management in Pakistan

The practice of monetary policy in Pakistan had evolved significantly over the years (Janjua, 2005).
In the initial phase, which spanned over 1971–1991 or the pre-reform period, the strategy of directed
credit was adopted. The government determined the cost of credit or the rate of interest rather than
being dictated by the market forces. This was in line with the practical and theoretical approaches of
the time. The preferred strategy was a structural change that required mass mobilization of resources
for large-scale industrial projects and the acquisition of modern technology in agriculture. The strategy
relied heavily on the availability of cheap credit. The SBP played a pivotal role in establishing financial
intermediaries in public and private sectors, developing finance institutions and ensuring credit supply
to major sectors of the economy.2
The second phase started with the Economic Liberalization Act of 1991. The SBP was granted greater
autonomy, and the government’s control over allocation of credit was relaxed. In that era, the philosophy
of market-based allocation of resources was adhered to with monetary management focusing on fine-
tuning the economy. The privately owned financial intermediaries were induced to play an active role in
tapping national and foreign savings towards their best uses.

Developmental Role
Not long ago, a major difference between the practice of monetary policy in a developed and a developing
country was the latter’s developmental imperative. Most developing countries gained independence in
146 Asian Journal of Management Cases 18(2)

the second half of the last century and confronted financial sector development challenges. In the absence
of a developed financial sector, the central bank of a developing country could not help but satisfy the
credit requirements of the major sectors. It created a minimum financial base for the private sector before
it could take up resource mobilization.
According to prescribed targets, the main plank of monetary management in Pakistan during the
1970s was the allocation of credit among various sectors (Table 2). The purpose was achieved by estab-
lishing different sorts of credit councils and institutions. For instance, the National Credit Consultative
Council (NCCC) was established in 1972 to tackle the credit requirements of various sectors. It was
abolished in 2006. Similarly, the Private Sector Credit Advisory Council replaced NCCC in 2006. Its
mandate was to identify issues in the credit disbursement to the entire range of sectors (Burki, 2015).
The strategy of directed credit was served as an instrument to achieve industrialization goals along
with agricultural improvement and financial development. The structure of the economy at the beginning
of the 1970s favoured the services sector, whose share exceeded both agriculture and industry. The share
of services contributed around 40% to the economic pie throughout the first half of the 1970s, with
agriculture remaining approximately 35%.
Several specialized development finance institutions were set up to satisfy the agriculture and indus-
trial sectors’ credit requirements and ensure speedy capital formation to broaden their production basis.
The Agriculture Credit Advisory Committee was established in 1973 to devise credit targets for banks to
disburse credit to the agriculture sector. For effective credit risk-sharing, credit guaranteeing schemes
were initiated. In 1972 SBP initiated the first directed credit scheme by establishing the Agriculture
Development Bank. The scheme was further strengthened by giving specific targets to commercial banks
to provide credit to the agriculture sector at subsidized rates. A non-achievement of the target was penal-
ized. In 2001, the mandatory credit line was annulled, but a subsidy for agriculture credit was retained.
The Banker’s Equity Limited (BEL) was established in 1979 with shareholding by the SBP and five
nationalized commercial banks: Habib Bank Ltd., National Bank Ltd., Muslim Commercial Bank Ltd.,
Allied Bank Ltd., and United Bank Ltd. The BEL was set up to promote industrial development and local
capital markets.
The diversity and growth of exports were encouraged through export finance scheme, first launched in
1973. The scope of the scheme was extended to manufacturing goods in 1977. The scheme was multi-
purpose in that it not only financed export transactions but also provided revolving finance facilities to
exporters based on their performance. In 1998, the SBP advised banks to focus on small and medium-sized
exporters. In 2001, the documentation and procedural requirements were curtailed to facilitate exporters.
By the end of the 1980s, the structure of the economy was significantly different from what it was in
the early 1970s. The share of the agriculture sector in the country’s gross domestic product (GDP) was
26%, with industry contributing an almost equal share of 25.2%. The share of services was around 49%
by the year 1990. The increase in the supply of financial services, however, was not that visible. In 1972,
there was one scheduled bank’s office for 4,613 people in present-day Pakistan. In 1990, the number of
individuals per bank office was 5,061, while in 2004, the number further increased to 12,466 (Handbook
of Statics on Pakistan Economy, SBP).3
The strategy of the fixed exchange rate was adopted for most of the 1970s and 1980s. From 1982
onwards, the regime of the managed exchange rate was adopted. But the value of currency remained
stable. In the pre-reform period, the economy did not experience sustained inflation. The 1990s saw
inflationary tendencies as the consumer price level more than doubled in ten years, indicating an average
inflation rate exceeding 10% per annum (see Table 1 and Graphs 1 and 3).
In recent years, the stabilization of aggregate demand or inflation (measured as a basket of consumer
prices) was given greater importance. As can be seen from Graph 4 and Table 6, the short-term nominal
Mazhar and Rehman 147

Table 1. Basic Economic Indicators of Pakistan in Recent Years.

