INTERVIEW

1- What does the logo of SBP says? (MA)

The regulator of the economy. agriculture and industry both contribute in output and national
income. sbp works to boost all the sectors of the economy. Just a humble opinion.
to be more precise, an institution that makes policies for economic growth by boosting the
potentials of these sectors. For a developing country, the first objective of the central bank would
be to ensure sustainable and equitable development ( would be focusing on improving and
expanding the infrastructure as well ) ES

2- What do you like about banking? (MA)

Well, what like about banking is the people trust you so much that they give there money
to you. Apart from this it is also a very much paying sector with immense growth
opportunities. (MA)
That is because it is a sector with tremendous potential. Over the past few decades, the
growth of the banking sphere has surpassed the growth of the real sphere. From micro
financing to agricultural sector, the sector has incorporated its roots in such fashion that
aptly designed policies and their implementations lead to simultaneous growth of both.
(ES)
Banking has many facets to it there is consumer banking, commercial lending, trade ,
forex etc. In this day and age one can not do without banking whether your a housewife
or a businessman you require the services of a bank. And keeping in view the rapid
expansion of the banking sector in Pakistan it is by far the ideal sector for employment
atm. (SS)

3- Why do you want to join State Bank of Pakistan? (MA)

If you really want to pursue your career in banking... Then why not to join a supreme
banking institute tongue emoticon. (HB)
I want to join State Bank of Pakistan Because I always wanted to join an economic
institution which directly influence the economy and the State Bank of Pakistan is one
one of them. Moreover I feel that I have a strong quantitative aptitude with flexible
routine It makes me perfect for this job. (MA)
Central banking comes as the best career path for an economics graduate like me
specializing in development and monetary economics with keen interest in mathematical

and statistical techniques. Having seen how the economy works, I would like to be a part
of the back bone of the economy, and join its task force to work for the socio-economic
development of Pakistan.
I know it gives a sense of pride but then a question lies in this question too. Why should
we employ you? what can you give to SBP? Having said that, I tried to cover these
dimensions in my answer. Hopefully, people can come up with better suggestions. (ES)

4- Can you please Explain GDP,GNP, NNP and difference between these?
monetry value of all the finished products produced in a country in a specific time called
GDP
monetry value of all the finished goods produced by a country's citizen wheather residing
inside or outside a country is NNP
GDP+income earned by resident fron investment outside country_ income earned by
overseas by investing in the country is GNP. (MA)
GDP, the Gross Domestic Product is the market value (price) of all the FINAL goods and
services produced in a country in a give period of time (usually one year) However, to
avoid fluctuations in calculations, in most of the cases, it is measured periodically. Also,
GDP includes only the market value of finished goods that are legally produced. The
goods whose production, sale and distribution are declared illegal by the country are not
counted into GDP.
You can see that I stressed on the word FINAL. Cement may be the finished product of a
factory, but again, that is used in the construction of a house. That is why it is always
advised to calculate GDP using the expenditure approach. Here, in this case, we shall be
adding up the expenses incurred on the house, such as labor, and the components
purchased to be precise. The reason for dropping out these intermediate goods that serve
as ingredients in another production process is to avoid over stating of GDP or double
counting.
GNP is the sum of GDP and net factor income from abroad. Net factor income simply
means the subtraction of the Net factor income sent abroad from net factor income earned
from abroad.The value of GNP exceeds GDP due to the inclusion of net income
from abroad. The income, obviously is, earned by our factors of production such as
capital, entrepreneur, labor and owned land situated abroad. People usually put up
entrepreneur and labor in the same category. That is fine. But the usual mistake we make
is that we credit the entire net factor income earned from abroad totally to the laborers
that work there. That, however, is not the case. Someone may be owning a house outside
and getting the rental income. That has to be included here.
I would like to mention here that since GDP says that it includes the market value of all
the final goods and services produced in a country in a given period, therefore, any
expenditure or income generated even by foreign enterprises working here has to come

