INTERSHIP REPORT STATE BANK OF PAKISTAN

Session 2013

Supervised by SAMI ULLAH Submitted by

SARA WASI

QURTUBA University of Science & Information Technology DERA ISMAIL KHAN

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INTERSHIP REPORT ON STATE BANK OF PAKISTAN

Session 2013

Supervised by SAMI ULLAH Submitted by

SARA WASI

QURTUBA University of Science & Information Technology DERA ISMAIL KHAN

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In the name of ALLAH the Most Gracious and Merciful, Yesterday ALLAH was with me Today I am under HIS care & I will not be worried about Tomorrow ALLAH is already there I just need to ask for HIS Mercy for all

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Department of Business Administrative QURTUBA University of Science & Information Technology, DERA ISMAIL KHAN

FINAL APPROVAL
This report entitled Internship Report On State Bank Of Pakistan is submitted to as a partial fulfillment of requirement to award the degree of Bachelor of Business Administrative

COMMITTEE: 1. Internal Examiner Name. _________________ Signature:_________________ Designation:_______________ 2. External Examiner Name. ___________________ Signature:_________________ Designation:_______________

DEDICATION
This report is dedicated to our dearest Parents, Families and respected teachers who motivate, support and encourage me in every aspect of our life.

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ACKNOWLEDGEMENT
ALLAH is very kind, merciful and compassionate. HIS benevolence and blessings enable me to accomplish this task. I obtain most of the useful material about the topic from different books and websites.

I am thankful to our project Supervisor SAMI ULLAH without whose enormous help, guidance and encouragement, this project could not have been a success. I also extend our vote of thanks to him for being a source of inspiration always.

Special thanks to Dr. SAIF U DEEN and SAMI ULLAH who helped us a lot with their excellent knowledge of business administration.

ABSTRACT

I have done my internship in state bank of Pakistan (BSC) Dera Ismail Khan. As we all know that state bank is the central bank of Pakistan and it controls all the commercial banks which operate in Pakistan. It is a monetary body. It monitors all the commercial banks and maintains and manages the money supply in the country. The reason why I choose this bank is because it is the central bank and the biggest bank in Pakistan. There is a large no of departments in this bank and one can learn a large number of things in this bank. There are many departments in this bank but the departments in which we were trained are public account dept, deposit account department, currency management dept; internal monitory dept; prize bond and saving certificate dept, general services dept. public account department perform many operations. It collects and gives payments on behalf of government. It also performs clearing. It receives and sends chcques to NIFT for clearing purpose. Prize bond department issues prize bond to general public. It controls the overall system of prize bond and prizes I have in the city. General services department perform services like employee salaries, employ loan, NIBAF, etc I have learned a large number of things from state bank of Pakistan Islamabad. It provides all facilities to general public which it can to help or facilitate them.

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Executive Summary
According to the annual report of State bank 2011-2012 (FY06) the statistical growth of the organization is mentioned below Economic Growth, Savings and Investment Pakistans economy overcame adverse pressures to achieve strong growth for the third successive year in FY06. Despite unexpectedly weak harvests of some key crops (cotton, sugarcane and wheat), the impact of the October 2005 earthquake, a tight monetary policy and an unprecedented rise in oil prices, real GDP growth remained strong at 6.6 percent during FY06. However, there was a visible deterioration in the quality of the economic performance, in the sense that the FY06 growth was more narrowly based as compared to preceding years. In contrast to a broad based growth in FY05, the impetus to the high growth in FY06was principally from the above-target performance of the services sector, as both the key commodity-producing sectors, agriculture and industry saw growth fall well below the respective annual targets. Agriculture The decline in the FY06 production of sugarcane and cotton, together with the modest (below target) growth in wheat was the principal reason for the net 3.6 percent decline in the value addition by major crops, in sharp contrast to the 17.8 percent growth in the preceding year. The impact of this on the growth of the crops sub-sector was compounded by the below-target valueaddition by minor crops. The 1.6 percent growth by minor crops during FY06 was lower than the 3.0 percent rise in output seen during FY05 and consequently the aggregate production of the crops sub-sector fell by 2.3 percent in FY06, compared to the growth of 13.7 percent in FY05. Similarly, the value-addition by forestry and fishing, both remained below target during FY06, but since each of these sectors has a very small share in agriculture, the net mpact of these is not significant. Thus, the aggregate growth in agriculture during FY06 was contributed almost entirely by the exceptionally strong growth recorded by the livestock sub-sector, handsomely rewarding the increased policy focus in the area in recent years. The 8.0 percent growth recorded by the sub-sector in the period is strongest for the last decade, substantially outstripping the 2.3 percent growth seen in FY05. Industry The provisional number for FY06 indicates that industrial growth stood at 5.9 percent YoY, substantially lower than the 11.4 percent YoY growth recorded during the preceding year. However, the industrial growth estimates based on full year data is expected to be a little higher than the provisional number. In particular, 9.0 percent growth in large-scale manufacturing (LSM) could reach 10.7 percent during FY06, but this could still remain below the annual target (for the first time during the last four years) and also lower than the 15.6 percent growth recorded in FY05. This was mainly due to an unprecedented rise in oil prices, poor cotton and sugarcane harvests, capacity constraints in key industries as well as a tight monetary stance. However, despite rising interest rates, the electronics and automobile industries kept benefiting from the continued availability of consumer financing. The only sub-group of industry to record negative growth during FY06 was electricity and gas distribution, with value addition declining by 8.4 percent during FY06, in contrast to the 3.5 percent rise registered in the preceding year.

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This fall was partly because of the increased cost of electricity generation and losses incurred by the gas distribution companies amidst unrest in Baluchistan that offset even the impact of expansion in the distribution network of gas companies. Finally, the overall capacity utilization during FY06 (adjusted for capacity in steel industry - which fell sharply due to temporary technical faults at Pakistan Steel), rose to 66.6 percent, exhibited an improvement of 1.8 percentage points during FY06. The highest increase of 15.1percentage points was observed in automobiles in this period. Other industries showed enhanced capacity utilization are paper & board, ghee & cooking oil and fertilizer during FY06. Services Services sector performed remarkably well, witnessing 8.8 percent growth during FY06, surpassing its annual target for the year and well as the 8.0 percent growth registered in FY05. This robust growth was mainly contributed by wholesale & retail trade4, transport & communication and finance & insurance sub-sectors. The acceleration in the services sector growth coupled with the unsatisfactory performance of the commodity-producing sector meant that the share of the services sector in GDP increased in FY06 after a gap of two years. Although growth in both wholesale & retail trade, and finance & insurance slowed during FY06, it was nonetheless well above the target for both sectors. On the other hand, transport, storage & communication sub-sector has witnessed acceleration, with growth rising to 7.2 percent during FY06 against 3.6 percent in FY05, mainly on the back of improved performance of road transport and communication, which was supplemented by the double-digit growth in railway transport. Similarly, growth in public administration & defense also accelerated to 4.7 percent in FY06, higher than the 3.5 percent target for the year and only 0.6 percent in the preceding year. Finally, the accelerated growth in community, social & personal services was probably a reflection of the increased social service activities in Pakistans Northern areas in the aftermath of the October 2005 earthquake. Savings and Investment Although national savings rose sharply by 16.5 percent during FY06 compared to the 7.5 percent growth in the preceding year, nonetheless this increase is lower than the rise in nominal GDP. As a result, the national savings to GDP ratio dropped slightly (by 0.1 percentage points) to 16.4 percent during FY06, the lowest level since FY01. The reason why despite rising interest rates, national savings to GDP ratio did not improve could include to (1) prevailing negative real returns on deposits being offered by the banks, (2) rise in NSS rates was not in line with the expectations, (3) continued ban on institutional investment in NSS, reluctance in issuing PIBs, and (5) continued consumption boom in the economy. The total investment to GDP ratio rose to 20.0 percent during FY06 from 18.1 percent in the preceding year and an average of 17.1 percent in the last five years. Importantly, this is the highest level of the investment to GDP ratio in over a decade. The rise in the ratio is mainly attributed to (1) improved confidence of local as well as foreign investors on the back of a good showing of the economy and (2) a robust 22.3 percent growth in credit to private sector despite increasing interest rates. Both public and private investment contributed in the rise of total investment during FY06, however, increase in the latter was more pronounced. It is important to note that a significant rise in public investment in infrastructure during past three years also resulted in a trend reversal in private investment as well. Foreign direct investment in the economy more than doubled for FY06 reaching as high as US$ 3.5 billion which suggests the improved macroeconomic fundamentals and relative policy stability of the economy is attracting investor interest. Although half of this FDI represented to privatization proceeds on account of PTCL privatization, sale of shares of KESC and receipts on account of HBL, but even adjusting for these FDI has registered a rise of 70.6percent. Disaggregated analysis suggests that these flows are mainly concentrated in the

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telecommunications, power, finance & insurance and oil & gas exploration sectors. In terms of geographical origin of FDI, a significant shift in favor of Middle East is evident in recent years and resultantly, the share of North America (mainly USA), Europe (mainly UK) and East Asia Pacific (mainly Japan)regions has shrunk considerably since FY03. Prices While Pakistans economy suffered due to the rising commodity prices, inflationary pressures eased somewhat in the domestic economy as headline Consumer Price Index (CPI) witnessed a deceleration from a peak of 9.3 percent (average annual inflation) in FY05 to 7.9 percent during FY06, mainly due to monetary tightening to soften demand pressures as well as administrative measures to counter supply shocks. Moreover, while the sharp acceleration in CPI inflation during FY05 was equally contributed by food and non-food components, the FY06 deceleration is solely a result of ease in food inflation. Even though, house rent index(HRI) sub-group contributed to a slowdown in non-food component, a strong surge in fuel & lightning and transport & communication sub-groups more than offset the impact of the moderation in HRI during this period. Indeed, the persistence in non-food inflation, coupled with a rising trend in inflation measured by both Wholesale Price Index (WPI) and GDP deflator, indicates that inflationary pressures persist in the economy. The major impetus to WPI inflation stemmed from the raw material and energy subgroups. Similarly, the rise in the GDP deflator also witnessed primarily due to increase in industrial sub-index following a surge in the cost of energy and raw materials. Given (1) high levels of CPI inflation and core inflation, (2) resilience in non-food inflation, which is still at high levels, (3) acceleration in broader measures of inflation and (4) a lower inflation target of 6.5 percent for FY07, SBP is likely to continue with its tight monetary policy in months ahead. In this background, citrus paribus, current SBP forecasts suggests that CPI inflation is likely to be in the range of 6.5 7.5 percent during FY07, a little above the annual target. Public Finance and Fiscal Policy In the wake of 19.6 percent growth in revenue collection, unprecedented in the recent years, the government continued to pursue pro-cyclical fiscal policy for yet another year pushing the fiscal deficit to 4.2 percent of the GDP as compared to the previous years 3.3 percent. The above-target CBR tax collection of Rs.712.6 billion, owing much to the strong economic activity and extraordinary growth of imports, enabled the government to follow an expansionary fiscal policy. As a result of this, development spending witnessed an exceptional growth of 60.3 percent. Although the current expenditure grew by nearly 19 percent YoY, this was principally owed to the rehabilitation activities in the earth-quake hit areas. Adjusting for this expenditure of Rs 65.8 billion, the total deficit stands at 3.4 percent of the GDP. However there remain structural weaknesses in the fiscal system, including a narrow tax base and over-reliance on import-related taxes. The analysis of provincial finance depicts weakness in their revenue mobilization efforts as their overall contribution to the GDP is not more than 0.8 percent in FY06. Provinces have tremendous scope for tapping the revenue potential given that the taxation of the major sectors of the economy (agriculture and services) rests with the provinces. Also the tax collecting capacity of the provinces needs to be strengthened to improve the overall tax-to-GDP ratio of Pakistan. Looking ahead, the federal budget FY07 has taken various measures to increase the tax-to-GDP ratio and broadening of the tax base (for example, by subjecting certain financial services to the sales tax and federal excise duty, and the marginal increase in the CVT on capital gains)