2010 2011 2012 2013 2014 2015

Real GDP growth 2.58 3.62 3.84 3.65 4.03 4.70
CPI inflation 11.70 11.40 11.00 7.40 8.60 4.50
Long-term interest rate1 12.50 14.03 13.08 10.05 12.55 8.88
Nominal exchange rate (PKR/ 85.33 85.94 94.42 98.91 98.65 101.72
dollar)2
Real effective exchange rate 100.00 101.52 104.59 103.15 104.12 115.60
(2010 = 100)
Reserves (billions of US 13.10 15.66 10.86 6.05 9.17 13.54
dollars)
Unemployment rate 5.50 6.00 6.00 6.20 6.20 5.90
Productivity growth (%) −1.67 −0.10 1.14 3.19 1.53
Budget deficit (% of GDP)3 6.50 8.80 8.20 5.50 5.30 4.60
Components of GDP4 % of GDP
Consumption 79.72 81.15 82.45 80.82 81.02 80.00
Investment 14.20 12.52 13.48 13.36 13.04 13.88
Government spending 10.32 9.74 10.49 11.00 10.76 10.95
Exports 13.52 13.97 12.40 13.28 12.24 10.59
Imports 19.35 18.97 20.41 20.06 18.66 17.02
Sectoral composition of GDP % of GDP
Agriculture 21.70 21.60 21.40 21.10 20.70 19.87
Industry 21.20 21.00 20.40 20.45 20.67 20.93
Services 57.10 57.40 58.20 58.40 58.60 59.20
Population growth (%) 2.09 2.11 2.12 2.12 2.10 2.08
Source: Handbook of Statistics on Pakistan Economy, SBP.
Notes: (1) Yield on five-yearly government bonds; (2) End-period exchange rate between PKR and USD; (3) Pakistan Economic
Survey, Statistical Appendix, Survey IV; (4) World Development Indicators, World Bank.

Table 2. Monetary Targets and Actual.

Monetary Assets
Target Actual Actual Target CPI (%)
1973 1,930 5,009 3,079 23.07
1974 2,579 3,611 1,032 26.66
1975 4,500 2,395 −2,105 20.90
1976 4,813 8,680 3,867 7.16
1977 7,000 10,123 3,123 10.13
1978 6,500 11,880 5,380 6.14
1979 8,803 14,889 6,086 8.27
1980 12,050 13,812 1,762 11.94
1981 10,500 12,197 1,697 11.88
1982 15,743 11,889 −3,854 5.90
(Table 2 continued)
148 Asian Journal of Management Cases 18(2)

(Table 2 continued)
Monetary Assets
Target Actual Actual Target CPI (%)
1983 17,551 29,515 11,964 6.36
1984 19,177 17,242 −1,935 6.09
1985 18,059 20,638 2,579 5.61
1986 18,099 27,206 9,107 3.51
1987 25,039 28,912 3,873 4.68
1988 29,200 29,941 741 8.84
1989 31,200 20,942 −10,258 7.84
1990 30,880 50,796 19,916 9.05
1991 34,200 59,392 25,192 11.79
1992 45,400 104,925 59,525 9.51
1993 47,453 89,822 42,369 9.97
1994 79,430 108,008 28,578 12.37
1995 76,300 121,335 45,035 12.34
1996 10,042 113,945 103,903 10.37
1997 116,000 114,556 −1,444 11.38
1998 150,000 153,086 3,086 6.23
1999 164,000 74,226 −89,774 4.14
2000 121,000 120,084 −916 4.37
2001 147,000 126,027 −20,973 3.15
2002 146,000 235,324 89,324 3.29
2003 190,000 317,399 127,399 2.91
2004 230,000 407,852 177,852 7.44
2005 280,000 479,067 199,067 9.06
2006 380,000 446,300 66,300 7.92
2007 459,900 658,250 198,350 7.60
Source: Handbook of Statistics on Pakistan Economy, SBP.
Note: Monetary assets indicate M2.

interest rates became policy instruments to achieve the objective of stable demand or low inflation. Since
2009, the strategy was to keep short-term nominal interest rates within a preannounced corridor of 200
basis points (initially, the corridor was set at 300 basis points). The interest rates on long-term bonds
moved closely with the short-term interest rates. In other words, increased short-term interest rates meant
an increase in the borrowing cost (see Table 3).

