Updated: Thursday January 02, 2014/AlKhamis
Rabi' Awwal 01, 1435/Bruhaspathivara
Pausa 12, 1935, at 04:20:52 PM
The Foreign Exchange
Regulation Act, 1947
(VII OF 1947)
The Foreign Exchange
Regulation (104 of 1972)
An act to regulate
certain payments, dealings in foreign exchange and securities and the import
and export of currency and bullion
Preamble: Whereas it is expedient
in the economic and financial interest of Pakistan to provide for the
regulation of certain payments, dealings in foreign exchange and securities and
the import and export of currency and bullion.
It is hereby enacted as
follows:---
1. Short title, extent
and commencement: (1)
This Act may be called the Foreign Exchange Regulation Act, 1947.
(2) If extends to the
whole of
(3) It shall come into
force on such date as the Federal Government may, by notification in the
Official Gazette, appoint in this behalf.
(4) [Omitted by the
Foreign Exchange Regulation (Amendment) Act, 1 of 1952, S. 2].
2. Interpretation: In this Act, unless
there is anything repugnant in the subject or context:---
(a) “Appellate Board”
means a Foreign Exchange Regulation Appellate Board constituted under
sub-section (1) of Section 23-C;
(aa) “authorised dealer”
means a person for the time being authorised under Section 3 to deal in foreign
exchange;]
(b) “currency” includes
all coins, currency notes, bank notes, postal notes, money orders, cheques,
drafts, traveler’s cheques, letter of credit, bills of exchange and promissory
notes;
(c) “foreign currency”
means any currency other than
(d) “foreign exchange”
means foreign currency and includes any instrument drawn, accepted, made or
issued under clause (8) of Section 17 of the State Bank of Pakistan Act, 1956,
all deposits, credits and balances payable in any foreign currency, and any
drafts, traveler’s cheques, letters of credit and bills of exchange, expressed
or drawn in Pakistan currency but payable in the foreign currency;
(e) “foreign security”
means any security issued elsewhere than in
(f) “gold” includes gold
in the form of coin, whether legal tender or not, or in the form of billion or ingot,
whether refined or not;
(g) “
(h) “owner” in relation
to any security, includes any person who has power to sell or transfer the
security, or who has the custody thereof, or who receives, whether on his own
behalf or on behalf of any other person, dividends or interest thereon, and who
has any interest therein, and in a case where any security is held on any trust
or dividends or interest thereon are paid into a trust fund, also includes any
trustee or any person entitled to enforce the performance of the trust or to
revoke or vary, with or without the consent of any other person, the trust or
any terms thereof, or to control the investment of the trust moneys;
(i) “prescribed” means
prescribed by rules made under this Act;
(j) “State Bank” means
the State Bank of
(k) “security” means
shares, stocks, bonds, debentures, debenture stock and Government securities,
as defined in the Securities Act, 1920, deposit receipts in respect of deposits
of securities and units or sub-units of unit trusts, but does not include bills
of exchange or promissory notes other than Government promissory notes;
(l) “silver” means
silver bullions or ingot, silver sheets and plates which have undergone no
process of manufacture subsequent to rolling and incurrent silver coin which is
not legal tender in Pakistan or elsewhere;
(m) “transfer” includes,
in relation to any security, transfer by way of loan or security.
3. Authorised dealers in
foreign exchange: (1)
The State Bank may, on application made to it in this behalf, authorize any
person to deal in foreign exchange.
(2) An authorization
under this section:---
(i) may authorize
dealings in all foreign currencies or may be restricted to authorizing dealings
in specified foreign currencies only;
(ii) may authorize
transactions of all descriptions in foreign currencies or may be restricted to
authorizing specified transactions only;
(iii) may be granted to
be effective for a specified period, or within specified amounts 3[...]
(3) An authorised dealer
shall in all his dealings in foreign exchange comply with such general or
special directions or instructions as the State Bank may from time to time
think fit to given, and, except with the previous permission of the State Bank,
an authorised dealer shall not engage in any transaction involving any foreign
exchange which is not in conformity with the terms of his authorization under
this section.
(4) An authorised dealer
shall, before undertaking any transaction in foreign exchange on behalf of any
person, require that person to make such declarations and to give such
information as will reasonably satisfy him that the transaction will not
involve, and is not designed for the purpose of any contravention or evasion of
the provisions of this Act or of any rules, directions or orders made
thereunder, and where the said person refuses to comply with any such
requirement or makes only unsatisfactory compliance therewith, the authorised
dealer shall refuse to undertake the transaction and shall, if he has reason to
believe that any such contravention or evasion as aforesaid is contemplated by
the person, report the matter to the State Bank.
4[(5) Without prejudice
to the provisions of Section 23-B, if an authorised dealer commits contravention
of any term of authorisation or uses it for any purpose other than the purpose,
or after the expiry of the period, for which it was given or contravenes or
attempts to contravene or abets the contravention of the provisions of this
Act, or the general or special directions or instructions or permissions issued
by the State Bank from time to time under any provisions of this Act or any
rules made thereunder, or engages in transactions not in conformity with the
terms of authorisation or fails to comply with any of the provisions of this
Act or any rules, directions, instructions, or permissions made, issued or
given the thereunder or in the public interest it is necessary so to do or
otherwise exist reasons appearing sufficient to the State Bank, the State Bank
may after giving a reasonable opportunity of being heard to the authorised
dealer, cancel the authorisation:---
Provided that, if, in
the opinion of the State Bank, any delay would be prejudicial to the public
interest, the State Bank may, at the time of giving opportunity as aforesaid or
at any time thereafter and pending the hearing as aforesaid, if any, by order
suspend, for a period specified in the order, the authorisation either wholly
or to such extent as may be so specified.]
4. Restrictions on
dealing in foreign exchange: (1) Except with the previous general or special
permission of the State Bank, no person other than an authorised dealer shall
in Pakistan, and no person resident in Pakistan other than an authorised dealer
shall outside Pakistan, buy or borrow from or sell or lend to, or exchange with
any person not being an authorised dealer, any foreign exchange.
(2) Except with the
previous general or special permission of the State Bank, no person whether an
authorised dealer or otherwise, shall enter into any transaction which provides
for the conversion of Pakistan currency into foreign currency or foreign
currency into Pakistan currency at rates of exchange other than the rates for
the time being authorised by the State Bank.
(3) Where any foreign
exchange is acquired by any person other than an authorised dealer for any
particular purpose, or where any person has been permitted conditionally to
acquire foreign exchange the said person shall not use the foreign exchange so
acquired otherwise than for that purpose or, as the case may be, fail to comply
with any condition to which the permission granted to him is subject, and where
any foreign exchange so acquired cannot be so used or, as the case may be, the
conditions cannot be complied with, the said person shall without delay sell
the foreign exchange to an authorised dealer.
(4) Nothing in this
section shall be deemed to prevent a person from buying from any post office,
in accordance with any law or rules made thereunder, for the time being in
force, any foreign exchange in the form of postal orders or money orders.
