The State Bank of Pakistan is the Central Bank of the country. The basic objective underlying its functions is two-fold i.e. the maintenance of monetary stability, thereby leading towards the stability in the domestic prices, as well as the promotion of economic growth. The State Bank of Pakistan has been entrusted with the responsibility to formulate and conduct monetary and credit policy in a manner consistent with the Government’s targets for growth and inflation and the recommendations of the Monetary and Fiscal Policies Co-ordination Board with respect to macro-economic policy objectives. Other fundamental responsibilities of the State Bank include regulation and supervision of the financial system to ensure its soundness and stability as well as to protect the interests of depositors, monitoring the activities of NBFI’s and maintenance of external value of the currency. Moreover, ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realization of macro-economic goals.
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