into the category of GDP. For example, Nestle is a swiss company. When that works in
Pakistan, the income or expenditure is added to Pakistan's GDP and not Swizerland's
GDP. However, whatever they earn here would be a part of Switzerland's net factor
income from abroad, so that would be counted in Switzerland's GNP.
GNP stands for Gross National Product. That captures the nation's factors of production
both domestically and abroad.
GDP, the Gross domestic product. The name itself gives a limitation by the word
"domestic" therefore, any sort of income and expense carried out in a territory for a
specific period of time come sunder it..
NNP , The Net National Income is the subtraction of depreciation (wear and tear cost)
from GNP.
GDP includes Consumption, Investment , Government Expenditures and Net exports. For
a closed economy, that is not involved in international trade, GDP is just the sum of the
first three components. It is written as
Y=C +I+G+Nx
Since people usually try to hide up their income, or understate that, therefore , it is always
better to calculate GDP using the expenditure approach. In idealistic situations, GDP
calculated from both income and expenditure approach is equal, but if there is a
difference between the two, that is known as Statistical Discrepancy. ES

5- Why do you think you are qualified for this job?

6- Give us one good reason not to hire you.?
OR Tell us your biggest weakness, which is really a weakness and not a
secret strength? MA
I'll go like, I spend a lot of time even at the minutest details of any assigned project. But,
in the end, it gives me an edge while concluding both critically and analytically. (ES)
Honestly I like to work independently but I have reaped the fruits of team work too.
(MA)

7- simpilified expalanation on KIBOR and LIBOR and why they are used?
(ES)
It is Karachi Inter Bank Offer Rate
and London Inter Bank Offer Rate
It is the rate at which one bank offers its deposits to the other banks. It also includes
provisions for inflation and then the commercial banks add their profits to this offer rate
and give loan to their respective consumers.
For Example, Last weak I was in National Bank and there I saw a KASB Bank Employee
giving money to the NBP official as I knew both of them I asked KASB employee that
what's going on? He said It is just another way of earning we have extra deposits these
days and the consumer credit is not demanded very much in our Town, He said we offer
50% of our deposits at a lower rate of interest to the NBP and that rate is called KIBOR.
It is decided on daily basis, Weekly basis, Monthly, Quarterly basis and so. (MA)
when a bank(in pakistan) offers another bank its deposits for a certain period of time, it
charges a rate of interest on the amount borrowed, and that is kibor. Kibor is a trimmed
average of interest rate offered by banks on lending (as explained above) Spot rate means
the interest rate (price) that we have to pay at the end of the period. Therefore, at the end
of the period, I have to pay the amount borrowed plus the interest amount and the rate of
interest that is charged is kibor. (ES)
8- What is working capital? (MA)
crrunt assets - crrunt liabilities= working capital
it means how much crrunt assets are available to meet the business or company's short
term debts. M.A

9- Functions of State Bank of Pakistan? (MA)

Primary Functions
Banker to The Govt.
Custodian of Reserves
Bankers Bank
Lender of last resort
Rediscounter of Bills of Exchange
Supervision of Banking System
Monetary Policy

Secondary Functions
Representative of Pakistan in International Monetary and Financial Institutions
Exchange Rate Management
Balance of Payment Management
Foreign Exchange Management
Credit Control
Public Debt Management
Advising the Govt. on Policy (MA)

Primary functions also include open market operations

(https://www.facebook.com/mr.meemalif/videos/764178210332449/) and discount
lending. As a secondary function, it has to make sure that the designed policies do not
clash with fiscal policy. (ES)

10-

OG 2 Interview Exp by Nouman Nadeem;

