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
ax-dividend or ax-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.
18. Certain provisions as to companies.
(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.
(3A) A police officer authorized under sub-section (3) may search any person who is found
in or whom he has reasonable ground 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 authorized to be evidence of the commission of any
offence under this Act.
(3B) A police officer authorized under sub-section (3) shall conduct any search under that
sub-section or under sub-section (3A) in accordance with the provision relating to search
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
Income Tax Ordinance (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 applications.
(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.
19A. Power to enter and inspect.—(1) Without prejudice to
the provisions of section 19, any person authorized in writing by the Federal Government
or the State Bank or any adjudicating officer in this behalf may, for the purpose of
making an inquiry or adjudication proceedings which he considers necessary for the
purposes of this Act, enter any place and call for and inspect any accounts. books or
other documents kept in such place.
(2) No person shall obstruct or hinder any person in the exercise of his powers under
sub-section (1).
20. Supplemental provisions.
(1) For the purposes 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 direction is given in relation to any such
person the State Bank may by the same or a 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 at 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 transactions 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 debit 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, authorized dealers, travel agents, carriers, whether common or
private, stock brokers and other persons who are authorized 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. Contracts 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 that 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 provisions 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 judgement 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 judgement 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 the judgement or order and the debtor under the judgement 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 express 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.
