INTERNSHIP REPORT

ON
State Bank of Pakistan BSC D. I. Khan

Submitted To:

Akasha Imrani
Submitted By:
Talha Sheikh
ID# 8510-D
Bachelor of Business Administration

QURTUBA UNIVERSITY OF SCIENCE &

INFORMATION TECHNOLOGY
 IN THE NAME OF
ALLAH
THE MOST GRACIOUS
THE MOST MERCIFUL

Dedicated
To
My dear Parents, respected Teachers &all the
Bank officials for their support

ACKNOWLEDGEMENT
In the recent world of competition there is a race of presence in which those are having
will to come forward succeed. First of all thanks to Allah Almighty who has always
guide me on the right path of life and empower my knowledge usable to complete
this report and made it possible. I would like thanks to the management of SBP BSC
(D.I.KHAN) to Appoint me as a internee and give me opportunity to the practical
exposure of banking sector. This report provides knowledge and experience that I got
during internship in SBP. During Internship I have learned a lot of things from state
bank of Pakistan BSC (D.I.KHAN). Also special thanks to my Parents, Teachers and
Friends who have been always encourage, guide and pray me for reaching this stage.

Executive Summary

I have done my internship in State bank of Pakistan BSC (D.IKHAN) . As we all know
that state bank is the head, leader and supervisor of all commercial banks . it creates
money as a currency and only has sole authority to issue currency notes to issue
offices. It control credit money create by commercial banks and maintain and manages
the money supply in the country. The reason why I choose this bank because it is the
central bank. There are a large number of departments in this bank and one can learn a
large number of things in this bank. There are many departments in this bank but the
department in which we were worked are cash department, banking department, staff
matter unit, general service unit, prize bond unit, currency management unit perform
many operations.
The document contains on internship report on women entrepreneurship in dikhan how
women entrepreneur work in dikhan? which products produced by women
entrepreneur in dikhan? Objectives of women entrepreneur and what are the role of
women entrepreneur in worldwide, Asia , Pakistan and dikhan?
APPROVAL CERTIFICATE

The Internship Report on State Bank has been submitted by Talha Sheikh ID:
8510D, student of BBA (Hons).The student worked under my supervision and his
Internship report is approved.
SUPERVISOR: __________________

EXTERNAL EXAMINER: __________________

Table of Contents 3
Chapter#1 ........................................................................................................................................ 6

INTRODUCTION .......................................................................................................................... 6

1.1 HISTORICAL BACKGROUND .............................................................................................. 6

1.2 Objective ................................................................................................................................... 8

1.3 VISION STATEMENT ................................................................................................................................ 9

1.4 MISSION STATEMENT ......................................................................................................... 9

1.5 Organizational Structure ........................................................................................................... 9

1.6 Introduction to Banking Services Corporation SBP (BSC) .................................................... 13

CHAPTER 2 ................................................................................................................................. 15

CORE FUNCTIONS..................................................................................................................... 15

2.1 Primary Functions of SBP....................................................................................................... 17

2.2 Secondary Functions of SBP .................................................................................................. 19

2.3 Non-Traditional Functions of SBP ......................................................................................................... 20

Chapter# 3 ..................................................................................................................................... 21

Departmentalization ...................................................................................................................... 21

3.1 Departments of SBP (BSC)..................................................................................................... 21

3.2 Public Accounts Unit (PAU) .................................................................................................. 22

3.3 Deposit account unit (DAU) .................................................................................................................. 26

3.4 Currency Management Unit (CMU) ....................................................................................... 29

3.5 Prize Bond Unit (PBU) ........................................................................................................... 30

3.6 Refinance Scheme unit (RSU) .............................................................................................. 32

Chapter#4 ...................................................................................................................................... 37

Project ........................................................................................................................................... 37

4.1 Introduction: ............................................................................................................................ 37

4.2 Importance of Women Entrepreneur: ................................................................................... 38

4.3 Objective of Women entrepreneurship:............................................................................................... 40

4.4 Description of Products: ......................................................................................................... 41

4.5Divisions Wise Distribution of BSC ........................................................................................ 44

Chapter 5 ....................................................................................................................................... 45

SWOT Analysis of SBP ................................................................................................................ 45

5.1 Strengths.................................................................................................................................. 46

5.2 Weakness : .............................................................................................................................. 47

5.3 Opportunities ........................................................................................................................................ 47

5.4 Threats..................................................................................................................................... 48

5.5 Recommendations ................................................................................................................... 49

5.6 References .............................................................................................................................. 49

 Ch
apter#1
INTROD
UCTION

1.1 HISTORICAL BACKGROUND

Before independence on 14 August 1947, during British colonial region the Reserve
bank of India was the central bank for both India and Pakistan. On the 30th of
December 1948 the British government commission distributed the Reserve bank of
India’s reserve between Pakistan and india – 30 percent (750 M gold) for Pakistan
and 70 percent for India.
The losses incurred in transition to independence, small amount 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.
Under the state bank of Pakistan order 1948 the state bank of Pakistan was charged
with duty to “regulate the issue of bank notes and keeping of reserves with a view to
securing monetary stability in Pakistan and generally to operate the currency and
credit system of country to its advantage”.
A large section of the state bank's duties was widened when the State Bank of Pakistan
Act 1956 was introduced. It required the state bank to "regulate the monetary and
credit system of Pakistan and to foster its growth in the best national interest with a
view to securing monetary stability and fuller utilization of the country’s productive
resources". In February 1994, the State bank was given full autonomy , during the
financial sector reforms.
On January 21, 1997, this autonomy was further strengthened when the government
issued three Amendment Ordinances (which were approved by the parliament in May
1997).
Those included were the State Bank of Pakistan Act, 1956, Banking Companies
Ordinance, 1962 and Banks Nationalization Act, 1974. These changes gave full and
exclusive authority to the State Bank to regulate the banking sector, to conduct an
independent monetary policy and to set a limit on government borrowings from the State Bank
of Pakistan. The amendments to the Banks Nationalization Act brought the end of the
Pakistan Banking Council (an institution established to look after the affairs of NCBs)
and allowed the jobs of the council to be appointed to the Chief Executives, Boards of
the Nationalized Commercial Banks (NCBs) and Development Finance Institutions
(DFIs). The State Bank having a role in their appointment and removal. The
amendments also increased the autonomy and accountability of the chief executives,
the Boards of Directors of banks and DFI.
The state bank of Pakistan also performs both traditional and developmental functions
to achieve macroeconomic goals. The traditional functions may be classified into two
groups : 1) The primary functions including an issue of notes, regulation and
supervision of the financial system, bankers’ bank, lender of the last resort, banker to
Government, and conduct of monetary policy. 2) The secondary functions including
the agency function like management of public debt, management of foreign exchange,
etc., and other functions like advising the government on policy matters and
maintaining close relationships with international financial institutions.
The nontraditional functions, performed by state bank include the development of a
financial framework, institutionalization of savings and investment, provision of
training facilities to bankers, and provision of credit to priority sectors. The State Bank
also has been playing an active part in the process of Islamization of the banking
system.

Subsidiaries of SBP
The SBP holds “three” fully owned subsidiaries to augment its functions. These are:

SBP-Banking Services Corporation (SBP-BSC)

Established under the SBP-BSC Ordinance 2001, SBP-BSC supports SBP in performing
functions such as handling of currency and credit management, facilitating the inter-bank
settlement system, and sale/purchase of savings instruments of the Government on behalf of
Central Directorate of National Savings. SBP-BSC also collects revenue and makes payments for
and on behalf of the Government. It also carries out operational work relating to development
finance, management of public debt, foreign exchange operations and export refinance. The
Board of Directors of SBP-BSC, chaired by the Governor SBP, comprises of all members of the
Central Board of SBP and the Managing Director of SBP-BSC.