5. Restrictions on
payments : (1)
Save as may be provided in and in accordance with any general or special
exemption from the provisions of this sub-section which may be granted
conditionally or unconditionally by (the State Bank) no person in or resident
in Pakistan shall:---
(a) make any payment to
or for the credit of any person resident outside
(b) draw, issue or
negotiate any bill of exchange or promissory note or acknowledge any debt, so
that a right whether actual or contingent to receive a payment is created or
transferred in favour of any person resident outside
(c) make any payment to
or for the credit of any person by order or on behalf of any person resident
outside
(d) place any sum to the
credit of any person resident outside
(e) make any payment to
or for the credit of any person as consideration for or in association with:---
(i) the receipt by any
person of a payment or the acquisition by any person of property outside
(ii) the creation or
transfer in favour of any person of a right whether actual or contingent to
receive a payment or acquire property outside
(f) draw, issue or
negotiate any bill of exchange or promissory note, transfer any security or
acknowledge any debt so that a right (whether actual or contingent) to receive
a payment is
created or transferred in favour of any person as consideration for or in
association with any matter referred to in clause (e).
(2) Nothing in
sub-section (1) shall render unlawful:---
(a) the making of any
payment already authorised, either with foreign exchange obtained from an
authorised dealer under Section 4 or with foreign exchange retained by a person
in pursuance of an authorisation granted by the State Bank;
(b) the making of any
payment with foreign exchange received by way of salary or payment for services
not arising from business in, or anything done while in
(3) Nothing in this
section shall restrict the doing by any person of anything within the scope of
any authorisation or exemption granted under this Act.
(4) For the purposes of
this section, “security” also includes coupons or warrants representing
dividends or interest and life or endowment insurance policies.
6. Blocked Accounts : (1) Where an exemption
from the provisions of Section 5 is granted by the State Bank in respect of
payment of any sum to any person resident outside Pakistan and exemption is
made subject to the condition that the payment is made to a blocked account:---
(a) the payment shall be
made to a blocked account in the name of that person in such manner as the
State Bank may by general or special order direct; and
(b) the crediting of
that sum to that account shall, to the extent of the sum credited, be a good
discharge to the person making the payment.
(2) No sum standing at
the credit of a blocked account shall be drawn on except in accordance with any
general or special permission which may be granted conditionally or otherwise
by the State Bank.
(3) In this section
“blocked account” means an account opened as a blocked account at any office or
branch in Pakistan of a bank authorised in this behalf by the State Bank, or an
account blocked, whether before or after the commencement of this Act, by order
of the State Bank.
7. Special accounts : (1) Where in the opinion
of the Federal Government it is necessary or expedient to regulate payments due
to persons resident in any territory, the Federal Government may, by notification
in the Official Gazette, direct that such payments or any class of such
payments shall be made only into an account (hereinafter referred to as a
special account) to be maintained for the purpose by the State Bank or an
authorised dealer specially authorised by the State Bank in this behalf.
(2) The credit of a sum
to a special account shall, to the extent of the sum credited, be a good
discharge to the person making the payment:---
Provided that where the
liability of the person making the payment is to make the payment in foreign
currency, the extent of the discharge shall be ascertained by converting the
amount paid into that currency at such rate of exchange as it for the time
being fixed or authorised by the State Bank.
(3) The sum standing to
the credit of any special account shall from time to time be applied:---
(a) Where any agreement
entered into between the Federal Government and the Government of the territory
to which the aforesaid notification relates for the regulation of payments
between persons resident in Pakistan and in that territory, in such manner as
the State Bank, having regard to the provisions of such agreement, may direct,
or
(b) where no such
agreement is entered into for the purpose of paying wholly or partly, and in
such order of preference and at such time as the Federal Government may direct,
debts due from the persons resident in the said territory to persons resident
in Pakistan or in such other territories as the Federal Government may be order
specify in this behalf.
8. Restrictions on
import and export of certain currency and bullion: (1) The Federal
Government may, by notification in the Official Gazette order that subject to
such exemptions, if any, as may be continued in the notification, no person
shall, except with the general or special permission of the State Bank and on
payment of the fees, if any, prescribed bring or send into Pakistan and gold or
silver or any currency-notes or Bank notes or coin whether Pakistani or
foreign.
Explanation: The
bringing or sending into any part of place in the territories of Pakistan of
any such articles as aforesaid, intended to be taken out of the territories of
Pakistan without being removed from the ship or conveyance in which it is being
carried, shall nonetheless be deemed to be bringing or as the case may be
sending, into the territories of Pakistan of that article for the purposes of
this section.
(2) No person shall,
except with the general or special permission of the State Bank or the written
permission of a person authorised in this behalf by the State Bank take or send
out of Pakistan and gold, jewellery or precious stones, or Pakistan currency
notes, Bank notes or foreign exchange.
(3) The restrictions
imposed by sub-sections (1) and (2) shall be deemed to have been imposed under
Section 16 of the Customs Act, 1969 without prejudice to the provisions of
Section 23 of this Act, and all the provisions of that Act shall have effect
accordingly.
9. Acquisition by
Federal Government of Foreign Exchange: The Federal Government may, by notification in
the Official Gazette, order every person in, or resident in,
(a) who owns or holds
such foreign exchange as may be specified in the notification, to offer it, or
cause it to be offered for sale to the State Bank on behalf or the Federal
Government or to such person, as the State Bank may authorise for the purpose
within such time as may be specified in the notification and at such price as
the Federal Government may fix being a price which is in the opinion of the Federal
Government not less than the market rate of the foreign exchange when it is
offered for sale;
(b) who is entitled to
assign any right to receive such foreign exchange as may be specified in the
notification, to transfer that right to the State Bank on behalf of the Federal
Government on payment of such consideration therefor as the Federal Government
may fix:---
Provided that the
Federal Government may by the said notification or another order exempt any
person or class of persons from the operation of such order:---
Provided further that
nothing in this section shall apply to any foreign exchange acquired by a
person from an authorised dealer and retained by him with the permission of the
State Bank for any purpose.
10. Duty of persons
entitled to receive foreign exchange, etc.: (1) No person who has a right to receive
any foreign exchange or to receive from a person resident outside Pakistan a
payment in rupees shall, except with the general or special permission of the
State Bank, do or refrain from doing any act with intent to secure:---
(a) that the receipt by
him of the whole or part of that foreign exchange or payment is delayed, or
(b) that the foreign
exchange or payment ceases in whole or in part to be receivable by him.
(2) Where a person has failed
to comply with the requirements of sub-section (1) in relation to any foreign
exchange or payment in rupees, the State Bank may give to him such directions
as appear to be expedient for the purpose of securing the receipt of the
foreign exchange or payment, as the case may be.
11. Power to regulate
the uses, etc., of imported gold and silver: The Federal Government may, by
notification in the Official Gazette, impose such conditions as it thinks
necessary or expedient on the use or disposal of or dealings in gold and silver
prior to, or at the time of, import into Pakistan.
12. Payment for exported
goods: (1)
The Federal Government may, by notification in the Official Gazette, prohibit
the export of any goods or class of goods specified in the notification from
Pakistan directly or indirectly and place so specified unless a declaration
supported by such evidence as may be prescribed or so specified is furnished by
the exporter to the prescribed authority that the amount representing the full
export value of the goods has been, or will within the prescribed period, be
paid in the prescribed manner.
