ACT NO. VIII OF 2012

NATIONAL COMMISSION ON THE STATUS OF WOMEN BILL, 2012

An Act to provide for the setting up of National Commission on the status of Women

[Gazette of Pakistan, Extraordinary, Part-I, 10th March, 2012]

No. F. 9(4)/2012-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on 8th March, 2012, is hereby published for general information:—

WHEREAS it is expedient to set up a National Commission on the Status of Women for the promotion of social, economic, political and legal rights of women, as provided in the Constitution of the Islamic Republic of Pakistan and in accordance with international declarations. Conventions, treaties, Covenants and Agreements relating to women, including the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) and for matters connected therewith or incidental thereto;

It is hereby enacted as follows:—

CHAPTER-I
PRELIMINARY

1.       Short title, extent and commencement.—(1) This Act may be called the National Commission on the Status of Women Bill, 2012.

(2)     It extends to the whole of Pakistan.

(3)     It shall come into force at once.

2.       Definitions.—In this Act, unless there is anything repugnant in the subject or context,—

(a)      "Chairperson" means the Chairperson of the Commission as appointed under Section 4, and includes acting chairperson appointed under Section 7;

(b)     "Commission" means the National Commission on the status of Women established under Section 3;

(c)      "girl" means a female human being under the age of eighteen years;

(d)     "Member" means the Member of the Commission;

(e)      "prescribed" means prescribed by rules made under this Act;

(f)      "Secretary" means the Secretary of the Commission appointed under Section 9; and

(g)     "women" means a female human being of eighteen years or above.

CHAPTER-II
ESTABLISHMENT OF THE COMMISSION

3.  Establishment of the Commission.—(1) The Federal Government shall constitute a Commission to be known as the National Commission on the Status of Women (NCSW), to exercise the powers conferred upon, and to perform the functions assigned to it, under this Act.

(2)  The Commission shall consist of,—

(a)      a Chairperson, who shall be a woman with experience of working or, issues related to women's rights for more than fifteen years, and is committed to the cause of women's empowerment;

(b)     two members from each Province of whom at least one member shall be a woman, one woman member each from Federally Administered Tribal Areas, Azad Jammu and Kashmir, Gilgit-Baltistan, the Islamabad Capital Territory and from minorities;

(c)      five ex-officio members who shall be representatives of the Ministries of Law, Finance, Foreign Affairs and Interior and the Ministry concerned with the subject of women's rights not below BPS-20, and who shall not have the right to vote;

(d)     Chairperson or a designated member of each Provincial Commission on the Women's rights, set up under provincial laws; and

(e)      Secretary of the Commission, who shall not have the right to vote.

(3)     A member appointed under Paragraph (b) of sub-section (2), shall not be less than thirty years of age, with experience of working on issues related to women's rights and is committed to the cause of women's empowerment.

(4)     The headquarter of the Commission shall be at Islamabad.

(5)     The Commission shall be a body corporate having perpetual succession and a common seal with powers, among others to acquire, hold and dispose of any property and shall sue and be sued by the said name.

4.  Appointment of Chairperson.—(1) The Federal Government shall through public notice, invite suggestions for suitable persons for appointment as Chairperson and, after proper scrutiny, shall submit a list of those persons to the Prime Minister and the Leader of the Opposition in the National Assembly.

(2)     The Prime Minister shall in consultation with the Leader of the Opposition in the National Assembly forward three names for Chairperson to a Parliamentary Committee for hearing and confirmation of any one person:

Provided that in case three is no consensus between the Prime Minister and the Leader of the Opposition, each shall forward separate list to the Parliamentary Committee.

(3)     The Parliamentary Committee shall be constituted by the Speaker of the National Assembly and shall comprise fifty per cent members from the treasury benches and fifty per cent from the opposition parties, based on their strength in Majlis-e-Shoora (Parliament), to be nominated by the respective Parliamentary Leaders:

Provided that the total strength of the Parliamentary Committee shall not exceed twelve members out of which one-third shall be from the Senate.

(4)     The Parliamentary Committee shall regulate its own procedure.

(5)  The Parliamentary Committee shall forward the name of the nominee confirmed by it to the Prime Minister, who shall appoint the Chairperson accordingly.

5.       Appointment of members.—(1) The members, including ex-officio members, shall be appointed by the Prime Minister from amongst the names recommended under sub-section (2).