TABLE OF CONTENTS
i. ii. iii. iv. ACKNOWLEDGEMENT -------------------------------------------------------- i ABSTRACT -------------------------------------------------------------------------- ii EXECUTIVE SUMMARY-------------------------------------------------------- iii TABLE OF CONTENTS --------------------------------------------------------- vi

1. Chapter # 1 1.1 Introduction ---------------------------------------------------------------------- 1 1.2 FACTS AND FIGURES --------------------------------------------------------- 2 1.3 OBJECTIVES --------------------------------------------------------------------- 2 1.4 HISTORY/BACKGROUND -------------------------------------------------- 3 2. Chapter # 2 2.1 Core Functions ------------------------------------------------------------------ 5 a) REGULATION OF LIQUIDITY----------------------------------------- 6 b) EXCHANGE RATE MANAGEMENT---------------------------------- 7 c) DEVELOPMENTAL ROLE OF STATE BANK---------------------- 8 3.2 TYPES OF FUNCTIONS ------------------------------------------------- 8 d) PRIMARY FUNCTIONS OF SBP--------------------------------------- 8 e) SECONDRY FUNCTIONS OF SBP------------------------------------- 11 f) NON-TRADITIONAL FUNCTIONS OF SBP------------------------- 12

2.1 Organization structure -------------------------------------------------------- 15 2.2 Span of Control ------------------------------------------------------------------ 16 2.3 Departments of SBP ------------------------------------------------------------- 16 3. Chapter # 3 3.1 Banking service corporation SBP ---------------------------------------------- 17 3.2 FINANCIAL REPORTS ---------------------------------------------------------- 18 3.3 DEPARTMENTALIZATION ---------------------------------------------------- 21 4. Chapter # 4 4.1 Socio-Economic Indicators ------------------------------------------------------ 25 4.2 Literacy ------------------------------------------------------------------------------- 25 4.3 Education ----------------------------------------------------------------------------- 26 4.4 IMPORTANCE OF SOCIO-ECONOMIC INDICATORS ------------------- 29 a) GDP------------------------------------------------------------------------------ 30 b) Unemployment Rate----------------------------------------------------------- 30 c) Education------------------------------------------------------------------------ 30 d) Health---------------------------------------------------------------------------- 30 vi

e) Standard of Living-------------------------------------------------------------- 30 4.4 SOCIO-ECONOMIC INDICATORS AT DERA ISMAIL KHAN -------- 31 4.5 Typical Household ---------------------------------------------------------------- 32 4.6 Health ------------------------------------------------------------------------------- 32 4.7 Literacy Rate ----------------------------------------------------------------------- 32 4.8 Livestock --------------------------------------------------------------------------- 34 4.9 SOCIO-ECONOMIC INDICATORS AT D.I.KHAN IN COMPARISON WITH OTHER DISTRICTS ------------------------------------------------------ 35 a) Health---------------------------------------------------------------------------- 40 b) Employment--------------------------------------------------------------------- 43 c) Housing-------------------------------------------------------------------------- 45 d) Water Supply-------------------------------------------------------------------- 47 e) Infrastructure-------------------------------------------------------------------- 48 Conclusion & recommendations --------------------------------------------------- 50 References ------------------------------------------------------------------------------ 51

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Chapter # 1
Introduction and History
A state bank is generally a financial institution that is chartered by a state. It differs from a reserve bank in that it does not necessarily control monetary policy (indeed, the state in question may have no legal capacity to create monetary policy), but instead usually offers only retail and commercial service The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956,[1]with subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial capital of Pakistan, Karachi with its second headquarters in the capital, Islamabad. Under the State Bank of Pakistan Order 1948, the Bank was charge 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 Banks 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 utilization of the countrys productive resources". Before the World War First, there were only a few countries, which had there own central banks. After the War, the number of central banks STATE BANK OF PAKISTAN has increased and now there is not a single country in the world, which does not have its own central bank. There were many considerations underlying the establishment of a central bank. After the first war, there was complete confusion in currency and exchange markets. There were large withdrawals of money form banks. The bank reserves fell below the needed levels. There was no institution, which could supervise the working of banks and also serve as a fiscal agent. In addition to the above difficulties, there was a rigidity or lack of elasticity in the supply of the currency. There were also reoccurrences of failures of the commercial banks. In order to solve the monetary problems of the countries and set them on the healthy footings, a conference was held at Brussels in 1920. It was decided in that conference that to control the supply of money and credit in the economy and maintained stable business conditions, each country must establish its own central bank in order to solve the problems. The vision of its founders was a stable monetary system in Pakistan with fuller utilization of the countrys productive resources (SBP Act, 1956). In order to achieve the goals set before it, the State Bank of Pakistan performed all the traditional and non-traditional functions. The traditional functions, which are generally performed by central banks all over the world, are classified into two groups; the primary functions1 including issue of notes, regulation of the financial system, lender of the last resort, and conduct of monetary policy,

the secondary functions including management of public debt, management of foreign exchange, advising the Government on policy matters, anchoring payments system, and maintaining close relationships with international financial institutions. The central bank operations can also be categorized into macroeconomic function and microeconomic function. The macroeconomic function is to preserve the value of the currency, that is, maintain price stability and the microeconomic function is to maintain stability in the banking system. However, in this document, we have discussed these functions in commonly used classification of primary and secondary functions. The nontraditional or promotional functions performed by the State Bank include development of financial framework, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank has also been playing an active part in the process of Islamization of the banking system. All these functions are shown in a flow chart. In the subsequent pages, we have given a brief but comprehensive description of these functions and examined how the SBP has been performing them since its inception in 1948. There are six sections of this document. The first and second sections give reviews of primary and secondary functions of the State Bank of Pakistan. Section 3 is on non-traditional functions. Islamization of the banking system in Pakistan is also an important function entrusted to SBP which is discussed in section 4. Section 5 outlines measures taken during 1990s and thereafter to grant autonomy to SBP in performing its functions. Finally the last section presents an account of the institutional evolution of the Bank and sketches its current structure.

FACTS AND FIGURES Headquarters Established Governor Central bank of Currency ISO 4217 code Official website KRACHI PAKISTAN 1947 SHAMSHAD AKHTAR PAKISTAN PAKISTANI RUPEE PKR www.sbp.org.com

OBJECTIVES
As we all know that state bank of Pakistan is a nonprofit making organization. Its main objective is to manage or maintain the currency supply in country. Increase and decrease in money supply can create inflation or deflation in country, so these things should be handled immediately and state bank is doing this. The mission and vision of SBP is as under. 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 objectives (SBP website) Mission To provide excellent banking and financial services to stakeholders besides ensuring implementation of SBP policies in order to command their trust and respect.

HISTORY/BACKGROUND
State bank was established in 1948. Initially it was entrusted with the task 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" (SBP order, 1948). In financial sector reforms of 1994 State Bank of Pakistan got full autonomy. On January 21, 1997 this autonomy was further strengthened when the government issued three Amendment Ordinances. These changes gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. Currently its primary functions include regulating banking sector, maintenance of public accounts, devising monetary policy, management of public debt, issuance of currency notes, and maintaining inflation. State Bank of Pakistan Banking Services Corporation SBP-BSC was established in 2002 in order to perform operational functions of SBP (SBP website). SBP-BSC is subsidiary of State Bank of Pakistan having 16 offices in major cities of the country and its key functional and operational areas include currency management, foreign exchange operations and adjudication, export finance scheme, payment & settlement systems, and banking services to the government. While State Bank of Pakistan performs the important function of policy making, SBP-BSCs handle most of the operational areas (SBP website). Before independence on 14 August 1947, during British colonial regime the Reserve was the central bank for both India and Pakistan. On 30 December 1948 the British Government's commission distributed the Reserve Bank of India's reserves between Pakistan and India -30 percent (750 M gold) for Pakistan and 70 percent for India. The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948 Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was 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

A large section of the state bank's duties were widened when the State Bank of Pakistan Act 1956 was introduced. It required the state 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 utilization of the countrys productive resources". In February 1994, the State Bank was given full autonomy, during the financial sector reforms On January 21, 1997, this autonomy was further strengthened when the government issued three Amendment Ordinances (which were approved by the Parliament in May 1997). Those included were the State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalization Act, 1974. These changes gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments to the Banks Nationalization Act brought the end of the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and allowed the jobs of the council to be appointed to the Chief Executives, Boards of the Nationalized Commercial Banks (NCBs) and Development Finance Institutions (DFIs). The State Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the chief executives, the Boards of Directors of banks and DFIs. The State Bank of Pakistan also performs both the traditional and developmental functions to achieve macroeconomic goals. The traditional functions, may be classified into two groups: 1) 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. 2) The secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalization of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system.

CHAPTER #2
Functions of State SBP and Organization structure
Core Functions
State Bank of Pakistan is the Central Bank of the country. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until 1st January 1974 when the Bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. Under the State Bank of Pakistan Order 1948, the Bank was 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 Banks 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 utilization of the countrys productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalization Act, 1974. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments in Banks Nationalization Act abolished the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and institutionalized the process of appointment of the Chief Executives and Boards of the nationalized commercial banks (NCBs) and development finance institutions (DFIs), with the Sate Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the Chief Executives and the Boards of Directors of banks and DFIs. 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 non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalization of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. The main functions and responsibilities of the State Bank can be broadly categorized as under.