SBP-BSC consists of 16 field offices in Pakistan with the head office in Karachi.

National Institute of Banking and Finance (NIBAF)

NIBAF is the training arm of SBP, providing executive development trainings to new inductees
and various levels of SBP employees. The subsidiary also conducts international courses on
central and commercial banking in collaboration with the federal Government. Furthermore,
NIBAF offers training to SBP-BSC and other financial institutions. NIBAF is incorporated under
Companies Ordinance, 1984 and has a separate Board of Directors.

NIBAF is located in Islamabad with an office in Karachi.

Deposit Protection Corporation (DPC)

Deposit Protection Corporation (DPC) has been established as a wholly owned subsidiary of
SBP Upon commencement, this entity will be responsible to provide protection of deposits of
member financial institutions operating in Pakistan. The objective of DPC is to compensate the
depositors to the extent of protected deposits in the event of failure of a member Financial
Institution. The limit of protected deposits shall be determined by DPC and will be announce due
course.
For the purpose of protecting depositors of Islamic Banks and branches, a separate Shariah
compliant mechanism of deposit protection shall be put in place.

SBP BSC (Bank) D.I.KHAN

An exchange control office of state bank of Pakistan started functioning at D.I.KHAN from Ist
august 1983. thereafter a skeleton office started its work on ist January , 1995 in order to make
full arrangements for opening a full-fledge office at this center . On establishment of SBP BSC
(bank as subsidiary of state bank of Pakistan from January 2002, this office has been started its
stator responsibilities as field office of SBP BSC (bank).

1.2 Objective
The state bank of Pakistan is a nonprofit organization. Its main objective is to manage or
maintain the currency supply in country. Increase or decrease in money supply can create
inflation or deflation in country, so these things should be handled immediately and state bank is
doing this.

1.3 VISION STATEMENT

To be a dynamic, proactive and forward looking service provider capable of facilitating

achievement of SBP’s strategic objectives through enhanced stakeholders’ satisfaction.

1.4 MISSION STATEMENT

To develop and sustain an integrated service support system through cross functional
approach with a view to provide timely, reliable and efficient services to Bank’s
stakeholders.

1.5 Organizational Structure

Organizational hierarchy SBP (BSC) D.I.KHAN Branch

Level
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A A
A * A A (G A A
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BM (C M C
(AM (P SM & D
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1.6 Introduction to Banking Services Corporation SBP (BSC)
As SBP felt that there is extra burden of workload to perform policy making functions as
well as operational functions the administration establishedhe SBP Banking Services
Corporation (SBP-BSC) was established as a wholly owned subsidiary of State Bank of
Pakistan in January, 2002, under the SBP Banking Services Corporation Ordinance 2001.

As an operational arm of the Central Bank, SBP Banking Services Corporation is

engaged in managing currency, foreign exchange operations and foreign exchange
adjudication; providing banking services to the federal and provincial governments and
financial institutions regulated by State Bank of Pakistan, conducting development
finance activities in support of the development finance group of the SBP, implementing
export refinance schemes, and performing agency functions like sale/purchase of
national prize bonds including managing prize money draws, sale and purchase of
national saving schemes or any other functions assigned by State Bank of Pakistan.
Vision Mission

To develop SBP-BSC into a dynamic To provide reliable banking services

and efficient organization equipped to the Government, Financial
with requisite technology and human institutions, Public and to act as an
resource capable of extending operational arm of State Bank of
sustainable support to the State Bank Pakistan.
of Pakistan in achieving its objective.

REGIONAL OFFICES OF BANKING SERVICES

CORPORATION
 S. Regions Regional / Field Offices
No
.

Regional Offices

The sixteen (16) Field Offices of the Bank are structured into the following three
Regions:-

Regional / Field Offices of the Bank typically provide the following Banking Services:-

• Currency Management Services (Issuance, Exchange & Destruction of Currency

Notes).
• Coins Management (Supply & Receipt).
• Receipts of Governments’ Taxes & Levies.
• Management of Governments’ Payments (Salaries, Pensions & Suppliers).
• Public Debt Management (Management of National Prize Bonds & SSCs/DSCs
Schemes on behalf of Central Directorate of National Savings (CDNS), National
Savings, Ministry of Finance, Government of Pakistan, Islamabad.
• Provision of Governments’ Funds Transfer Facility.
• Locker facilities to the Government for Safe Deposit of Articles.
• Customers’ Facilitation for General Banking Complaints.
• Other Banking Services as and when required by the Government Departments.
 Karachi
Southern North Nazimabad
Region (5
1. Hyderabad
Field
Offices) Sukkur
Quetta
Lahore
Central Faisalabad
Region (6 Sialkot
2.
Field Gujranwala
Offices) Multan
Bahawalpur
Islamabad
Northern Rawalpindi
Region (5
3. Peshawar
Field
Offices) D.I. Khan
Muzaffarabad

In addition, for proper and efficient management of the business relating to the issue of
notes / currency, there exists four Currency Issue Circle Offices of the Bank. The
location of these Offices and their geographical limits are as under:
Currency
issue Geographical limits of each circle
circle
offices

Karachi Province of Sindh

Province of Punjab including Government
Lahore
of Azad Jammu and Kashmir
Province of Khyber Pakhtunkhwa
Peshawar and
Government of Gilgit- Baltistan
Quetta Province of Balochistan

CH
APTER 2
CO
RE
 FUNCTI
ONS
State Bank of Pakistan is the Central Bank of the country. State Bank of Pakistan
performs both the traditional and developmental functions to achieve
macroeconomic goals. The traditional functions, which are generally performed by
central banks almost all over the world, may be classified into two groups: (a) the
primary functions including issue of notes, regulation and supervision of the financial
system, bankers bank, lender of the last resort, banker to Government, and conduct
of monetary policy, and (b) the secondary functions including the agency functions like
management of public debt, management of foreign exchange, etc., and other functions
like advising the government on policy matters and maintaining close relationships
with international financial institutions. The non-traditional or promotional functions,
performed by the State Bank include development of financial framework,
institutionalization of savings and investment, provision of training facilities to bankers,
and provision of credit to priority sectors. The State Bank also has been playing an active
part in the process of Islamization of the banking system. The main responsibilities of the
State Bank can be broadly categorized as under.

TYPES OF FUNCTIONS
Primary Functions
Secondary
Functions
Non-
Traditional
Functions
2.1 Primary Functions of SBP
2.1.1 Issuing of Notes
1: Regulation of currency in accordance with the requirements of business and the
general public.
2: Granted the sole right of issuing notes in the country under Section 24of the
State Bank of Pakistan Act,1956
Two separate dept. deal with the affairs of issuing of notes Currency
Issuing Department:
Deals with the issue of notes Banking Department:
Undertakes general banking business
1: The issue of one rupee and subsidiary coins
2: The Bank merely looks after the management of their issue on behalf of the
Government.
3: The State Bank also issues “Commemorative (Yadgari)" notes and coins of different
denominations at occasions of national importance.
4: Currently there are three offices of issue at Karachi, Lahore, Peshawar, and a number
of currency chest all over the country.
2.1.2 Conduct of Monetary and Credit Policy
1: Section 9A of SBP Act, 1956 entrusts the Central Board of the Bank to formulate and
monitor monetary and credit policy by taking into account the Federal Govt.'s targets for
growth and inflation.
2: State Bank must take into account Recommendation of the Monetary and Fiscal
Policies Co-ordination Board.
2.1.3 Regulation & Supervision of Financial System
It is a principal task of SBP to make sure that financial system is sound.
 1: SBP has been given vast powers under Pakistani Law to monitor financial system.2: It
is the responsibility of State Bank to systematically monitor the performance of every
banking company to ensure its compliance with the statutory criteria, and banking rules
& regulations
3: SBP monitors the banking activities through a combination of off-site monitoring and
on-site inspection.