(2) Where any export of
goods has been made to which a notification under sub-section (1) applies, no
person entitled to sell, or procure the sale of the goods shall, except with
the permission of the State Bank, do or refrain from doing any act with intent
to secure that:---
(a) the sale of the
goods is delayed to an extent which is unreasonable having regard to the
ordinary course of trade, or
(b) payment for the
goods is made otherwise than in the prescribed manner or does not represent the
full amount payable by the foreign buyer in respect of the goods, subject to
such deductions, if any, as may be allowed by the State Bank, or is delayed to
such extent as aforesaid:---
Provided that no
proceedings in respect of any contravention of this sub-section shall be
instituted unless the prescribed period has expired and payment for the goods
representing the full amount as aforesaid has not been made in the prescribed
manner.
(3) Where in relation to
any such goods the said period has expired and the goods have not been sold and
payment therefore has not been made as aforesaid, the State Bank may give to
any person entitled to sell the goods or to procure the sale thereof, such
directions as appear to it to be expedient for the purpose of securing the sale
of the goods and payment therefore as aforesaid, and without prejudice to the
generality of the foregoing provision, may direct that the goods shall be
assigned to the Federal Government or to a person specified in the directions.
(4) Where any goods are
assigned in accordance with sub-section (3), the Federal Government shall pay
to the person assigning them such sum in consideration of the net sum recovered
by or on behalf of the Federal Government in respect of goods as may be
determined by the Federal Government.
(5) Where in relation to
any such goods the value as stated in the invoice is less than the amount which
in the opinion of the State Bank represents the full export value of those
goods, the State Bank may issue an order requiring the person holding the
shipping documents to retain possession thereof unit such time as the exporter
of the goods has made arrangements for the State Bank or a person authorised by
the State Bank to receive on behalf of the exporter payment in the prescribed
manner of an amount which represents in the opinion of the State Bank the full
export value of the goods.
(6) For the purpose of
ensuring compliance with the provisions of this section and any orders or
directions made thereunder, the State Bank may require any person making any
export of goods to which a notification under sub-section (1) applies to
exhibit contracts with his foreign buyer or other evidence to show that the full
amount payable by the said buyer in respect of the goods has been, or will
within the prescribed period, be paid in the prescribed manner.
13. Regulation of export
and transfer of securities: (1) No person shall, except with the general or
special permission of the State Bank:---
(a) take or send any
security to any place outside
(b) transfer any
security or create or transfer any interest in a security to or in favour of a
person resident outside
(c) transfer any
security from a register in Pakistan to a register outside Pakistan or do any
act which is calculated to secure, or forms part of a series of acts which
together are calculated to secure, the substitution for any security which is
either in, or registered in Pakistan, of any security which is either outside
or registered outside Pakistan;
(d) issue, whether in
(2) Where the holder of
a security is a nominee, neither he nor any person through whose agency the
exercise of all or any of the holder’s rights in respect of the security is
controlled shall, except with the general or special permission of the State
Bank, do any act whereby he recognises or gives effect to the substitution of
another person as the person from whom he directly receives instructions,
unless both the persons previously instructing him and the person substituted
for that person were, immediately before substitution, resident in Pakistan.
(3) The State Bank may,
for the purpose of securing that the provisions of this section are not evaded,
require that the person transferring any security and the person to whom such
security is transferred shall subscribe to a declaration that the transferee is
not resident outside
(4) Notwithstanding
anything contained in any other law, no person shall, except with the
permission of the State Bank:---
(a) enter any transfer
of securities in any register or book in which securities are registered or
inscribed if he has any ground for suspecting that the transfer involves any
contravention of the provisions of this section; or
(b) enter in any such
register or book, in respect of any security, whether in connection with the
issue or transfer of the security or otherwise, an address outside Pakistan
except by way of substitution for any such address in the same country or for
the purpose of any transaction for which permission has been granted under this
section with knowledge that it involves entry of the said address.
(6) For the purpose of
this section:---
(a) “holder” in relation
to a bearer security means the person having physical custody of the security
provided that, where a bearer security is deposited with any person in a locked
or sealed receptacle from which the person with whom it is deposited is not
entitled to remove it without the authority of some other person that other
person shall be deemed to be the holder of the security;
(b) “nominee” means a
holder of any security (including bearer security) or any coupon representing
dividends or interest who, as respects the exercise of any rights in respect of
the security or coupon, is not entitled to exercise those rights except in
accordance with instructions given by some other person, and a person holding a
security or coupon as a nominee shall be deemed to act as nominee for the
person who is entitled to give instructions either directly or through the
agency of one or more, persons, as to the exercise by the holder of the security
or coupon of any rights in respect thereof and is not, in so doing, himself
under a duty to comply with instructions given by some other person;
(c) “security” also
includes coupons or warrants representing dividends or interest, and life or
endowment insurance policies;
(d) “a person resident
outside
14. Custody of
securities:
(1) The Federal Government may, by notification in the Official Gazette, order
every person by whom or on whose behalf a security or document of title to a
security specified in the order is held in Pakistan to cause the said security or
document of title to be kept in the custody of an authorised depository named
in the order:---
Provided that the State
Bank may by order in writing permit such security to be withdrawn from the
custody of the authorised depository subject to such conditions as may be
specified in the order.
(2) No authorised
depository may part with any security covered by an order under sub-section (1)
without the general or special permission of the State Bank except to or to the
order of, another authorised depository.
(3) Except with the
general or special permission of the State Bank, no authorised depository
shall:---
(a) accept or part with
any security covered by an order under sub-section (1) whereby the security is
transferred into the name of a person resident outside Pakistan; or
(b) do any act whereby
he recognizes or gives effect to the substitution of another person as the
person from whom he directly receives instructions relating to such security
unless the person previously so instructing him and the person substituted for
that person were immediately before the substitution resident in
(4) Except with the
general of special permission of the State Bank, no person shall buy, sell or
transfer any security, or document of title to a security, covered by an order
under sub-section (1) unless such security or document of title has been
deposited in accordance with the order.
(5) Except with the
general or special permission of the State Bank, no capital moneys, interest or
dividends in respect of any security covered by an order under sub-section (1)
shall be paid in
(6) For the purposes of
this section:---
(a) “authorised
depository” means a person notified by the Federal Government to be entitled to
accept the custody of securities and documents of title to securities; and
(b) “security” shall
include coupons.
15. Restrictions on
issue of bearer securities: The Federal Government may, by notification in the Official
Gazette, order that except with the general or special permission of the State
Bank no person shall in
16. Acquisition by Federal
Government of foreign securities: (1) Subject to any exemptions that may be
contained in the notification the Federal Government may, if it is of opinion
that it is expedient so to do for the purpose of strengthening its foreign
exchange position by notification in the Official Gazette:---
(a) order the transfer
to itself of any foreign securities specified in the notification at a price so
specified, being a price which is, in the opinion of the Federal Government not
less than the market value of the securities on the date of the notification,
or
(b) direct the owner of
any foreign securities specified in the notification to sell or procure the
sale of the securities and thereafter to offer or cause to be offered the net
foreign exchange proceeds of the sale to the State Bank on behalf of the
Federal Government or to such person as the State Bank may authorize for the
purpose, at such price as the Federal Government may fix, being a price which
is in the opinion of the Federal Government not less than the market rate of
the foreign exchange when it is offered for sale.