(2)     The Federal Government shall, after consultation with relevant stake-holders, recommend to the Prime Minister three names for each Member who fulfill the qualifications laid down in Section 3.

(3)     A vacancy of a Member shall be filled as provided in sub-Sections (1) and (2) within thirty days of the occurrence of the vacancy.

6.       Term of Office of Chairperson and of Members.—(1) A person appointed as the Chairperson and Member shall hold office for a term of three years from the date on which he or she enters upon his or her office. The term of the office may be extended only once.

(2)  The Chairperson or a Member may resign his or her office in writing under his or her hand addressed to Prime Minister of the Islamic Republic of Pakistan and on acceptance of such resignation, such vacancy shall be filled within thirty days for the unexpired term of the member.

7.       Removal of Chairperson and Members.—The Chairperson and Members may be removed from office by the Prime Minister if he or she, as the case may be,—

(a)     is, after proper inquiry, found guilty of misconduct:

               Provided that in the case of the Chairperson, such finding shall be submitted to the Parliamentary Committee for confirmation;

(b)     is adjudged an insolvent;

(c)      is unfit to continue in office by reason of being mentally or physically challenged and stands so declared by a competent medical authority; and

(d)     has, on conviction of any offence involving moral turpitude been sentenced to imprisonment for a term of not less than two years, unless a period of five years has elapsed since his or her release.

8.       Acting Chairperson.—By reason of a vacancy in the office of Chairperson due to death, illness, resignation or otherwise, the Prime Minister shall appoint a woman from amongst the members of the Commission to act as Chairperson for a period of not exceeding thirty days or until the appointment of a new Chairperson, whichever is earlier.

9.       Terms and Conditions as applicable to members.—(1) The traveling and daily allowance and other allowances payable to and terms and conditions as applicable to members, other than ex-officio members, shall be such as may be prescribed.

(2)     The salary and allowances payable to and terms and conditions applicable to the Chairperson, shall be such as prescribed by the Federal Government.

(3)     The Chairperson of the Commission shall be full time, shall have the status equivalent to a Minister of State of the Federal Government. The executive and financial authority and responsibility of the Commission shall vest in the Chairperson who shall be the overall in-charge of the Commission.

(4)     A member of the Commission shall have status equivalent to BPS-21 of the Federal Government.

10.     Secretariat of the Commission.—(1) There shall be a Secretariat of the Commission headed by the Secretary with complement of officers and support staff as may be prescribed.

(2)     The Secretary on the instructions of the Commission will prepare a draft three year strategic plan, the Annual Work Plan and budget.

(3)     The Secretary shall be appointed in the manner as may be prescribed.

(4)     The appointment and terms and conditions of the employees of the Commission shall be such as may be prescribed.

CHAPTER-III
FUNCTIONS AND POWERS OF THE COMMISION

11.     Functions and Powers of the Commission.—The Commission,--

(a)      shall examine the policy, programs and other measures taken by the Federal government for gender equality, women's empowerment, political participation, representation, assess implementation and make suitable recommendations to the concerned authorities;

(b)     shall review all Federal laws, rules and regulations affecting the status and rights of women and suggest repeal, amendment or new legislation essential to eliminate discrimination, safeguard and promote the interest of women and achieve gender equality before law in accordance with the Constitution and obligations under international covenants and commitments;

(c)      shall sponsor, steer, encourage research to generate information, analysis and studies and maintain a database relating to women and gender issues to provide knowledge and awareness for national policy and strategic action for women empowerment;

(d)     shall develop and maintain interaction and dialogue with non governmental organizations, experts and individuals in society and an active association with similar commissions and institutions in other countries for collaboration and action to achieve gender equality at the national, regional and international level;

(e)      mobilize grants from domestic and international, including multi and bilateral agencies, approved by the Federal Government, for meeting any of its obligations or performing its functions;

(f)      shall facilitate and monitor implementation of international instruments and obligations affecting women and girls to which Pakistan is a signatory, and advise the Federal Government before accession to any such proposed international instrument, protocol or treaty;

(g)     shall recommend to the Federal Government the signing or ratifying of international instruments (conventions, treaties and covenants) affecting rights of women and girls;

(h)     may seek and receive information, data and documents from any Federal source or entity in the course of performance of its functions;

(i)      while inquiring into complaints of violations of women's rights may call for information or report from the Federal Government civil society organizations and autonomous or concerned bodies; and in this regard the Commission shall have the powers vested in a civil Court under the Code of Civil Procedure, 1908 (Act V of 1908) for enforcing the attendance of any person and compelling the production of documents;

(j)      may in accordance with relevant laws and rules and prior permission of the provincial government concerned inspect any jail, sub-jail or other places of custody where women and girls are kept and to make appropriate recommendations to the authorities concerned;

(k)     may act for advocacy, lobbying, coalition building, networking and as a catalyst for promotion of cause of women to facilitate their participation in all spheres of life including legal, economic, social and political empowerment;

(l)      liaise with the Provincial Commissions set up under provincial laws and other concerned provincial organizations;

(m)    shall monitor the mechanism and institutional procedure for redressal of violation of women's rights; and

(n)     may perform any other functions which may be assigned to it by the Federal Government.

12.     Meetings of the Commission.—(1) A meeting of the Commission shall be held in each quarter of the year at such times and at such place as the Chairperson may decide. The Chairperson may call additional meetings if and when required.

(2)     All meetings shall be chaired by the Chairperson.

(3)     The Commission will consider, approve and monitor implementation of the Strategic Plan and the Annual Budget.

(4)     The Commission shall, with the approval of Executive Committee, fix an honorarium or remuneration of advisors, consultants and experts as may be prescribed.

(5)     The meeting of the Commission shall be conducted in accordance with the procedure as may be prescribed.

(6)     All decisions of the Commission shall be authenticated by the signature of the Chairperson or any person authorized in this hchalf by the Chairperson.

(7)     The quorum for the meeting of the Commission shall not be less than one half of the total strength of the Commission.

(8)     The decisions of the Commission shall be taken by the majority of the members present. In case of a tie, the Chairperson of the meeting shall have the casting vote.

(9)     No act or proceeding of the Commission shall be invalid on the ground merely of the existence of any vacancy in or defect in the constitution of the Commission.

13.     Appointment of Committees of the Commission.—(1) There shall be an Executive Committee of the Commission consisting of the Chairperson and three other members to be appointed by the Commission which shall be responsible to oversee the implementation of the decisions and recommendations of the Commission.

(2)     The Commission may establish such other Committees from amongst its members as it deems fit and may refer to them any matter for consideration and report. The Commission may, if it considers necessary, co-opt to a Committee any person possessing special knowledge and expertise on the relevant subject.

(3)     All Commutes except the executive Committee will be time bound.

CHAPTER-IV
FUNDS AND FINANCIAL CONTROL

14.     Fund.—(1) There shall be established by the Federal Government a Fund to be known as the National Commission on the Status of Women Fund, which shall vest in the Commission and shall be used by the Commission to meet charges in connection with its functions under this Act.

(2)     Source of the Fund amongst other moneys may be the following,—

(a)      such fund as the Federal Government shall allocate each year as a non-lapsable grant in the annual budget;

(b)     donations, if any, made by private individuals, national and international agencies;

(c)      income from investment by the Commission, as may be prescribed;

(d)     all funds held by the Federal Government under the title of National Commission's Fund; and

(e)      all other sums or properties or assets which may in any manner become payable to or vest in, the Commission in respect of any matter.

(3)     The Commission whilst performing its functions and exercising its powers under this Act, shall ensure the highest sense of prudence in respect of expenditures incurred

(4)     The Fund shall be expended for the purpose of,—

(a)     performing functions of the Commission;

(b)     the establishment charges, including its members, employees, consultants, legal and other fees and costs; and

(c)      such other activities which fall within the purview of the Commission.

(5)     The Commission may invest its Fund in accordance with the instructions of the Federal Government.

(6)     The Chairperson shall be the Principal Accounting Officer of the Commission.

15.     Accounts and Audit.—(1) The Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Federal Government in consultation with the Auditor-General of Pakistan.

(2)     The accounts of the Commission shall be audited by the Auditor-General at such intervals as may be specified by him or her.

(3)     The Auditor-General and any other person appointed by him or her in connection with the audit of the accounts of the Commission under this Act shall have the same rights and privileges and the authority in connection with such audit as the Auditor-General generally has in connection with the audit of Federal Government accounts and in particular shall have rights to demand the production of books, accounts connected vouchers and other documents and papers and to inspect any of the offices of the Commission.

