ULY 1 was a red letter day in the history of this young State when the opening ceremony of the State Bank of Pakistan was performed by the Quaid-i-Azam. The occasion has marked the emergence of the financial sovereignty of this country and has enabled it, at a time when dependence on others would not have been compatible with the dictates of an enlightened policy, to become master of its own affairs in vital matters relating to central banl(ing and currency.

The State Bank of Pakistan will be the Central Bank of this country and in this capacity will perform functions in Pakistan broadly similar to those which are performed by the Bank of England for Britain, the Federal Reserve Bank for the USA, and the Reserve Bank of India for India. The State Bank, as Mr Zahid Husain, Governor of the State Bank, pointed out in his speech, will have to perform various important functions in regard to the issue of currency notes, flotation and management of public loans on behalf of the Central and Provincial Governments, maintenance of the international stability of Pakistan`s currency and management of exchange control for the Pakistan Government. The State Bank will be the banker of the Central and Provincial Governments; it will be the bank with which other banks will maintain their reserves of cash balances.

The Quaid-i-Azam, in his opening speech, said: `The economic system of the West has created almost insoluble problems for humanity and to many of us it appears that only a miracle can save it from disaster that is now facing the world. It has failed to do justice between man and man and to eradicate friction from the international field. The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contented people. We must work our destiny in our own way and present to the world an economic system based on the true Islamic concept of equality of manhood and social justice.`•