(2) On the issue of a
notification under clause (a) of sub-section (1):---
(a) the securities to
which the notification relates shall forthwith vest in the Federal Government
free from any mortgage, pledge or charge, and the Federal Government may deal
with them in such manner as it thinks fit;
(b) the owner of any of
the securities to which the notification relates and any person who in
responsible for keeping any register or books is which any of those securities
are registered or inscribed, or who is otherwise concerned with the
registration or inscription of any of those securities, shall do all such
things as are necessary or as the Federal Government or the State Bank may
order to be done, for the purpose of securing that,---
(i) the securities and
any documents of title relating thereto are delivered to the Federal Government
and, in the case of a registered or inscribed securities that the securities
are registered or inscribed in the name of the Federal Government or of such
nominee of the Federal Government as it may specify, and
(ii) any dividends or
interests on those securities becoming payable on or after the date of the
issue of the notification are paid to the Federal Government or its nominee as
aforesaid and where in the case of any security payable to bearer which is
delivered in pursuance of the said notification, any coupons representing any
such dividends or interest are not delivered with the security, such reduction
in the price payable therefor shall be made as the Federal Government thinks
fit:---
Provided that where the
price specified in the notification in relation to any security is ex-dividend
or ex-interest, this sub-clause shall not apply to that dividend or interest or
to any coupon representing it.
(3) A certificate signed
by any person authorised in this behalf by the Federal Government that any
specified securities are securities transferred to the Federal Government under
this section shall be treated by all persons concerned as conclusive evidence
that the securities have been so transferred.
17. Restriction on
settlement: (1)
No person resident in Pakistan shall except with the general or special
permission of the State Bank, settle any property, otherwise than by will, upon
any trust under which a person who at the time of the settlement is resident
outside Pakistan, elsewhere than in territories notified in this behalf by the
State Bank, will have an interest in the property, or exercise other than by
will, any power for payment in favour of a person who at the time of the
exercise of the power is resident outside Pakistan elsewhere than in such
notified territories.
(2) A settlement of
powers as aforesaid shall not be invalid except in so far as it confers any
right or benefit on any person who at the time of the settlement or the
exercise of the power is resident outside
18. Certain provisions
as to companies:
(1) Except with the general or special permission of the State Bank, no person
resident in
(2) Except with the
general or special permission of the State Bank, no person resident in
In this sub-section “Company” includes a firm, branch or office of company of
firm.
19. Power to call for
information:
(1) The Federal Government or the State Bank may at any time by notification in
the Official Gazette direct owners subject to such exceptions, if any, as may
be specified in the notification, of such foreign exchange or foreign
securities as may be so specified, to make a return thereof to the State Bank
within such period and giving such particulars, as may be so specified.
(1-A) The Federal
Government may, by notification in the Official Gazette direct citizens of
Pakistan resident in Pakistan, or any class of such citizens, to make within
such time, and giving such particulars as may be specified in the notification,
a return of any immovable property or any industrial or commercial undertaking
or company outside Pakistan, held, owned, established or controlled by them or
in which they have any right, title or interest.
(2) The Federal
Government may by order in writing require any person to furnish it or any
person specified in the order with any information, book or other document in
his possession, being information, book or document which the Federal
Government considers it necessary or expedient to obtain and examine for the
purposes of this Act and may, at any time by notification in the official
Gazette, direct that the power to make such order shall for such period as may
be specified in the direction be exercised by the State Bank.
(3) On a representation
in writing made by a person authorised in this behalf by the Federal Government
or the State Bank and supported by a statement on oath of such person that he
has reason to believe that a contravention of any of the provisions of this Act
has been or is being or is about to be committed in any place or that evidence
of the contravention is to be found in such place a District Magistrate, or a
Sub-Divisional Magistrate or a Magistrate of the first class, may be warrant,
authorise any police officer not below the rank of sub-inspector:---
(a) to enter and search
any place in the manner specified in the warrant and
(b) seize any books or
other documents found in or on such place.
Explanation: In this
sub-section “place” includes a house, building, tent, vehicle, vessel or
aircraft.
(3-A) A police officer
authorised under sub-section (3) may search any person who is found in or whom
he has reasonable grounds to believe to have recently left or to be about to
enter such place and to seize any article found in the possession of or upon
such person and believed by the police officer so authorised to be evidence of
the commission of any offence under this Act.
(3-B) A police officer
authorised under sub-sections (3) shall conduct any search under that
sub-section or under sub-section (3-A) in accordance with the provisions
relating to each in the Code of Criminal Procedure, 1898.
(4) The provisions of
Section 122 and sub-sections (1), (2) and (3) of Section 150 of the the Income
Tax Ordinance, 1979 (XXXI of 1979) shall apply in relation to information
obtained under sub-section (2) of this section as they apply to the particulars
referred to in that section, and for the purposes of such application:---
(a) the said sub-section
(3) shall be construed as if in clause (a) thereof there was included reference
to a prosecution for an offence under Section 23 of this Act, and (b) persons
to whom any information is required to be furnished under an order made under
sub-section (2) of this section shall be deemed to be public servants within
the meaning of that section.
19-A. Power to enter and
inspect: (1)
Without prejudice to the provisions of Section 19, any person authorised in
writing by the Federal Government or the State Bank 2[or any adjudicating
officer in this behalf may, for the purpose of making an enquiry or
adjudication proceedings] which he considers necessary for the purpose of this
Act, enter any place and call for and inspect any account, books, or other
document kept in such place.
(2) No person shall
obstruct or hinder any person in the exercise of his powers under sub-section
(1).
20. Supplement
provisions:
(1) For the purpose of this Act and of any rules, directions or orders made
thereunder:---
(a) until the State Bank
by general or special order otherwise directs any person who has at any time
after the commencement of this Act been resident in Pakistan shall be treated
as still being resident in Pakistan and if such directions is given to in
relation to any such person the State Bank may by the same or subsequent
direction, declare the territory in which he shall be treated as being
resident;
(b) in the case of any
person to whom clause (a) does not apply the State Bank may by general or
special order declare the territory in which he shall be treated as being
resident;
(c) in the case of any
person resident in Pakistan who leaves Pakistan, the State Bank may give a
direction to any bank that until the direction is revoked any sum from time to
time standing to the credit of that person and any security held on his behalf
to any office or branch of that Bank in Pakistan specified in the direction,
shall not be dealt with except with the permission of the State Bank;
(d) any transaction with
a branch of any business, whether carried on by a body corporate or otherwise,
shall be treated in all respects as if the branch were a body corporate
resident where the branch is situated;
(e) the making of any
book entry or other statement recording a debt against a branch of any business
in favour of the head office or any other branch of that business shall be
treated as the acknowledgment of a debt whereby a right is created in favour of
a person resident where the head office or other branch is situated.
