The Founder of Pakistan Quaid-e-Azam Muhammad Ali Jinnah, in May, 1948, took steps for immediate establishment of the State Bank of Pakistan. These were implemented by State Bank of Pakistan Order 1948 dated 12 th May, 1948 and the State Bank of Pakistan commenced operation on July 1, 1948.
As per the State Bank of Pakistan Order 1948, the State Bank of Pakistan was charged with the duty to regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage.
The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. In terms of Section 24, State Bank of Pakistan has the sole right to issue banknotes.
The State Bank of Pakistan introduced the first emergency issues in the denominations of 5, 10, and 100 rupees, printed by De La Rue & Company Great Britain that circulated between 1948 and 1960. Presently new banknote series is in circulation which was introduced by State Bank of Pakistan in 2005 by introduction of 20 rupee denomination banknote and subsequently followed by introduction of other banknote denominations of 50, 100, 500, 1000, and 5000.