History of State bank of Pakistan

Before independence on 14 August 1947, during British colonial regime the Bank of India was the central bank for both India and Pakistan. On 30 December 1948 the British Government's commission distributed the Bank of India's reserves between Pakistan and India-30 percent (750 M gold) for Pakistan and 70 percent for India.

The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948