(2) Nothing in this Act
relating to the payment of any price or sum by the Federal Government shall be
construed as requiring the Federal Government to pay that price or sum
otherwise than in Pakistan currency or otherwise than in Pakistan.
(3) The State Bank may
give directions in regard to the making of payments and the doing of other acts
by bankers, authorised dealers (travel agents, carriers whether common or
private) stock brokers and other persons who are authorised by the State Bank
to do anything in pursuance of this Act in the course of their business, as appear
to it to be necessary or expedient for the purpose of securing compliance with
the provisions of this Act and any rules, orders or directions made thereunder.
21. Contract in evasion
of this Act:
(1) No person shall enter into any contract or agreement which would directly
or indirectly evade or avoid, in any way the operation of any provision of this
Act or of any rule, direction or order made thereunder.
(2) Any provision of, or
having effect under this Act that a thing shall not be done without the permission
of the Federal Government or the State Bank, shall not render invalid any
agreement by any person to do that thing, if it is a term of the agreement that
the thing shall not be done unless permission is granted by the Federal
Government or the State Bank, as the case may be; and it shall be an implied
term of every contract governed by the law of any part of Pakistan that
anything agreed to be done by any term of that contract which is prohibited to
be done by or under any of the provision of this Act except with the permission
of the Federal Government or the State Bank shall not be done unless such
permission is granted.
(3) Neither the
provisions of this Act nor any term (whether expressed or implied) contained in
any contract that anything for which the permission of the Federal Government
or the State Bank is required by the said provisions shall not be done without
that permission, shall prevent legal proceedings being brought in Pakistan to
recover any sum which apart from the said provisions and any such term, would
be due, whether as a debt, damages or otherwise, but:---
(a) the said provisions
shall apply to sums required to be paid by any judgment or order of any Court
as they apply in relation to other sums; and
(b) no steps shall be
taken for the purpose of enforcing any judgment or order for the payment of any
sum to which the said provisions apply except as respects so much thereof as
the Federal Government or the State Bank, as the case may be, may permit to be
paid; and
(c) for the purpose of
considering whether or not to grant such permission, the Federal Government or
the State Bank, as the case may be, may require the person entitled to the
benefit of judgment or order and the debtor under the judgment or order, to
produce such documents and to give such information as may be specified in the
requirement.
(4) Notwithstanding
anything in the Negotiable Instruments Act, 1881, neither the provisions of
this Act, or of any rule, direction or order made thereunder, nor any condition
whether expressed or to be implied having regard to those provisions that any
payment shall not be made without permission under this Act, shall be deemed to
prevent any instrument being a bill of exchange or promissory note.
22. False statements: No person shall, when
complying with any order or direction under Section 19 or when making any
application or declaration to any authority or person for any purpose under
this Act, give any information or make any statement which he knows or has
reasonable cause to believe to be false, or not true, in any material
particular.
23. Penalty and
procedure : (1)
Whoever contravenes, attempts to contravene or abets the contravention of any
provisions of this Act or of any rule, direction or order made thereunder,
1[other than the provisions of sub-sections (2), (3) and (5) of Section 3,
sub-section (3) of Section 4, Section 10, sub-section (1) of Section 12 and
sub-section (3) of Section 20 or any rule, direction or order made thereunder],
shall notwithstanding anything contained in the Code of Criminal Procedure,
1898, be tried by the Tribunal constituted by Section 23-A and shall be
punishable with imprisonment for a term which may extent to two years or with
fine or with both, and any such Tribunal trying and such contravention may, if
it thinks fit, and in addition to any sentence which it may impose for such
contravention, direct that any currency, security, gold or silver, or goods or
other property in respect of which the contravention has taken place shall be
confiscated.
(2) Notwithstanding
anything contained in the Code of Criminal Procedure, 1898, any offence
punishable under this section shall be cognizable and non-bailable for such
period as the Federal Government may from time to time, by notification in the
official Gazette, declare.
(3) A Tribunal shall not
take cognizance of any offence punishable under this section and not declared
by the Federal Government under the preceding sub-section to be cognizable for
the time being, or of an offence punishable under Sections 122 and 150 of the
Income Tax Ordinance, 1979 (XXXI of 1979) as applied by Section 19, except upon
complaint in writing made by a person authorised by the Federal Government of
the State Bank in this behalf:---
Provided that where any
such offence in the contravention of any of the provisions of this Act or any
rule, direction or order made thereunder which prohibits the doing of an act
without permission and is not declared by the Federal Government under the
preceding sub-section to be cognizable for the time being, no such complaint
shall be made unless the person accused of the offence has been given an
opportunity of showing that he had such permission.
(3-A) A person
authorised under sub-section (3) to make a complaint in writing shall, if he is
not already a public servant within the meaning of Section 21 of the Pakistan
Penal Code (Act XLV of 1860), be deemed to be a public servant within the
meaning of that section.
(4) Where the person
guilty of an offence under this Act is a Company or other body corporate, every
Director, Manager, Secretary and other officer thereof who is knowingly a party
to the offence shall also be guilty of the same offence and liable to the same
punishment.
23-A. Tribunal:-its
powers, etc:
(1) Every Sessions Judge shall, for the areas within the territorial limits of
his jurisdiction, be a Tribunal for trial of an offence punishable under
Section 23.
(2) A Tribunal may
transfer any case for trial to an Additional Sessions Judge within its
jurisdiction who shall, for trying a case so transferred be deemed to be a
Tribunal constituted for the purpose.
(3) A Tribunal shall
have all the powers of a Magistrate of the First Class in relation to criminal
trials, and shall follow as nearly as may be the procedure provided in the Code
of Criminal Procedure, 1898, for trials before such Magistrate, and shall also
have powers, as provided in the said Code in respect of the following matters,
namely:---
(a) directing the arrest
of the accused;
(b) issuing search
warrants;
(c) ordering the police
to investigate any offence and report;
(d) authorising
detention of a person during police investigation;
(e) ordering the release
of the accused on bail.
(3-A) For the purposes
of sub-section (3), the Code of Criminal Procedure, 1898 (Act V of 1898), shall
have effect as if an offence under this Act were one of the offences referred
to in sub-section (1) of Section 337 of the Code.
(4) All proceedings
before a Tribunal shall be deemed to be a judicial proceeding within the
meaning of Sections 193 and 228 of the Pakistan Penal Code, and for the
purposes of Section 196 thereof, and the provisions relating to the execution
of orders and sentences in the Code of Criminal Procedure, 1898, shall so far
as may be apply to orders and sentences passed by a Tribunal.
(5) As regards sentences
of fine, the powers of a Tribunal shall be as extensive as those of a Court of
Session.
(6) The State Bank of
23-B. Authorisation of
Adjudicating Officers and their powers, etc.: (1) The Federal Government may, by
notification in the official Gazette, authorise in relation to any area
specified in the notification any officer of the State Bank to act as the
Director of Adjudication, an Additional Director of Adjudication, a Senior
Deputy Director of Adjudication, a Deputy Director of Adjudication and an
Assistant Director of Adjudication (in this Act referred to as the Adjudicating
Officer).
