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 Introduction:

The State Bank of Pakistan (SBP) is incorporated under the State Bank of Pakistan Act, 1956, which gives the Bank the authority to function as the central bank of the country. The SBP Act mandates the Bank to regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources. .

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 Legal Framework:

SBP’s Functions are mainly governed by:
  1. SBP Act, 1956 (as amended up to November 19, 2015)
  2. Banking Companies Ordinance, 1962

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 Functions of SBP:

Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals.

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 Governance:

Section 9:
The general superintendence and direction of the affairs and business of the Bank, except the monetary policy decision, is vested...

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