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Different types of banks are present in Pakistan. These are following:

Central Bank: The State Bank of Pakistan is the central bank of Pakistan. It has the monopoly over the issuing of Notes. It is also known as the Government Bank. It issues the loan to the Government and also holds accounts of the Government of Pakistan. It has control over the Commercial Banks.


Monetary policy is controlled by the State Bank of Pakistan. It increases and decreases the interest rates of loan according to inflation and deflation conditions. If there is inflation in Pakistan then it increases the interest rates. If there is deflation it decreases the interest rates.


The commercial banks have to follow the rules of state bank. They also submit reserve in the state bank of Pakistan. State bank is also known as the banker’s bank. Bank received loans and rediscounts their bills from the state bank of Pakistan. Agriculture Bank: They are working for agriculture sectors. They advance loans to farmers. Different types of loan are given to farmers like small loans medium loans and large term loans.

Loans are given to the small as well as of farmers. The farmers apply for loans to bank for purchasing of machinery tractor fertilizers and pesticides. Mortgage Banks: these banks provide facilities of mortgage loans to the people. They mortgage houses lands etc.


Industrial Development Banks: These banks provide loans to industrialists for establishing industries. They also provide short term loans, medium term loans, and long term loan to the industrialists. The promotion of the industrial sector for the welfare of the country.  

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