State Bank of Pakistan has been witness to various historic
moments. The State Bank itself was inaugurated by Quaid-e-Azam Muhammad Ali
Jinnah on 1st July, 1948.
Quaid-e-Azam's Speech
On the occasion of the Opening Ceremony of
The State Bank of Pakistan on 1st July, 1948.
"Mr. Governor, Directors of State Bank, Ladies and
Gentlemen.
The opening of the State Bank of Pakistan symbolizes the
sovereignty of our State in the financial sphere and I am very glad to be here
today to perform the opening ceremony. It was not considered feasible to start
a Bank of our own simultaneously with the coming into being of Pakistan in
August last year. A good deal of preparatory work must precede the inauguration
of an institution responsible for such technical and delicate work as note
issue and banking. To allow for this preparation, it was provided, under the
Pakistan Monetary System and Reserve Bank Order, 1947, that the Reserve Bank of
India should continue to be the currency and banking authority of Pakistan till
the 30th September, 1948. Later on it was felt that it would be in the best
interests of our State if the Reserve Bank of India were relieved of its
functions in Pakistan, as early as possible. The State of transfer of these
functions to a Pakistan agency was consequently advanced by three months in
agreement with the Government of India and the Reserve Bank. It was at the same
time decided to establish a Central Bank of Pakistan in preference to any other
agency for managing our currency and banking. This decision left very little
time for the small band of trained personnel in this field in Pakistan to
complete the preliminaries and they have by their untiring effort and hard work
completed their task by the due date which is very creditable to them, and I
wish to record a note of our appreciation of their labors.
As you have observed, Mr. Governor in undivided India
banking was kept a close preserve of non-Muslims and their migration from
Western Pakistan has caused a good deal of dislocation in the economic life of
our young State. In order that the wheels of commerce and industry should run
smoothly, it is imperative that the vacuum caused by the exodus of non-Muslims
should be filled without delay. I am glad to note that schemes for training
Pakistan nationals in banking are in hand. I will watch their progress with
interest and I am confident that the State Bank will receive the co-operation
of all concerned including the banks and Universities in pushing them forward.
Banking will provide a new and wide field in which the genius of our young men
can find full play. I am sure that they will come forward in large numbers to
take advantage of the training facilities which are proposed to be provided.
While doing so, they will not only be benefiting themselves but also
contributing to the well-being of our State.
I need hardly dilate on the important role that the State
Bank will have to play in regulating the economic life of our country. The
monetary policy of the bank will have a direct bearing on our trade and
commerce, both inside Pakistan as well as with the outside world and it is only
to be desired that your policy should encourage maximum production and a free
flow of trade. The monetary policy pursued during the war years contributed, in
no small measure, to our present day economic problems. The abnormal rise in
the cost of living has hit the poorer sections of society including those with
fixed incomes very hard indeed and is responsible to a great extent for the
prevailing unrest in the country. The policy of the Pakistan Government is to establish
prices at a level that would be fair to the producer, as well as the consumer.
I hope your efforts will be directed in the same direction in order to tackle
this crucial problem with success.
I shall watch with keenness the work of your Research
Organization in evolving banking practices compatible with Islamic ideas of
social and economic life. The economic system of the West has created almost
insoluble problems for humanity and to many of us it appears that only a
miracle can save it from disaster that is not facing the world. It has failed
to do justice between man and man and to eradicate friction from the
international field. On the contrary, it was largely responsible for the two
world wars in the last half century. The Western world, in spite of its advantages,
of mechanization and industrial efficiency is today in a worse mess than ever
before in history. The adoption of Western economic theory and practice will
not help us in achieving our goal of creating a happy and contended people. We must work our destiny in our own way and
present to the world an economic system based on true Islamic concept of
equality of manhood and social justice. We will thereby be fulfilling our
mission as Muslims and giving to humanity the message of peace which alone can save
it and secure the welfare, happiness and prosperity of mankind.
May the State Bank of Pakistan prosper and fulfil the high
ideals which have been set as its goal
In the end I thank you, Mr. Governor, for the warm welcome
given to me by you and your colleagues, and the distinguished guests who have
graced this occasion as a mark of their good wishes and the honor your have
done me in inviting me to perform this historic opening ceremony of the State
Bank which I feel will develop into one of our greatest national institutions
and play its part fully throughout the world."
Quaid-e-Azam Muhammad Ali Jinnah
1st July, 1948
- Type:Bank
- Urdu Name:سٹیٹ بینک پاکستان
- Abbrevation:SBP
- Industry:Bank
- Headquarter:Karachi,Pakistan
- Established:June 1948
- Start Working:1 July 1948
- Principal Officer:Governor
- Status:Central Bank of Pakistan
- Governer:dr.zakir baqir
- Chairman:Governor
- Currency:Pakistani rupee
- Central bank of: :Pakistan
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