The State Bank of Pakistan is the Central Bank of the Islamic Republic of Pakistan. The Bank started its operations on 1st of July 1948. The current Governor of the State Bank of Pakistan is Dr. Shamshad Akhtar. The Bank is charged with the duty to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage. The scope of the Bank's operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country's productive resources. Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups: (a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers' bank, lender of the last Resort, banker to Government, and conduct of monetary policy, and (b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The State Bank also has been playing an active part in the process of islamization of the banking system.

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