2.1.4 Banker’s Bank

State Bank also functions as the banker’s bank. Banks are

classified as:
1: Scheduled Banks
2: Non-Scheduled Banks
Scheduled Banks are entitled to certain facilities from the State Bank and in return they
have some obligations to it
State Bank provides the following important services to the scheduled banks:
1: Excess Reserves kept with SBP
2: Remittances Facilities
3: Clearing through NIFT
4: Interbank Payments
5: Statutory Reserves
2.1.5 Banker to Government
SBP conducts the banking business of Federal and Provincial Government and some
government agencies.
SBP provides the following services to the governments:
1: It accepts the deposits of cash, checques and drafts by the Government
2: Federal and Provincial governments keep their deposits with the Bank free of interest.
3: SBP does not charge any commission to the governments for the banking services
rendered to them.
4: The Federal and Provincial governments can obtain advances from SBP. 5: On
behalf of Federal, Provincial or Local governments the Bank also undertakes
 sale/purchase of gold, silver, approved foreign exchange, securities or shares in any
company, collection of return on these shares/securities

2.2 Secondary Functions of SBP

2.2.1 Public Debt Management
1: Public debt refers to all the money that the government is liable to pay.
2: The Bank is responsible for the management of government debt under subsection
13(e) of section 17, and section 21 of the SBP Act, 1956.
3: The Public Debt Act 1944 also defines the responsibilities of SBP for public debt
management.
4: In order to efficiently manage the public debt, a department namely, Securities
Department was setup in1990.
5: SBP is responsible for payments of interest to holders of public debt instruments.

2.2.2 Management of Foreign Exchange

1: SBP is responsible for maintaining the external value of the currency.
2: SBP took charge of management and administration of the exchange system of
the country online with the Foreign Exchange Regulation Act, 1947.
3: SBP is authorized to purchase and sell gold, silver or foreign exchange and
transactions of special drawing rights with the International Monetary Fund. 4: The Bank
is responsible to keep the exchange rate of the rupee at an appropriate level and prevent it
from wide fluctuations.
5: As the custodian of country’s external reserves, State Bank is also responsible for
the management of the foreign exchange reserves

2.2.3 Advisor to Government

1: SBP acts as an advisor to the Government on financial and economic matters
particularly with reference to their monetary aspects.
2: The Bank counsels the Government on loan operations and advises it with regard to
the timings, terms and conditions and rate of return on these loans.
3: The advisory role of the Bank has been made mandatory in accordance with the
Section 9A of the SBP Act 1956
 2.2.4 Monetary and Fiscal Policies Coordination Board (MFPCB)
1: The State Bank also participates in economic policy making as a member of various
Government agencies and committees.
2: In order to coordinate fiscal, monetary, foreign trade and exchange rate policies, a
“Monetary and Fiscal Coordination Board” has been set up.
2.2.5 Relationships with IFIs (International financial institutions)
1: SBP deals with the IMF on behalf other Government of Pakistan.
2: The Governor State Bank accompanies the Minister of Finance in annual general
meeting of the IMF and World Bank.
3: The State Bank of Pakistan also deals with other international financial organizations
including Bank for International Settlement, the World Bank, Central Banks of foreign
countries, etc.

2.3 Non-Traditional Functions of SBP

2.3.1 Development of the Banking System
1: SPB’s major contribution is the facilitating and fostering of the banking system
in Pakistan.
2: At time of independence it was a challenge for SBP to develop banking System
in Pakistan.
3: The initiated to set-up NBP and allow foreign banks to do their business in Pakistan
are two major steps towards development of Banking System.

2.3.2 Micro Finance

A: Khushali Bank and the First Micro Finance Bank have been setup by SBP to promote
microfinance in the country.

2.3.3 Promotion of Islamic Banking

1: State bank of Pakistan is playing a leading role in the promotion of Islamic Banking in
Pakistan.
 2: Conferences, workshops, seminars and presentations are being conducted to create
public awareness and develop better coordination among various stakeholders of Islamic
banking.

2.3.4 Development of the Banking System

1: SBP has also started scholarships for PhD in economics and finance in order to meet
its needs for professionally qualified personnel in these fields.
2: In order to information needs by other bankers, researchers, students and general
public, a main library was setup in 1949.
3: The library has a rich collection of books, technical reports, Government documents,
periodicals and magazines mainly relating to the subjects of economics, banking, finance,
management, commerce, etc.

2.3.5 Credit to Priority Sectors

SBP has also introduced various credit schemes to channel resources towards priority
sectors like:
1: Export finance scheme
2: Mandatory credit for agriculture
3: Small business
4: Small industries

Chapter#
3
Departme
ntalization
3.1 Departments of SBP (BSC)
Introduction
Banking Services Corporation (BSC) – set up in January 2002, is the subsidiary
of the State Bank of Pakistan and is entrusted with the task of currency management and
operational and administrative oversight of foreign exchange departments, export
 and other finance, Management of Government accounts and operational work related
to Government certificates. With the changing environment of banking sector, BSC has
undergone significant change.
3.1.1 Departments
1. Public account unit

2. Foreign exchange operation unit

3. Deposit account unit

4. Currency management unit

5. Prize Bond unit

6. Refinance Scheme Unit

3.2 Public Accounts Unit (PAU)

Public account unit is one of the most important function of State Bank Of Pakistan is
Banker to the Govt. Being Banker to Government this unit provides several facilities
to the government sector and also the public sector organization to perform their task
efficiently and effectively provide by their Banking Services. It deals with
government receipt and payment.
3.2.1 Receipt
All amount of money comes from government Department is dealing in this section
either in the form of cash, transfer and clearing. This section include three sub section
1) cash 2) transfer 3) clearing
3.2.2 Cash
In this subsection all the amount which is coming from the government departments in
the form of cash deal in this section.. Most of the transactions are made on account of
transfer.
3.2.3 Transfer receipt
As we know that in recent day’s cash transaction are usually discouraged at wide area
and all companies prefer to make transaction on account of transfer. We can say it in easy
way that when cheque of one Government department or SBP, is deposited into other
government department instead this amount is transferred after verification from one
department to other Government department.
3.2.4 Clearing
In this section when one government department deposit receipt slip with the cheque of
commercial bank in which they had an account. Than in that case PAU section uses
NIFT (National Institutional facilitation technology) to clear that checques from the
respective branch of that Bank on which name cheque is drawn.
Clearing done in receipt section is also called Outward clearing.
3.2.5 Types of clearing:
There are three types or instruments of clearing.

