The State Bank of Pakistan (SBP) has the mandate to "regulate the monetary and credit system of Pakistan and to foster growth in the best national interest with a view to securing monetary stability and fuller utilization of the country's productive resources".
In addition to its central role in the Monetary Policy of the country, and being the regulator of the banking sector SBP is also pursuing a developmental role by improving access of marginalized segments and sectors of the society to financial services. To this end, SBP has prioritized the promotion of Islamic banking and is facilitating the extension of credit to agriculture, SME, and housing sectors.
In order to effectively discharge the wide range of responsibilities, SBP has been continuously making efforts to upgrade its organizational capabilities and is augmenting its policy toolkit in line with best international practices. In this regard, SBP Vision 2020 provides a comprehensive action plan and streamlines the organizational activities to achieve various strategic goals.
SBP has made significant strides to improve the effectiveness of monetary policy by instituting an independent monetary policy committee and is working towards implementing a flexible inflation-targeting regime that balances price stability with economic growth. It has also put in place a robust regulatory and supervisory framework for the banking sector and payment systems to improve their soundness and efficacy so that they perform their desired role of financial intermediation in an efficient manner.
One of the cherished objectives of SBP is to ensure that the banking consumers in the country remain adequately protected. Accordingly, SBP is guiding banks towards implementing an appropriate business conduct, improving the effectiveness of dispute resolution and strengthening the Fair Treatment of Consumers practices. The Deposit Protection Corporation, set up to safeguard the interests of the depositors is a major recent milestone achieved by the SBP.
SBP, cognizant of the emerging macroeconomic challenges in the domestic economy, is employing its dynamic and forward-looking policy approach to safeguard the health of the economy. The past 70 years are a testimony to the fact that despite a myriad of economic challenges, SBP has continued to work towards its mission of supporting sustained and equitable economic growth in the country. It is my firm conviction that it will continue to do so in the years to come.
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