Interview panel consisted of 4 members.. 2nd member was the most senior and the 4th one
was most junior( May be OG-4).. Just a guess! smile emoticon
I entered the room and said loudly 'Assalam-u-Alaikum'.
All : W. Salam
Me : May i have a seat?
One member: Sure, Sure please
1st member: Why should we recruit you when we have other business graduates?
I was like gasp emoticon for a moment (Strange 1st question) but didn't express it.
Me: Sir, In the advertisement it was clearly mentioned that candidates with 16 years of
education are eligible to apply which shows that this job requires something more than
technical knowledge. Also, the reason was the 6th semester of my engineering when we were
taught a subject ' Engineering management & Ethics' in which we were taught 'Capital
budgeting techniques', 'basic concepts of economics' and 'Time value of Money' which urged
the natural interest in myself towards Economics. At that time, i was also suffering from
financial crisis so someone, i don't remember who, advised me to take a chance in forex
trading and i did. So it's been an year i am trading foreign exchange market and i'm greatly
impressed by the Central Bankers.
1st member: Kya mtlb ap inspired hain? Kitnay Central bankers k ghar dawat pay gaye hain
ap aj tk?
Me: No Sir, that's not the case. Actually main economy k fundamentals ko regularly follow
krta hun, I study different monetary policies announced by different central banks and...
1st member: Kya hoti hai monetary policy?
Me: Sir monetary policy is announced by the central bank of a country periodically, in which

different economic indicators are studied to identify the root problems in the economy and
Central Bank is main apni future forecasts ko b revise krta hai, depending upon the economic
situation.
1st member: When we announced the monetary policy?
Me: Sir State Bank has announced 3-4 days ago.
1st member: Kyaa tha is main?
Me: Sir the interest rates have been decreased making to 10 years low..
1st member: Main ne ap se ye ni pucha k interest rate kya hai.. I asked what was in our
monetary policy?
Me: Sir, the inflation is hitting yearly lows and it is at 4.3% which is well below the 8%
target set by State bank o Pakistan, Which mean that our economy might be heading towards
deflation and it is an alarming situation, so decreasing interest rate is a wise decision. It will
help State bank to control the inflation..
3rd member: Apko kis ne kaha k economy deflation ki trf ja ri hai.. It is due to falling prices
of oil and commidities?
Me: Sir deflation is not about falling prices goods and services, It is about k State bank of
Pakistan k target se bhht nechay hai that's why deflation ho sktii hai (A blunder :-p)
3rd member (laughing): So this is how you define deflation?
Me: no sir, I just explained my point of view. (smiling khisianay tareqay se)
4th member: Can you tell me what is the difference between pay order and check?
Me: Sir, i am not aware of these general technical terms.. Sorry
4th member: Do you have a bank account?
Me: No Sir, i don't have it..
4th member: Ok let me give you a hint.. Apki university ap se check pay fee kyun ni letii,
cash hi kyun letii hai?
Me: Sir, it's simple. Kyun k agar depositor k account main itni amount ni hogii to university
problems face kray gii..
4th member: This is exactly what we were asking about.
Me: I am sorry, i wasn't aware of their names.
3rd member: Ok, can you tell me what is difference between currency and the prize bond?
Me: Sir prize bond is like a borrowing receipt.. Ap k pas jitnay ka bond hai it meand k
government utnay paison k liye apki borrower hai.. and after all government is a faithful
borrower , wo ap k paisai kbi ni dubnay day gii, So is k 2 faiday hain 'Ap government k kam
b a rhay hain' aur chance bnay to prize b milta hai'.
3rd member: good, very good..
1st member: Han g hum to yahan prize dene k liye bethay hain..
I smiled..
1st member: Aur btaien kyaa perh k aye hain ap.. Monetary policy to apki dekh li hai hum ne
k kitni achi ati hai apko..
Me: Sir i studied about the Core function of SBP and ...
1st member: Wo sub ne perhay hotay hain aur kuch?
Me: Sir BSC k functions perhay hain?
1st member: Which is the main function of SBP-BSC?

