1. Central Bank State Bank of Pakistan

2. Organization of SBP Established in 1 st July, 1948. Purpose Regulating monetary & credit system of Pakistan. Organizational Structure Central Board of Directors One Governor One Deputy Governor Eight Directors

3. Functions 1. Regulator of Currency 2. Banker, Agent and Advisor to the Govt. 3. Controller of Credit. 4. Clearing house for Transfer and Settlement 5. Custodian of Cash Reserves of Commercial Banks 6. Custody & Management of Foreign Exchange Reserves 7. Lender of the Last Resort

4. 1.Regulator of Currency Monopoly of Note Issue. Gold and Foreign Securities Requirement Brings uniformity in the system Better control over the money supply Increases public confidence

5. 2.Banker, Agent and Advisor to the Govt. As Banker to the Govt. Receives deposits, cheques, drafts deposits Short-term advances to the Govt Provides foreign exchange for purchasing foreign goods, repaying goods etc.

6. As Financial Agent Collects Taxes and other payments. As an Advisor Gives advices on all economic, financial monetary issues, Agricultural credit Industrial finance Exchange control Mobilization of savings, planning and development etc 2.Banker, Agent and Advisor to the Govt.

7. 3.Controller of Credit To control the availability and cost of credit in the country through 1. Bank Rate the standard rate at which SBP discounts or buy bills of exchange or promissory note. 2. Open Market Operations credit rationing, regulation of margin requirements, and direct action. 3. Cash Reserve Ratio lowering or raising of minimum cash reserve