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State Bank of Pakistan (SBP): Functions, Monetary Policy and Current Economic Role

State Bank of Pakistan (SBP) is Pakistan’s central bank and the principal institution responsible for monetary policy, currency management, banking regulation, financial stability and foreign-exchange reserves. Established in 1948, SBP now plays a central role in controlling inflation, supervising financial institutions and modernising payment systems. This topic covers its history, legal framework, core functions, current policy rate, reserves, digital initiatives and major developments relevant to competitive examinations.

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