"Mr. Governor, Directors of State Bank, Ladies and Gentlemen.
opening of the State Bank of Pakistan symbolises the sovereignty
of our State in the financial sphere and I am very glad to
be here today to perform the opening ceremony. It was not
considered feasible to start a Bank of our own simultaneously
with the coming into being of Pakistan in August last year.
A good deal of preparatory work must precede the inauguration
of an institution responsible for such technical and delicate
work as note issue and banking. To allow for this preparation,
it was provided, under the Pakistan Monetary System and Reserve
Bank Order, 1947, that the Reserve Bank of India should continue
to be the currency and banking authority of Pakistan till
the 30th September, 1948. Later on it was felt that it would
be in the best interests of our State if the Reserve Bank
of India were relieved of its functions in Pakistan, as early
as possible. The State of transfer of these functions to a
Pakistan agency was consequently advanced by three months
in agreement with the Government of India and the Reserve
Bank. It was at the same time decided to establish a Central
Bank of Pakistan in preference to any other agency for managing
our currency and banking. This decision left very little time
for the small band of trained personnel in this field in Pakistan
to complete the preliminaries and they have by their untiring
effort and hard work completed their task by the due date
which is very creditable to them, and I wish to record a note
of our appreciation of their labours.
you have observed, Mr. Governor in undivided India banking
was kept a close preserve of non-Muslims and their migration
from Western Pakistan has caused a good deal of dislocation
in the economic life of our young State. In order that the
wheels of commerce and industry should run smoothly, it is
imperative that the vacuum caused by the exodus of non-Muslims
should be filled without delay. I am glad to note that schemes
for training Pakistan nationals in banking are in hand. I
will watch their progress with interest and I am confident
that the State Bank will receive the co-operation of all concerned
including the banks and Universities in pushing them forward.
Banking will provide a new and wide field in which the genius
of our young men can find full play. I am sure that they will
come forward in large numbers to take advantage of the training
facilities which are proposed to be provided. While doing
so, they will not only be benefiting themselves but also contributing
to the well-being of our State.
need hardly dilate on the important role that the State Bank
will have to play in regulating the economic life of our country.
The monetary policy of the bank will have a direct bearing
on our trade and commerce, both inside Pakistan as well as
with the outside world and it is only to be desired that your
policy should encourage maximum production and a free flow
of trade. The monetary policy pursued during the war years
contributed, in no small measure, to our present day economic
problems. The abnormal rise in the cost of living has hit
the poorer sections of society including those with fixed
incomes very hard indeed and is responsible to a great extent
for the prevailing unrest in the country. The policy of the
Pakistan Government is to stabilise prices at a level that
would be fair to the producer, as well as the consumer. I
hope your efforts will be directed in the same direction in
order to tackle this crucial problem with success.
shall watch with keenness the work of your Research Organization
in evolving banking practices compatible with Islamic ideas
of social and economic life. The economic system of the West
has created almost insoluble problems for humanity and to
many of us it appears that only a miracle can save it from
disaster that is not facing the world. It has failed to do
justice between man and man and to eradicate friction from
the international field. On the contrary, it was largely responsible
for the two world wars in the last half century. The Western
world, in spite of its advantages, of mechanization and industrial
efficiency is today in a worse mess than ever before in history.
The adoption of Western economic theory and practice will
not help us in achieving our goal of creating a happy and
contended people. We must work our destiny in our own
way and present to the world an economic system based on true
Islamic concept of equality of manhood and social justice.
We will thereby be fulfilling our mission as Muslims and giving
to humanity the message of peace which alone can save it and
secure the welfare, happiness and prosperity of mankind.
the Sate Bank of Pakistan prosper and fulfil the high ideals
which have been set as its goal.
the end I thank you, Mr. Governor, for the warm welcome given
to me by you and your colleagues, and the distinguished guests
who have graced this occasion as a mark of their good wishes
and the honour your have done me in inviting me to perform
this historic opening ceremony of the State Bank which I feel
will develop into one of our greatest national institutions
and play its part fully throughout the world."