Me: Currency management

1st member: What is currency management?
Me: Sir, it includes giving orders about printing notes to PSPC (Pakistan Security Printing
Council), Arranging them in a systematic manner, distribute them in general public and
discontinuation of misfit notes and coins from the circulation in the economy.
2nd member: good, good.
1st member: Pta chal raha hai k ap ratta mar k aye hain..
I was like uugghhh.. But then i realized that he was focusing on face expressions just to
check my temprament.
1st member: Aur kya functions hain BSC k?
Me: Sir i'm not sure about it? (Shit it forgot foreign exchange operations and providing
banking services to the government :/)
1st member: Ye functions kahan pay perhay thay ap ne?
Me: Sir i downloaded a pdf file from State Bank website..
1st member: To us main aur kuch ni likha tha?
Me: No sir it was about currency management aur us main inhin functions ko elaborate kiya
gaya thaa..
4th member: Currency apnay pas rakhnay k kya nuqsanat hain?
Me: Sir if it is foreign currency to is ka exchange rate gir b skta hai..
1st member: Ap se kisi ne kaha hai k ye foreign currency main hai.. Apni currency ki bat
krain?
Me: Sir the biggest threat is theft..
4th member: good, one more?
Me: .....
4th member: It's a general one.. What do you check in a currency note?
Me: Sir, counterfeiting is the other issue..
4th member: Good..
2nd member: What are the foreign reserves of Pakistan?
Me: Sir 10 to 11 billion dollars..
2nd member: State bank aur commercial banks ko mila k ya sirf State bank k?
Me: Sir i am not sure about it..
3rd member: How do you check if a currency note is real?
Me: Sir we should view it in front of light to check the wire and nail ko side pay khurcha jata
hai to aik khas feeling develop hoti hai which is due to khurdura pan of that side..
2nd member: What is power generating capibility of Pakistan?
Me: I'm unsure about it, but the difference between supply and demand is 6000MW.
2nd member: We all know that, i asked you about total capacity?
Me: I'm Sorry Sir
2nd member: You're an Electrical engineer.. Ye apki field hai apko pta hona chahiye.. Hmen
kya ptaa ap jo chahay value bta sktay hain..
Me: Sir i don't want to tell a lie, i don't know, I'm really sorry for that!
4th member: Ok, who is known as Khateeb-ul-Anbiya?
Me: Hazrat Shoaib (A.S)

4th member: Tell us about Hazrat Yousaf (A.S)

Me: Sir he was the most handsome Prophet of Allah and was the most handsome man of his
time and was the son of Hazrat Yaqub. Quran pak main un k name pay aik surat bi hai.. Wo
apnay baap se bichar k Egypt chalay gaye thay to Hazrat Yaqub (A.S) ki ankhon ki benai chli
gayi thii which came back after he met his son back.
2nd member: Thank you.. All the best
Me: Thank you Sir, i will be ready for any other inquiry, mje ap sub se mil k bhht acha
lgaa..Allah hafiz
All: Allah hafiz.. smile emoticon

11- SBP
State Bank of Pakistan is the Central bank of Pakistan which is the note-issuer and coin
manufacturer.
As it have monopoly in note issue like all other central banks it also holds the
responsibility to manage the demand and supply of the money in the market. It also is
responsible for issuing fresh notes and destructing the spoiled and damaged notes. (MA)
I'd like to add something. It is not the State Bank that is the manufacturer of coins. It is
the Pakistan Mint at Lahore where the coins are minted (produced) . The designs of the
coins and notes are passed and approved by the Parliament and then they get
minted/printed. The printing of notes is done by PSPC. (ES)

12-

Hammad B Interview Q

Here are some of the questions of ma interview...