REGULATION OF LIQUIDITY Being the Central Bank of the country, State Bank of Pakistan has been entrusted with the responsibility to formulate and conduct monetary and credit policy in a manner consistent with the Governments targets for growth and inflation and the recommendations of the Monetary and Fiscal Policies Co-ordination Board with respect to macro-economic policy objectives. The basic objective underlying its functions is two-fold i.e. the maintenance of monetary stability, thereby leading towards the stability in the domestic prices, as well as the promotion of economic growth. To regulate the volume and the direction of flow of credit to different uses and sectors, the Bank makes use of both direct and indirect instruments of monetary management. Until recently, the monetary and credit scenario was characterized by acute segmentation of credit markets with all the attendant distortions. Pakistan embarked upon a program of financial sector reforms in the late 1980s. A number of fundamental changes have since been made in the conduct of monetary management which essentially marked a departure from administrative controls and quantitative restrictions to market-based monetary management. A reserve money management programmed has been developed. In terms of the programmed, the intermediate target of M2 would be achieved by observing the desired path of reserve money - the operating target. While use in now being made of such indirect instruments of control as cash reserve ratio and liquidity ratio, the programs reliance is mainly on open market operations. ENSURING THE SOUNDNESS OF FINANCIAL SYSTEM REGULATION AND SUPERVISION One of the fundamental responsibilities of the State Bank is regulation and supervision of the financial system to ensure its soundness and stability as well as to protect the interests of depositors. The rapid advancement in information technology, together with growing complexities of modern banking operations, has made the supervisory role more difficult and challenging. The institutional complexity is increasing, technical sophistication is improving and technical base of banking activities is expanding. All this requires the State Bank for endeavoring hard to keep pace with the fast-changing financial landscape of the country. Accordingly, the out dated inspection techniques have been replaced with the new ones to have better inspection and supervision of the financial institutions. The banking activities are now being monitored through a system of off-site surveillance and on-site inspection and supervision. Off-site surveillance is conducted by the State Bank through regular checking of various returns regularly received from the different banks. On other hand, on-site inspection is undertaken by the State Bank in the premises of the concerned banks when required. To deepen and broaden financial markets as also to diversify the sources of credit, a number of non-bank financial institutions (NBFIs) were allowed to increase substantially. The State Bank has also been charged with the responsibilities of regulating and supervising of such institutions. To regulate and supervise the activities of these institutions, a new Department namely, NBFIs Regulation and Supervision Department was set up. Moreover, in order to safeguard the interest of ultimate users of the financial services, and to ensure the viability of institutions providing these services, the State Bank has issued a comprehensive set of Prudential Regulations (for commercial banks) and Rules of Business (for NBFIs). The "Prudential Regulations" for banks, besides providing for credit and risk exposure limits, prescribe guide lines relating to classification of short-term and long-term loan facilities, set criteria for management, prohibit criminal use of banking channels for the purpose of money laundering and other unlawful activities, lay down rules for the payment of dividends, direct banks to refrain from window dressing and prohibit them to extend fresh laon to defaulters of old loans. The existing format of balance sheet and profit-and-loss account has been changed to

conform to international standards, ensuring adequate transparency of operations. Revised capital requirements, envisaging minimum paid up capital of Rs.500 million have been enforced. Effective December,1997, every bank was required to maintain capital and unencumbered general reserves equivalent to 8 per cent of its risk weighted assets. The "Rules of Business" for NBFIs became effective since the day NBFIs came under State Banks jurisdiction. As from January, 1997, modarbas and leasing companies, which are also specialized type of NBFIs, are being regulated/supervised by the Securities and Exchange Commission (SECP), rather than the State Bank of Pakistan. EXCHANGE RATE MANAGEMENT AND BALANCE OF PAYMENTS One of the major responsibilities of the State Bank is the maintenance of external value of the currency. In this regard, the Bank is required, among other measures taken by it, to regulate foreign exchange reserves of the country in line with the stipulations of the Foreign Exchange Act 1947. As an agent to the Government, the Bank has been authorized to purchase and sale gold, silver or approved foreign exchange and transactions of Special Drawing Rights with the International Monetary Fund under sub-sections 13(a) and 13(f) of Section 17 of the State Bank of Pakistan Act, 1956. The Bank is responsible to keep the exchange rate of the rupee at an appropriate level and prevent it from wide fluctuations in order to maintain competitiveness of our exports and maintain stability in the foreign exchange market. To achieve the objective, various exchange policies have been adopted from time to time keeping in view the prevailing circumstances. Pakrupee remained linked to Pound Sterling till September, 1971 and subsequently to U.S. Dollar. However, it was decided to adopt the managed floating exchange rate system w.e.f. January 8, 1982 under which the value of the rupee was determined on daily basis, with reference to a basket of currencies of Pakistans major trading partners and competitors. Adjustments were made in its value as and when the circumstances so warranted. During the course of time, an important development took place when Pakistan accepted obligations of Article-VIII, Section 2, 3 and 4 of the IMF Articles of Agreement, thereby making the Pak-rupee convertible for current international transactions with effect from July 1, 1994. After nuclear detonation by Pakistan in 1998, a two-tier exchange rate system was introduced w.e.f. 22nd July 1998, with a view to reduce the pressure on official reserves and prevent the economy to some extent from adverse implications of sanctions imposed on Pakistan. However, effective 19th May 1999, the exchange rate has been unified, with the introduction of marketbased floating exchange rate system, under which the exchange rate is determined by the demand and supply positions in the foreign exchange market. The surrender requirement of foreign exchange receipts on account of exports and services, previously required to be made to State Bank through authorized dealers, has now been done away with and the commercial banks and other authorized dealers have been made free to hold and undertake transaction in foreign currencies. As the custodian of countrys external reserves, the State Bank is also responsible for the management of the foreign exchange reserves. The task is being performed by an Investment Committee which, after taking into consideration the overall level of reserves, maturities and payment obligations, takes decision to make investment of surplus funds in such a manner that ensures liquidity of funds as well as maximizes the earnings. These reserves are also being used for intervention in the foreign exchange market. For this purpose, a Foreign Exchange Dealing Room has been set up at the Central Directorate of State Bank of Pakistan and services of a Forex Expert have been acquired.

DEVELOPMENTAL ROLE OF STATE BANK The responsibility of a Central Bank in a developing country goes well beyond the regulatory duties of managing the monetary policy in order to achieve the macro-economic goals. This role covers not only the development of important components of monetary and capital markets but also to assist the process of economic growth and promote the fuller utilization of a countrys resources. Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realization of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functions have been combined by the State Bank with a well-recognized developmental role. The scope of Banks operations has been widened considerably by i ncluding the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Banks participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidized credit, and development of the capital market.

TYPES OF FUNCTIONS
Primary Functions Secondary Functions Non-Traditional Functions PRIMARY FUNCTIONS OF SBP Issue of Notes
Regulation of currency in accordance with the requirements of business and the general public Granted the sole right of issuing notes in the country under Section 24of the State Bank of Pakistan Act,1956 Two separate dept. deal with the affairs of issuing of notes Issue Department: Deals with the issue of notes Banking Department: Undertakes general banking business The issue of one rupee and subsidiary coins is the prerogative of the Federal Government The Bank merely looks after the management of their issue on behalf of the Government. The State Bank also issues Commemorative (Yadgari)" notes and coins of different denominations at occasions of national importance. Since 1965, SBP has been required to keep a min. amount of Rs.1.2billion in the shape of gold coins, gold bullion, and silver bullion or approved foreign exchange as the backing for note issue. Currently there are three offices of issue at Karachi, Lahore, Peshawar, and a number of currency chest all over the country.

Conduct of Monetary and Credit Policy

Section 9A of SBP Act, 1956 entrusts the Central Board of the Bank to formulate and monitor monetary and credit policy by taking into account the Federal Govt.'stargets for growth and inflation. State Bank must take into account Recommendation of the Monetary and Fiscal Policies Co-ordination Board. Main Instruments used by SBP: SBP 3-day Repo Rate T-Bill Auctions Open Market Operation Statutory Liquidity Ratio SBP 3-day Repo Rate SBP provides a lending facility to the scheduled banks for up to 3 days through Reverse Repo transactions. The interest rate charged on this facility serves as the main tool to give interstate signals to the money market. Increase in this rate gives a signal of monetary tightening. T-Bill Auctions T-Bill stand for treasury bill SBP 3-day repo rate influences the yield off-bills sold through auctions. The cut off yield is determined by the Auction Committee, keeping in view monetary targets, current economic and financial conditions and expected market response. The Six month T-bill is considered the most important benchmark by the money market. Open Market Operation SBP is conducting regular Open Market Operations (OMOs) since January 1995. Till October 1997, SBP used to mop up liquidity from the market in case of excess but it refrained to inject funds in case of liquidity crunch. In October, 1997, it started bi-directional intervention; now Repo transactions aroused to mop up liquidity and Reverse Repot inject it. Statutory Liquidity Ratio Commercial banks are required to keep some fraction of their assets in the form of cash, Treasury Bills (T-Bills) or other approved securities. This fraction is called Statutory Liquidity Ratio. Its main objective is to ensure that banks have sufficient funds in the form of liquid assets. Currently this ratio (excluding Cash Reserve Requirement) is 15% of time and demand liabilities. Regulation & Supervision of Financial System It is a principal task of SBP to make sure that financial system is sound. SBP has been given has been given vast powers under Pakistani Law to monitor financial system.

 It is the responsibility of State Bank to systematically monitor the performance of every banking company to ensure its compliance with the statutory criteria, and banking rules & regulations SBP monitors the banking activities through a combination of off-site monitoring and on-site inspection. Off-site surveillance is conducted by SBP through various periodical returns received from banks sandfish. On-site inspection is undertaken on the premises of the concerned banks Prudential Regulations In order to safeguard the interest of depositors and to ensure the safety and soundness of the banks/DFIs, the SBP has issued Prudential Regulations. The regulations incorporate the spirit and essence of Bank of International Settlement(BIS) regulations These are constantly watched for possible improvement to get better result from their implementation There are separate prudential regulation for: Agriculture Financing Corporate / Commercial Banking SMEs Financing Consumer Financing Micro Finance Banks This way each set of regulations serves the relevant area in the best possible way. A brief introduction to these is given in upcoming slides Prudential Regulations for Corporate &Commercial Banking The regulations focus on Credit Risk Management, Corporate Governance Anti Money Laundering and Operations. The regulations on Credit Risk cover: Per party exposure limits of the bank/DFIs Limit for clean advances Investment in shares/Term Finance Certificates (TFCs) Provisioning requirements for stuck-up assets Exposure to NBFC and Margin requirementsetc. Prudential Regulations for Consumer Financing These regulations have been devised to encourage the banks to diversify their loan portfolio through creation of new products. It ensure that banks undertake Consumer Financing in a prudent manner. The Regulations require strengthening of risk-management processes of the banks/DFIs through establishing comprehensive credit risk management systems. Bankers Bank State Bank also functions as the bankersbank.

