S

Glossary · PSX term

State Bank of Pakistan (SBP).

The SBP is Pakistan's central bank, responsible for monetary policy and financial stability.

Definition

The SBP sets the policy rate, manages the rupee and foreign reserves, and regulates banks, all of which shape the environment for the stock market. Its decisions on rates and the currency directly affect company earnings and investor sentiment.

Worked example

When the SBP changes the policy rate, bank and leveraged-company shares often react the same day.

Related on PSX Clarity

Securities and Exchange Commission of Pakistan (SECP)

Rupee depreciation

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