Central Bank

State Bank Of Pakistan

Presenters:
Nouman Ahmad (MBA-NBE-06) Khadija
tul Urooj (MBA-NBE-42)
Waseem Akram (MBA-NBE-37)
Abdul Qadir (MBA-NBE-51)
• Under this, system the central bank is required to maintain a minimum reserve of
gold or foreign exchange currency & by government securities.

The central bank can issue notes according to the needs of the country.
What is Monetary Policy?
 It's a process through which government or the central bank i.e. State Bank of
Pakistan control or administer the supply of money in the economy.

 Monetary policy regulates the interest rates which affect the economy on
whole.
Role of SBP in Monetary Policy

 Conduct monetary policy to achieve price stability (low and stable

inflation) and to help manage economic fluctuations.

 SBP conduct monetary policy by adjusting the supply of money, generally

through open market operations.

 SBP focuses on achieving monetary stability by controlling inflation close to

its annual and medium-term targets set by the government. At the same
time, SBP also aims to ensure financial stability, particularly the smooth
functioning of the financial market and the payments system.