Period of Financial Liberalization

Since the liberalization of the 1990s, the ‘bottom-up’ policy was followed in contrast to the previously
pursued ‘top-down’ approach. For instance, exports had been encouraged through subsidized credit; the
Mazhar and Rehman 149

Figure 1. Annual Changes in CPI and GDP Deflator in Pakistan over Years.
Source: World Bank Development Indicators.

Figure 2a. Official exchange rate (PKR vs 1USD) 1960–2015.

Source: World Bank Development Indicators.
150 Asian Journal of Management Cases 18(2)

Figure 2b. Real Exchange Rate Index (2010–2018).

Source: Handbook of Statistics on Pakistan Economy, SBP.
BroadMoney Gr (annual%)

Figure 3. Growth Rate of M2 in Pakistan.

Source: World Bank Development Indicators.

microfinancing schemes were launched to target small individual entrepreneurs at local levels instead
of macro-based schemes. Islamic banking was promoted to secure greater acceptability of financial
instruments among stakeholders.
The changed focus was corroborated with a change in the organizational structure of SBP, which had
undergone a massive overhaul since the liberalization drive of the 1990s. The original SBP Act of 1956
Mazhar and Rehman 151

Figure 4. SBP Policy Rates.

Source: Handbook of Statistics on Pakistan Economy, SBP.

Table 3. Short-term and Long-term Interest Rates.

Target Rate 3-Year Yield 10-Year Yield

2009 11.33 12.69 13.07
2010 11.50 13.05 13.22
2011 11.75 13.34 13.43
2012 9.50 11.56 12.38
2013 8.25 10.91 11.96
2014 8.25 11.87 12.79
2015 6.38 7.72 9.38
Source: Handbook of Statistics on Pakistan Economy, SBP.
Notes: All rates are annual averages. The yields indicate weighted average yield at the time of auction.

was amended multiple times to grant greater autonomy to SBP. A more market-based approach to decide
key interest rates was adopted in 2015 with a ten-member monetary policy committee comprising both
SBP executives and external experts who decided the interest rates every two months.4 In addition, the
public announcement of policy decisions accompanied with periodic release of reports to inform the
stakeholders about the state of the economy; these were some of the policy instruments to gain credibility
and anchoring of inflation expectations.
Before economic and financial reforms, monetary management meant the control of the money sup-
ply. The expansion in the supply of money (broad money) was worked out based on credit targets, the
target rate of real GDP, and the likely growth in the net foreign assets of the SBP (Janjua, 2005). Moreover,
the use was also made of credit ceilings and mandatory credit. However, credit ceilings for directed
credit were discontinued in July 1992. The new instrument for regulating bank credit was the credit
deposit ratio (CDR) (see Table 6). The CDR was subsequently abolished in September 1995 to make
greater use of the sale and purchase of government securities to affect the availability of reserves with
commercial banks. These operations, called OMOs or Open Market Operations, became the major
instrument of market-based monetary management since 1995.
152 Asian Journal of Management Cases 18(2)

Before 1995, the maximum lending rate charged by a commercial bank had been imposed by the SBP.
It ranged from 17.5% to 22% between 1993 and 1995. Since March 1995, the SBP had removed this cap
entirely. In addition, the government introduced a full-fledged system of auctioning of government debt
and allowed the rate of return on treasury bills to rise from 6% to 13%. To help long-term capital forma-
tion, the long-term instruments in the shape of federal investment bonds, with a maturity of 3, 5 and 10
years, were introduced (Arby, 2004). In addition, resident Pakistanis were allowed to open and maintain
foreign currency accounts. Both the policy rates and commercial banks’ reserve requirements were used
to implement monetary policy (see Table 6 and Graph 4).
Although a managed exchange rate regime was adopted in the early 1980s, the strategy remained to
avoid abrupt fluctuations in the value of the Pakistani rupee. After the nuclear tests in May 1998 and the
foreign currency accounts were frozen to avoid the balance of payments crisis, the country faced eco-
nomic sanctions and restrictions on international transactions. The ensued panic was countered by adopt-
ing a two-tiered new exchange rate mechanism on July 22, 1998. The strategy of the managed float was
readopted after the foreign exchange market was stabilized. The official exchange value of the Pakistan
Rupee (PKR) had followed a downward trend against the US dollar, the main international currency
(see Graph 2a and 2b).
After the terrorist events of September 11, 2001 in the United States, the economy of Pakistan enjoyed
a favourable external environment caused by the global war against terror. The economic sanctions were
lifted; the debt servicing obligations were relaxed for 15 years by the Paris Club; the remittances too
started to channel through formal means. Domestically, the influx of liquidity translated into a splurge of
bank credit.
The economy experienced a surge in net foreign inflows due to Coalition Support Fund and increased
military aid. The balance of payment position improved with foreign exchange reserves bulged from
$2 billion to more than $10 billion over the 2002–2005 time period (see Table 4). The money supply
experienced a 90% increase over the 2002–2005 period, the consumer price inflation exceeded 9%, with