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 Banks are classified as: Scheduled Banks Non-Scheduled Banks Scheduled Banks are entitled to certain facilities from the State Bank and in return they have some obligations to it State Bank provides the following three important services to the scheduled banks: Excess Reserves kept with SBP Remittances Facilities Clearing through NIFT Interbank Payments Statutory Reserves Banker to Government SBP conducts the banking business of Federal and Provincial Government and some government agencies. SBP provides the following services to the governments: It accepts the deposits of cash, cheques and drafts by the Government. Federal and Provincial governments keep their deposits with the Bank freeof interest. SBP does not charge any commission to the governments for the banking services rendered to them. The Federal and Provincial governments can obtain advances from SBP. On behalf of Federal, Provincial or Local governments the Bank also undertakes sale/purchase of gold, silver, approved foreign exchange, securities or shares in any company, collection of return on these shares/securities

SECONDRY FUNCTIONS OF SBP Public Debt Management

Public debt refers to all the money that the government is liable to pay. The Bank is responsible for the management of government debt under subsection 13(e) of section 17,and section 21 of the SBP Act, 1956. The Public Debt Act 1944 also defines the responsibilities of SBP for public debt management. In order to efficiently manage the public debt, a department namely, Securities Department was setup in1990. SBP is responsible for payments of interest to holders of public debt instruments. Management of Foreign Exchange SBP is responsible for maintaining the external value of the currency. SBP took charge of management and administration of the exchange system of the country in line with the Foreign Exchange Regulation Act, 1947. SBP is authorized to purchase and sell gold, silver or foreign exchange and transactions of special drawing rights with the International Monetary Fund. The Bank is responsible to keep the exchange rate of the rupee at an appropriate level and prevent it from wide fluctuations. As the custodian of countrys external reserves, State Bank is also responsible for the management of the foreign exchange reserves

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Advisor to Government SBP acts as an advisor to the Government on financial and economic matters particularly with reference to their monetary aspects. The Bank counsels the Government on loan operations and advises it with regard to the timings, terms and conditions and rate of return on these loans. The advisory role of the Bank has been made mandatory in accordance with the Section 9A of the SBP Act 1956 Monetary and Fiscal Policies Coordination Board (MFPCB) The State Bank also participates in economic policy making as a member of various government agencies and committees. In order to coordinate fiscal, monetary, foreign trade and exchange ratepolicies,aMonetary and Fiscal CoordinationBoardhas been set up. Relationships with IFIs SBP deals with the IMF on behalf other Government of Pakistan. The Governor State Bank accompanies the Minister of Finance in annual general meeting of the IMF and World Bank. The State Bank of Pakistan also deals with other international financial organizations including Bank for International Settlement, the World Bank, Central Banks of foreign countries, etc.

NON-TRADITIONAL FUNCTIONS OF SBP Development of the Banking System

SPBs major contribution is the facilitating and fostering of the banking system in Pakistan. At time of independence it was a challenge for SBP to develop banking System in Pakistan. The initiated to set-up NBP and allow foreign banks to do their business in Pakistan are two major steps towards development of Banking System. Micro Finance Khushali Bank and the First Micro Finance Bank have been setup by SBP to promote microfinance in the country. A set of prudential regulations has also been issued to keep the activities of these banks. Promotion of Islamic Banking State bank of Pakistan is playing a leading role in the promotion of Islamic Banking in Pakistan. Conferences, workshops, seminars and presentations are being conducted to create public awareness and develop better coordination among various stakeholders of Islamic banking. Development of the Banking System SBP has also started scholarships for PhD in economics and finance in order to meet its needs for professionally qualified personnel in these fields. In order to cater to information needs other bankers, researchers, students and general public, a main library was setup in 1949.

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 The library has a rich collection of books, technical reports, Government documents, periodicals and magazines mainly relating to the subjects of economics, banking, finance, management, commerce, etc Credit to Priority Sectors SBP has also introduced various credit schemes to channel resources towards priority sectors like: Export finance scheme Mandatory credit for agriculture Small business Small industries

13

Functions of State Bank of Pakistan.

14

ORGANIZATION STRUCTURE
The basic Structure of State bank was revised in 2007 as per decision of the central board of directors. Revised Organizational Structure is mentioned below in the diagram.

15

Span of Control
Span of control is the number of subordinates who report directly to a specific manager. There are three types of branch categories i.e. I, II, & III in National Bank of Pakistan. Category I Branches: Four employees report to their branch manager. Category II Branches: Eleven employees report to their branch manager. Category III Branches: Fifteen employees report to their branch manager. At branches level there is broader span of control but due to tall structure of the organization we find narrow span of control in the bank. Departments of SBP Agriculture credit Audit Banking inspection Banking policies Banking supervision Corporate servicing Economic policy Exchange and Debt MGT Exchange policy Human Resource Information system Islamic banking and legal sources Payment system Research Statistics Real time Gross settlement system (RTGS system) Small and medium enterprises Training and development department

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CHAPTER # 3 BSC, SBP D.I.KHAN

Introduction
Banking Services Corporation (BSC) set up in January 2002, is the subsidiary of the State Bank of Pakistan and is entrusted with the task of currency management and operational and administrative oversight of foreign exchange departments, export and other finance, management of Government accounts and operational work related to Government certificates. With the changing environment of banking sector, BSC has undergone significant change. On one hand BSC has had to relinquish certain functions, it performed at the time when both interest and credit and foreign exchange was rigorously regulated. On the other hand, it has to reposition itself to the deregulated environment (while continuing to perform some old functions such as related to Export Finance Scheme) and be equipped to deal with a transformed Central Bank and banking system. The challenges posed by these changing requirements have been phenomenal but BSC has been steadily shifting its goals and objectives to align it with the new demands. Going forward, SBP is now working closely with BSC to develop a strategy for its further transformation to assign a more relevant Mission to it in line with the withdrawal of some of its old functions, consolidate the organization, fully automate its services and introduce a new culture of change management along with better enforcement of the performance management systems. Developing adequate capacity and managerial skills along with better internal controls will be critical to achieve the anticipated transformation. Key Functional & Operational Areas Currency Management Foreign Exchange Operations and Adjudication Export Finance Scheme Payment and Settlement Systems Banking Services to the Governmen

17

FINANCIAL REPORTS

18

PROFIT AND LOSS ACCOUNT

19

CASH FLOW STATEMENT

20

DEPARTMENTALIZATION
Deposit Accounts Dept
Main functions of the Deposit account unit are; 1. SBP-BSC acts as a banker to banks. Commercial banks open their accounts with state bank. There are accounts of 41 banks and these accounts are maintained at deposit account unit. 2. Handles export refinance scheme. 3. The facility of remittance of government payments is provided through this department. 4. Account reconciliation 5. Also facilitate public remittances and fee is charged for that whereas no fee is charged from the government. Currency Management Dept Currency management cycle involves a wide range of activities including Ensuring adequate supply of good quality notes across the country Forecasting annual increase in currency demand Timely placement of printing orders with Pakistan Security Printing Corporation (PSPC), Examination and storage arrangements on receipt of fresh notes from PSPC, Maintenance of sufficient balances of currency notes/ coins Supply of notes in every nook & corner of the country Withdrawal of soiled/defective notes from circulation and their destruction under appropriate control mechanism. Prize Bond and Saving Certificate Dept The Prize Bond scheme is the part of national saving scheme. The SBP-BSC provides management services to the government for this scheme. SBP-BSC can decide about the terms and conditions of the scheme can increase or decrease the amount of prize money and can change the denomination. Prize bond unit perform the following functions. Sale and purchase of Prize bonds Maintenance of the prize bond stock Giving the prize money Help in organizing draws Apart from prize bond this unit is involved in the management of defense saving certificates and special saving certificates. These two instruments are dealt with in the interest bearing account and the prize in non-interest bearing account of the unit.

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Internal Monitoring Dept Internal auditing is a profession and activity involved in helping organizations achieve their stated objectives. Internal monitoring unit is an independent appraisal function established within SBP-BSC to examine and evaluate its activities as a service to the organization. Main functions and responsibilities of IMU is given as follows; Conducting pre-audit of all accounts of the Office. It involves in-depth and independent examination of cases in the light of rules and regulations to minimize the risk. Pre audit the cases and vouchers received from various units under SBP Expenditure regulation, budgetary limit and head of accounts. Prize Bonds Payment cases Export Refinance Cases before making payment to banks Pay periodical surprise visits on timely basis (i.e. weekly, fortnightly, monthly, quarterly etc.) to see various operations and activities of Units/Departments. Verification of Examination Halls as per approved policy and prescribed procedures. Pre-audit of NIBAFs Payments cases received for payments to different stakeholder of NIBAF. Pre-audit of staff loans (like HBA, temporary advance against GPF balance etc.) Pre-audit of the cases regarding Policy Matters (i.e. Promotion, Confirmation, Reification of pay etc.) to ensure that Banks Rules/Regulations are implemented while processing such cases. General Services Dept The major functions of GSU are; Disbursement of monthly salaries and allowances Financing of life insurance Making other payments like pension, retirement, Making business plans, preparation of annual budget. Assessment of employee loans Procurement of office furniture, stationary, vehicles etc Activation and deactivation of employee medical facilities. Permission for medical treatment outside BSC medical centers Evaluation of employees through personal evaluation report and performance management report. Payment system for Prizes Same day payment for prizes of value up to Rs. 20,000. After 15 days for prizes of value up to Rs. 1, 85000. After 21 days for prizes of value up to Rs. 10,000,000. After 30 days for prizes of value up to 750,000,000. If a prize bond win prize, the prize is claimed by the bearer of the bond by filling out an application form. Prize of up to 20,000 is paid in cash and more than 20000 prize paid through payment order. 10% withholding tax is deduced from the prize money. Bonds winning prize of above 10000 are retained and its face value is paid to the claimant. After the submission of the application form for claiming the prize, the genuineness of the bond is first checked by the receiving OG-1 officer. Then after entering it to the GLOBUS it is passed on to OG-2 for further verification and authentication

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Deposit Account dept Mail Transfer (M.T) It is the payment order issued by D.A.U when an employee of one branch of SBP wants to make payment to the employee of the other branch. Usually no fee is charged for this operation as SBP uses it to facilitate its employees. Telegraphic Transfer (T.T) Telegraphic transfer is used when head office of a bank wants to transfer the amount to its branch. All the transfer takes place through SBP and it charges 0.07% commission for T.T operation. Bank Draft (B.D) A bank draft is used when general public make payments to government institutes. Government Draft (G.D) If one government institution wants to make payments to the other institute then they make use of the govt. draft.

DEPARTMENTS OF BSC,SBP D.I.KHAN BANKING DEPARTMENT (PEER AZAM KHAN) CURRNCY EXCHANGE DEPARTMENT CURRNCY MGT DEPARTMENT CASH DEPARTMENT( M.YUNIS KHAN) ADDMIN DEPARTMENT (DIL NAWAZ KHAN)

MAIN OFFICERS Audit Committee Chairman Azam Faruque Ibrar A. Mumtaz Mian Kausar Hameed Auditors Chartered Accountants Chartered Accountants

Ford Rhodes Sidat Hyder & Co. M. Yousaf Adil Saleem & Co.

