PROSPECTUS

FOR
DIRECT RECRUITMENT OF OFFICERS IN GRADE-2

STATE BANK OF PAKISTAN

KARACHI
State Bank Of Pakistan Prospectus for SBOTS

INTRODUCTION

State Bank of Pakistan was established under the State Bank of Pakistan order promulgated
by the Governor General of Pakistan on 12th May 1948. The father of the nation Quaid-e-
Azam Mohammad Ali Jinnah inaugurated it on July 1, 1948.

Constitution of SBP, originally laid down in SBP order 1948, was later given status of
legislature as SBP Act 1956. The SBP Act 1956 and Banking Companies Ordinance 1962
with subsequent amendments govern the powers, functions and operations of the SBP today.

SBP’s Vision Statement:

“To transform the SBP into a modern and dynamic central bank, highly professional and
efficient, fully equipped to play a meaning full role on sustainable basis in the economic and
social development of Pakistan”.

SBP’s Mission Statement:

“To promote Monetary and Financial stability and foster a sound & dynamic financial
system, so as to achieve sustained and equitable economic growth and prosperity”.

SBP performs the following four core functions:

o Monetary Management
o Foreign Exchange and Debt Management
o Banking Supervision & Banking Inspection
o Efficient Payments System

The general superintendence and direction of affairs and business of Bank vest in a Central
Board of Directors comprising of a Governor, two Deputy Governors and seven Central
Board Directors nominated by the Federal Government. The Chief Executive of Bank is the
Governor who controls and directs the affairs of the Bank on behalf of the Central Board.

The Federal Government appoints the Governor and Deputy Governors for 3-year term
renewable for another period of 3 years if the Federal Government desires so. Governor
presides at the meetings of the Central Board and the two Deputy Governors assist him in
performance of his duties. The Deputy Governors perform such duties as are assigned to
them by the Central Board, and in the absence of the Governor, the Senior Deputy Governor
presides at the meetings of the Central Board and transacts all business of the Bank.

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State Bank Of Pakistan Prospectus for SBOTS

SUBSIDIARIES OF STATE BANK OF PAKISTAN

There are two Subsidiaries of State Bank of Pakistan and their brief account is given below:

SBP Banking Services Corporation (Bank):

SBP Banking Services Corporation (Bank) was created on 1st January 2002 under a
Presidential Ordinance with its Head Office at Karachi and a network comprising of 16 field
offices spread throughout the country. It performs retail banking and agency functions for
SBP which allows SBP Management to concentrate more on its core Central Bank’s
functions.

National Institute of Banking & Finance (NIBAF):

National Institute of Banking and Finance (NIBAF) was set up under the Companies
Ordinance 1984 with a paid up capital of Rs250.0 million. Consequent upon dissolution of
Pakistan Banking Council (PBC) in 1997, State Bank of Pakistan took over control of PBC
and NIBAF. NIBAF has two training outfits viz. Islamabad and Karachi campuses.

From February 06, 2002, NIBAF is enjoying the status of subsidiary and acts as a training
delivery arm of SBP.

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ORGANIZATIONAL CHART OF SBP

Organizational Chart of SBP is given as below:

ECO PD = ECONOMIC POLICY

ACD = AGRICULTURAL CREDIT DEPARTMENT
CMAD = CORPORATE & MEDIA AFFAIRS DEPARTMENT
BPD = BANKING POLICY DEPARTMENT
BSD = BANKING SUPERVISION DEPARTMENT
BID = BANKING INSPECTION DEPARTMENT
EPD = EXCHANGE POLICY DEPARTMENT
PSD = PAYMENT SYSTEMS DEPARTMENT
HRD = HUMAN RESOURCES DEPARTMENT
ISD = INFORMATION SYSTEMS DEPARTMENT

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TRAINING OPPORTUNITIES FOR EMPLOYEES AT SBP

SBP is fully committed to the training of existing and new inductees to keep them updated
and well aware of emerging trends and developments in the field of Central Banking. SBP
not only trains its employees within Pakistan but it also sends its employees outside the
country for trainings offered by IMF, WB, ADB, other Central banks etc. Appreciating the
importance of training, a full-fledged training department has been established at SBP and
National Institute of Banking and Finance (NIBAF) has been given the status of subsidiary of
SBP.

