MCQ Detailed View

The State Bank of Pakistan was officially established on 1st July 1948, almost one year after Pakistan gained independence. The founder of Pakistan, Quaid-e-Azam Muhammad Ali Jinnah, inaugurated the bank in a historic ceremony, recognizing the need for a national institution that could regulate the country’s monetary and banking system.

Before its creation, Pakistan was using the Reserve Bank of India as its central bank on a temporary basis. However, due to increasing financial challenges and the need for economic independence, the government decided to form its own central financial authority.

Key facts about the establishment of the State Bank of Pakistan:

• Established on: 1st July 1948


• First Governor: Zahid Hussain


• Founder: Inaugurated by Quaid-e-Azam Muhammad Ali Jinnah


• Headquarters: Karachi, Pakistan


• Purpose: To issue currency, control credit, regulate banks, and stabilize the economy

From the beginning, the State Bank was given a wide range of responsibilities including the issuance of currency, regulation of banking operations, and formulation of monetary policy. It also played a key role in stabilizing the Pakistani rupee and developing financial institutions that could support the country’s early economic development.

Over time, the role of the State Bank expanded to include managing Pakistan’s foreign exchange reserves, controlling inflation, and promoting growth through monetary reforms. Today, it continues to be the backbone of Pakistan’s financial system, with a critical role in policymaking, economic research, and financial regulation.

The establishment of the State Bank of Pakistan in 1948 was a major step toward building an independent economic identity for the country. It remains one of the most important institutions in Pakistan’s development journey.