Legal Advisors Advocates & Legal Consultants Registered & Head Office NBP Building I.I. Chundrigar Road, Karachi Pakistan

Mandviwala & Zafar

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Registrars & Share Registration Office THK Associates (Pvt.) Limited Shares Department, Ground Floor, Modern Motors House, Beaumont Road, Karachi, Pakistan

LEADING OF INTERSHIP MEMBERS FEROZ KHAN MR FARINA HAMEED M.YOUNS SHAJAHAN KHAN

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CHAPTER # 4

Work done in Internship Project

SOCIO-ECONOMIC INDICATORS
INTRODUCTION: Socio-Economic indicators are the number of social and economic factors which are used to identify the social and economic position in a country or in a specific region i-e district are known as Socio-Economic Indicators Socio-economic indicators provide a background to understanding the health scenario in a country. Socio-economic development is measured with indicators, such as GDP, life expectancy, literacy and levels of employment. What Are The Socio-Economic Indicators? The major socio-economic indicators are GDP, life expectancy, literacy and levels of employment etc. Gross Domestic Product (GDP): Gross domestic product (GDP) is an economic factor which is used to identify the economic position of the country.GDP is the market value of all officially recognized final goods and services produced within a country in a specific period of time. As GDP indicates the value of goods produced within a country, it identifies the economic position of the country. GDP per capita is often considered an indicator of a country's standard of living; GDP per capita is not a measure of personal income .Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita. Life Expectancy: Life Expectancy is a social factor which means the number of years an individual is expected to live. The life expectancy, for required minimum distribution calculation purposes, is determined by the current age of the individual. Life expectancy is one of the factors in measuring the Human Development Index of each nation, along with adult literacy, education, and standard of living. Life expectancy is also used in describing the physical quality of life and number of facilities available in an area. It is also used when determining the value of a life settlement, a life insurance policy sold for a cash asset. Literacy: Literacy is the ability to read and write one's own name and further for knowledge and interest, write coherently, and think critically about the written word. The inability to do so is called illiteracy. It is a very important socio-economic indicator; literacy rate is used to identify the health of education system in a specific area. It is used to point out the areas where the education facilities are not easily and affectively available and with the help of literacy rate, the education level can be improved in the areas where the number of literate persons is not satisfactory. Visual literacy includes in addition the ability to understand all forms of communication, be it body language, pictures, maps, or video. In a technological

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society, the concept of literacy is expanding to include the media and electronic text, in addition to alphabetic and number systems. These abilities vary in different social and cultural contexts according to need and demand. Level of Employment: It is an important economic factor that is used to make the best use of man power and avoid the destructions of nations true wealth. Level of employment means the percentage of the labor force that is employed. The employment rate is one of the economic indicators that economists examine to help understand the state of the economy. Infant Mortality Rate (IMR) Infant Mortality Rate (IMR) is defined as the infant death rate per 1000 live births. It reflects satisfaction of at least four basic needs and is considered the best indicator to measure capabilities development. Public Provision of Health Facilities (PPH): This is the most important socio-economic indicator and it plays a vital role in the development of nations. Public provision of health facilities means the availability of health facilities to the general public. Population per health units and population per bed are used as indicators to measure the size of health facilities per district provided by the government. The indicators are constructed by giving different weights to various health facilities, highest to hospital and lowest to other health units. The ratio of population to aggregate number of health facilities determines the population per unit of health facilities. Public Provision of Water Supply and Sanitation Facilities (PPWS): This is a social indicator and it is used to measure the social life standard of people living in a specific area. Availability of clean water and water sanitation is a basic need and health and living standard is directly affected with this socio-economic factor. Three indicators for public provision of water and sanitation facilities are constructed: (1) availability of tap water (PPTW), (2) availability of two types of sanitation facilities, covered (CSEW) and open (OSEW), (3) availability of government services to collect garbage. Education: Education in its general sense is a form of learning in which knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, research, or simply through auto didacticism. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts.

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Statistical Analysis of Some important Socio-Economic Indicators

Selected Demographic Indicators :

Total population Male Female Urban Rural Growth Rate Working Age Population Density Life Expectancy Male Female Crude Birth Rate Crude Death Rate Infant Mortality Rate Total Fertility Rate Age Composition Of population Children Under 15 Years 15-64 Years 65 and Above Housing Units by Tenure Own Dwelling Units Rented Dwelling Units Rent Free Units Subsidized Housing Units Household Size Households Using Electricity Households Using Tap water Mn % % % % % % Persons/sq km Years

1998

2012

133.32 52.00 48.00 32.60 67.40 2.69 66.60 166 63.10 63.00 30.5 8.6 82.9 4.9 43.4 53.1 3.5

180.71 51.70 48.30 37.38 62.62 2.00 71.80 227 64.80 66.10 27.20 7.20 69.00 3.5 34.6 61.5 3.9 86.00 7.0 6.0 1.0 6.5 91.40 32i

Per 1000 Per 1000 Per 1000 % %

% 87.00 7.0 5.3 1.1 6.7 84.00 38.7

No of persons % %

Employment
Total Labour Force Rural Urban Employed Labour Force Of which Agriculture Mining&manufacturing Trade Others Mn % % Mn In %

2007-08
54.6 66.0 34.0 51.6 44.6 13.1 14.6 27.7 27

2010-11
58.1 69.3 30.7 54.7 45.0 13.8 14.8 26.4

2011-12
59.3 69.4 30.6 55.8 45.0 13.8 14.8 26.4

Unemployment Rate

5.5

6.0

6.0

NATIONAL ACCOUNTS
GNP Size Growth Rate GDP Size Growth Rate Per Capita Income Current Constant Rural Urban Labour Force Participation Rate Rural Urban Literacy (in %) (10 years & above) in 2011 Total Urban Rural Male Female Pakistan Rs.bn. % Rs.bn. %

2007-08

2010-11

2011-12

10452 3.7 10243 3.7

18853 3.5 18033 3.0 102.2 34.37 4.7 8.8 32.83 34.26 30.00 Punjab

21679 4.0 20654 3.7 114.4 35.0 4.7 8.8 32.83 34.26 30.00 Sindh

Rupees (000) 62.90 Rupees(000) 34.10 % 4.7 % 7.1 % 32.81 34.29 29.87 KPK

Balochistan

58 74 49 69 46

41 61 35 60 19

50 63 48 68 33

60 76 53 70 51

59 75 42 71 46

AGRICULTURE
Total cropped area Improved Seed Distribution Fertilizer off take No of Tube wells Exports of Fruits Mn. Hectors 000 tones 000NTonnes 000 Nos. Rs.bn. 28

2007-08
23.85 264.67 3581 921 9.1

2010-11
23.40 406.46 3933 954 25.0

2011-12
23.40 347.38 3861 1033 32.1

EDUCATION (Institutions/Enrollment by kind & level)

Primary & Middle Stage Institutions Enrollment Secondary Stage Institutions Enrollment Art & Science Colleges Institutions Enrollment Professional Colleges Institutions Enrollment Universities Institutions Enrollment 000 Nos. 000 Nos. 000 Nos. 000 Nos. Nos. 000 Nos. Nos. 000 Nos. Nos. 000 Nos.

2007-08

2010-11

2011-12

198.2 23787 27.1 2741 3213 960 1202 384 124 741

197.5 23707 28.4 2911 3435 1188 1558 431 135 1108

197.2 23804 29.1 3017 3562 1291 1733 451 135 1413

HEALTH INDICATORS
Registered Doctors Registered Nurses Expenditure on Health Hospitals BHUs Sub Health Centres Maternity/Childs Health Centres Rural health Centres Registered LHVs Population per Bed Population per Doctor 000 000 % of GDP Nos. Nos. Nos. Nos. Nos. Nos. Nos.

2008
134 65 0.6 948 5310 908 561 10002 1575 1212

2010
145 73 0.6 972 5344 909 577 11510 1701 1222

2011
152 77 0.6 980 5449 851 579 12621 1647 1164

2: IMPORTANCE OF SOCIO-ECONOMIC INDICATORS

Managers use economic indicators as tools in the decision-making process. These figures express the overall health of the economy and are released by a number of government organizations, including the Department of Commerce and the Census Bureau. Economic indicators include the unemployment rate, personal income and durable goods figures. Another primary indicator is the Gross Domestic Product, or GDP, which measures the country's total economic output. Business strategists use these numbers to make decisions, such as increasing purchasing orders, issuing layoffs or decreasing production.

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GDP: Gross Domestic Product (GDP) is the total dollar value of final goods produced and services rendered in a nation or state. Traditionally, gross domestic product has served as a benchmark indicator of economic activity and health. It is used to measure the productivity of a labor force, determine how the federal government controls the flow of money and estimate or predict tax revenues for national, state and local governments. GDP helps in formulating Monetary Policy of a country. If gross domestic product increases, the Central Bank may restrict money flow to control or avoid inflation, or higher prices, by charging higher interest rates to banks that loan money from the Federal Reserve. Lower gross domestic product figures mean fewer restrictions on the money supply. Gross domestic product can affect the movement of tax revenues. The relationship of taxes to output exists because governments base taxes on sales, income and the value of property. According to the Fiscal Research Center, it is commonly assumed that higher personal incomes lead to more purchases and a greater tax base. W. Kurt Hauser and David Ransom suggest that tax revenues increase by raising the gross domestic product, or increasing total economic output Unemployment Rate: The Unemployment Rate figure is the single most popularly used figure to give a snapshot of labor market conditions Because central banks act under strict pressure to keep unemployment under control (as well as mind inflationary pressures), high unemployment often puts downward pressure on interest rates affecting the rest of the economy as the central bank will look to bolster the economy to remedy the employment situation. More generally, unemployment is indicative of the economys production, private consumption, workers earnings, and consumer sentiment. A lower unemployment rate translates into more employed individuals with paychecks, which leads to higher consumer spending, economic growth and potential inflationary pressures. Conversely, high levels of unemployment are connected with lower incomes, lower spending, and economic stagnation. Education: Education is a social indicator it gives a complete picture about the education system of the country, province or district. It is very important indicator and plays a very important role in the development process. As it is confirmed that the development of any country depends on its educational structure, it is vital indicator which indicates the strength and weakness in educational system. It gives statistical data about the number of schools, colleges & universities required and the number of schools, colleges and universities which are available. Health: Health indicator is also very important indicator as it spread light on the Health structure in the country. It provides the statistical data about the number of hospitals, dispensaries, and clinics. It informs about the number of patients to be served by one doctor. The government can improve the health system in the areas where the attention is required. This social indicator is required for decision making regarding the Health structure in different areas. Standard of Living The standard of living indicates the current stage of development of a state. It is linked with the economy and the social well-being. If the economy is strong, it ensures a high standard

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of living and potential for further development and if the economy is weak. it shows the low standard of living. This factor identifies the standard of living and provide base for making valuable decisions to improve the standard of living.

