Section 2: Definitions

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A general explanation to aid understanding. The official statutory text appears below.

This section defines the following terms used in The State Bank of Pakistan Act, 1956: • advanced degree — a postgraduate qualification;] • approved foreign exchange — currencies declared as such by any notification under section 19 • the Bank — the State Bank of Pakistan • bank notes — notes made and issued by the Bank in accordance with section 24 and include currency notes of the Government of Pakistan issued by the Bank • 3[Board] — the 3[Board] of Directors of the Bank ; (f ) “Co‑operative Bank” means a society registered under the Co‑operative Societies Act, 1912, or any other law for the time being in force in Pakistan relating to co‑operative societies, the primary object of which is to provide financial accommodation to its members ; 1[ • development finance activity — to undertake an activity to promote any activity of any priority sector such as agriculture, small and medium enterprises, housing or other such sectors;] • Director — a Director for the time being of the 3[Board] ; (h) 3 [* * * * * * *] • member — a member for the time being of a 3[The Monitory Policy Committee] ; 2[ • monetary liabilities — the total liabilities of the Bank as reflected in the annual audited financial statements at the balance sheet date as reduced by the sum of following liabilities of the same date, namely: - (i) deposits of the Government; (ii) amounts owing to the international Monetary Fund, the World Bank, Asian Development Bank or other such institutions; (iii) deposits of foreign central banks or sovereign wealth funds; (iv) utilized swap lines of foreign central banks; and (v) balances of participant central banks under any clearing union • price stability — the maintenance of low and stable inflation guided by the government’s medium-term inflation target • recognized university — a university or equivalent academic institution recognized by the Higher Education Commission of Pakistan;] • rupee coin — one‑rupee coin 3[* * *] which 3[is] legal tender in Pakistan • scheduled bank — a bank for the time being included in the list of Banks maintained under subsection (1) of section 37 1[;] 1[ • Government — the Federal or a Provincial Government or a Local Government, as the case may be;] 2[ • Monetary Policy Committee — the Monetary Policy Committee established under section 9D.”.] CHAPTER II ESTABLISHMENT, INCORPORATION AND SHARE CAPITAL OF THE BANK This is the official statutory text, shown as written — it is not a paraphrase or a legal opinion. Consult a verified lawyer to see how it applies to your specific situation.

2. Definitions. In this Act, unless there is anything repugnant in the subject or context, (a) 3[ * * * * * * *] 2[(aa) “advanced degree” means a postgraduate qualification;] (b) “approved foreign exchange” means currencies declared as such by any notification under section 19 ; (c) “the Bank” means the State Bank of Pakistan ; (d) “bank notes” means notes made and issued by the Bank in accordance with section 24 and include currency notes of the Government of Pakistan issued by the Bank ; (e) “3[Board]” means the 3[Board] of Directors of the Bank ; (f ) “Co‑operative Bank” means a society registered under the Co‑operative Societies Act, 1912, or any other law for the time being in force in Pakistan relating to co‑operative societies, the primary object of which is to provide financial accommodation to its members ; 1[(ff) “debentures” includes participation term certificates ;] 2[(ffa) “development finance activity” means to undertake an activity to promote any activity of any priority sector such as agriculture, small and medium enterprises, housing or other such sectors;] (g) “Director” means a Director for the time being of the 3[Board] ; (h) 3 [* * * * * * *] (i) “Governor” and “Deputy Governor” mean respectively the Governor and Deputy Governor of the Bank; 2[(ia) “international reserves” mean the Bank’s foreign exchange reserves;] 1[ (ii) “loans and advances” includes finances provided on the basis of participation in profit and loss, mark-up in price, leasing, hire purchase of otherwise;] (j) 3 [* * * * * * *] (k) “member” means a member for the time being of a 3[The Monitory Policy Committee] ; 2[(ka) “monetary liabilities” means the total liabilities of the Bank as reflected in the annual audited financial statements at the balance sheet date as reduced by the sum of following liabilities of the same date, namely: - (i) deposits of the Government; (ii) amounts owing to the international Monetary Fund, the World Bank, Asian Development Bank or other such institutions; (iii) deposits of foreign central banks or sovereign wealth funds; (iv) utilized swap lines of foreign central banks; and (v) balances of participant central banks under any clearing union; (kb) “price stability” means the maintenance of low and stable inflation guided by the government’s medium-term inflation target; (kc) “recognized university” means a university or equivalent academic institution recognized by the Higher Education Commission of Pakistan;] (l) “rupee coin” means one‑rupee coin 3[* * *] which 3[is] legal tender in Pakistan; (m) “scheduled bank” means a bank for the time being included in the list of Banks maintained under subsection (1) of section 37 1[;] 1[(n) “securities” includes securities as defined in the Capital Issues (Continuance of Control) Act, 1947 (XXIX of 1947). (o) “shares” includes modaraba certificates 2[;and]] 3[(oa) “Government” means the Federal or a Provincial Government or a Local Government, as the case may be;] 2[(p) “Monetary Policy Committee” means the Monetary Policy Committee established under section 9D.”.] CHAPTER II ESTABLISHMENT, INCORPORATION AND SHARE CAPITAL OF THE BANK

Effective date: 1956-04-18

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