STATE BANK OFFICIALS’ TRAINING SCHEME (SBOTS)

In order to perform its functions smoothly the State Bank considers it imperative to motivate
young individuals with brilliant academic record to join the State Bank Officials’ Training
(SBOT) Scheme. Successful candidates are provided the opportunity to embark on the path of
a bright central banking career. Salient features of the scheme are as under:

1. NAME OF THE PROGRAMME:

State Bank Officials’ Training (SBOT) Scheme.

2. OBJECTIVES:

To provide intensive training in the aspects essential at the entry level of service
career at SBP.

To impart training in fundamentals of both commercial and central banking.

To develop understanding of the SBP’s role as the apex institution of banking and
financial system of Pakistan.

To inculcate basic skills like accounting, auditing and communication.

3. ELIGIBILITY

Both men and women fulfilling the following requirements:-

i. Nationality:

Pakistani.

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ii. Qualifications:

Master’s Degree (with at least 1st Division or 60% marks in aggregate) in Economics,
Business Economics, Commerce, Business Administration, Public Administration,
Mathematics, Statistics, Computer Sciences or BE Computer Sciences / Systems /
Technology from a recognized University. Proficiency in use of Computer is treated
as an added advantage.

iii. Age:

(As on last date for submitting applications) 28 years, relaxable as under:

a. In the case of State Bank employees upto any age, and

b. In the case of candidates belonging to Tribal Areas / Northern Areas / Baltistan

and Azad Kashmir, upto three years. A candidate belonging to any of these areas
must be a permanent resident there, for which he / she is required to produce a
certificate from the Political Agent or Deputy Commissioner or District Co-
ordination Officer or Ministry of Kashmir Affairs, as the case may be. If he / she
does not produce the certificate or has settled in a place outside the above-
mentioned areas, relaxation in age is not admissible to him / her.

Qualified Women who meet the eligibility criteria for the post are especially
encouraged to apply.

4. MODE OF APPLICATION

Interested citizens of Pakistan who meet the eligibility criteria for the position may apply
through online application form available at www.sbp.org.pk/jobs/.

OR

Printed copies of the SBP Application Forms can also be obtained from all offices of
SBP-Banking Services Corporation across the country or can be downloaded from
www.sbp.org.pk/jobs/

Duly filled in Application Forms can be sent through surface mail addressed to Director,
Human Resources Department, State Bank of Pakistan, I.I. Chundrigar Road,
Karachi-74000.

5. METHOD OF SELECTION

i. Eligible candidates are required to take a written test in the subjects of (i) English
Composition, (ii) General Arithmetic and (iii) Current Affairs / Intelligence / General
knowledge.

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ii. Candidates qualifying the above test are required to appear for group discussion,
preliminary interview and final interview before a Selection Board. (No traveling
expenses etc. are paid to candidates for test and interview).

iii. Candidates are selected from the merit list prepared on the basis of marks obtained in
the written test, group discussion and interview / viva voce, by observing the
provincial / regional quota.

6. PRE-TRAINING REQUIREMENTS

Candidates selected on the basis of the written test group discussions and interview(s) are
offered training facility if they:

i. Produce certificate of medical fitness (at their own cost) as prescribed by the Bank.

ii. Sign the prescribed bond of secrecy,

iii. Sign the Surety Bond undertaking, to refund the amount of stipend and other
expenditure incurred on training by the Bank in case of leaving the Bank during
training or during probation period of 2 years after appointment in the Bank.

Training under the SBOT Programme is offered in two phases, Phase-I: Applied focused
theoretical training at NIBAF, Islamabad Campus and Phase-II: supervised hands-on
training at selected commercial banks and SBP.

7. (i) APPLIED FOCUSED THEORETICAL TRAINING (PHASE-I)

Phase-I comprises of the following modules:

1. Pak Economy – Applied

2. Monetary Management
3. Forex Management
4. Macro Finance
5. Islamic Finance
6. Commercial Banking
7. Banking Supervision
8. Basic Skills
a) Accounting
b) Auditing
c) Communications

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Grading and Evaluation (Phase-I)

i. Periodic tests

There are a number of short quizzes and assignments during each module. Periodic
test are also conducted during, as well as after completion of each course / module.

a. Each course’s training delivery team conducts and compiles periodic tests results.

b. The accumulated periodic tests results in case of each trainee are finally adjusted as
per weightage shown at ii c. below.

ii. Comprehensive Examination

Comprehensive Examination is conducted at the end of theoretical phase at NIBAF,

Islamabad Campus:

a. Comprehensive Examination encompasses all above-mentioned courses / modules.

b. Examination is of three hours duration and is based on objective and / or subjective

testing techniques.

c. The final results of each trainee are adjusted as per weightage shown as under:

Weightage
Overall Periodic Tests 60 Percent
Comprehensive Examination 40 Percent

Note: The weightage of each course is commensurate with the number of training
days it occupies in the final compilation of results of phase-I.

iii. Passing Percentage

The minimum percentage required for each module / course and comprehensive
examination in order to qualify as a successful candidate is sixty percent.