(a)Government/ commercial Banks checques (b) intercity checques (c) Small city
(a) Government/ commercial Banks checques drawn on D.I.Khan
Whenever the cheque comes from in the clearing section with the receipt invoice/Challan
form that was deposited to counter of receipt section instead the officer give that person
a paper token in which no. of checques and branch name of that cheque is written and
also name of the Government department is mention on which amount will be deposited.
Officer of the input will input that cheque into their record and will sent it to the officer
of authorization. Authorization officer after stamping that cheque this cheque will be
given to the NIFT. NIFT will give that cheque to the respective branch and on the next
day will provide information to the PAU that cheque has been cleared. In such case one
copy of challan is sent to the government department and one copy return against the
paper token.
If cheque has issues and did not clear by the respective branch. In that case NIFT return
that cheque to the PAU receipt Section and then this cheque will be return to the
depositor.
(b) Intercity Clearing:
In this type of clearing the cheque will drawn on major cities like Islamabad,
Lahore. Same process to deliver that cheque used but clearing time that cheques
will be done in one day. Because Nift sent those cheques to their respective
branch in other cities and the cheque will be cleared city wise.
(c) Small city Clearance:
This type of clearing is done for the small cities without NIFT. In this case those cheques
will send to the NBP Branch of that city than NBP plays a role of NIFT to clear those
checques. For this purpose a Register maintained called Collection register in which
particulars, Sr. No, SC No., Cheque No. Date, Amount and remarks are maintained.
3.2.6 Verification authority of cheque:
• OG-2 will have the authority to verify the checques have amount not greater than
2 million.

• ACM has the authority to verify above 2 Million checques

• DCM has the authority to authorize cheque up to 100 million

• CM has the authority to authorize checques up to 500 million and above

3.2.7 Payment
In public account unit the payment will be made to only the Public sector organizations
like hospitals, agriculture, health education, police, social welfare, livestock, courts,
fisheries etc.

There two types of Payments

(1)Cash payment (2) Clearing payment
 3.2.8 Cash payment
In this section of the PAU cash payments is made on the counter against the respective
cheques of those public sector organizations. Only the amount will be given to the DDO
(Drawing and disbursement officer) of the respective public sector organization. Cheque
Book is issued to that DDO and by using that cheque book he/she can collect that amount
form the counter after verification process.
Limit to authorize cash:
OG-2 can authorize amount 1 million OG-3 can
authorize amount above one million.
Validity of cheques:
Validity of cheque is three months after issue
Color of head of accounts:
Central Government Green
Provincial Government Pink
District Mauve

3.2.9 Clearing payment:

When cross cheque is issued by provincial or federal government to an individual or big
firm that firm or individual will present that checques to its commercial bank, bank will
hand over that cheque to NIFT which will bring that cheque to PAU clearing section.
This clearing is also called inward clearing.

Clearing house will check the following things

• Clearing stamp of commercial Bank

• Crossing stamp.
• Endorsing stamp of bank to take all risk on themselves.
• District account signature will be verified.
• Endorsed seal of account office.
Tally the amount and name with schedule with schedule provided by account office.
 If all Particulation of cheques are correct then the cheque will be passed as under

OG-2 up to 2 million
ACM up to 100 million
DCM above 100 million
Clearing Before NIFT:
Before NIFT every bank’s representative will come to the SBP clearing Office having
checques of different Banks and then they interchange that cheque to each other.

NIFT:
NIFT means National institutional facilitation technology private ltd. This institute acts
as bridge between all banks to facilitate them in clearing their instruments.
Types of clearing:
(1) Normal clearing (2) Intercity clearing (3) Same day clearing
Normal clearing
In this clearing all the normal procedure which is given above will be follow through
NIFT to clear checques.
Intercity clearing:
In this type of clearing all cities will sent their checques to their main branches where
NIFT is operating and then this Main branch will give this cheque to the NIFT and NIFT
will make list of that checques and sent for clearing to the respective Banks.
Same day clearing:
In this type of clearing cheque will be clear on the same day on that special service NIFT
will charge greater to the depositor Up to Rs. 400 per instrument for clearing.

3.3 Deposit account unit (DAU)

Deposit account unit is also the important function of State Bank of Pakistan is
Banker’s to Bank and it is providing all Banking services to all commercial Banks,
Employees of SBP and companies. Banks can open an account in the SBP in case of
excess of cash which they think needs to be in safe custody. For these deposits SBP does
not charge any fee to the commercial Banks. They can deposits their cash and soiled
note as well in their accounts. They can withdraw their cash when they think there is
shortage of cash for them.
All this cash deposit, payments and remittances deal in DAU (Deposit account unit) of
SBP. As BSC is the subsidiary of the state Bank of Pakistan so each subsidiary is
performing same function as describe above to their local Banks of the city. Presently
there are 30 commercial Banks operating in the D.I.Khan region and SBP BSC has their
account.
3.3.1 Functions of DAU:
Deposit and withdrawal of money:
Only the Main Branches of Commercial Bank of the city have the account in SBP
(BSC) and they can deposit amount into the Bank for safe custody as the SBP is the
custodian of the money of the commercial Banks. Cash from banks is received on the
counter but heavy amount is not received except four banks, UBL, MCB, and ABL &
HBL. The members of these banks bring cash in SBP that is kept separately in vault
temporarily and their accounts are credited. After counting if balance is short, penalty is
imposed on the bank.

Withdrawal Procedure:
Withdraw procedure is that concerned Bank’s authorized person has to present the
cheque to the deposit account unit and in which the officer (OG 1) checks all the
particulars, amount in words, amount in figures, signature of the two authored person of
the commercial Bank and stamp of the concerned Bank. After checking all the particulars
then he will check the account balance of the Bank whether there is sufficient amount is
available in their account or not than he/she will mark stamp on the cheque and then this
cheques will be transferred to the Officer (OG 2) he/ she will verify all the particulars
and account balances and after doing signature on the cheque then cheque will transfer to
the ACM (Assistant chief manager) to final approval. After approval Bank’s person can
withdraw cash from the cash counter.
Reconciliation
Reconciliation is a process where central bank reconciles the account balances of
commercial banks , SBP reconcile the balances of these commercial banks and this
facility is provided under this unit.
 For employees of SBP:
DAU is also deal with the employees’ payment of allowances, rest and recreation
allowances, half salary allowance, personal loan, car loan, house loan, medical vouchers
and pension payments. SBP is providing interest free loan to their employees. DAU
make the payment orders for employees and employees can withdraw cash from cash
counter.

3.3.2 Remittances
SBP facilitates the movement of funds from one place to another in the Pakistan
Remittance slip colour white which is used for currency notes sent to NBP chest.

Types of remittances:
a) Mail Transfer
This is for employees of State bank . For example if employee of the SBP
(BSC) D.I.KHAN want to get his salary in State Bank Karachi they use Mail
transfer.
b) Clean Cash:

Record of daily Receipts and payment balances of SBP is called clean cash.
c) Telegraph Transfer:

This is Bank to Bank Transfer . For example UBL Lahore has excess
amount of cash and he wants to transfer his cash to other main branch of
UBL in Multan. So SBP Lahore transfer money to State bank Multan get
this cash from SBP.
d) Bank Draft:
This is for employees of Commercial Bank. if they want money they go to SBP and give a
cheque to them according to limit of their salary and State Bank debit their account and give
money to person and when the money came into the account of that person SBP credit this
account.
e) Government Draft :

It facilitates the transfer of receipts and payments of government free of charges. For
instance

• Payment of salaries of government employees to any government department.

 • Free facility to government
• PAU facilitation .

3.4 Currency Management Unit (CMU)

 Designing of notes and coins.
 Indenting of annual Requirement.
 Printing and Minting.
 Supply and Distribution.
 Issue and Exchange.
 Sorting into Good and unfit.
 With drawal and Cancellation.
 Verification and Destruction.
 Proper Monitoring of Cash.
 Maintaining Adequate stock Position.
 Demonetization and Coinization.

