Question

Q 3: (A): How State Bank of Pakistan (SBP) is playing its role in development of Pakistan? What are the major steps taken by SBP in this regard?

(B): Due to the economic deterioration in rural areas, uncertainness of crops, low level of profitability, lack of facilities and infrastructure in Pakistan, how specialized bank can play role as remedy? Why commercial banks are reluctant to invest in this agriculture sector?

explain both parts separately and briefly

Answer 1

Since there are two questions, answer is provided for only first question

The duty of a Central Bank in a creating nation works out in a good way past the administrative obligations of dealing with the money related strategy so as to accomplish the large scale financial objectives. This job covers not just the advancement of significant parts of money related and capital business sectors yet in addition to help the cycle of monetary development and advance the more full usage of a nation's assets.

Since the time its foundation, the State Bank of Pakistan, other than releasing its conventional elements of controlling cash and credit, has assumed a functioning formative part to advance the acknowledgment of large scale monetary objectives. The express acknowledgment of the limited time part of the Central Bank clearly comes from a craving to re-orientate all strategies towards the objective of quick monetary development. Appropriately, the universal focal financial capacities have been joined by the State Bank with an all around perceived formative job.

The extent of Bank's activities has been broadened extensively by remembering the financial development objective for its rule under the State Bank of Pakistan Act 1956. The Bank's support in the improvement cycle has been as recovery of banking framework in Pakistan, advancement of new budgetary organizations and obligation instruments so as to advance monetary intermediation, foundation of Development Financial Institutions (DFIs), coordinating the utilization of credit as indicated by chosen advancement needs, giving sponsored credit, and advancement of the capital market.