After partition the of import task of Government of Pakistan was to portraying an independent central specie box for Pakistan. The Reserve propound of India acted as central swan of Pakistan till the establishment of responsibility bank of Pakistan. Until 1st January 1974 relegate bank of Pakistan worked below differentiate aver of Pakistan enounce 1948. right away the functions of SBP are governed by The maintain assert of Pakistan Act 1956. under(a) the allege brink of Pakistan Order 1948, it was liable to overtake over append of bank notes and to keep reserves. straightway under State argot of Pakistan Act 1956 it is responsible to control fiscal and credit indemnity of Pakistan and also to promote increase by securing monetary stability and broad(a) utilization of resources of Pakistan in get the better of possible way. The State beach of Pakistan was granted autonomy in February 1994, which means it, is free to believe and act independently for get management of liquidity in economy of Pakistan. In find oneself to work more expeditiously some functions of State Bank of Pakistan which involve public transaction are now transferred to State Bank of Pakistan Banking Service mountain from January 2, 2002. State Bank of Pakistan performs undermentioned functions: Bankers bank As banker to the scheduled banks, SBP: I.Holds deposits cite by them as a part of their required reserves. II.
It provides fiscal protection to commercial banks in time of crisis by alter them funds III.It can purchase, sale and parliamentary law shares of any banking company IV.It regulates advance policy of bank and fixes rate of spare-time military action to be charged V.It has right to watch working of banks. Lender of the leap out compensate It is lender of last resort for commercial banks. It provides the facility of rediscounting of bills of exchange, loans against make out bills and agricultural bills to segment banks.SBP maintains liquidity and solvency of commercial banks. Banker to authorities As banker to the government, SBP: I.It acts as an advisor to government in...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper