Research Department services the SBP Board of Directors, senior management, and other departments of the Bank by carrying out rigorous research on economic issues affecting Pakistan in current regional and global environment. In particular, this Department develops general-equilibrium models, estimates macro-econometric models, conducts surveys and performs behavioral experiments to achieve the strategic-goals set out by the management. Many of these tasks are achieved on the basis of collaborations with national and international organizations of high repute.

Research Department publishes high quality research in economics and finance in the form of short notes, working papers, and journal articles. This activity promotes healthy public debate with academics, journalists, and other stakeholders. The department also contributes directly and indirectly to various flagship publications including the annual and quarterly reports on the state of Pakistan economy. The responsibilities of managing SBP Working Paper Series and the Research Bulletin lie with the Research Department. The latter is an in-house journal open to contributions from outside the Bank.

There are four core divisions in the Research Department as follows:

Applied Economics Research Division is responsible for developing and conducting surveys. It carries out different surveys (including those through telephone, mail and webmail) from the Centre for Survey Research established in 2012. These surveys are a unique source of large primary data collection on firms and households. For example, a bi-monthly telephonic survey (in collaboration of IBA, Karachi) regularly assesses consumer confidence and gauges inflation expectations in Pakistan to support decision making.  It also periodically consults firms on their price and wage setting behaviour.

Economic Modeling Division provides forecast of various macroeconomic variables (Inflation, real interest rate gap, real exchange rate gap) on the basis of Dynamic Stochastic General Equilibrium (DSGE) models for the internal monetary policy discussion and for the Monetary Policy Committee. Furthermore, this division continuously develops fresh general equilibrium models to improve understanding of Pakistan and other developing economies.

Econometrics Division is responsible for projections using large macroeconometric models. It contributes to the estimation of deep parameters useful for general-equilibrium modeling of Pakistan economy. It also evaluates different econometric models of Pakistan economy. This Division also provides support to other divisions of the Research Department and other departments of the Bank on issues relating to applied econometrics. In addition, it also endeavors to contribute to research on theoretical issues in Econometrics.

International Economic Relations Division facilitates the senior management in decision-making through timely feedback on international/regional economic issues as well as providing coordination services with the internal/external stakeholders. The division also serves as the SAARCFINANCE Country Cell for Pakistan. Another important function is to organize/coordinate national/international events/activities under aegis of SBP. For example: Zahid Husain Memorial Lecture, SBP International Conference, Pakistan & World Economy Seminar.