Players in Currency Management :

 SBP
 SBP BSC
 NBP chest and sub chest
 Commercial Banks
 Treasuries and Sub treasuries
 Pakistan Mint
 Pakistan Security printing Corporation

The Management of Currency was taken over by SBP from Reserve Bank of India on
Ist july 1948.
Working of Currency Management Division
1. Verification:

The cancelled notes Verification Branch which takes over paid and cancelled
notes, subjects the same to both quantity and quality checks and issues warrants of
destruction . Thereafter, the notes are destroyed by shredding machine.
2. Claim:

The claim branch deal with all applications for payment of exchange value of
mutilated and other claim notes and maintain their account . it also deals with
imperfect and Forged Notes received in the office.
3. Resource:
 The resource Branch attends to the supply of notes and coins at different centers and keeps proper
account thereof.
4. Accounts:
The accounts branch maintains accounts of the balances and transaction of notes
and the assets of issuing department , transaction between banking and issuing
department and also the accounts of small coin depot and the govt stock of surplus
Rupee coin maintained in the office.

3.5 Prize Bond Unit (PBU)

It is national savings scheme. BSC serves as the operational arm of SBP issuing and
payment of prize bonds to the general public on behalf of the government. PBU basically
deals not only with the prize bonds but also deals with other government schemes.

3.5.1 Government schemes

Three governments schemes by which government collect debt from the public.

1. Prize bonds

2. DSC ( Defense savings certificates)

3. SCC ( special savings certificates)

1. Prize bonds:
Prize bond is a National saving scheme which is operated by the SBP
on the behalf of government.
 It is also known as Lottery Bond
 Funds raised are used to offset government borrowing and are refundable to bond owner
on demand.
 Non interest bond
 No fees charged on this type of Bond.
Small denominations:
There are four categories in small denominations 100, 200, 750, 1500. Draw of these
bonds held on 15th of the month.

Large denominations:
 There are also four denominations in large denominations 7500, 15000, 25000, 40000 &
100000.

Some features of the prize bonds:

• Draw of each bond will be held after 3 months. •One series contain 000001 to
999999 numbers.
• Each bond has six digit codes. .
• Each prize bond must be issued before two months of draw.
• Each prize bond can be used five times after the announcement of prize.
• Front page of prize bond is called Reverse while Back page of Prize Bond is
called Averse.

Period of Prize Bond:

There are two Period of prize Bond are follow:
1) Open Period: when you purchase the prize bond before two month from withdrawal
is called open period.
 Open period is of one month. Fresh and reissue Prize bonds will be issue in this
period.
 You would be included in the draw.

2) Shut Period : when you purchase the bond before 15 days from withdrawal is called
shut period.
 In this Period no sale occurs but only sale of fresh serial prize bonds can be held.
 You would not be included in the draw.
 Special Saving Certificates (SSC)

These certificates are issued by the government for the period of maturity of 3 years. The
profit on this certificates can be Obtained after every six months at the time of issuance
of the certificate a check book is given to the customer. The rate of interest is fixed on
these certificates.

 Defense saving Certificates (DSC)

These certificates are long term investment scheme issued by the government for the
period of 10 years. To get the profit on this certificates these must be hold for the ten
 years .if the person comes after one year and claim its profit the profit will be given and
the DSC will be taken and the payment actual is made.

3.6 Refinance Scheme unit (RSU)

Being a central Bank of the country SBP has the prime responsibility to develop
infrastructure for exports and promote exports in the country because by increasing
exports in the country it will increase the foreign reserves in the country which leads to
help in the stability of economy. Commercial bank acts as an agent between the SBP and
exporter for refinance for exports.
The main objective of this unit is to promote exports and diversify exports in Pakistan.
Attract and promote small producers to exports their goods by providing finance to them.
Scope of the RSU is to promote exports of eligible commodities like finished goods. SBP
does not promote the export of negative list of commodities like raw material etc.
because if you will export your raw material to other country this mean you are
strengthening their economy not yours.
Types of refinancing scheme
There are two types of refinancing schemes

Short term refinancing scheme

Long term refinancing scheme

1. Short term refinancing scheme

This scheme only for the short term period like less than one year. The loan is given to
the exporter for only 180 days.

2. Long Term Financing Facility:

LTFF provides necessary finance to exporters for adoption of new technology and
updating of their plant and machinery in line with international competitive environment.
This facility is available to export oriented projects with at least 50 percent of their sales
constituting exports or annual exports equivalent to US$ 5 million, whichever is lower.

3.7 Practical Exposure

 • The 1st session is Introduction to SBP/BSC Functions. In which they can tell
us only one State Bank of which Head Quarter in Karachi and they make the
policies while sub branches of SBP help the main branch in implementation of
these polices.
• The 2nd session is Function of Cash Department. The following functions
perform by cash department.
• Issuing of notes.
• Receive non issuable notes.
• Prize money paid by SBP on prize bonds

The 3rdsession which is Life cycle of Bank notes

CURRENCY LIFE CYCLE

1. Indent 2.Production

3.Distribution
Currency
6.Destruction
Life Cycle

4.Circulation
5.Sorting

4
The 4th session is on Various categories of Notes
1 Issuable Currency Notes
• Fresh Notes
• Re-issuable Notes
2 Non-issuable Currency Notes
 Soiled Notes.

 Mutilated or Clearly Payable Notes.

 Claim Notes.

 Charred Notes.

1: Issuable Currency Notes :

a) Fresh Note:
Fresh notes are those notes which are printed in Pakistan security Printing
Corporation (P.S.P.C) and thereafter supplied to SBP BSC Issue Offices i.e.
KARACHI, Lahore, Peshawar and Quetta.
After receipt of the fresh notes from PSPC these are counted by packets and bundles
in the presence of PSPC Representative in fresh note vault that is called preliminary
examination.
After preliminary examination the detailed examination is made and if any irregularity
is found i.e. misprint or mismatched notes, then the same are returned to PSPC.
After detailed examination the notes are ready for issuance to other SBP BSC Offices
and National Bank chest /sub chest offices.
b) Re-issuable Notes:
When the currency notes are returned from the public over the bank’s counters these
notes are sorted in to three categories i.e. issuable, non-issuable and cut mutilated
/claim notes.
Those notes which are suitable for Re issue to the public and public easily and happily
accept those notes. These notes are also used in A.T.M
2: Non- Issuable Currency Notes :
 When the notes became dirty, oily and limp due to hand to hand use, washed, cut in to
pieces, burnt, colored and eaten by turmeric, disfigured called non issuable notes.
Types of Non-issuable notes
1: Soiled notes :
Notes which become dirty and limp (soft) due to humidity and their constant use /
change
of hands.
Notes divided into two pieces either horizontally or vertically but are in full.
2: Mutilated/clearly payable defective notes :
Notes which are torn, disfigured, partially cut damaged or slightly burnt provided ¾
portion thereof be intact.
3: Claim notes:
 Cut into more than two pieces
 Washed or oily
 Security features need detailed examination
4: Charred notes:
The Notes which are Burnt due to short circuit in the home.
•The 5thsession is on Security features of currency notes.
Classification of Security Features:
Overt Feature:

o Features for general public that can be seen through naked eye or recognised without the
use of devices.

Covert Features:

o Features that can be recognised through use of devices like Ultra violet lamp, Magnifying
glass etc.

Overt Features
1. Latent Image (Rs.20/- & above)
2. Enlarged Watermark (Quaid Portrait) in all denom.
3. Electrotype Watermark (Denomination of the note in all denom.)
4. See through (all denom).
5. Security Thread :
a. Security thread with micro text of “STATE BANK OF PAKISTAN (DEN )” Rs.10/- to
Rs.50/- denom.
 b. Window thread with micro text of (DEN), UV glowing from Rs.100/- & above
6. Intaglio Printing (Rs.20/- & above denomination) giving raised feeling on touch.
7. Identification Marks for visually impaired persons ( Rs.20/- to Rs.100/- one ,two and three lines
while in Rs.500/- Rs.1000/- and Rs.5000/- one, two and three circles respectively).
8. Intaglio Lines (Rs.20/- & above): Raised lines on right and left side of the notes.