What is banking...
Conventional banking...
Central banking...
Functions of C.B
monetory Policy
what is finance
what is accounting..
Difference between payorder and bank draft...
Are both Negotiable certificate

13-

M.A exp

fiscal policy kia hy mjhy bhool gya FDI pocha profit and loss acount or balance sheet ka
relation pocha mjhy ni aya cash flow statment mn kitni kism k cash inflows or outflows
hu skty hyn? agr expensionry monetory policy hmny impose kr di hy to uski kia
limitations hu skti hyn k hum apna target achieve na kr skyn?
accrude and outstanding incom ka diffrence pocha

14-

MAU exp

Questions sequences is same

1st your intro
2nd Your Specialization Field i.e. as I have Finance background, so they asked from
accrual based accounting,different Financial statements relations,GAAP Principles. and
their interrelationships,some questions from marketing/mangement.
3rd they ask relevancy of your specilzition & SBP-BSC or u can say why they hire u.
As I have Livestock experience in Engro Foods so they have lot to ask from farming
perspective & there relationship/relevance with SBP-BSC Development Finance support
Department.
15- My interview experience.....
Duration : 8-10 mins
Confidence Level : Average
Educational Background: Telecommunication Engineering
Interview Panel: Three members (Left, Middle and Right)
Me: Entered the room, said Asalamo alaikum (with loud and clear voice).
Middle: Walaikum salam, kese hy aap Mazhar Uddin?
Me: Allhumdulillah, me bilkul theek thak hu sir.
Middle: Acha to kuch batae apne bare me.
Me: Mera naam Mazhar Uddin h, me Badin district s taaluq rakhta hu, Mene
Matriculation or FSC Badin se hee kye hn, or meri bachelors COMSATS Lahore se ki
huwi h, Mere father ex-banker reh chuke hn, Mere X bhai hn or Y sisters hn.
Middle: Acha, to aap Lahore q gae parhne.
Me: Sir, mje wahan ek fully funded scholarship mil gae thi, mene opportunity avail krna
chahi islye me waha chala gaya.
Middle: Kia aap bata sakte hn h k banking sector me q jana chahte hn, jb k apki degree
banking s related nhn h?
Me: Sir, meri degree telecom engg me h, mere hisab s ye utni he importance rakhti h jtni
bqi busines or economics s related degrees ki importance h banking sector m, jese in dino
branchless banking or internet banking bhot ziada use ki jarhi h, jiske lye secure
transactions ka hona zaruri h. Jese SWIFT organization he wo telecommunication k
protocols ko use krte hue secure transactions provide krti hy, is waja s telecommunication
b banking sector m bhot importance rakhti h.
Middle: Acha, to aapne interview ki tayari kese ki?
Me: Sir, mene almost internet se tayari ki, investopedia or sbp ki website s information
collect ki.
Middle: Acha to kia aap bata sakte hn k SBP or SBP-BSC me kia difference h?
Me: Sbp policy making body h or bsc uski operational arm h jo banking services provide
krti h.

Middle: SBP government ko kia provide krti h?

Me: Sir wo banking services provide krti h government ko, jese sbp government ko
money lend krti h interest k basis per.
Middle: Apko pata h k apne jis position k lye appy kia h unka kaam kia hota h?
Me: Yes sir, ye entry level ka job h, jisme ek inductee ko sbp-bsc k mukhtalif departments
me s kisi me allocate kia jaskta h.
Me: Sir may I have some water ( I felt my throat is getting dry).
Left: Sure, apke lye hee to rkha hua h, or Nuts me s bhi kuch len (A bowl of Nuts and A
bottle was placed infront of interviewers and interviewee).
After I had a glass of water....
Right: Aapne kahi per job wagera kia h?
Me: Nhn sir, i am trying to get one.
Right: Or agr nhn mila to shadi krlenge.
Me: Sir, job hoga tab hee to shadi hogi.
Left: Aaj kal k parents q shadi me itna late krte hn, talking to fellow panelist.
Left: Acha to Mazhar Uddin apko apne parent s koi question h?
Me: (I thought as He said Parents, so I asked him) Sorry sir, parents s kis bare me
question?
Left: Parents nhn, hum se koi question ho, hum apki parent organization huwe, to koi
question ho to aap puch sakte hn.
Me: No sir , mje koi question nhn h.
Middle: Mazhar Uddin thankyou very much.
Me: Thankyou sir.

