Updated: Saturday February 15, 2014/AsSabt
Rabi' Thani 15, 1435/Sanivara
Magha 26, 1935, at 05:41:25 PM
The International Finance Corporation Act, 1956
Act No. XXVIII of 1956
(For Statement of Objects and Reasons, see Gaz. of P.,
dated the 6th April, 1956, Ext., p. 636)
[18th April, 1956]
An Act to give effect to an international agreement
for the establishment and operation of an International Finance Corporation and
for purposes connected therewith
WHEREAS Articles of Agreement of the International Finance Corporation have, on
the eleventh day of April 1955, been approved by the Executive Directors of the
International Bank for Reconstruction and Development, hereinafter referred to
as the Bank, and deposited in the archives of the Bank for signature and
acceptance on behalf of Governments;
AND WHEREAS it is expedient to provide for the
participation of
It is hereby enacted as follows:‑--
1. Short title extent and commencement.‑(1) This Act may be called the International
Finance Corporation Act, 1956.
(2) It extends to the whole of
(3) It shall come into force on such date (I.
e., the 8th May, 1956, see Gaz. of P., 1956, Ext., p. 1033.) as the
Central Government may, by notification in the official Gazette, appoint.
2. Definitions.
In this Act, unless there is anything repugnant in the subject or context,‑--
(a) “agreement” means any Agreement which may be
signed and accepted on behalf of the Government of Pakistan in pursuance of the
Articles of Agreement approved by the Executive Directors of the Bank on the
eleventh day of April 1955 providing for the establishment and operation of an
international body to be called the International Finance Corporation;
(b) “Corporation” means the International Finance
Corporation;
(c) “member” means a member of the Corporation.
3. Financial provisions.‑(1) There shall be paid out of the (Subs.
by A. O., 1964, Art. 2 and Sch., for “Federal Consolidated Fund”.)[Central
Consolidated Fund] and until the (Subs. by A. O., 1964, Art. 2 and Sch.,
for “Federal Consolidated Fund”.) [Central Consolidated Fund] is
constituted, out of the Revenues of the Central Government, all such sums as
may be required for the purpose of making payments on behalf of the Government
of Pakistan under paragraph (a) of section 3 of Article II of the Agreement.
(2) Any sums received by the Government of Pakistan
from the Corporation in pursuance of the Agreement shall be paid into the (Subs.
by A. O., 1964, Art. 2 and Sch., for “Federal Consolidated Fund”.)
[Central Consolidated Fund] and until the (Subs. by A. O., 1964, Art. 2
and Sch., for “Federal Consolidated Fund”.) [Central Consolidated Fund]
is constituted into the Revenues of the Central Government.
4. State Bank to be depository for the Corporation. The State Bank of
5. Certain provisions of Agreement to have force of
law. Notwithstanding anything to the
contrary contained in any other law, the provisions of Article VI of the
Agreement set out in the Schedule shall have the force of law in Pakistan,---
Provided that nothing in section 9 thereof shall be
construed as,---
(a) entitling the Corporation to import into
(b) conferring on the Corporation any exemption from
duties or taxes which form part of the price of goods sold or which are in fact
no more than charges for services rendered.
THE SCHEDULE
(See section 5)
Provisions of Agreement which shall have force of Law
THE AGREEMENT
Article VI
STATUS, IMMUNITIES AND PRIVILEGES
SECTION 1 Purpose of Article
To enable the Corporation to fulfill the functions
with which it is entrusted, the status, immunities and privileges set forth in
this Article shall be accorded to the Corporation in the territories of each
member.
SECTION 2. Status of the Corporation
The Corporation shall possess full juridical
personality and in particular, the capacity:---
(i) to contract;
(ii) to acquire and dispose of immovable and movable
property;
(iii) to institute legal proceedings.
SECTION 3.‑Position of the Corporation with
regard to Judicial Process
Actions may be brought against the Corporation only in
a court of competent jurisdiction in the territories of a member in which the
Corporation has an office, has appointed an agent for the purpose of accepting
service or notice of process, or has issued or guaranteed securities. No action
shall, however, be brought by members or persons acting for or deriving claims
from members. The property and assets of the Corporation shall, wheresoever’s
located and by whomsoever held, be immune from all forms of seizure, attachment
or execution before the delivery of final judgment against the Corporation.
SECTION 4 Immunity
of Assets from Seizure
Property and assets of the Corporation, wherever
located and by whomsoever held, shall be immune from search, requisition,
confiscation, expropriation or any other form of seizure by executive or
legislative action.
SECTION 5 Immunity of Archives
The archives of the Corporation shall be inviolable.
SECTION 6 ---Freedom of Assets from Restrictions
To the extent necessary to carry out the operations
provided for in this Agreement and subject to the provisions of Article III,
section 5, and the other provisions of this Agreement, all property and assets
of the Corporation shall be free from restrictions, regulations, controls and
moratoria of any nature.
SECTION 7.‑Privilege for Communications
The official communications of the Corporation shall
be accorded by each member the same treatment that it accords to the official
communications of other members.
SECTION 8 Immunities and Privileges of Officers and
Employees
All Governors, Directors, Alternates, officers and
employees of the Corporation:---
(i) shall be immune from legal process with respect to
acts performed by them in their official capacity;
(ii) not being local nationals, shall be accorded the
same immunities from immigration restrictions, alien registration requirements
and national service obligations and the same facilities as regards exchange
restrictions as are accorded by members to the representatives, officials, and
employees of comparable rank of other members;
(iii) shall be granted the same treatment in respect
of travelling facilities as is accorded by members to representatives,
officials and employees of comp*arable rank of other members.
SECTION 9 Immunities from Taxation
(a) The Corporation, its assets, property, income and
its operations and transactions authorized by this Agreement, shall be immune
from all taxation and from all customs duties. The Corporation shall also be
immune from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of
salaries and emoluments paid by the Corporation to Directors, Alternates,
officials or employees of the Corporation who are not local citizens, local
subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any
obligation or security issued by the Corporation (including any dividend or
interest thereon) by whomsoever held:---
(i) which discriminates against such obligation or
security solely because it is issued by the Corporation; or
(ii) if the sole jurisdictional basis for such
taxation is the place or currency in which it is issued, made payable or paid,
or the location of any office or place of business maintained by the
Corporation.
(d) No taxation of any kind shall be levied on any
obligation or security guaranteed by the Corporation (including any dividend or
interest thereon) by whomsoever held:---
(i) which discriminates against such obligation or
security solely because it is guaranteed by the Corporation; or
(ii) if the sole jurisdictional basis for such taxation
is the location of any office or place of business maintained by the
Corporation.
SECTION 10 Application of Article
Each member shall take such action as is necessary in
its own territories for the purpose of making effective in terms of its own law
the principles set forth in this Article and shall inform the Corporation of
the detailed action which it has taken.
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