Covert Features
1. Micro lettering (In all Denominations): Denomination of note written in small digits that
looks like a thin line to the naked eye but legible under magnification.
2. Ultra Violet glowing security features: Window security thread gives different colors under
U/V lamp.
3. Invisible colored security fibers.
4. Magnetic Ink used in numbering.

•The 5thsession is on Security features of currency notes.

1: Paper of note
The Bank paper are made from cotton pulp.
2: Security Thread
Metallic thread or strip use in notes
3: See through register
See on light both number, front and back are matching in shape and size etc
4: Micro print
Micro print on notes according to the value of notes
5: Braille features
This feature is only for blind persons, there are some marks on notes like one dot
for 500, two dots for 1000 etc
6: Latent image
Image made by intaglio printing and observed while looking at a
banknote at a particular angle.
7: Numbers
Printed using specific troll and printed numbers are felt rough
8: Optical variable ink
Optically variable inks (OVI) changes colors the viewing angle is changed.. It is
an expensive ink and are generally used in a small portion of note. However,,
they offer unique protection against counterfeiting..
•The 6th session is on Vault.
Vault:
Vault is a unit of SBP where currency notes, coins and prize bonds are stored.
1: prize bond vault
In this vault only prize bonds are stored
2: Fresh note vault
only fresh notes are stored
3: Cancel note vault
Only cancel or non-issuable notes are stored
4: Exchange note vault
In this type of vault fresh as well as re-issuable notes are stored
5: Coin vault:
Only coins are stored
6: Chest note vault
This is special type of vault in which only balance of NBP is stored.
7: Bonded note vault
In this vault balance of some specific banks are stored.
Chapter#4
Project
Abstract:

This report is based on women entrepreneurship in Pakistan as well as in Dera Ismail Khan.
In this study efforts were made to assess the work and commitment of the women’s to bulid
up and expands their enterprises and also the obstacles and problems they face in different
sector. The prime focus of this research study was to find out the social, cultural and
economic institutions of women entrepreneurship and also determine the basis and
motivational features, obstructions and gender biasness. In the beginnings the
entrepreneurship is explained briefly covering the worldwide different aspects of women
entrepreneurship and Pakistan as well. Institutions which provide help, awareness and
finance are also discussed. The findings revealed that major problems which are faced by
women’s in running business and also give some recommendations. These findings are
helpful for Government, Financial and Not for Profit Organization’s (NGO’S) to devise
strategies to promote women entrepreneurship in Pakistan.

Keywords: Women Entrepreneurship, Institution’s helping Women’s, Search Barriers

and Obstacles they face, Recommendation’s.
4.1 Introduction:
Entrepreneurship: The ability and desire to develop organize and manage a business
venture along with any of its risk in order to make profit.
Entrepreneur: An entrepreneur is an individual who, rather than working as an
employee, found and runs a small business, assuming all the risks and rewards of
venture. The entrepreneur is commonly seen as an innovator, a source of new ideas,
goods, services and business/procedures. “Entrepreneur is someone who mixes
passion, innovation, and drive to turn a vision into a working business” (*Jeet
Banerjee)
Women Entrepreneurship: Women Entrepreneurship is the process where women
organize all factors of production, undertake risk, and provide employment to other.
“Women entrepreneur is a person who is an enterprising individual with an eye for
opportunity and an uncanny vision commercial acumen, with tremendous preservance
and above all a person who is willing to take a risk with unknown because of the
adventurous spirit she poses. (Madha Dubashi Vinz)
Express literature consultation that woman are playing an important role in large
entrepreneurship and economy (Sarfaraz et al, 2014). Almost first women
entrepreneurs’ participation is still in small business as compared to men owned
business (Minniti and Arentius 2003). According report of World Bank women claim
only 10% of income generated by their efforts. A lot of reasons why women wants to
leave their career path to become the entrepreneur because they cannot fulfill their
needs and failed for the achievement of life. Managing the business is not easy for men
and women but women entrepreneurs have to go through tough stages with journey.
(Alien and Truman 1993; Smith Hunter ,2006). Therefore, moral of women
entrepreneur is the most important element to maintain their business and become
achievable.
4.2 Importance of Women Entrepreneur:

Current information shows that women running the small and medium enterprises all
over the world should be considered in overall low profitability. Retail, beauty and
food services are among the Sectors in which women focus. In Africa and Asia about
75% of women are in these consumer oriented Sectors. They are involved in mining,
construction, electronics and software.

4.2.1Role of women Entrepreneurship worldwide: Today where concept of innovative

women entrepreneurship programs have to check the market failure and at the same
time to address the burning societal problems by adding new dimension of women
entrepreneurship for all SME and growth policies. Women participate in labor force,
creation of women ownership; develop noteworthy and other valuable web based and
collaborative tools for societal development and promoting the qualities of leadership.
The areas of women entrepreneurship are retail trade, Restaurants, Hotels, culture,
Cosmetics, Health, Insurance and Manufacturing. The other role of women
entrepreneurship in worldwide contributing in development of economic growth and
social Living.

4.2.2Role of women Entrepreneurship in South Asia: The south Asia region is today
considered amongst the poorest, least literate and bare minimum gender sensitive
territories. South Asia women are deprived of basic human right, and there is very little
participation with men and on equal footing in economic activities. Development of
entrepreneurship has a special appeal for empowering women in countries like
Bangladesh, Pakistan and India and where gendered discrimination is still acquit and
hence equality and equity constitute old development issues. (M, Haq Human
development center 24 October 2007).

4.2.3Role of Women Entrepreneurship in Pakistan: The women entrepreneurship in

Pakistan has been quite ignored and over the years most of events have been directed
removing violence against women, women’s primary education and health care,
women crisis centers and most recently a rigorous drive on political empowerment of
women by giving them 20% representation in National assembly of Pakistan. on
Adhoc basis some common facility centers and technical training institutes to enhance
female participate rate have been established which provide traditional skills. On the
other hand, to mobilize youth energy into economic sectors, government has launched
internship programs and other incentives yet its impact on grass rote level is visible
due to lack of information and knowledge to young females regarding these facilities.
In Pakistan women can be important source for economic development, provide their
potential are utilized in manufacturing and service sector apart from engaging them
mostly in agriculture sector (N, Haq, K, idrees, S, Ahmad Entrepreneurship in Pakistan
23 October 2017).
4.2.4Role of women entrepreneurship in Dikhan:
The city is quite new in a sense that it was built in 1823 after the flood. The bazaars of
the city all converge at one point which is called "Chowgalla", which literally means a
place from where four ways are leaving out. Major bazaars include Topanwala bazaar,
Bhatiya bazar, Muslim bazar, Kalan bazar and Bakhiri bazaar. Dera Ismail Khan is
also famous for a desert delicacy called sohan halwa. The shops of this delicacy are
mostly situated in Topawaala bazar. Dates are grown here in abundance and are one of
the major exports. "Dera" means a place people gather for activities.The population is
the mix of ethnic Balochi and Pashtun segments, while a significant segment of Urdu
speaking immigrants is also present. Urdu, the national language is understood and
spoken by all, while Seraiki is the native language and language of people. Pashto is
also spoken, but is mostly restricted to the Pashtuns only.According to data from
Pakistan's last census in 2018, the district's population stands around 2, 11,760. The
district of DI Khan is a beautiful area with a historically strategic location and has
traditionally been a crossroads for many cultures and trading routes.
One of the most famous products of this district is "Dhakki date", which is exported to
Middle East, United States, and Europe. This date or khajoor is grown in the nearby
village of Dhakki 49km away on Chashma Road. This district also produces wheat,
sugar cane (ganna), Good rice, and a very famous variety of mango called langra. The
most desirable langras are grown in village of Panyala. Nowadays D I Khan is
increasingly exporting another type of dried date called chooara. The majority of
chooara are produced in Dhakki, Mitrah Abad and Saidu Wali. Saidu Wali is the
village of D I Khan situated in Tehsil Pahar Pur about 58 km from D I Khan
nearDhakki and Pahar Pur.
Dera Ismail Khan is also famous for a desert delicacy called sohan halwa. Shops
selling this sweet are primarily situated in Topawaala bazar. Dera Ismail Khan is also
famous for its lacquered woodwork, glass and ivory ware, mats, and sarongs. Newer
industries within the city include sugar, soap, textile and oil milling. Radio Pakistan is
also situated in D.I.Khan., telecasting Saraiki and Pashto programs. CRBC Canal is the
major canal which provides water for irrigation.

