Updated: Sunday March 31, 2013/AlAhad
Jamada El Oula 20, 1434/Ravivara
Chaitra 10, 1935, at 04:09:26 PM
The Foreign Exchange (Prevention of Payments) Act,
1972
(XXII OF 1972)
[25th Sept. 1972]
An Act to enable the Federal Government to prohibit certain payments
Preamble: Whereas it is necessary to prohibit certain
payments.
It is hereby enacted as follows:---
1. Short title, extent and commencement: (1) This Act may be called
the Foreign Exchange (Prevention of Payments) Act, 1972.
(2) It extends to the whole of
(3) It shall come into force at once.
2. Power to direct State Bank to stop payment : (1) Notwithstanding
anything contained in the Foreign Exchange Repatriation Regulation, 1972
(M.L.R. 102), as continued in force by Article 280 of the Interim Constitution
of the Islamic Republic of Pakistan, the State Bank of Pakistan may, and if so
required by the Federal Government by order in writing, shall
direct:-
(a) an authorised dealer in foreign exchange
through whom any person has repatriated any amount of foreign exchange to
(b) any other with whom the whole or part of the
rupee equivalent of the amount so repatriated and other amount payable in
respect of such repatriation is or has been deposited, to deposit with the
State Bank, within the time specified by it, the amount representing the
aggregate of the rupee equivalent of the amount so repatriated and any other
amount payable in respect of such repatriation or, as the case may be, the part
thereof so deposited.
(2) Any person or authority to whom any amount of
money is payable by th person repatriating the amount of foreign exchange or
who has against such person any claim the value of which can be expressed in
terms of money may, within such time and in such manner as the Federal
Government may, by notification in the official Gazette specify, apply to the
Federal Government for payment of the amount so payable or, as the case may be,
of the amount representing the value of such
claim.
(3) It shall come into force at once and shall be
deemed to have taken effect on the 10th day of March, 1972:---
Provided that, while making such an order, the
officer shall have due regard to an order of the Federal Government if any,
specifying the person or authority whose claim against the person repatriating
the amount of foreign exchange shall be paid in priority to all other debts and
claims:---
Provided further that no order for the payment of
money to any person or authority shall be so made unless the person
repatriating the amount of foreign exchange has had an opportunity of showing
cause against it.
(4) The officer making an order under sub-section
(3) shall forward a copy thereof to the State Bank who shall make to the person
or authority specified in the order the payment required by the order, if
any.
(5) The deposit by an authorised dealer of foreign
exchange or any other person referred to in sub-section (1) of any amount of
money he is required to deposit with the State Bank under sub-section (1), and
the payment by the State Bank of any amount of money in pursuance of an order
under sub-section (3), shall be a full discharge of the authorised dealer or
that other person or, as the case may be, of the State Bank from all
liabilities in respect of the amount so deposited or
paid.
3. Indemnity: (1) No suit, prosecution or other legal
proceeding shall lie against the Federal Government, the State Bank of
(2) If any such suit, prosecution or other legal
proceeding as is referred to in sub-section (1) is pending immediately before
the commencement of this Act or if any judgment, decree or order has been
passed in any such or similar suit, prosecution or other legal proceeding, the
same shall abate forthwith or, as the case may be, be of no effect as if it had
never been passed.
4. Bar of jurisdiction: (1) No Court shall call in
question, or permit to be called in question; anything done or any action
taken, under this Act.
5. Power to make rules: The Federal Government
may, by notification in the official Gazette, make rules for carrying out the
purposes of this Act.
6. Penalty: Any person who contravenes or attempts to
contravene or abets the contravention of any provision of this Act or of the
rules made thereunder or disobeys any direction or order made under this Act or
any rule thereunder shall be punishable with imprisonment for a term which may
extend to three years and shall also be liable to
fine.
7. Repeal: The Foreign Exchange (Prevention of Payments)
Ordinance, 1972 (XXX of 1972), is hereby repealed.
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