7. (ii) PRACTICAL TRAINING (PHASE-II)

Supervised hands-on training comprises of three months training at different departments

of SBP and two months’ training at selected commercial banks & DFIs. The trainees are
evaluated during and at the end of the Phase-II by a number of tests and / or reports. If a
trainee is evaluated as ‘unsatisfactory’, the State Bank has the right to terminate his / her
appointment in the Bank during the probation period.

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8. ABSORPTION / APPOINTMENT

On appointment in the Bank the inductee is required to serve at Karachi. However, he /

she shall have to serve the Bank in such capacity and such place or office as determined
by the competent authority. Moreover, he / she may be required to serve any other
organization for such period and on such terms and conditions as determined by the Bank.

Appointment in regular service is made on conclusion of theoretical training only. Those

securing a minimum of 60% marks in each subject and 60% in the aggregate in written
evaluation are appointed as OG-2. The top two candidates in order of merit are provided
incentive in the form of higher start in the salary scale of OG-2. The officers’
confirmation in the Bank’s service is subject to successful completion of practical
training.

9. STIPEND

During the theoretical training period, trainees are paid a monthly stipend as determined
by the Bank. The State Bank employees selected for training, however, draw their usual
emoluments. During the applied focused theoretical training phase, accommodation at
the Institute’s hostel is provided by National Institute of Banking & Finance (NIBAF)
Islamabad Campus.

10. DISCIPLINE

During the first phase of theoretical training, trainees shall be governed by the rules as
framed by the NIBAF. The management reserves the right to place on record the
instances of misbehavior and indiscipline, irrespective of the marks obtained. This could
affect conditions of appointment. In cases of serious and persistent misbehavior, the
trainee invites risk of expulsion from the programme. During the second phase of
training, they must adhere to the rules of commercial banks to which they are attached as
well as those of State Bank.

11. LEAVE RULES

a. Leave Rules during theoretical training phase;

i. The participant is entitled to five days of leave from active training sessions during
Phase I, i.e. 6 months of theoretical training at NIBAF.

ii. In case of emergencies, Managing Director, NIBAF can grant the participant
additional leave during the theoretical training phase subject to the condition that he /
she undertakes additional assignments in lieu of absences from training.

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iii. Any participant absent for more than five days from training without authorization is
dropped from the training program.

iv. Participants cannot be absent on days when written test are scheduled during the
training program, unless the Managing Director grants approval for leave under rule
mentioned at Serial No. ii above.

v. In lieu of absence on written test day, the concerned participant is required to appear
in a test that will be prepared for the purpose on the date and time intimated by
NIBAF.

vi. During the days designated as study period, when active training sessions are not
held, the participants’ attendance at the Institute’s premises is not essential, and in
cases where attendance is required the Institute will intimate it to the participants in
advance.

b. Leave Rules during practical training phase:

i. The participant is entitled to four days of leave during Phase II i.e., the practical
training phase.

ii. In case of emergencies, Director, Human Resources Department, State Bank of

Pakistan can grant the participant additional leave.

iii. Any participant absent for more than four days from specified practical training venue
without authorization shall be subjected to disciplinary action as determined by the
Bank.

12. INSTITUTE PROFILE

NIBAF is a private company limited by guarantee and a subsidiary of State Bank of

Pakistan. It has two training premises, namely, Islamabad Campus and Karachi Campus.

Islamabad Campus

Islamabad Campus is ideally suited for conducting residential training programmes. The
designation of the whole sector H/8 of Islamabad, in which the Institute is located,
specifically for public and private educational/ training institutions by the Government,
ensures peaceful and serene environment highly congenial for academic pursuits. The
location being adjacent to Shakar Parian Hills and opposite to Margalla Hills presents a
scenic and panoramic view of the city of Islamabad. The Institute’s location provides an
easy access to Federal Government Ministries, Parliament, Embassies and Islamabad
International Airport.

