The State Bank of Pakistan Act 1956,[5] with subsequent amendments, forms the basis of its operations today.

[7] The losses incurred in the transition to independence, the small amount taken from Pakistan's share (a total of 230 million).

Initially, a large percent of the State Bank was funded by industrial families, who Quaid-e-Azam promoted.

Most notably, the Valika Family would allocate the largest share amongst these families, who also possessed good ties with the Quaid, since September 1947 when the Quaid laid the foundations of the first textile mill of Pakistan, Valika Textile Mills.

The amendments also increased the autonomy and accountability of the chief executives, the Boards of Directors of banks and DFIs.

The State Bank of Pakistan also performs both the traditional and developmental functions to achieve macroeconomic goals.

It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration[9] during the 2011 Global Policy Forum held in Mexico.

During the 1980s, Pakistan embarked upon a program of financial sector reforms, which lead to a number of fundamental changes.

Traditionally, these directors (other than Secretary, Finance Division) are re-appointed for a second term, though this is not a requirement of the law, and there have been a few exceptions to this practice.