The State Bank of Pakistan (SBP) is the central bank of Pakistan.
Founded in 1948, it is one of the oldest financial institutions in the country and has been instrumental in guiding the Pakistani economy through more than six decades of growth.
But who inaugurated this historic institution?
In this blog post, we will explore the functions of SBP, its role in Pakistan’s economy and monetary policy, and how many governors have changed since its inauguration.
We will also examine who officially launched SBP and when, as well as their legacy within the Pakistani banking industry.
So if you are interested in learning more about SBP and its origins, then read on!
What is the State Bank of Pakistan?
The State Bank of Pakistan is the central bank of the Islamic Republic of Pakistan.
The State Bank of Pakistan Act 1956, with subsequent amendments, governs the functioning of the bank. The headquarters is located in Karachi.
The Governor of the State Bank of Pakistan is responsible for the overall supervision and direction of the bank.
The Governor is appointed by the President of Pakistan for a tenure of four years.
The Board of Directors is responsible for providing guidance on the formulation of policies and achieving objectives set by Government.
The Board comprises eight members including Governor SBP who acts as Chairman ex-officio, four Deputy Governors, and three non-executive Directors appointed by Federal Government.
The Monetary Policy Committee (MPC) is responsible for the formulation of monetary policy aimed at achieving macroeconomic objectives set out by the Government.
MPC comprises ten members including Governor SBP who acts as Chairman ex-officio, four Deputy Governors SBP, and five Members from the private sector appointed/nominated by Federal Government
What are the functions of the State Bank of Pakistan?
The State Bank of Pakistan (SBP) is the central bank of Pakistan. It was established on 1 July 1948, in line with the State Bank of India Act, 1947.
The primary objective of the SBP is to ensure price stability in the country.
The SBP has a wide range of functions, which can be broadly classified into four categories:
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Monetary Stability:
The SBP is responsible for ensuring price stability in the economy by keeping inflation under control. In order to achieve this, the SBP implements monetary policies such as changing interest rates and reserve requirements.
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Financial Stability
The SBP strives to maintain financial stability in the economy by supervising and regulating commercial banks and other financial institutions. In addition, the SBP provides liquidity to banks in times of need.
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Payment Systems
The SBP manages and regulates payment systems in Pakistan. This includes clearinghouses, automated teller machines (ATMs), and electronic funds transfer systems.
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Other Functions
The SBP also performs other functions such as acting as a banker to the government, issuing currency notes, and managing Pakistan’s foreign exchange reserves.
Who is the Governor of State Bank of Pakistan?
The current Governor of the State Bank of Pakistan is Mr. Jameel Ahmed. Mr. Ahmed has been in this role since Aug 2022 and is responsible for the overall direction and management of the Bank.
Under his leadership, the Bank has adopted a more proactive and hands-on approach to dealing with the country’s economic challenges.
This has resulted in improved economic indicators and increased confidence in the banking sector.
The Governor is also playing a key role in implementing the government’s financial inclusion policy, which is aimed at providing access to formal banking services to all Pakistanis.
List of governors of the State Bank of Pakistan
The Governor of the State Bank of Pakistan is the head of the bank and is responsible for its operation. As of Jan 2023, there are 22 governors of the State Bank of Pakistan.
List of governors of State Bank of Pakistan:
- Zahid Hussain
- Abdul Qadir
- Shaujat Ali Hasnie
- Mahbubur Rashid
- Shahkurullah Durrani
- Ghulam Ishaq Khan
- S. Usman Ali
- Aftab Ghulam Nabi Kazi
- Vasim Aon Jaffery
- Imtiaz Alam Hanfi
- Kassim Parekh
Imtiaz Alam Hanfi (second term)
- M. Yaqub
- Ishrat Husain
- Shamshad Akhtar
- Salim Raza
- Shahid Hafeez Kardar
- Yaseen Anwar
- Ashraf Mehmood Wathra
- Tariq Bajwa
- Reza Baqir
- Murtaza Syed
- Jameel Ahmad
Conclusion
The State Bank of Pakistan was inaugurated on July 1st, 1948 by the then governor-general Muhammad Ali Jinnah.
This bank has been instrumental in helping shape the economy of the nation and providing a wide range of services that have benefited many people across the country.
With its important role in facilitating banking activities, it will continue to be an integral part of the financial ecosystem for years to come.
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