SOCIO-ECONOMIC INDICATORS AT DERA ISMAIL KHAN

Typical Household:
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In a typical house of Dera Ismail Khan 7.7 people Live. Urban households are a little bigger, with 7.9 Persons, than the rural that have on average 7.5. In rural areas of the district 29 per cent people Live in a one room house with average family size of 5.2. In urban areas the ratio of people living in one room is little less at 23 per cent but the family Size is bigger, which is 5.7. Half of the urban and three fourth of the rural Houses are made of unbaked bricks. By 1998, around 30 per cent of village population was yet to benefit from electricity facility. One third of the rural population does not have latrine facility inside their house. Wood is the main fuel both in urban and rural areas. In 1998 two third of the rural and almost half of urban did not have access to television.

Health:
Health statistics of the district are poor by any standard. By 2000, there were 11 hospitals and 30 dispensaries in the district with 466 beds available for the entire population of the district. There were 48 rural, basic and sub health centers working in D.I.Khan in 2000. The total number of doctors and nurses was 191 and 43 respectively. There is one doctor for every 4,736 persons and one nurse for 21,038 people. The total number of available beds in the hospitals of the district is 466, which means that there is only one bed for 1,800 people or in other words 5.4 beds for 10,000 people. This ratio is below the national average. Pakistan in general is ranked in the bottom 10 countries of the world in this regard as the country has only 7 beds for every 10,000 persons. This average is 165 for Japan, 30 in Sri Lanka, 17 in Iran and 13 in Iraq. A comprehensive Lady Health Worker (LHW) program was started in Pakistan some years back, under which around 100,000 LHWs have been trained. These LHWs are trained to provide antenatal (before birth), delivery and postnatal (after birth) medical care to the pregnant women besides treating other minor illnesses. There were only 50 LHWs in the district in year 2000. Multiple Indicators Cluster Study of KPK (UNICEF 2001) shows that infant mortality rate for the province is 79 per 1000 live births. (Infant mortality rate or IMR is the number children that die before their first birthday per 1,000 live births.) IMR for Dera Ismail Khan is one of the highest, 83, in the province while the lowest is in Haripur, 63 and the highest in Kohistan, 104. Dera Ismail Khan also has one of the highest percentages of malnourished children in the province that is 42.8 percent. It is higher than the provincial average of 38.3 percent malnourished children and falls far short of the Millennium Development Goal target for the year set at less than 25 percent.

Literacy Rate :
Literacy rate of the district D.I.Khan is just 31.3 percent according to 1998 census report, with highest being for urban males (75.02 percent) and lowest for rural females (11.3 percent). In overall population of the province two in every five men can read and write while only one in five women know how to read and write. Literacy rate of DI Khan is 12th lowest in the province, 32

with Kohistan hitting the bottom with just 11 per cent literate population. The entire KPK province shows the unfortunate pattern of low female literacy (just 19 per cent) as compared to male literacy (51 per cent). This huge difference implies that male children are prioritized over girls as the male education is attached to employment in public and private institutions while girl education is considered a burden on resources of the household and/or affront to the prevalent social norms. Similar pattern is visible in D.I.Khan as well. However, it is among the few districts where male-female literacy disparity is relatively lower than other parts of KPK. There are 37 literate women against 100 literate men in Dera Ismail Khan.

It is worth mentioning here that this is the situation of the settled districts of the province and if the Frontier Regions (FR) and tribal agencies are included the picture gets even bleaker. For instance the female literacy rate in FR region of DI Khan is just one per cent. Highest literacy rate (61 per cent) in the district is in Dera Ismail Khan City where 80 per cent male and 64 per cent female were literate in 1998. In rural areas of this tehsil, however, the male literacy rate is 41 per cent while for female is just 15 per cent. In rural areas of Paharpur 39 percent males are literate but only 6 percent women can read and write. Rural Kulachi however is the worst within DI Khan district in terms of female literacy and resembles more with the tribal areas. Overall literacy rate here is 15 per cent. It is 24 percent for males while for females is just 4 per cent. Net enrollment rate at primary level in district DI Khan is 35 percent which is lower than the provincial average and the district can be ranked as 3rd lowest with respect to school enrollment. It means that almost two in every three children of school-going age are not attending schools in D I Khan.

Agriculture:
Agriculture in Dera Ismail Khan has three main features; low land utilization due to limited resources of irrigation; dominance of big land holders and high ratio of tenancy. More than half of the available cultivable area (52 per cent) of the district is not cultivated due to lack of irrigation water. Land use intensity in DI Khan is far behind the provincial average of 73 per cent. Irrigation in DI Khan mostly depends on hill torrents. An inundation canal from the Bilot creek was planned and its extension tagged as Paharpur canal started operations in 1907 as a seasonal canal only to become a full-fledged perennial canal in 1970 with the completion of Chashma Barrage head work. Tube-well use has also increased in recent years in the district. The land use statistics however have changed quite a lot with the completion of the latest phase of the Chashma Right Bank Canal that started working after the last Agriculture Census held in 2000. According to Agriculture Census 2000, of the irrigated area of the district one quarter is sailaba 33

or barani that is it is either inundated by the river or is rain fed. The rest three quarters irrigated through man-made facilities is around of 274 thousand acres. A third of this benefits from canals and another third by tube wells and almost the same number by Rodh Kohi system. Rod Kohis are second most important source of irrigation in the district. Tube wells are equally important as they exclusively irrigate one fourth of the irrigated area. Tube-well supplemented canal water, however, does not come out as a major option and only six per cent of the irrigated land is fed on both sources simultaneously. The tube well use in the district is very high compared to other KPK districts thanks to easy pumping of ground water especially in kacha area. There were 1200 tube wells in the district in 2004. This means that there is one tube well for 39 farming families. D.I.Khan is the seventh largest district to have more access to tube well water after Malakand, Swabi, Buner, Nowshera, Karak and Kohat. On an average there is one tube-well in KPK for every 63 farming families. All tube wells in D.I.Khan are diesel powered pumping machines and none is provided electricity. Electricity-run tube wells are only 2 per cent of the total tube wells in the district. According to a careful estimate as many as 115,805 families live in the rural areas of the district. Out of these little less than half (46,473) families (45 per cent) are directly linked with farming while the remaining 55 percent have no access to agricultural land. The livelihood of most of the essentially landless and non-farming families is either attached with trade, industrial labor, rural service industry, livestock or simply daily wage labor.

Livestock:
According to estimates based on Livestock Census 2006, 39 percent of landless and non-farming rural population in D.I.Khan district rear milch animals. There are more than 46,000 farming families in the district, which have some access to a piece of land and the families reporting milch animals are more than 73,600. As almost all the farming families do have some milch animal, the excessive number of herd owning families shows that landless population is also rearing livestock. An average livestock rearing family of the district has 4 milch animals - cows or buffaloes of milk giving age. More than 20,000 families rear sheep with average herd size of 12 animals in the district and the families rearing goats are more than 52,000 with an average herd size of 11 animals. There are 12,930 camels in the district that are mostly used to pull carts or plough the fields. Domestic poultry population in Dera Ismail Khan is around 1.3 million. Contrary to extremely uneven land access, livestock ownership is relatively less skewed. It however is not as even as the overall provincial figures are. Small herd owners in NWFP own 75 percent of all milch animals, but in Dera the small own only 57 percent of all the milch animals of the district. The medium and the large herd owning families of the district get more than their provincial average share. More access to land can make available more crop residue as fodder. Big land holding also increases landlords' access to cheap labor. These factors may partly be responsible for this out of the way behavior of D.I.Khan. Another important factor is vast tracts of river-side kacha areas that are seldom used for cultivation and mostly serve as grazing lands for animal herds. These areas are inhabited by the tribes that traditionally have herd rearing as their main livelihood.

34

SOCIO-ECONOMIC INDICATORS AT D.I.KHAN IN COMPARISON WITH OTHER DISTRICTS

Education:
District wise number of Government all Primary Schools by Sex in KPK 2008-09 District Total KPK Abbottabad Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Male Female Total Male Female Total Male Female 2010-11 2012-13

22183 14600 7583 1552 1088 670 576 1003 627 1233 301 984 749 620 913 849 1232 542 2203 1286 736 1018 648 478 422 604 472 811 202 661 439 373 782 570 827 336 1526 754 423 534 440 192 154 399 155 422 99 323 310 247 131 279 405 206 677 532 313

22281 14654 7627 1553 1126 676 581 998 628 1239 304 993 753 623 914 865 1234 541 2201 1286 724 1017 666 479 426 601 472 813 202 665 440 375 788 582 829 332 1524 757 420 536 460 197 155 397 156 426 102 328 313 248 126 283 405 209 677 529 304

22466 14721 7745 1550 1130 693 589 991 634 1264 306 984 757 631 1011 859 1236 544 2215 1309 739 1017 681 482 433 590 475 832 203 663 440 375 793 582 829 333 1534 767 423 533 449 211 156 401 159 432 103 321 317 256 218 277 407 211 681 542 316

35

Peshawar Shangla Swabi Swat Tank Upper Dir

1028 567 999 1291 335 799

630 405 588 835 210 586

398 162 411 456 125 213

1028 574 1010 1288 341 801

627 410 591 837 213 588

401 164 419 451 128 213

1056 576 1016 1270 345 787

641 411 592 841 214 587

415 165 424 429 131 200

District wise number of Government Middle Schools by Sex in KPK.

