Central Bank (Pakistan)

The Central Bank of Pakistan, also known as the State Bank of Pakistan, is in charge of financial operations and the regulation of Pakistan’s monetary and financial system. It was established in 1948, but the State Bank of Pakistan Act of 1956 specified its mission. The Central Bank of Pakistan was nationalized in 1974 as a result of Bhutto’s economic reforms, and its sphere of influence expanded significantly. It operates under the Government of Pakistan, and its primary responsibilities include supervising the banking sector in Pakistan, regulating the microfinance system and small and medium enterprises, ensuring smooth remittance procedures and facilities in Pakistan, determining interest rates, and facilitating the opening of foreign currency bank accounts in Pakistan. Since the early 1990s, the bank has gradually become more independent by decreasing its dependence on the government.