Analysis of institution..

1. Abdul Rehman Amin
Kashif Sanaullah
Abddullah Khadim Hussain
Muaz Attique
Ali Virk

2. Before partition
 Pakistan had 631 offices of 45 scheduled banks.
 19 branches of foreign banks.
After Partition
 Schedule banks declined to 195
 Revenue budget of west Pakistan was 60% at the
time of partition.
 In 1948-49 revenues of west Pakistan were Rs. 172
Million
 After the partition Muslims owned only two bank
namely Habib bank limited. Australasia bank

3. Before independence, Reserve Bank of
India was the central bank of sub-
continent.
On 30 December 1947 the British
Government's commission distributed the
Bank of India's reserves between Pakistan
and India - 30 percent for Pakistan and 70
percent for India.

4. Muslims demanded that Pakistan
Government should appoint deputy
governor of Reserve bank.
Provision should be made for the
expansion of the currency required by
Pakistan
matters concerning Pakistan, the Bank
should consult the Pakistan Government

5.  On May, 1948 Muhammad Ali Jinnah took
steps to establish the State Bank of Pakistan.
 Under act of 1948 state bank is empowered
to give directions to scheduled banks.
 Guarding the interests of depositors and
ensure functioning of commercial banks
 Under banking ordinance the state bank can
inspect any bank
 Can order changes in the management of a
bank.

6. First duty of state bank was the
replacement of pre partition currency.
Return of Indian notes to the reserve bank
and receive equivalent assets of Rs 515.7
million
Second task of state bank was to assist
the restoration of commercial banks.
First officers training was launched in
August 1948.

7. Defense expenditure increased sharply as
relations with India decay.
Over burdened railways and high fuel cost
Income tax collections were half than
expectation
New taxes imposed in the budget of 1948-
49

8. East Bengal obtained 2/3rd of the
population of undivided Bengal but
enjoyed 1/3rd of revenues.
The award of arbitral tribunal
West Pakistan revenue budget was 60% of
the undivided Punjab
The financial position of Sindh was weak
At the time of partition N.W.F.P was the
poorest province

9. The imperial bank is now the state bank of
India.
Formed by the amalgamation of three
banks.
The bank continued to function in Pakistan
for the reserve bank of India.
19 outlets after partition

10. National Bank of Pakistan which was
established in 1949 to finance jute trade in
East Pakistan.
It started with six offices in the former East
Pakistan

11. Karachi Stock exchange started in 1947
Exchange provided a market place for
securities and equity issues of public.
Had only 9 members at the time of
partition.
Securities market was non existent at the
time of partition.
State bank laid down the procedures of
sales and purchase of government
policies.

12. 250 companies operating before august
1947
Only 76 companies were operating after
partition and only 8 were Pakistani
companies.
Superintendent of insurance, government
of India administered the working of
insurance companies.
Deposits were reduced by 50% to
encourage the companies to register.

13. Department operates life insurance for the
government employees.
After Partition the government assumed
responsibility for 10000 policies at Rs. 9
million.

14. Served only as deposit institution.
Account can be opened with minimum
deposit of Rs. 2.
The rate of interest varied from 1.5% to
3%.

15. The corporation was setup in June 1949.
It assisted industrial concerns.
It was established to assist refugee.
The corporation advanced loans
amounting to Rs. 16.9 million.
Pakistan refugee rehabilitation
finance corporation