Banking in Pakistan first formally started in Pakistan during the period of British colonialism in the South Asia. After independence from British Raj in 1947, and the emergence of Pakistan as a country in the globe, the scope of banking in Pakistan has been increasing and expanding continuously. | History of Pakistan Banking 1 History of Pakistan Banking Banking in Pakistan first formally started in Pakistan during the period of British colonialism in the South Asia. After independence from British Raj in 1947, and the emergence of Pakistan as a country in the globe, the scope of banking in Pakistan has been increasing and expanding continuously. 2 History of Pakistan Banking Pakistan's oldest bank is the State Bank of Pakistan, which is also the central bank of the nation. Before independence on August 14, 1947, the Reserve Bank of India was the central bank of what is now Pakistan. After independence, Muhammad Ali Jinnah took actions to establish a central bank in Pakistan which resulted in the new founding of the State bank of Pakistan, with its headquarters to be based in Karachi. 3 History of Pakistan Banking 1947 – 1970 Our financial sector evolved very differently from banks in the developed world. For nearly a year after partition, Pakistan had no central bank. Habib | History of Pakistan Banking 1 History of Pakistan Banking Banking in Pakistan first formally started in Pakistan during the period of British colonialism in the South Asia. After independence from British Raj in 1947, and the emergence of Pakistan as a country in the globe, the scope of banking in Pakistan has been increasing and expanding continuously. 2 History of Pakistan Banking Pakistan's oldest bank is the State Bank of Pakistan, which is also the central bank of the nation. Before independence on August 14, 1947, the Reserve Bank of India was the central bank of what is now Pakistan. After independence, Muhammad Ali Jinnah took actions to establish a central bank in Pakistan which resulted in the new founding of the State bank of Pakistan, with its headquarters to be based in Karachi. 3 History of Pakistan Banking 1947 – 1970 Our financial sector evolved very differently from banks in the developed world. For nearly a year after partition, Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially, until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. 4 History of Pakistan Banking 1947 – 1970 History of Banking in Pakistan starts from the partition of Indo-Pakistan sub continent in August,1947. At that time, the areas consisting Pakistan had 631 offices of 45 scheduled banks out of which 487 were located in West Pakistan and 114 in East Pakistan which Was also served by 500 office of small and non-scheduled banks. There were 19 branches of foreign banks in Pakistan but they had a very limited role to play. 5 History of Pakistan Banking 1947 – 1970 Just after the partition, the Indian bankers started immigrating and shifting the head offices of their banks and capital to India. It caused a great set back to the banking field in Pakistan, and resulted in decline in the number of offices in schedule bank from 631 to 195 by 30th June, 1948. The West Pakistan the number fell from 487 to