(2) Subject to such
conditions and limitations as the Federal Government may impose, an
Adjudicating Officer may exercise the powers and discharge the duties conferred
or impose on him by this Act and shall also be competent to exercise the powers
and discharge the duties conferred upon any adjudicating officer subordinate to
him:---
Provided that,
notwithstanding anything contained in this Act or the rules made thereunder,
the State Bank may, by general or special order, impose such conditions or
limitations on the exercise or such powers or discharge of such duties as it
thinks fit.
(3) The State Bank may,
by notification in the official Gazette, and subject to such limitations or
conditions, if any, as may be specified therein, empower:---
(a) any Additional
Director of Adjudication or Senior Deputy Director of Adjudication or Deputy
Director of Adjudication or Assistant Director of Adjudication to exercise the
powers of the Director of Adjudication under this act;
(b) any Senior Deputy
Director of Adjudication or Deputy Director of Adjudication or Assistant
Director of Adjudication to exercise any of the powers of an Additional
Director of Adjudication under this Act;
(c) any Deputy Director
of Adjudication or Assistant Director of Adjudication to exercise any of the
powers of a Senior Deputy Director of Adjudication under this Act; and
(d) any Assistant
Director of Adjudication to exercise the powers of a Deputy Director of
Adjudication under this Act.
(4) Save as provided in
sub-sections (5) and (6), if any person contravenes or attempts to contravene
or abets the contravention of the provisions of sub-sections (2), (3) and (5)
of Section 3, sub-section (3) of Section 4 Section 10, sub-section (1) of
Section 12 or sub-section (3) of Section 20 or any rule, direction or order
made thereunder, he shall be liable to such penalty not exceeding five times
the amount or value involved in such contravention or five thousand rupees,
whichever is more, as may be adjudged by the Director or Additional Director of
Adjudication or any other Adjudicating Officer having jurisdiction under
sub-section (8) to take cognizance of such contravention, and, if he persists
in such contravention, or where the contravention or default is continuing one,
to a further penalty which may extent to two thousand rupees for every day
during which the offence or, as the case may be, the contravention or default
continues.
(5) If any authorised
dealer:---
(a) in any return or
other document or declaration or in any information required or furnished by or
under, or for the purpose of, any provisions of this Act, willfully makes
statement or permits the making of a statement which is false in any material
particular, knowing it to be false or not true, or willfully omits to make a
material statement; or
(b) fails to submit or
furnish any return, statement, declaration or other document or information
required to be furnished by or under, or for the purpose, any provision of this
Act in the form and by the date, prescribed by the State Bank for the time
being without sufficient cause; he shall be liable to a penalty not exceeding
five thousand rupees, and, where the contravention or default is a continuing
one, with a further penalty which may extent to two thousand rupees for every
day during which such contravention or default continues.
(6) If any authorised
dealer sells foreign exchange to a person not entitled to buy such foreign
exchange or sells foreign exchange in an amount exceeding the limit or
otherwise than for the purpose, permitted by the State Bank either generally or
in a particular case in pursuance of the powers conferred on it under this Act,
he shall be liable to a penalty not exceeding five times the amount or value of
the foreign exchange so sold, and where the penalty so imposed is not paid
within three days from the date of the order of the Adjudicating Officer, he
shall, unless the penalty has meanwhile been recovered from him under Section
23-J, be liable to a further penalty not being less than the amount or value of
the foreign exchange as aforesaid for every day during which such default
continues.
(7) For the purpose of
this section, amount or value shall mean:---
(a) in the case of
foreign exchange, the Pakistan rupee equivalent of the same calculated at the
rate of exchange authorised by the State Bank as on the date on which an
opportunity of making a representation is given under sub-section (9) or where
no such rate has been authorised, the rate determined by the State Bank on the
said date;
(b) in the case of
goods, their value in rupees if declared in Pakistan currency or where it is
expressed in foreign exchange Pakistan rupee equivalent of the same calculated
in accordance with clause (a); and
(c) in case of any right
to receive foreign exchange or to receive from any person resident outside
Pakistan a payment in rupees or gold or silver or security or other property of
any description, the sale proceeds which, taking all circumstances into
consideration, such right, gold, silver, security or other property can, in the
opinion of the Adjudicating Officer, fetch on the date referred to in clause
(a).
(8) For imposing a
penalty under sub-sections (4), (5) and (6), the jurisdiction and powers of the
Adjudicating Officers shall be as follows:---
(a) the Director of
Adjudication and an Additional Director of Adjudication may deal with all cases
without any limit on the amount or value involved in any contravention;
(b) a Senior Deputy
Director of Adjudication and a Deputy Director of Adjudication may deal with a
case where the amount or value involved in any contravention on the date
referred to in clause (a) of sub-section (7) does not exceed twenty thousand
rupees; and
(c) an Assistant
Director of Adjudication may deal with a case where the amount or value
involved in any contravention on the date referred to clause (a) of sub-section
(7) does not exceed ten thousand rupees:---
Provided that the State
Bank may, by notification in the Official Gazette, reduce or extend the
jurisdiction and powers of any particular Adjudicating Officer or class of
Adjudicating Officers.
(9) For the purpose of
determining whether a person has contravened any of the provisions of
sub-sections (4), (5) or (6), the Adjudicating Officer shall hold an enquiry in
the manner prescribed if any, giving such person a reasonable opportunity for
making a representation in the matter and if, on such inquiry, he is satisfied
that the person has committed any contravention, he may impose the penalty
provided for in this section.
(10) All doubts with
regard to the jurisdiction of an Adjudicating Officer shall be referred to the
Director of Adjudication and his decision thereon be final.
(11) The Director of
Adjudication, on his own motion or on the application of any party to the
adjudication proceedings and after notice to the State Bank and other parties,
if any, and after hearing such of them as desire to be heard, may at any stage
withdraw any adjudication proceedings pending before any Adjudicating Officer
and adjudicate it either himself or transfer it to any other Adjudicating
Officer subordinate to him and competent to dispose of the same or re-transfer
the same for adjudication to the Adjudication Officer from whom it was
withdrawn; and the Director of Adjudication or, as the case may be, any other
Adjudicating Officer or if the Adjudicating Officer who is seized of the matter
as aforesaid vacates office for any reason and another person is authorised to
act in his stead such person, shall not, by reason of the said withdrawal or
re-transfer or transfer or vacation of office, as the case, may be, bound to
recall and re-hear any witness who has given evidence before the withdrawal or
transfer or re-transfer or vacation of office any may act on the evidence
already recorded by or produced before the Adjudicating Officer from whom the
proceedings are so transferred or re-transferred or in whose stead he has been
so authorised to act as Adjudicating Officer.
(12) Subject to
provisions of appeal under Section 23-C, no Court or other authority shall
call, or permit to be called, in question any proceeding or order of the
Adjudicating Officer or the legality or propriety of anything done or intended
to be done by the Adjudicating Officer under this Act.