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The Institute is constructed on a plot of land measuring 2.5 acres. It has a centrally air-
conditioned complex comprising academic and hostel blocks. The top of the line
construction and furnishing of the Institute’s complex has won praise from visiting local
and foreign dignitaries.

Academic Block consists of 3 lecture halls equipped with modern teaching aids, 2
Training Rooms, Computer Laboratory and a Library containing a large number of books
on banking, finance and related disciplines.

The Hostel Block contains 120 single occupancy rooms and 4 executive suites, both fully
furnished, a common room, and a cafeteria, which is supported with a well-equipped and
modern commercial kitchen.

Karachi Campus

The present training facility at SBP-BSC (Bank) at North Nazimabad, Karachi serves as
Karachi Campus of NIBAF.

The Head, Karachi Campus operates the campus with the assistance of four Training
Managers. There are three training halls seven syndicate rooms and two Dining Halls.
Each training hall is fully equipped with audio, video and other modern training facilities.
At present, this campus is mainly focusing on imparting training to State Bank Officers.
Trainings under Change Management Program are also being delivered at Karachi
Campus.

Organizational Set-Up

Managing Director is the Chief Executive of NIBAF for all its functions and reports to
the Board of Directors of NIBAF. Head, Academic Affairs and Head, Administration
assist the Managing Director of the Institute. For the conduct of training courses, the
Islamabad Campus is distributed into the two blocks. The organizational chart of NIBAF
is given below.

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 State Bank Of Pakistan Prospectus for SBOTS

ORGANIZATIONAL CHART OF NIBAF

Board

Audit Sub
Committee

Managing
Director

Director Administration Director Academics

Admin IT Engg / Finance Key Resource Key Resource Key Resource Person
Manager Manager Facility Manager Person Person Change Management /
Manager Economics Banking Management /
Behavioral Psychology

Accounts
Support Officer
Staff
Training Training Training Managers
Managers Managers HR / Training / Admn /
Economics / Supervision / Corporation
Research EPD /
Maintenance AC
General Plant

Hostel General Transport & Library

Admn Protocol

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Training Programmes

With a view to build upon achievements made so far, the Institute is making concerted
efforts to strengthen and enhance its capacity. It is continuously improving the quality
and relevance of its existing domestic and international training programmes alongwith
introducing new programmes, keeping in view the rapid transformation of the financial
system in the wake of rapid opening-up and internationalization of domestic banking
industry, and increasing complexity in financial market operations.

Faculty

In order to maintain quality along with simulation of real life dynamics of financial sector
in a classroom environment, the Institute has established partnerships with reputed
professional institutions for development, design and delivery of its training programmes.
In addition, it also maintains a roaster of resource persons which includes not only State
Bank officials who have diversified academic and practical experience in different areas
of central banking but also a large number of visiting trainers / speakers with academic
and practical experience in the field of banking, finance and management. These trainers /
speakers comprise of individuals from the Private as well as the Public Sector, and
especially, the senior officials of the Federal Government.

Domestic Programmes

The Institute conducts domestic training programmes for a range of levels of State Bank
officials and across a wide spectrum of central banking topics/issues. The flexible
approach towards training programmes and candid feedback is oriented to future needs
taking into account the dynamics of banking and finance sector and shifting policy
paradigm.

The domestic training programmes are specially tailored to different levels of

management cadre and are targeted to provide qualitative training. The training contents
are drawn-up to induce in-depth understanding of the present central banking operations
and future changes in the banking and financial system with particular emphasis on risk
management.

Other Human Resource Development Activities

The Institute holds seminars / workshops on topical issues for the personnel related to
banking and finance and other government and semi-government organizations /
agencies. It encourages domestic and multinational banks to utilize its facilities for their
training purpose.

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International Programmes

At present, the Institute conducts international training Programmes, in collaboration with

the Government of Pakistan. The Government of Pakistan (under its Technical
Assistance Programme) and the State Bank of Pakistan jointly fund these programmes.
Moreover the Institute is also collaborating with the International Monetary Fund to hold
its fully funded regional course on “Financial Programming and Policies” (initially to be
conducted once a year till the year 2002).

The international training programmes are focused on developing breath of participants’

expertise and understanding of their specialization in relation to wider central and
commercial banking perspective.

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