2008-09 District Total Male Female Total Male Female Total Male Female KPK Abbottabad Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir 2416 163 108 44 60 104 86 143 34 121 74 78 72 93 152 1496 89 51 29 40 60 55 95 23 67 47 44 68 56 90 920 74 57 15 20 44 31 48 11 54 27 34 4 37 62 2456 166 108 39 65 99 86 143 37 114 74 80 73 97 157 36 1527 929 92 52 26 46 56 56 97 26 69 48 47 68 57 94 74 56 13 19 43 30 46 11 45 26 33 5 40 63 2510 166 124 40 66 103 84 190 35 116 72 77 77 93 155 1532 978 89 60 26 47 60 54 116 24 69 48 44 68 53 93 77 66 14 19 43 30 74 11 47 24 33 9 40 62 2010-11 2012-13

Malakand Mansehra Mardan Nowshera Peshawar Shangla Swabi Swat Tank Upper Dir

66 201 175 81 147 62 102 124 44 82

29 133 85 51 88 48 73 83 29 63

37 68 90 30 59 14 29 41 15 19

66 208 181 89 145 67 110 129 41 82

30 141 85 53 87 52 74 83 26 62

36 67 96 36 58 15 36 46 15 20

65 211 181 87 150 66 118 132 42 84

31 139 87 51 84 51 77 84 26 62

34 72 94 36 66 15 41 48 16 22

District wise number of Government High Schools by Sex in KPK

2008-09 District Total Male Female Total Male Female Total Male Female KPK Abbottabad Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat 1379 82 48 25 48 59 52 76 20 77 72 50 1069 310 61 37 22 37 47 42 56 17 63 52 38 21 11 3 11 12 10 20 3 14 20 12 1500 86 55 28 52 68 57 79 23 101 74 54 37 1115 385 60 40 25 37 52 44 56 17 66 52 41 26 15 3 15 16 13 23 6 35 22 13 1618 91 65 29 55 82 60 99 26 100 77 58 1173 445 62 41 26 39 60 46 69 19 66 53 44 29 24 3 16 22 14 30 7 34 24 14 2010-11 2012-13

Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Peshawar Shangla Swabi Swat Tank Upper Dir

14 49 66 48 101 87 63 87 27 93 79 23 33

13 43 52 37 75 63 50 63 25 62 64 20 30

1 6 14 11 26 24 13 24 2 31 15 3 3

15 52 78 51 103 90 69 91 29 99 85 26 35

14 43 58 39 76 64 53 66 26 65 66 23 32

1 9 20 12 27 26 16 25 3 34 19 3 3

17 59 83 54 107 102 73 97 30 101 87 29 37

16 46 60 39 80 69 55 67 27 66 67 24 32

1 13 23 15 27 33 18 30 3 35 20 5 5

District Wise Participation Rates (%) of Primary, Middle & High Level in KPK in 2011-12.
Primary District Total Male KPK Abbottabad Bannu Battagram Buner Charsadda Chitral 69.79 77.52 73.15 72.66 56.00 62.68 79.10 83.13 75.68 86.47 58.86 68.34 69.98 74.02 Female Total Male Female Total Male Female 61.33 73.68 48.54 74.72 63.76 48.33 65.72 29.18 36.96 20.41 37.33 41.31 33.09 26.22 34.31 17.07 10.90 17.81 3.04 24.52 36.82 10.39 29.01 37.76 19.03 50.21 63.13 37.02 38 26.49 35.03 17.01 30.72 39.80 21.29 30.90 41.38 18.83 9.44 15.93 1.97 Middle High

18.97 30.27 6.25 27.57 37.75 15.95 49.37 63.62 34.26

D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Peshawar Shangla Swabi Swat Tank Upper Dir

98.02 100.00 81.57 54.98 67.01 74.91 77.36 74.63 74.04 69.93 77.85 41.80 72.33 75.26 61.41

25.33 30.04 19.97 21.28 31.10 10.06 43.62 48.40 38.57 42.81 54.16 30.61 34.50 45.89 22.15 6.54 9.56 1.33

26.92 32.18 21.01 18.02 26.75 8.46 41.70 47.98 34.50 38.71 54.28 22.13 30.06 40.76 18.48 2.08 3.14 0.14

80.96 100.00 39.37 65.69 78.99 50.97

35.23 51.37 16.81 41.41 54.38 27.33 38.85 46.02 30.91 24.64 31.42 17.17 33.52 42.48 23.53 29.07 36.83 20.61 21.97 26.66 16.73 14.13 22.66 4.24 38.39 47.07 28.71 22.08 28.77 14.50 20.50 26.22 13.57 23.48 34.18 11.54

37.78 55.24 16.92 36.25 51.13 20.49 33.91 42.97 24.08 20.52 28.09 12.44 29.80 39.55 18.90 24.70 33.01 158.00 18.98 23.21 14.52 10.24 17.89 1.32 35.56 45.79 24.23 18.39 24.12 11.87 23.45 31.18 13.62 17.70 28.40 5.94

98.44 100.00 91.66 72.31 73.56 79.21 85.31 70.49 74.27 64.66 69.34 43.92 50.65 48.85 65.57 72.63 76.34 65.90 73.48 62.72 68.79 76.76 94.73 70.95 72.58 66.35 59.65 36.60 30.48 68.63 57.65 55.79 57.57

Comparison Summary
The total number of primary schools in D.I.Khan district is 1264 consist of 832 males and 432 female primary schools. total number of primary schools in D.I.Khan is highest as compare to Bannu, Kohat and Lakki where the total number of primary schools are 1130, 757 & 859 respectively but the number of primary female schools in Bannu is greater than D.I.Khan i-e 449. The total number of Middle schools in DiK district is 190, consist of 116 males and74 females middle schools which is the highest number of middle schools as compare to 39

Bannu, Kohat and Lakki where total number of middle schools are 124, 77 and 93 respectively. In Bannu there are 60 males and 64 females middle schools, In Kohat there are 44 males and 33 females school and in Lakki there are 53 males and 40 females middle schools. The total number of High schools in D.I.Khan district is 99, consist of 69 males and 30 females schools while in Bannu, Kohat and Lakki there are 65, 58 and 59 high schools respectively. The participation rate of D.I.khan district in Primary schools is 98% which consist of 100% males and 48% females participation which is the highest rate as compare to Bannu and kohat where in Bannu the total participation is 56% of which 62% males and 48% females and In Kohat the total participation is 69% of which 77% males and 61% females participation. The participation percentage of D.I.Khan district in Middle schools is 25 % consist of 30% males and 19% females participation. In Bannu total participation is 26% which consist of 34% males and 17% females participation while in Kohat, total participation is 34% which consist of 45% males and 22% females participation in middle schools. The participation rate of DI.Khan district in High schools is 26% which consist of 32% males and 21% females participation while in Bannu, Kohat and Lakki the total participation in high schools is 30%, 30% and 37% respectively.

Health
District/Tehsil Wise Number of Health Institutions and their Strength in KPK, 2009-12

Hospitals District/Tehsil Nos. KPK Abbottabad Distt: Abbottabad Bannu Distt: Bannu Allai Battagram Buner Distt: Buner 127 9 9 4 4 2 4 3 Beds 11982 1342 1342 498 498 103 103 191 166

Dispensaries Nos. 351 45 45 12 12 8 1 7 8 6 40 Beds 76 0 2 2 0 0 -

T.B Clinics Nos. 24 1 1 1 1 1 1 1 1 Beds 134 0 30 30 0 0 -

Sub Health Centres 29 2 2 0 0 0 -

Battagram Distt: 2

Totalai Charsadda Tangi Chitral Distt: Chitral S/D Drosh Latkoh Mastuj S/D Arando Malkoh Tarkhow D.I.Khan Distt: D.I.Khan Kulachi Paharpur Hangu Distt: Hangu Haripur Distt: Ghazi Haripur Karak Distt: B.D Shah Karak Takht-e-Nasrati Kohat Distt: Kohat Kohistan Distt:

1 2 2 4 2 1 1 8 5 3 4 4 5 5 6 3 2 1 5 5 0

25 458 348 110 190 110 40 40 367 299 68 168 168 341 341 388 36 332 20 491 491 0

2 10 9 1 24 8 5 7 1 1 2 26 20 6 0 10 10 3 2 1 14 14 1

6 6 0 20 12 8 0 8 8 0 4 4 0

1 1 1 1 0 1 1 1 1 1 1 1 1 0

0 10 10 0 0 0 0 22 22 0

1 1 0 2 2 2 2 6 6 0 3 3 0

Charsadda Distt: 4

41

District Wise Population per Hospitals/Dispensary Bed, in KPK, 2008-2012 2008-09 Hospit als/Dis Populatio pensar n ies Beds 2010-11 2011-12

District

Pop: Pop: Pop: Hospit Hospit per per per als/Dis als/Dis Hospit Populatio Hospi Populati Hosp pensar pensar al/ n tal/ on ital/ ies ies Disp: Disp: Disp: Beds Beds beds beds beds 22052679 13315 1654 1014309 839479 370011 680827 1277021 387288 1096684 404079 820254 553868 722835 475912 625255 933930 585930 1388199 1841921 1093832 2655620 559136 42 1400 650 103 191 464 190 387 168 349 386 495 125 281 386 617 528 296 5002 140 725 1292 3592 3565 2752 2038 2834 2405 2350 1435 1460 5002 3324 1518 2250 3488 3695 531 3994 2267685 13713 1654 5 1032723 1400 865199 378902 707120 650 103 295 738 1331 3679 2397 2831 2090 2926 2674 2402 1482 1508 3209 3437 1569 2304 3593 3803 550 1561

KPK

21447849 13329 1609 1400 650 103 191 464 190 387 168 349 388 495 0 125 281 386 617 528 296 5002 152 712 1256 3508 3432 2675 1988 2744 2330 2300 1382 1414 4849 3214 1469 2197 3387 3591 513 3562

Abbottabad 996179 Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Peshawar Shangla 816534 361339 655524 1241272 377768 1062061 391359 802676 536382 700082 475483 606102 903046 566883 1355662 1788100 1063005 2564330 541431

1313799 464 397049 190

1132413 387 417194 838183 571913 746295 476317 645031 965853 605634 156 349 386 495 201 281 386

1421555 617 1897299 528 1125553 296 2750161 5002 577421 370

Swabi Swat Tank Upper Dir

1253302 1577269 294060 693606

150 736 165 106

8355 2143 1782 6543

1290400 1630423 303264 712750

150 736 165 106

8603 2215 1838 6724

1328649 150 1685297 736 312743 732398 165 106

8858 2290 1895 6909

Comparison Summary
The total numbers of hospitals in D.I.Khan is 8 which consist of 367 beds and there are 26 dispensaries consist of 20 beds while in Bannu there are 4 hospitals containing 498 beds 12 dispensaries with 2 beds and 1 TB clinic having 30 beds and in Kohat there are 5 hospitals containing 491 beds and 14 dispensaries containing 4 beds and 1 TB clinic with 22 beds. The total number of persons per bed in D.I.Khan district is 2926 which shows the worst Health conditions as compare to Bannu and Kohat where the number of persons per bed is 1331 and 1508 respectively.