23-C. Appeal to
Appellate Board:
(1) The Federal Government may, by notification in official Gazette, constitute
as many appellate boards, each to be called the Foreign Exchange Regulation
Appellate Board, as it may consider necessary, and where it establishes more
than one Appellate Board, shall specify in the notification the territorial
limits within which each one of them shall exercise jurisdiction.
(2) An Appellate Board
shall consist of a person who is or has been, or is qualified for appointment
as a Judge of a High Court or a District Judge or an Additional District Judge.
(3) Any person aggrieved
by an order of the Adjudicating Officer made under sub-section (4) or
sub-section (5) or sub-section (6) of Section 23-B may, within thirty days of
such order, prefer an appeal to the Appellate Board within whose jurisdiction
the order is passed:---
Provided that no appeal
shall lie from and interlocutory order which does not dispose of the entire
case before the Adjudicating Officer:---
Provided further that
the Appellate Board may entertain an appeal after the expiry of the said period
of thirty days but not later than sixty days from the date of the aforesaid
order if it is satisfied that the appellant was prevented by sufficient cause
from filing the appeal in time.
Explanation: For the
purposes of this sub-section, the expression “any person aggrieved” shall
include the Federal Government and the State Bank.
(4) No appeal shall be
admitted for hearing unless the appellant deposits in cash with the Appellate
Board the amount of penalty or, at the discretion of the Appellate Board,
furnishes security equal in value to such amount of penalty.
(5) The Appellate Board
may make such inquiry as it may consider necessary, and after giving the
appellant an opportunity of being heard if he so desires, pass such order as it
thinks fit, confirming, altering or annulling the order appealed against:---
Provided that no order
enhancing any penalty shall be passed unless the person affected thereby has
been given an opportunity of showing cause against it and of being heard in
person or through a Counsel:---
Provided further, that
if the sum deposited by way of penalty under sub-section (3) exceeds the amount
directed to be paid by the Appellate Board, the excess amount shall be refunded
to the appellant.
(6) The decision of the
Appellant Board shall be final and no Court, Tribunal or other authority shall
call, or permit to be called, in question any proceedings or order of the
Appellate Board or the legality or propriety of anything done or intended to be
done by the Appellate Board under this Act.
23-D. Assistance to the
Adjudicating Officer : All officers of the Federal Government or a Provincial
Government including those of the Customs, Federal Investigation Agency,
Police, Pakistan International Airlines, Local Authorities, Port Trust, and all
Officers engaged in the collection of land revenue or taxes of any description
or employed by a corporation owned or controlled by the Federal Government or a
Provincial Government, either directly or indirectly, are hereby empowered and
required to assist the Adjudicating Officers in the discharge of their
functions under this Act.
23-E. Powers of
Adjudicating Officer and the Appellate Board to summon witnesses, etc.: (1) Without prejudice,
to any other provisions contained in this Act, the Adjudicating Officer and the
Appellate Board shall have all the powers of a Civil Court under the Code of
Civil Procedure, 1908 (Act V of 1908) while trying a suit, in respect of the
following matters, namely:---
(a) summoning and
enforcing the attendance of any person and examining him on oath;
(b) requiring the
discovery and production of any document;
(c) requisitioning any
public record or copy thereof from any Court or office;
(d) receiving evidence
on affidavits;
(e) issuing commissions
for the examination of witnesses or documents;
(f) appointing guardians
or next friends of persons who are minors or of unsound mind;
(g) adding legal
representatives of the accused person;
(h) consolidation of
cases; and
(i) enforcing any order
made by him or it under this Act or the rules made thereunder.
23-F. Proceedings before
Adjudicating Officer to be deemed to be judicial proceedings: All proceedings before
an Adjudicating Officer or Appellate Board shall be deemed to be judicial
proceedings within the meaning of Sections 193 and 228 of the Pakistan Penal
Code (Act XLV of 1860), and an Adjudicating Officer and Appellate Board shall
be deemed to be a Court for the purposes of Sections 480 and 482 of the Code of
Criminal Procedure, 1898 (Act V of 1898).
23-G. Continuance of
proceedings in the event of death or insolvency: (1) Notwithstanding
anything contained in any other law for the time being in force, where a
penalty has been imposed under Section 23-B on any person and no appeal against
the order imposing such penalty has been preferred, or where any such appeal
has been preferred and where neither case, such person dies or is adjudicated
an insolvent during the pendency of proceedings before the Adjudicating Officer
or the Appellate Board or before preferring an appeal, it shall be lawful for
the legal representative of such person or the official assignee or the
official receiver, as the case may be, to prefer an appeal to the Appellate
Board, or as the case may be, to continue the proceedings or appeal before the
Adjudicating Officer or the Appellate Board and in either case any such
proceedings before the Adjudicating Officer or Appellate Board shall not abate
but be continued as if such person were not dead or adjudged as insolvent.
(2) The power of the
official assignee or the official receiver under sub-section (1) shall be
exercised by him subject to the provisions of the Insolvency (Karachi Division)
Act, 1909 (III of 1909), or the Provincial Insolvency Act, 1920 (V of 1920), as
the case may be.
23-H. Confiscation of
currency, security, etc : Any Adjudicating Officer adjudging and contravention under
Section 23-B may, if he thinks fit, and in addition to any penalty which he may
impose for such contravention, direct that any currency, security, or any other
money or property in respect of which the contravention has taken place shall
be confiscated to the Federal Government and further direct that the foreign
exchange, if any, of the person committing the contravention or any part
thereof shall be brought into Pakistan or shall be retained outside Pakistan in
accordance with the directors made by the State Bank in this behalf.
Explanation: For the purposes of
this Section, property in respect of which contravention has taken place shall
include:---
(a) deposits in a bank,
where the said property is converted into such deposits;
(b)
(c) any other property
which has resulted out of conversion of that property.
23-I. Correction of
clerical, etc :
Clerical mistakes in any decision or order passed by the Appellate Board or
Adjudicating Officer under this Act, or any errors arising therein from any
accidental slip or omission may, at any time, be corrected by the Appellate
Board or the Adjudicating Officer or his successor-in-office, as the case may
be:---
Provided that, where any
correction proposed to be made under this section will have the result of
prejudicially affecting any person, no such correction shall be made:---
(i) after the expiry of
two years from the date of such decision or order; and
(ii)unless the person
affected thereby is given a reasonable opportunity of making a representation
in the matter.
23-J. Recovery of sums
due to Government: (1)
Where any penalty imposed on any person under this Act is not paid:---
(i) the Adjudicating
Officer may deduct, or direct the deduction of, the amount so payable from any
money which is owed to such person and which may be under the custody, power or
control of an Adjudicating Officer or any other person; or
(ii) the Adjudicating
Officer may recover the amount so payable by detaining or selling, or ordering
the detention and sale of, any goods belonging to such person which are under
the custody, power or control of any Adjudicating Officer or any other person;
or
(iii) in case the
penalty is payable by an authorised dealer, the State Bank may, without further
reference to him, recover the amount of penalty from him by debiting the
account or accounts then held or held, at any time thereafter with the State
Bank by the authorised dealer; or
(iv) if the amount
cannot be recovered for such person in the manner provided in clause (i) or
clause (ii) or clause (iii), the Adjudicating Officer may prepare and sign
acertificate specifying the amount due from such person and send it to the
Collector of the District in which such person owns any property or resides or
carries on business; and the Collector on receipt of such certificate shall
proceed to recover from the said person the amount specified in the certificate
as if it were an arrear of land revenue.
