Background History of SBP

At the time of Partition, the new state was without a central bank and a proper
banking system was almost non-existent. Most of the banks had their head offices
in India. Out of 3,496 branches of the scheduled banks, only 631 were situated in
Pakistan. To complete the picture of misery, the entire banking structure was
dominated by Hindus. With the announcement of the Partition Plan of June 3,
1947, the Hindu started to withdraw their deposits from the banks located in
Pakistan. As a result, many banks had to close down their operations.

Since Pakistan had no central bank of its own, it was decided to assign the
monetary operations of the new state to the Reserve Bank of India for a period of
one year (till September 30, 1948). However, it was soon realized that if this
situation continued for too long, the countrys interests would be hurt.
Accordingly, the State Bank of Pakistan Order was issued on May 12, 1948 and
Pakistan (Monetary System and Reserve Bank) Order, 1947 was amended
according to which the Reserve Bank of India was to stop functioning in Pakistan
on June 30, 1948, with the new central bank taking over on the next day.

At the time of its formation, the State Bank of Pakistan neither had any building
for housing its offices nor was there sufficient time for purchase and construction
of new premises. Therefore, Victoria Museum Building at the Ingle Road was
rented from the Karachi Municipal Corporation and swiftly refurbished. The Bank
was inaugurated on July 1, 1948 by Quaid-e-Azam Muhammad Ali Jinnah, who
thus observed on the guiding principles of the newly-created central bank:

I need hardly dilate on the important role that the State Bank will have to play in
regulating the economic life of our country. The monetary policy of the bank will
have a direct bearing on our trade and commerce, both inside Pakistan as well as
with the outside world and it is only to be desired that your policy should
encourage maximum production and a free flow of trade.
The State Bank of Pakistan Act 1956 with subsequent amendments, forms
the basis of its operations today.

SBP-BSC (Banking Service Corporation)

As SBP felt that there is extra burden of workload to perform policy making
functions as well as operational functions the administration established
The SBP Banking Services Corporation (SBP-BSC) as a wholly
owned subsidiary of State Bank of Pakistan in January, 2002,
under the SBP BSC ordinance 2001.
As an operational arm of the Central Bank, SBP Banking Services
Corporation is engaged in managing currency, foreign exchange
operations and foreign exchange adjudication; providing banking
services to the federal and provincial governments and financial
institutions regulated by State Bank of Pakistan, conducting
development finance activities in support of the development
finance group of the SBP, implementing export refinance
schemes, and performing agency functions like sale/purchase of
national prize bonds including managing prize money draws, sale
and purchase of national saving schemes or any other functions
assigned by State Bank of Pakistan.

Vision
To develop SBP-BSC into a dynamic and efficient organization
equipped with requisite technology and human resource capable
of extending sustainable support to the State Bank of Pakistan in
achieving its objective.
 Mission

To provide excellent banking and financial services to

stakeholders besides ensuring implementation of SBP policies in
order to command their trust and respect.

SBP BSC Offices

SR. NO. HOK/FIELD OFFICES
1 Head Office Karachi
2 Karachi
3 Lahore
4 Peshawar
5 Quetta
6 Rawalpindi
7 Faisalabad
8 Multan
9 Islamabad
10 Hyderabad
11 Sialkot
12 North Nazimabad
13 Sukkur
14 Bahawalpur
15 Gujranwala
16 Muzaffarabad
17 Dera Ismail Khan
 Currency Geographical limits of each circle
Issue Circle
Offices

1 Karachi Province of Sindh

2 Lahore Province of Punjab including Government of Azad Jammu and Kashmir

3 Peshawar Province of Khyber Pakhtunkhwa and Government of Gilgit- Baltistan

4 Quetta Province of Balochistan

Departments of SBP BSC

Deposit Account Unit:

It deals with commercial banks
It directs the working criteria of commercial banks
Balances and stock reports preparation
Bank accounts maintenance
Transfer of funds
Closing of bank daily operations.
Public Account Unit:
Dealing in Govt accounts
Collection of tax and Providing short term loan
Payment of salaries to employees of the Govt
Dealing with the receipts and & payment of Govt sectors
Balances and stock report preparation with DAU data
Govt accounts maintenance & transferring of funds on transaction
Daily closing of accounts at DAU with the record of PAU

Payment and receipt at PAU:

1. Through Cash
2. Through transfer
3. Through clearing

Staff Matter Unit:

Dealing with the cases of transfer & posting
Deals with disciplinary matters
Staff is promoted on the grounds of Points Based System
Retired, dismissed, resigned and transferred employees
information/record maintenance
Leave record is also maintained here
Payment of salary, pension and increment record
Medical section is also looking after by SMU

General Service Unit:

Makes and forecast a broad plan keeping in view the whole budged of
concerned office of SBP BSC
Management of HR resource
Training
Recruitment and selection
 Procurement of all the assets of the office and maintain their record
Internal bank security
Repair and maintenance of office building and equipments

Internal monetary Unit:

IMU is responsible to check and authorize all the work to become it flawless
To check the daily record done by PAU & DAU
To check the enter and exit time of all the employees
To check the work done by SMU
To check the medical facilities and procurement of medical assets
To check and authorize the work done by GSU
To assist regional Hub Audit and Annual AUdit