Employment
Population ( 10 & above ) District All area Both sexes KPK Male Female Rural Both sexes Male Female Urban Both sexes Male Femal e

1183271 602788 580483 971487 489134 482352 211784 113653 981312 9 2 7 3 8 5 6 4 311592 318902 509781 242446 267335 120713 69146 223429 209325 397807 203613 194194 34947 104980 98475 203455 104980 98475 159993 166355 326348 159993 166355 104433 101644 184662 92577 96374 107172 159349 73859 92085 85490 21415 44197 19816 11856 49278 22515 32492 9182 51567 15131 64245 9559 42685 21682 30699 9052 49102 -

Abbottaba 630494 d Bannu Buner Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan 432754 326348 206077 566123 203546 498533 275183 383008 309161 Battagram 203455 Charsadda 681602

353522 328080 547595 283760 263835 134007 69762 299806 266317 474160 250528 223632 91963 246129 252404 435342 213637 221705 63191 130894 144289 256949 121712 135237 18234 175903 133258 309161 175903 133258 43

189831 193177 270615 126540 144075 112393 63291

Lakki

309289

156373 152916 277790 139913 137877 31499 216256 230992 418666 201037 217629 28582 151924 142398 266039 136738 129301 28283 384265 411530 750951 361066 389885 44844

16460 15219 15186 23199

15039 13363 13097 21645 71717 -

Lower Dir 447248 Malakand 294322 Mansehra Mardan Peshawar Shangla 795795 978436

503505 474931 772794 394553 378241 205642 108952 96690 315741 287777 439531 223471 216060 163987 92270 145652 137810 283462 145652 137810 -

Nowshera 603518 283462

1371539 725946 645593 677332 352997 324335 694207 372949 321258

EMPLOYED District All area Both sexes Male KPK Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Peshawar 2518368 97345 40766 79976 161231 37248 141607 27485 90115 38784 59731 81825 59715 86838 53838 157985 237171 139178 322627 Female Rural Both sexes 94433 88855 40766 79976 127705 31937 117305 19083 77155 35466 32798 81825 52778 80057 49271 147806 177438 97486 160467 44 Male Female Urban Both sexes 26778 8490 33526 5311 24302 8402 12960 3318 26933 6937 6781 4567 10179 59733 41692 Male Female

2425742 92626 117254 3957 94519 39398 78257 34535 26605 87232 37486 57630 80788 58086 83685 51019 2826 1368 1719 2713 880 2883 1298 2101 1037 1629 3153 2819

2013877 1961937 51940 92215 86459 39398 78257 124207 29507 114965 18409 75005 34395 32072 80788 51455 77280 46648 143183 173194 94841 158189 2218 2396 1368 1719 3498 2430 2340 674 2150 1071 726 1037 1323 2777 2623 4623 4244 2645 2278

504491 463805 40686 25039 8060 32515 5028 23074 8196 12227 3091 25558 6631 6405 4371 9532 58101 40169 1739 430 1011 283 1228 206 733 227 1375 306 376 196 647 1632 1523

Abbottabad 121211

156722 4509 138039 3568

152715 5270 231295 5876 135010 4168 293283 29344

162160 135094 27066

Shangla

69422

68144

1278

69422

68144

1278

Comparison of D.I.Khan District with other Districts

Total population of D.I.Khan district is 566123 consist of 299806 males and 266317 females of age 10 years and above. The percentage of employment in D.I.Khan is 25% of the total population of age 10 years and above while the employment percentage in Bannu , Kohat & Lakki is 22.5% , 16% & 19.3% respectively.The employment percentage in rural areas of D.I.Khan district is 83% and 17% in urban areas,the same pattern is in the Bannu and lakki district where the employment percentage in rural areas is higher than urban areas i-e 91 % in rural areas of Bannu & 88% in rural areas of Lakki while the employment percentage in kohat is nearly balanced ,which is 55% in rural areas and 45% in urban areas.

Housing District Wise Number of Housing Units and HouseHold Size in KPK
2012 District Total Housing Rural Units 000s % KPK Abbottabad Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat 2210 100.00 136 6.15 69 46 56 3.12 2.08 2.53 000s % 1842 83.35 114 83.82 63 46 56 91.30 100.00 100.00 Urban 000s % 369 16.70 22 6 25 4 16 7 12 3 20 16.18 8.70 19.53 10.00 14.16 23.33 11.54 6.98 26.67 Household size Persons 7.5 6.4 9.7 6.6 9.0 8.0 7.9 7.5 10.4 6.6 10.0 7.4

128 5.79 40 1.81

103 80.47 36 97 23 92 40 55 90.00 85.84 76.67 88.46 93.02 73.33

165 5.11 30 1.36

104 4.71 43 75 1.95 3.39

45

Kohistan Lakki Lower Dir Malakand Mansehra Mardan Nowshera Peshawar Shangla Swabi Swat Tank Upper Dir

74 53 77 49

3.35 2.40 3.48 2.22

74 48 72 45

100.00 90.57 93.51 91.84

5 5 4 9 35 30

9.43 6.49 8.16 5.23 20.23 26.79

6.4 9.2 9.3 9.1 6.7 8.4 7.7 8.5 8.1 7.7 8.8 9.3 8.0

172 7.78 173 7.83 112 5.07 234 10.59 53 2.40

163 94.77 138 79.77 82 73.21

115 49.15 53 100.00

119 50.85 23 19 3 3 17.29 13.38 12.00 4.17

133 6.02 142 6.43 25 72 1.13 3.26

110 82.71 123 86.62 22 69 88.00 95.83

Comparison of D.I.Khan District with surrounding Districts

Total number of Housing units in D.I.Khan district is 165000 which comprises 5.11% of the total number of housing units in KPK province while Bannu, Kohat & Lakki consist of 69000, 75000 & 53000 housing units respectively and comprises 3.12%, 3.39% and 2.40% of the total housing units of KPK. 85.84% housing units of D.I.Khan district are in rural areas and only 14.16% houses are in urban areas while in Bannu, Kohat & Lakki 91.30%, 77.33% and 90.97% houses are in rural areas respectively. The house hold size of D.I.Khan district consist of 7.5 persons which is low as compared to Bannu & Lakki where household size is 9.7 and 9.2 persons per house.Household size of Kohat is 7.4 persons.

46

Water Supply District Wise Water Supply Coverage of KPK 2012-13

2012-13 District Pop: served (000) Total Abbottabad 734 Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir Malakand Mansehra Mardan Peshawar 722 463 150 856 555 262 631 907 1085 Urban 178 35 0 150 142 100 95 0 60 52 75 269 Rural 556 687 463 235 713 281 349 460 262 579 405 832 816 1106 % age Coverage Total 72.39 86.05 67.99 78.03 99.90 76.76 55.00 67.56 65.35 58.90 Urban 90.00 70.18 0.00 65.00 97.95 99.90 48.61 0.00 83.51 89.96 96.88 70.00 Rural 68.05 87.00 67.99 67.14 74.97 88.46 67.83 87.20 55.00 66.05 76.40 63.49 56.00 79.66

47

Comparison of D.I.Khan district with other Districts In D.I.khan 78% of the total population is provided with the facility of clean drinking water while in Bannu the percentage of population served with the clean drinking water is 86% and 76.76% in Kohat. 97.95% population in urban areas of D.I.Khan district have an availability of clean water, which is the highest percentage as compare to Bannu and Kohat where the percentage is 70.18% and 48.61%. But in rural areas, the situation is totally different, where only 75% population in rural areas of DiK is provided by clean water which is the lowest as compare to Bannu and Kohat where the percentage is 87% and 88%.

Infrastructure District Wise Road Kilometer age In KPK

2011-12 District Total km KPK Abbottabad Bannu Battagram Buner Charsadda Chitral D.I.Khan Hangu Haripur Karak Kohat Kohistan Lakki Lower Dir 11623.273 581.540 391.940 237.000 462.000 380.514 1441.540 615.617 827.635 385.610 240.870 426.000 408.380 606.700 436.740 High Type km 7693.990 345.060 391.940 117.680 346.000 380.514 208.030 526.537 289.135 318.180 240.870 354.000 141.000 565.700 346.580 Low Type km 3929.283 236.480 0.000 119.320 116.000 0.000 1233.510 89.080 538.500 67.430 0.000 72.000 267.380 41.000 90.160

48

Malakand Mansehra Mardan Nowshera Peshawar Shangla Swabi Swat Tank Upper Dir

247.890 635.830 302.218 427.440 392.846 311.000 461.000 634.100 235.683 533.180

215.120 487.180 291.428 354.740 392.846 105.000 337.000 582.510 175.160 181.780

32.770 148.650 10.790 72.700 0.000 206.000 124.000 51.590 60.523 351.400

Comparison Summary
D.I.Khan district consist of 615kms roads of which 526 is high type and 89km is low type while in Bannu 391kms, Kohat 426kms of which 35kms high type & 72kms low type and in Lakki 606kms of which 565kms high type and 41kms of low type.

49

Conclusion & recommendations

In my opinion the process of a transaction should be short in order in save time for both customers and the bank. Staff strength should be enhanced and professional qualified persons should be recruited. It is recommended that proper training be provided to the staff members that will ultimately increase the performance of Bank over all. It is suggested that promotion be given to the staff in due time and on the basis of performance to provide job satisfaction. The bank should spend more on renovation of the branches to improve environment and atmosphere to attract the customers. Sitting arrangement, air conditioning and new furniture should be facilitated The Bank should introduce the computers software to cope the heavy load of work and better control. Extra counters should be established in order to facilitate during the rush days the difficulties faced by the bank staff as well as the customers. All Branches of the Bank must be online. All the departments should be established separately. Bank can increase its profit ratio by reducing extra expenditures and to enhance the volume of advanced especially retail loans. I done internship, I recommend that security level in the bank should be enhanced especially where I got internship and operation of Mobile phones must not be allowed inside the Bank. Bank should take step to establish separate counters for the old age employees and pensioners. The Bank should locate new market for its operational activities in the country as well as abroad. The Bank should increase profit rate on deposits and saving schemes especially for pensioners and old age citizens. For improvement of internal control and system the compliance wing and surprise inspection system should work more effectively. To avoid complaints and leaving the bank job number of staff should be enhanced and their salaries should be leveled to the private/multinational banks. Double shift system should be introduced to improve attitude and behavior of the employees. Payment of salaries and pensions should be made separately to accommodate the valued customers and depositors. For collection of utility bills i.e. Electricity bills, Telephone bills, Water and Gas bills separate cash receipt counter must be established. Procedure of receiving loans should be easy and short time to facilitate the borrowers and enhance the profitability of the Bank.

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References

[MC1] [MC2] [MC3] [WP1] [WP2] [WP3] [WP4] [WP5] [WP6]

Website of the Bank i.e. www.nbp.com.pk NBP News lines, National Bank of Pakistans Newsletter January 2008. Annual Report 2012, published by NBP, Head Office Karachi. Wikipedia article on Sate Bank of Pakistan Management Brief, March 2012 published by Human Resources Management and administration Group, National Bank of Pakistan Head Office Karachi. Economic Indicators Pakistan, January 2008 published by Economic Research Wing, Credit Management Group, NBP Head Office Karachi. NBP News lines, National Bank of Pakistans Newsletter September/October, 2013. Financials-Half Yearly Account June 30, 2012.

Management Brief, June 2012 published by Human Resources Management and administration Group, National Bank of Pakistan Head Office Karachi. NBP News lines, National Bank of Pakistans Newsletter July/August, [WP7] 2013. Management Brief, January 2013 published by Human Resources [WP8] Management and administration Group, National Bank of Pakistan Head Office Karachi. NBP News lines, National Bank of Pakistans Newsletter May/June, [WP9] 2012. Economic Bulletin, Vol. 34, No.5 September October 2013, published [WP10] bi-monthly by Economic Research Wing, National Bank of Pakistan.

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