State bank of Pakistan is the central bank which has its head office Who Was The First Governor Of State Bank Of Pakistan? in Karachi and 15 branches around the country. It came into being in may, 1948 and became fully operational on 1 July 1948. Before the partition, the combined bank of both Pakistan and India was Reserve bank of India. The assets of Reserve bank of India were distributed between Pakistan and India, thirty and seventy percent respectively. To meet the economic needs of the country Quaid E Azam immediately after the partition established state bank of Pakistan. Zahid Hussain was the first governor of state bank of Pakistan. He lingered on this post from 1948 to 1953. The incumbent governor general of a state bank is Tariq Bajwa appointed on 7 July 2016. He is the 19th governor of a state bank. Governor of the state bank is appointed by the president of Pakistan for a term of 3 years. Current total reserves of the state bank are 23.34 billion US dollars
Who Was The First Governor Of State Bank Of Pakistan
Question: Who Was The First Governor Of State Bank Of Pakistan?
Answer: Zahid Hussain (1948 – 1953)
In the beginning, state bank had confined role to play but later its role was extended by 1956 state bank act. At first, it has to play the role of regulating currency notes and keeping reserves with the intention of maintaining country’s economic stability. Later it was awarded huge role to play by 1956 Act, 1974 privatization about the Who Was The First Governor Of State Bank Of Pakistan? Act and 1997 three amendment ordinance (complete autonomy). Now it performs a traditional and developmental function. In its primary function, it plays a role of bankers’ bank, issues notes and regulates and supervises financial system, bankers to government and conducting of monetary policy. While in its secondary function it manages public debt and foreign exchange debt. The secondary function is also called agency function.
There is a dire need to make state bank more effective and viable. Pakistan presently running under the heavy debt of IMF, IBRD and other world financing institutions. If state bank is regulated appropriately it is estimated that dependency on world financing institution can be cut short. It will have to direct its activities to gain microeconomics goals. It can support and direct other banks to achieve targeted goals. It can design economic policies of the country to bring prosperity. It can give loans to other banks on easy payable terms, so in the result, they may support the common mass. Through its shrewd guidance, it may direct government sincerely in the matter of economic policies workable and profitable. It can direct government investment in long-term development plans. It can introduce poverty alleviation and reduction schemes. It is mainly responsible for maintaining the money value. So it can save money from deterioration keeping its value above. All the economic information of the country is gathered by state bank that is published in its annual review by providing cashable counseling it can tell government and investors to spend in a right way.
Keeping in view the expected role of state bank it is necessary to make state bank efficient and more feasible so that poverty from the country may curtail. Without its effective role economic development and stability is a far cry. Entire other Governors of state bank are enlisted below to provide the reader with a catchy information about their time of rule.