4.3 Objective of Women entrepreneurship:

  What type of entrepreneurial activities women do in D I Khan
 To analyze socio economic profile of women entrepreneurs in District DIK.
 To identify the challenges faced by women entrepreneurs in DIK.
 To identify Govt. infrastructure to facilitate women entrepreneurship.

4.4 Description of Products:

1) SADRI Waist Coat:

SADRI is the name of waist coat and it is handmade embroidery. This waist coat is
prepared by a special skilled person known as Sadri.
This Sadri waist coat is made by material known as Goll sheesha, Yellow ribbon
piping, Silver ribbon piping and black velvet cloth. This black velvet cloth is imported
from countries like America, Japan and Malaysia in a bundle form. This black velvet
cloth is known as “Landa cloth”.
This Sadri waist coat has been made and prepared by D.I.Khan women’s because it Is a
D.I.Khan specialty which is exported to Iran and Afghanistan through pawanda bazaar
retailers in Dera Ismaikhan. It is also widely used in some Pashtoons cultural events
like Attan, Khattak Dance and some other events also.
SADRI Cap:
SADRI cap is also made by same material of Sadri waist coat and exported to Iran and
Afghanistan through Pawanda bazaar retailer.
 2) Bowl Basket:

Bowl basket is the coil basket as the name implies are made from coils of grass. The
leaves from palm, date are wrapped and stitched to make a continuous coil basket. This
bowl basket is a handmade item and it is used for keeping wheatbread in D.I.Khan,
because it’s a D.I.Khan specialty and prepared by D.I.Khan women’s.
These Baskets mostly comes from the areas of South KPK and southern Punjabi
Seraiki areas. These baskets are made from grass known as” SUR”,date and mizri palm
leaves. This basket is the most captivating products like hand women baskets from
their bare hand.The area where these bowl baskets made are one of the poorest in the
nations sopoverty elevation result one buys these master pieces.
The palm shed leaves regularly so no tree harmed in order to makes the basket and also
no pollution is created while making these baskets and there no waste material.
These baskets are sent to Lahore for finishing and colorings and then exported to cities
like Karachi, Faisalabad, Sialkot and also exported to Saudi Arabia, Dubai, and Kuwait
etc.
3) Jandri:

JANDRI is a very fascinating art. It is handmade embroidery used as decoration pieces,

tables, boxes, chairs, four carts etc. Wood which is used in the preparation of these
items are the sheshan, kekar, Ghaz(khaggul). These wood trees are found in Pota,
Kulachi, and Chudwan and Sarae mahajar. In Jandri art work four to eight colours are
used. The colours are coated in layers in step by step. After every coating scratching is
done and this scratching is known as Chitrai art while making a design so this chitrai
art work is done bytool known as “RACHHI”. Jandri items are the specialty of
D.I.Khanand exported to cities like Lahore, Chinot,Karachi, Sialkot, Multan and
Bahawalpur and exported to countries like America,UK,India,Dubai, Abu Dhabi
,Saudi Arabia etc.
4) Martaban:

MARTABAN known as JAR is made from coils of grass. The palm, date leaves are
wrapped and stitched to make a “MARTABAN”. These grass leaves are alsknown as
“SUR”, Date and Mizri Palm leaves. This Jar is a handmade item from women’s bare
hands.
These MARTABAN are the most fascinating products and also sent to Lahore for
further finishing and coloring. These MARTABAN are exported to cities like
Mardan,Peshawar, Swat, Lahore etc. and also exported to countries like India,
Afghanistan, Iran, Saudi Arabia, Dubai, Kuwait etc.
5) KUNDI KASHEEDA:

Kundi kasheeda is a captivating art and also a hand made embroidery item. This kundi
kasheeda is immersed on the cloth represents as dupatha, shirt, bedsheet ,pillow cover
etc. This art and embroidery is a expert in this kundi art.
The women first put a trace as design from local market’s tracer who is skilled person
in tracing a design on the cloth, then skilled women select a required threads like
Reesham, wool and tilla from relevant local shop.
In kundi kasheeda the thread is immersed under the cloth along with special tool
known as KUNDI and embroidery is appeared or displayed on the cloth and that what
called as KUNDI KASHEEDA.
This kundi art is exported to different cities of Pakistan like BAHAWALPUR,
MULTAN, LAHORE, JHANG, BHAKKAR,KARACHI,FAISALABAD etc and also
countries like INDIA, BANGLADESH, AFGHANISTAN, IRAN, QATAR,
KUWAIT,JAPAN, MALAYSIA,SAUDI ARABIA DUBA etc.
6) TARKASHEE:

TARKASHI is a captivating art as it is also hand made embroidery item .Tarkashi

as name employees is made by putting a needle inside the cloth then scratch a
cloth along with needle and push cloth threadfromthe cloth in which cloves / clefts
/crannies are made. These cloves /clefts/ crannies are filled by a thread like
Resham with needle.These clefts are appeared as captivating design on dupatta and
shirt.So these art is exported to Multan, Bahawalpur, Karachi, Peshawar, Lahore
And Quetta etc and also exported to countries like
India,Bangladesh,Iran,America,UK, Japan, Malaysia, Indonesia, Kuwait and Qatar
etc.
4.5 Divisions Wise Distribution of BSC

Name of Functions
Sr. Division Headed By
No

A Issue & Payments and Receipts DCM(Cash)

Treasury on behalf of Government
Issuance and exchange of
(Cash) Currency Notes
Division Issuance of
Commemorative Coins
and other coins
Sale and Encashment of
Prize Bonds
B Banking Receipts and Payments DCM
Division on behalf of Government
Maintaining Current
Accounts of Banks
Management of Income
& Expenditure
Accounts
Preparation of Trial
Balance, Profit & Loss
Account,
Balance Sheet
Reconciliation of
Accounts
Opening of L/Cs on
behalf of Govt
Departments
C Prize Bonds Payment of Prize Money DCM
/Securities Maintenance of record of
Division Prize Bonds in circulation
Sale & Encashment of
SSC and DSC
Payment of Profit
D AFU Monitoring and DCM
implementation of SBP
financing schemes
Target monitoring of
agricultural financing
E Administration Management of HR DCM
Division Resources
Digital maintenance of
employees data in
HRMS EIM and Leave
Modules
Discipline
Trainings
Promotions
Internal Bank Security
Procurement of new
equipments
Floating tenders for new
projects
Repair and Maintenance
of office buildings and
equipments

Ch
apter 5
SWOT
Analysis
of SBP

SWOT analysis stands for strengths, weakness, opportunities, and threats. SWOT
analysis is a framework used to evaluate a company’s position by identifying its
strengths, weaknesses, opportunities and threats.
“The overall evaluation of an organization’s strengths, weaknesses, opportunities and
threats is called SWOT analysis.”
1) Strengths describe what an organization excels at and separates it from the competition: a
strong brand, loyal customer base, a strong balance sheet, unique technology and so on.
2) Weaknesses stop an organization from performing at its optimum level. They are areas where
the business needs to improve to remain competitive: higher-than-industry-average turnover.
 3) Opportunities refer to favorable external factors that an organization can use to give it a
competitive advantage.
4) Threats refer to factors that have the potential to harm an organization. For example, a drought is
a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common
threats include things like rising costs for inputs, increasing competition, tight labor supply and so
on.