(2) When any bond or
other instrument or security is executed pursuant to Section 230-C, the amount
due thereunder may, without prejudice to any other mode of recovery, be recovered
in accordance with the provisions of sub-section (1).
(3) The several modes of
recovery specified in sub-section (1) shall not affect in any way:---
(i) any other law for
the time being in force relating to the recovery of debts due to the Government;
or
(ii) the right of the
Government to institute a suit for the recovery of the penalty due to the
Government; and it shall be lawful for the Government to have recourse to any
such law or suit notwithstanding that the amount is being or is to be recovered
by any mode specified in the said sub-section.
(4) For the purposes of
this section the expression “any other person” appearing in clauses (i) and
(ii) of sub-section (1)
shall include the State Bank, a Banking company as defined in clause (c) of
Section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962), a bank
established by or under any Federal or Provincial Law any any financial
institution as defined in clause (15-A) of Section 2 of the Companies
Ordinance, 1984 (XLVII of 1984), and such other person as the Federal
Government may, by notification in the Official Gazette, specify in this
behalf.
24. Burden of proof in
certain cases: (1)
Where any person is tried for contravening any provision of this Act or of any
rule, direction or order made thereunder which prohibits him from doing an act
without permission, the burden of proving that he had the requisite permission
shall be on him.
(2) If in a case in
which the proof of complicity of a person resident in Pakistan with a person
outside Pakistan is essential to prove an offence under this Act, then after
proof of the circumstances otherwise sufficient to establish the commission of
the offence, it shall be presumed that there was such complicity, and the
burden of proving that there was such complicity, and the burden of proving
that there was no such complicity shall be on the person accused of the
offence.
(3) Where the person
accused of having made any payment in contravention of clause (c) of
sub-section (1) of Sec. 5 is proved to have received from any person outside
Pakistan a message which raises a reasonable suspicion that it relates to
certain payment to be made, the Tribunal may in the absence of proof to the
contrary by the accused person presume that he had made such message in pursuance
of such message.
(4) If after the issue
of a notification under clause (a) of Section 89 any person is found to be in
possession of, or to have under his control any foreign exchange specified in
the notification, in circumstances which tend to raise a reasonable suspicion
that he has contravened the notification he shall be presumed to have
contravened the notification unless he can by proving the time when and the
manner in which the foreign exchange came into his possession or under his
control, show that he had not in fact contravened the notifications.
25. Power of Federal
Government to give directions: For the purposes of this Act the Federal
Government may from time to time give to the State Bank such general or special
directions as it thinks fit, and the State Bank shall in the exercise of its
functions under this Act, comply with any such directions.
26. Bar of legal
proceedings: No
suit, prosecution or any other proceeding shall lie against the Federal
Government or the State Bank or any officer of the Federal Government or of the
State Bank or an other person exercising any power or discharging any functions
or performing any duties under this Act, for anything in good faith done or
intended to be done or purported to be done under this Act or any rule,
direction or order made thereunder.
27. Power to make rules: The Federal Government
may, by notification in the official Gazette, make rules for carrying into
effect the provisions of this Act.
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Foreign Exchange
Regulation (Amendment) Act, 1957
PREAMBL
1 Short title and commencement
2 [Repeal]
3 [Repeal]
4 [Repeal]
5 [Repeal]
6 [Repeal]
7 [Repeal]
8 Transfer of cases
9 Indemnity
10 [Repeal]
The Foreign Exchange Regulation
(Amendment) Act, 1957
ACT No. XL of 1957
(For Statement of
Objects and Reasons, see Gaz. of P., dated the 26th August, 1957, Ex. p. 1829)
[10th September, 1957]
An Act further to amend
the Foreign Exchange Regulation Act, 1947
WHEREAS certain amendments
were made in the Foreign Exchange Regulation Act, 1947, by the Foreign Exchange
Regulation (Amendment) Ordinance, 1955, subsequently repealed and re‑enacted
as the Foreign Exchange Regulation (Amendment) Act, 1956 ; VII of 1947, XIX of
1955, XXXII of 1956.
AND WHEREAS the Supreme
Court in Criminal Appeals Nos. 11, 12, 13 and 14 of 1956, has held that the
Amending Act, which enables the Central Government or the State Bank to divest
the ordinary courts of the jurisdiction to try offences under the special law
in accordance with the provisions of the Code of Criminal Procedure, 1898, and
to effectuate the jurisdiction of the special Tribunals or Adjudication
Officers offends against Article 5 of the Constitution, and is, for that
reason, void; XXXII of 1956, Act V of 1898.
AND WHEREAS it is
expedient further to amend the Foreign Exchange Regulation Act, 1947, in the
manner and for the purposes hereinafter appearing ; VII of 1947
1. Short title and
commencement--
(1) This Act may be called the Foreign Exchange Regulation (Amendment) Act,
1957.
(2) It shall come into
force at once.
2 Rep by the Repealing and
Amending Ordinance, 1961(1 of 1961) s. 2 and 1st Sch.
3 Rep. by the Repealing and Amending Ordinance, 1961(1
of 1961), s. 2 and 1st Sch.
4. Rep. by the Repealing and
Amending Ordinance, 1961(1 of 1961), s. 2 and 1st Sch.
5. Rep. by the Repealing and
Amending Ordinance, 1961(1 of 1961), s. 2 and 1st Sch.
6. Rep. by the Repealing and
Amending Ordinance, 1961(1 of 1961), s. 2 and 1st Sch.
7. Rep. by the Repealing and
Amending Ordinance, 1961(1 of 1961), s. 2 and 1st Sch.
8. Transfer of cases----‑(1) All the cases
triable by a Tribunal under section 23 of the said Act as amended by this Act
and pending in any court immediately before the commencement of this Act,
shall, on such commencement, stand transferred to the Tribunal having
jurisdiction over such cases.
(2) In respect of cases
transferred to a Tribunal under sub*section (1), such Tribunal shall not, by
reason of such transfer, be bound to recall or rehear any witness who has given
evidence in the case before the transfer and may act on the evidence already
recorded by or produced before the court which tried the case before the
transfer.
9. Indemnity------No suit, prosecution or
other legal proceeding shall lie in any court against any Government servant or
any other person for or on account or in respect of anything done in good
faith, action taken, notification or direction issued, investigation or arrest
made, property seized or confiscated, loss or injury suffered, legal proceeding
instituted, or penalty or punishment imposed, enforced or continued, in
pursuance or in virtue of the provisions of the Foreign Exchange Regulation
(Amendment) Act, 1956. XXXII of 1956.
10 [Repeal.] Rep. by the Repealing and
Amending Ordinance, 1961(I of 1961), s. 2 and 1st Sch
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The Foreign Exchange Rules, 1952
The Adjudication Proceedings
and Appeal Rules, 1988
Notifications issued under the
Foreign Exchange Regulation Act, 1947
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