Table 4. Indicators of Financial Stability (1990–2015).

Years Reserves NPL Ratio Years Reserves NPL Ratio

1990 1.10 2003 8.05 17.00
1991 1.19 2004 5.23 11.60
1992 1.32 2005 4.11 8.98
1993 1.76 2006 3.95 7.30
1994 3.25 2007 4.44 7.44
1995 1.86 2008 2.02 9.13
1996 0.88 2009 4.15 12.15
1997 1.37 20.70 2010 4.72 14.75
1998 1.37 19.50 2011 4.16 16.21
1999 1.88 22.00 2012 3.11 14.47
2000 1.74 19.50 2013 1.71 12.99
2001 3.58 23.40 2014 3.07 12.27
2002 7.05 21.80 2015 4.55 11.36
Source: Handbook of Statistics on Pakistan Economy, SBP.
Notes: Total foreign reserves are measured in terms of months of import bills they can finance. NPL stands for non-performing
loans measured as the ratio of total loans.
Mazhar and Rehman 153

Table 5. Private Sector Credit Offtake (Sector-wise).

% Share in Total Advances

1982–1990 1991–1998 2005–2015
Agriculture 14.56 14.62 5.93
Manufacturing 28.39 33.56 39.72
Services 0.89 0.84
Consumer finance 9.17
Source: Handbook of Statistics on Pakistan Economy, SBP.
Note: The share as of the end of each fiscal year.

Table 6. History of Reserve Requirements.

History of Statutory History of Cash

Liquidity Requirements (SLR) Reserve Requirements (CRR)
Wef Rate Wef Rate
As a % of TDL As a % of TDL
1-Jul-48 20 5-Sep-98 5
1-Sep-67 25 19-May-99 3.5
7-Jul-72 30 12-Jul-99 5
16-Aug-73 35 7-Oct-00 7
13-Aug-92 40 16-Dec-00 5
19-Dec-92 45* 30-Dec-00 5
27-Oct-93 35* 5-Jan-01 5
28-May-97 20 22-Jul-06 7% of DL and 3% of TL#
02-Jan-98 18 19-Jan-07 7% of DL and 3% of TL#
22-Jun-98 15 4-Aug-07 7% of DL and 0% of TL**
19-May-99 13 2-Feb-08 8% of DL and 0% of TL**
12-Jul-99 15 24-May-08 9% of DL and 0% of TL**
22-Jul-06 18 11-Oct-08 8% of DL and 0% of TL**
24-May-08 19 18-Oct-08 6% of DL and 0% of TL**
18-Oct-08 19% of DL and 0% of TL** 01-Nov-08 5% of DL and 0% of TL**
12-Oct-12 5% of DL and 0% of TL**
Source: Handbook of Statistics on Pakistan Economy, SBP.
Notes: *Including CRR.
#Term deposits of less than six-month maturities are defined as DL.
**Demand liabilities (DL) include all deposits of less than one-year tenure, while time liabilities (TL) include time deposits with
tenor one year and above only.

