The State Bank of Pakistan Act, 1956

THE STATE BANK OF PAKISTAN ACT, 1956 1ACT NO. XXXIII OF 1956 [18th April, 1956] An Act to provide for the establishment of the State Bank of Pakistan. 2[WHEREAS it is necessary to provide for the constitution of State Bank to achieve domestic price stability by way of regulating the monetary and credit system of Pakistan and, without prejudice to said primary objective, contribute to the stability of the financial system of Pakistan and supporting the general economic policies of the Federal Government to foster development and fuller utilization of the country’s productive resources;] It is hereby enacted as follows:—

• Section 1: Short title, extent and commencement
• Section 2: Definitions
• Section 3: Establishment and incorporation of the Bank
• Section 4: Share capital
• Section 4A: Re-capitalization
• Section 4B: Objectives
• Section 4C: Functions of the Bank
• Section 5: [Omitted](repealed)
• Section 6: [Omitted](repealed)
• Section 7: [Omitted](repealed)
• Section 8: Offices, branches and agencies
• Section 8A: Establishment and maintenance of subsidiary or trust
• Section 9: Board of Directors
• Section 9A: Powers of the Board
• Section 9B: Meetings of the Board of Directors
• Section 9C: Prohibition on the Government borrowing
• Section 9D: Establishment of Monetary Policy Committee
• Section 9E: Powers and functions of Monetary Policy Committee
• Section 9F: Executive Committee
• Section 9G: Governor and Minister of Finance to establish liaison
• Section 10: Governor and Deputy Governors
• Section 11: [Omitted](repealed)
• Section 11A: Appointments
• Section 12: [Omitted](repealed)
• Section 13: Disqualifications of the Governor, Deputy Governors, Directors and members
• Section 14: Terms of Office
• Section 14A: Remuneration, terms and conditions of service
• Section 14B: Resignation
• Section 15: Dismissal of the Governor and Deputy Governor
• Section 16: [Omitted](repealed)
• Section 16A: Conflict of interest
• Section 17: Business which the Bank may transact
• Section 17A: [Omitted](repealed)
• Section 17B: [Omitted](repealed)
• Section 17C: [Omitted](repealed)
• Section 17D: [Omitted](repealed)
• Section 17E: [Omitted](repealed)
• Section 17F: Contributions and donations by the Bank
• Section 17G: Lender of last resort
• Section 17H: Regulatory powers
• Section 18: Open market and credit operations
• Section 19: Declaration of approved foreign exchange
• Section 20: Business which the Bank may not transact
• Section 21: Government business
• Section 22: Service charges
• Section 23: International reserves portfolio
• Section 24: Sole right to issue bank notes
• Section 25: Legal tender
• Section 26: Issue Department
• Section 27: Denominations and form of bank notes
• Section 28: Reissue of notes
• Section 29: Lost, stolen, mutilated or imperfect notes
• Section 30: Assets of the Issue Department
• Section 31: Suspension of assets requirements
• Section 32: Liabilities of the Issue Department
• Section 33: Obligation to supply different forms of currency
• Section 34: Obligation of the Federal Government in respect of rupee coin
• Section 35: Offences and penalties relating to unauthorized issue of bills and bank notes
• Section 36: Minimum reserves
• Section 37: Scheduled banks
• Section 38: Power to require returns from Corporations
• Section 39: Accountability
• Section 40: Annual financial statements and reports
• Section 41: General reserve, unrealized revaluation reserve and special reserve
• Section 42: Profits, losses, and distributable earnings
• Section 43: External Audit
• Section 44: Auditor General of Pakistan
• Section 45: Audit committee
• Section 45A: Chief internal auditor
• Section 46: The Bank and its officers to be public officers
• Section 46A: Production of unpublished record of Bank, etc.
• Section 46B: Functional and institutional autonomy
• Section 47: Pensions of Bank employees to be exempt from attachments, etc.
• Section 48: Exemption from stamp duty
• Section 49: Exemption from taxes
• Section 50: Liquidation of the Bank
• Section 51: Act or proceeding of the Board not to be questioned
• Section 52: [Omitted](repealed)
• Section 52A: Protection of action taken in good faith and indemnity
• Section 53: Duty of officer and servants to maintain secrecy
• Section 54: Powers of the Board to make regulations
• Section 54A: Provisions to override other laws
• Section 54B: Removal of difficulties
• Section 55: Repeal
• Schedule: The Schedule [Omitted](repealed)