16-

B.A exp

here is the summary of my interview

1. apny bary mai btayen
2 ap ka MS complete ho chuka
3 thesis kb karen gy, schplarship kahan mila etc
4 how is your field (mechatronics) relevent to BSc...
5 ap ki degree to bht respectable hai..agr hum apko yahan cashier bna dyn to?
6 Being engineer ap k to test mn zyada marks aany chahiye thy
6 Future mein education continue kren gy?
7 hum sy koi question?

17- following are the questions tht wre asked 4rm me:
1.. difference b/w accounting & finance
2....diff b/w sbp nd bsc
3.....fnctns of bsc
4....currency mgt
5....issue circle
6...numbers of issue circle.
7... how will u record the death of ur boss in books of accounts ? if u are an accountant
8..contingencies is recorded in blnce sheet or not?
9...managerial accounting?
10.organizational behavior?
11...shape of demand curve
12..shape of mrgnal utility curve
13...progressive taxes?
14...with holding tax?
15...theory x?
16....theory y?
17..ur personality type?
the rest of questions were frm my answrs.

18-

MA interview:

Me With smiling face entered the room and broke the ice by saying Asslam o Alaikum.. There
were three interviewers when i entered the room but when i went there were actually two.. don't
about the third one :P
First of all they answered my salam along with returning my smile back to me. They offered me
seat and said.. Mujahid sb Tell us about yourself.. I gave a brief intro and the bombardment
started which i really love..
Q.1 What is zero budget.
Ans. Sorry sir I don't know :P
Q.2 What is budget..
Mene Urdu mein bta dia kia hota hai :P
Q.3 What is budget deficit..
Phir kch bhondi c explanation dedi mene :v
Q.4 What is the benefit of deficit?
Ans. Me :O benefit O.o
Q.5 What is inflation
simple tha yar :P
Q.6 What is the effect of inflation on investment

ANS. Investment increase hogi :P

Interviewer: Bhai kese increase hogi?
Mene agy se pata ni kon c rangbazi sunayi interviewer made a question shift :P
Q.7 What is the cost of money.
Ans, Interest
Now first member of the panel smiled and looked toward the second member
Second member:
Q.8 Mujahid What is theory X and Theory Y
Ans: Sorry sir
Q.9 What is Subordinate debt.
Ans. I don't know sir.
Q. 10 Management ni parhi?

Ans, No sir :P
Q. 11 What is discount rate.
I answered with lighting speed :P
Q. 12 What is accounting equation..
Ans. Assets= Liability+ Capital
Q. 13 What is L. C.
Ans: LC means letter of credit.
Q. 14 Who issues L. C.
Ans. Bank hahaha :P
Q. 15 On whose behalf bank issues L.C.?
Ans. Importers behalf
Q.16 What if importer doesn't pay money.
Ans. Bank uski security bech dy ga :D
Q. 17 Agar security na ho to?
I said.. pata ni
Q. 18 Exporter ko kaya mile ga?
I said ye banks ki apas ki understanding hogi..
Q. 19 What is standby L.C.
Ans. Sorry Sir :v
Q. 20 Back to Back L. C.?
Answered them
Q. 21 Job kaha ki hai..
I answered along with saying k I've resigned.
Q. 22 Why resigned
Gave them justification.
Q. 23 Koi Question hum se?e
Wo ni batana k kiya kiye the mene :P
The wished me best of luck and I shaked hand with them..

Important links:
http://www.cssforum.com.pk/banking-finance/banking-jobs/state-bank-pakistan/
http://www.finance.gov.pk/survey/chapters_15/Highlights.pdf
http://www.sbp.org.pk/about/index.asp