Treasury Operations Department (TOD) was established in 2006 with the objective to consolidate the treasury related activities and foreign currency payments/transactions handled by different SBP departments for ensuring efficiency and controls in the treasury operations in line with international best practices. This was done in an era when the foreign currency reserves were increasing at a rapid pace. And besides in‐house investments, the funds were concomitantly placed with external funds managers as well. The services of custodians were also engaged for monitoring the fund managers’ activities/performance and for keeping the custody of securities on behalf of SBP. The foregoing decision of management has yielded in the introduction of professionalism through, induction of experts and application of international best practices and clarity of roles and effectiveness in treasury related activities being performed by internal and external reserve managers; namely, IMID/ DMMD within SBP and fund managers / custodian on the external side.
With the gradual improvements in the processes and variety of products handled, the department is successfully delivering quality services in many areas as described onwards. TOD handles Trade Processing of Foreign Currency Reserves managed by FMRM departments through conducting of various kinds of trades in the areas of foreign exchange, money market and fixed income securities. TOD ensures timely Accounting, reconciliation, independent verification of valuation on Foreign Currency Reserve Portfolio outsourced to six funds managers and issuance of relevant MIS. TOD execute International Foreign Currency Payments on behalf of Govt. of Pakistan and SBP departments. TOD issues MIS on consolidated reserve management portfolio to SBP management, SBP Investment Committee and committees of Central Board etc. TOD performs Nostro Accounts Administration and Cash Management Operations. TOD handles IMF Communications to SBP relevant departments (as and when needed). TOP provides SWIFT support for SBP departments in transmission of outward messages to external counterparts / Nostros and dispatch of incoming messages to concerned SBP departments / SBP BSC Offices. TOD is a main player for automation in various Trade Processing Areas. TOD coordinates with different auditors related to reserve management operations.