nominal interest rates remaining below 10% until 2007 (see Table 2 and Graph 3). The economy saw an
increase in consumer borrowing for durable goods, and non-performing loans touched their lowest level
(see Table 4). By 2006, the SBP had increased the interest rates to tackle inflationary pressures, though
the exchange rate remained stable.
In 2007, the country faced an exchange rate crisis as oil and commodity prices in international mar-
kets increased exponentially. The situation worsened the following year as the fiscal deficit reached 9%
154 Asian Journal of Management Cases 18(2)

and the current account deficit reached 8% of GDP. Reserves decreased, and CPI inflation touched 24%
by the middle of 2008, with food inflation even higher. The short-term nominal interest rates remained
above 10% for most of the period from 2008 to mid-2012. The government borrowing reached PKR 680
billion, more than eight times the target set for 2008. By the end of 2008, Pakistan consulted IMF to help
stabilize the currency and balance of payments position.
There was an increase in the ratio of broad money (the sum of currency, demand deposits and term
deposits) to GDP (as expected from its high growth rate in Graph 3). It reached as high as 53.4% of GDP
in 2015 compared to less than 40% in 1990. Less obviously, the credit to the private sector (as a percent-
age of GDP) reduced from 24.16% in 1990 to 15.38% in 2015. The share of agriculture and services in
total advances remained small and stagnant while manufacturing and consumer finance increased
(see Table 5) (Khalid & Nadeem, 2017).
Since mid-2012, the inflationary pressures subsided, and policy rates fell below 10% (see Graphs
1 and 3). Later on, inflation followed a declining trend and hovered around 5% in 2015. The rate of
unemployment remained low and close to its long-term average of 6%. There was a persistent decline in
the real exchange rate (or international competitiveness) on the external front: it experienced a decrease
of 15% in the last five years (see Graph 2b). The share of exports in GDP decreased over the years and
reached less than 11% in 2015.
The share of investment in GDP had not increased significantly over the years. It remained around
14%, which was less than what it used to be during the 1970s. At the same time, the long-term interest
rates also decreased over the years along with the benchmark interest rates (see Tables 1 and 3).
The industrial sector’s contribution had decreased too while the contribution of the services sector had
grown to exceed 59% in 2015.
The strategy of demand management had acquired greater focus in recent years. In historical terms,
the economy never suffered from high inflation rates except for the few years of agricultural or oil supply
disruptions. During the initial years, the growth rate of price level was low. For instance, the economy
had experienced annual inflation of 3.4% over the decade of the 1960s. The price level rose rapidly dur-
ing the 1970s and more than doubled from 1971 to 1976. It grew at a relatively slower pace of 11% per
annum over the next five years. It further slowed down to around 9% annual inflation rate during the
1980s (SBP, 2015).
The strategy of managed exchange rate required the availability of forex reserves with the central
bank. When measured in terms of monthly import bills, the five-yearly average of reserves had improved
over the years. The reserves were less than two months of import bill throughout the 1990s. While they
exceeded more than five months of import bill in the first half of the 2000s, they slid down to about
3.5 months of import bill over 2010 to 2015 (see Table 4).
Pakistan had a high population growth rate throughout its history. The per capita income growth was
not able to keep pace with the population growth. The state-directed monetary policy was not able to
achieve the desired pace of capital accumulation. With a median age of 24 years, society needed a policy
that encouraged new businesses, young entrepreneurs and private firms. Does the current practice of
monetary policy serve this scope?

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of
this article.

Funding
The authors received no financial support for the research, authorship and/or publication of this article.
 Mazhar and Rehman 155

Notes
1. http://youth.pmo.gov.pk/Youth-Business-Loan-Scheme.php. Accessed April 2018.
2. These policies were in line with the objectives and functions of the State Bank of Pakistan as specified in the
SBP Act (1956), Chapter IV, article 17.d and 4C.6. The act is available here https://www.sbp.org.pk/about/act/
SBP-Act.pdf. Accessed April 6, 2019.
3. The year 2004 is the latest year for which this information is available. http://www.sbp.org.pk/departments/stats/
PakEconomy_HandBook/. Accessed May 22, 2018.
4. http://www.sbp.org.pk/about/Govr-MPC.asp. Accessed May 24, 2018.

References
Arby, M. F. (2004). State Bank of Pakistan: Evolution, functions, and organization. State Bank of Pakistan.
Burki, S. J. (2015). Historical dictionary of Pakistan (4th ed.). Rowman & Littlefield Publishers.
Janjua, A. (2005). Money supply, inflation and economic growth: Issues in monetary management in Pakistan.
Lahore Journal of Economics, 10(Special Edition), 72–105.
Khalid, A., & Nadeem, T. (2017). Bank credit to private sector: A critical review in the context of financial sector
reforms (SBP Staff Notes No. 3/17). Retrieved from www.sbp.org.pk/publications/staff-notes/BankingReforms.
pdf
SBP. (2015). Handbook of statistics on pakistan economy. http://www.sbp.org.pk/departments/stats/PakEconomy_
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