An
Act to regulate certain payments, dealings in foreign exchange
and Securities and the import and export of currency and bullion.
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)
It extends to the whole of Pakistan and applies to all citizens
of Pakistan and persons in the service of Government wherever
they may be.
(3)
It shall come into force on such date as the Federal Government
may, by notification in the official Gazette, appoint in this
behalf.
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 23C;
(aa)
“Authorised Dealer” means a person for the time being authorised
under section 3 to deal in foreign exchange;
(ab)
“authorized money changer” means a person for the time
being authorized under
section 3A to deal in foreign currency notes, bank notes,
coins and travellers cheques.
(b)
"Currency" includes all coins, currency notes,
bank notes, postal notes, money orders, cheques, drafts, traveler’s
cheques, letters of credit, bills of exchange and promissory notes;
(c)
"Foreign Currency" means any currency other than
Pakistan currency;
(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 balance 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 any foreign currency;
(e)
"Foreign Security" means any security issued
elsewhere than in Pakistan and any security the principal of or
interest on which is payable in any foreign currency or elsewhere
than in Pakistan;
(f)
"Gold" includes gold in the form of coin, whether
legal tender or not, or in the form of bullion or ingot, whether
refined or not;
(g)
"Pakistan currency" means currency which is expressed
or drawn in Pakistan rupees;
(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 Pakistan;
(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 bullion or ingot, silver
sheets and plates which have undergone no process of manufacture
subsequent to rolling and uncurrent 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 authorisation 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 authorise 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)
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 give, 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 authorized 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.
3A.
Authorized money changers in foreign exchange:-
(1)
The State Bank may, on application made to it in this behalf,
and on payment of a fee prescribed by it, from time to time, authorize
any person to deal in foreign currency notes, bank notes, coins
and travellers cheques.
(2)
The power
conferred under sub-section (1) shall be exercised on the basis
of criteria prescribed, and recommendations made, by a committee
consisting of such official and non-official representatives as
may be nominated by the State Bank.
(3)
An authorization
made under this section may be for a specific period of time,
which may be renewed thereafter.
(4)
An authorized
money changer shall, in all his dealings under the authorization,
comply with such general or special directions or instructions
as the State Bank may, from time to time, think fit to give including
those for supply of data, the rate and code of conduct in doing
business. Failure to comply with the instructions may lead to
suspension of the licence or other actions as necessary.
3B
Cancellation of authorization: -
Without
prejudice to the provisions of section 23B, if an authorized dealer
or money changer commits a contravention of any term of authorization
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 , 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 authorization or fails to
comply with any of the provisions of this Act or any rules, directions,
instructions, or permissions made, issued or given thereunder
or in the public interest it is necessary so to do or there otherwise
exist reasons appearing sufficient to the State Bank, after giving
a reasonable opportunity of being heard to the authorized dealer
or money changer cancel the authorization.
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 an 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 authorization 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 authorized by the State Bank.
(3)
Where any foreign exchange is acquired by any person other
than an authorised dealer of 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 Pakistan;
(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 Pakistan;
(c)
make any payment to or for the credit of any person by
order or on behalf of any person resident outside Pakistan;
(d)
place any sum to the credit of any person resident outside
Pakistan;
(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 Pakistan;
(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 Pakistan;
(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 authorized, either with
foreign exchange obtained from an authorized dealer under section
4 or with foreign exchange retained by a person in pursuance of
an authorization 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 Pakistan.
(3)
Nothing in this section shall restrict the doing by any
person of anything within the scope of any authorization 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 the 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 authorized 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 authorized dealer specially authorized 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 is for the time being fixed or authorized
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 is 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 times 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 by 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 contained in the notification, no person shall, except with
the general or special permission of the State Bank and on payment
of the fee, if any, prescribed bring or send into Pakistan any
gold or silver or any currency notes or bank notes or coin whether
Pakistan or foreign.
[Explanation.—The
bringing or sending into any part or place in the territories
of Pakistan of any such article 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 authorized
in this behalf by the State Bank, take or send out of Pakistan
any gold, jewelry or precious stones, or Pakistan currency notes,
bank notes or coin 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, Pakistan-
(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 of the Federal Government or
to such person, as the State Bank may authorize 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 authorized
dealer and retained by him with the permission of the State Bank
for any purpose.
(1)
No person who has a right to receive any foreign exchange
or to receive from any 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 to any
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 said 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 therefor
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 therefor 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 the 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 until such
time as the exporter of the goods has made arrangements for the
State Bank or a person authorized 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 Pakistan;
(b)
transfer any security or create or transfer any interest
in a security to or in favour of a person resident outside Pakistan;
(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 Pakistan or elsewhere, any security which
is registered or to be registered in Pakistan, to a person resident
outside Pakistan.
(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 the 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 Pakistan.
(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 provision 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.
(5)
For the purposes 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 Pakistan" includes
a foreign national for the time being resident in Pakistan, and
a company registered in Pakistan which is controlled, directly
or indirectly, by a person resident outside Pakistan.
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 authorized depository named in the
order:
Provided that the State Bank may by order in writing permit
any such security to be withdrawn from the custody of the authorized
depository subject to such conditions as may be specified in the
order.
(2)
No authorized 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
authorized depository.
(3)
Except with the general or special permission of the State
Bank, no authorized 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 recognises 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 Pakistan.
(4)
Except with the general or 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 Pakistan except to or to the order of the authorized depository
having the custody of the security.
(6)
For the purposes of this section: -
(a)
"authorized 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 Pakistan issue any bearer security
or coupon or so alter any document that it becomes a bearer security
or coupon.
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
forth-with 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 is responsible for keeping any registers
or books in 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 there-to are delivered to
the Federal Government and, in the case of 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 interest 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 authorized 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 or power 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 Pakistan, elsewhere than in territories notified
by the State Bank.
(1)
Except with the general or special permission of the State
Bank, no person resident in Pakistan shall do any act whereby
a company, which is controlled by persons resident in Pakistan
ceases to be so controlled.
(2)
Except with the general or special permission of the State
Bank, no person resident in Pakistan shall lend any money or security
to any company, not being a banking company, which is by any means
controlled, whether directly or indirectly, by persons resident
outside Pakistan elsewhere than in the territories notified in
this behalf by the State Bank.
In
this sub-section "company" includes a firm, branch or
office of a company or 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.
(1A)
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 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, a sub-divisional magistrate or a magistrate
of the first class, may, by warrant, authorize 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.