5.1 Strengths
1) Strong Internal Control:

The state bank of Pakistan tight up internal control on government and main branch of
commercial banks account. If one cheque comes from one government department or
main branch of any bank if all particulars of cheque are correct then cheque will be
passed from authorized person (OG-1, OG-2 and deputy chief manager) therefore no
fraud has ever been done.
2) Good Salary Package:

State Bank of Pakistan provide good salary package as compared to commercial

banks. Therefore mostly employess are willing for doing job in SBP.
3) Employee Benefit :

The employees at SBP are offered reasonable monetary benefit. Normally bonuses are
given. Employees also enjoy the interest free loans free, medical care and insurance of
life. These serve as a benefit and competency for the bank and a source of motivation
for the employees.
4) Agent to Government :
The SBP performs several services for government by providing loans and managing
the government accounts as well as the other banks.
5) Reserve for safe custodian:

SBP has only authority to hold the reserves of the whole economy and not allowed to
commercial bank is authorized to hold the reserves except they can deal in reserves but
the ultimate holder is SBP. It is also responsible to manage and control the exchange rate
in the country.

6) Financial Background :
SBP greatest Strength in their financial background, which happen to be so strong that even
in the current market situation they are still in the position to lend loans to other banks.

5.2 Weakness :
1) Technology Backwardness:
The Major Weakness of State Bank of Pakistan is not new technology adopt with the
passage of time. Therefore mostly problems arise in their softwares as well as data
cannot be stored on save place and Profit also be decrease
2) Staff not trained In IT:
The staff member of SBP is not well trained in Information technology because
national institute of banking and finance not give proper training to employees of
State Bank of Pakistan about information technology that how information technology
is used for running the operations of this bank.
3 ) Latest procedure:
The employees of State Bank of Pakistan follow traditional procedures for any
operations . Mostly traditional procedures frequently flop in the market. Therefore to
any operation for completion take place two to three days.

5.3 Opportunities
1) Micro financing at (D.I.Khan level)
Because of the need for micro financing in the market, there are number of opportunities
in this regard. Now the time has arrived when the SBP must realize it and take on step to
 cater an ongoing demand and the Micro finance Department should implement policies
to strengthen the micro finance network with the cooperation of Commercial banks.

2) Advancement of IT and latest technology

The bank must adopt present technologies in order to facilitate the customers, employees
in order to achieve its tasks effectively and efficiently.

3) Increase economic activities

Bank establish strategies which increase economic activities like production ,distribution
and consumption of goods and services.

5.4 Threats
1) Implementation of rules and regulations :
It is one of the major threats for state bank to implement policies in its true across
commercial banks. Commercial banks frequently have to change their policies and
adopt the implemented rules and regulations at operational level.

2) Excessive government borrowings :

As a developed country Pakistani government is borrowing too much from
international banks and funding agencies like international monetary fund and world
bank . These agencies impose several restrictions against the expanding of those loans.

3) Circulation of counterfeit Note:

Counterfeit Note is also main problem for State bank. Bank should properly checked
the every single note through magnetic glass and ultraviolet lamp ; if they did any
negligence then it can be the big loss for the bank.

4 Political Pressure:

The strong political hold of some parties and government and their dominance is
affecting the bank in a negative way. They sometime have to provide loan under the
pressure, which leads to uneven and adjusted feeling in the bank employees and harms
autonomous status of the institution.
5.5 Recommendations

Clean Note should be circulate in the economy.

The SBP should be properly checked counterfeit Notes which are circulating in the
economy.
The Work force are working in SBP and SBP(BSC) should have proper Uniform.
Increase the staff strength of CMU State Bank Pakistan (BSC) D.I.Khan
department to decrease the chances of fake currency.
Staff strength should be well educated and qualified persons of only relevant field
should be recruited.

In my opinion there should be latest technology and procedure for running the
operations of bank.
Better infrastructure i.e. more spacious seating arrangements and dedicated rooms
for each and every unit may be established.
The SBP BSC (D.I.KHAN) should have purchase its own building to perform the
bank’s operations efficiently and effectively and the most important new building
must be accommodated outside the area of Army Cant so that customer and
representative of main branch of commercial banks can easily enter into the Bank
without any difficulties.

5.6 References
1. Sarfaraz, L., Faghih, N., & Majd, A. A. (2014). The relationship between women
entrepreneurship and gender equality. Journal of Global Entrepreneurship Research, 2(1),
1–1
2. Jennings, J. E., & Brush, C. G. (2013). Research on women entrepreneurs: challenges to
(and from) the broader entrepreneurship literature? The Academy of Management
Annals, 7(1), 663–715.
3. Birley, S. (1989). Female entrepreneurs: Are they really different? Journal of Small
Business Management, 27, 32–37
4. Brush, C. G. (1992). Research on women business owners: Past trends, a new perspective
and future directions. Entrepreneurship Theory and Practice, 16,5
5. Baker, T., Aldrich, H. E., & Liou, N. (1997). Invisible entrepreneurs: The neglect of
women business owners by mass media and scholarly journals in the USA.
Entrepreneurship and Regional Development, 9, 221–238.
6. Mirchandani, K. (1999). Feminist insight on gendered work: New directions in research
on women and entrepreneurship. Gender, Work and Organization, 6, 224–235.
7. Tania Afroze, Md Kashrul Alam, Eliza Akther, Nahid Sultana Jui. Women Entrepreneurs
in Bangladesh- Challenges and Determining Factors. Journal of Business and Technology
(Dhaka) Vol.9 (2) 2014; 27-41
8. N,Haq , K, Idrees,S,Ahmad(23 oct 2007)”Entrepreneurship in Pakistan”.
9. M, Haq Human Development center(24 oct 2007) “Women Entrepreneurship in South
Asia”
10. Allen, S. and Truman,C(1993).Women in Business :Perspective on Women
entrepreneurs.
11. Minniti, M. and Arentius, P.(2003). Women in entrepreneurship. The entrepreneurial
advantage of Nations: First annual global entrepreneurship Symposium.
12. Dr Muhammad Israr (2015) “Women Empowerment, Entrepreneurship and Capacity
Development” Assistant Professor,. Mahatma Jyotiba Phule Rohilkhand University,
Bareilly.
13. Dr .M. Shummuga Sundaram., Dr.M.Sekar. A.Subburaj. (2014) “Women Empowerment;
the role of education”.
14. Akhtiar Ali and Abdul Khalique Somro., Ranjeet Kumar.,(26 December 2015) IBT
Journal of Business Studies Vol. 11,No. 1.
15. www.sbp.org.pk
16. Siddiqui, A. H. (2012). Banking Law & Practice in Pakistan (3rd edition.)
17. https://en.wikipedia.org/wiki/State_Bank_of_Pakistan
18. www.google.com.pk
19. State bank of Pakistan. (July 2017). Management and administration group guideline