(4)     The accounts of the Commission, as certified by the Auditor-General or any other person appointed by him or her in this behalf, together with the Audit Report, thereon shall be forwarded annually to the Federal Government by the Commission and the Federal Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament.

CHAPTER-V
MISCELLANEOUS

16.     Annual Report of the Commission.—(1) The Commission shall prepare its Annual Report and shall be presented to the Prime Minister and concerned Ministry. The Annual report shall include an account of its performance and utilization of funds.

(2)  The Annual Report of the Commission shall be laid and discussed in the Parliament.

17.     Assistance to the Commission.—All Federal executive authorities shall assist the Commission in the performance of its functions.

18.     Indemnity.—No suit, prosecution or legal proceedings shall lie against the Commission, the Chairperson or any Member, officer, employees, advisors or consultants of the Commission in respect of anything done in good faith or intended to be done under this Act or the Rules made there under or order made, or publication by or under the authority of the Federal Government, a Provincial Government, Commission or any report, paper or proceedings.

19.     Members and officers to be public servants.—Every member of the Commission and every officer appointed or authorized by the Commission to exercise functions under this Act shall be deemed to be a public servant within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

20.     Power to make Rules.—(1) The Federal Government in consultation with the Commission and by notification in the official Gazette, make Rules for the purpose of giving effect to the provisions of this Act.

(2)  The rules of the Commission shall be made within ninety days of the commencement of this Act.

21.     Delegation of powers.—The Commission may subject to such conditions, as it may specify, delegate any of its powers under this Act to the Executive Committee or member and to other such committees formed by the Commission.

22.     Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this Act, the Federal Government may by order published in the official gazette make such provisions not inconsistent with the provisions of this Act as appears to it, be necessary or expedient for removing the difficulty:

Provided that this power shall be available for a period of one year from the date of commencement of this Act.

23.     Repeal.—(1) The National Commission on the Status of Women Ordinance, 2000 (XXVI of 2000), hereinafter called as the repealed Ordinance, is hereby repealed.

(2)     Notwithstanding the repeal of Ordinance referred to in sub-section (1),—

(a)      any notification, rule, regulation, bye-law, order or exemption issued, made or granted under the repealed Ordinance shall have effect as if it had been issued, made or granted under the corresponding provision of this Act;

(b)     any official appointed and any body elected or constituted under the repealed Ordinance shall continue and shall be deemed to have been appointed, elected or constituted, as the case may be, under the corresponding provision of this Act;

(c)      any document referring to the repealed Ordinance shall be constructed as referring, as far as may be, to this Act, or to the corresponding provision of this Act.

(3)     The provisions of the General Clauses Act, 1897 (X of 1897), in general, and Sections 6, 8 and 24 thereof, in particular, shall apply to the repeal and re-enactment of the repealed Ordinance.

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ACT NO. IX OF 2012

STATE BANK OF PAKISTAN (AMENDMENT)
ACT, 2012

An Act further to amend the State Bank of Pakistan Act, 1956

[Gazette of Pakistan, Extraordinary, Part-I, 13th March, 2012]

F. 22 (32)/2010-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 9th March, 2012 and is hereby published for general information:—

WHEREAS it is expedient further to amend the State Bank of Pakistan Act. 1956 (XXXIII of 1956), for the purpose hereinafter appearing;

It is hereby enacted as follows:—

1.  Short title and commencement.—(1) This Act may be called the State Bank of Pakistan (Amendment) Act, 2012.

(2)  It shall come into force at once.

2.       Amendment of Section 9, Act XXXIII of 1956.—In the State Bank of Pakistan Act, 1956 (XXXIII of 1956), hereinafter referred to as the said Act, in Section 9, in sub-section (2), for clause (c) the following shall be substituted, namely:

"(c) eight directors, including at least one from each province, who shall be eminent professionals from the fields of economics, finance, banking and accountancy, to be appointed by the Federal Government. Those appointed to the Board shall have no conflict of interest with the business of the Bank.".

3.       Amendment of Section 9B, Act XXXIII of 1956.—In the said Act, in Section 9B, in sub-section (1), after clause (v) the following new clause shall be added, namely:—


"(vi) two eminent macro or monetary economists with proven record of research and teaching to be appointed by the Federal Government.'".

4.       Insertion of new Section 9C, Act XXXIII of 1956.—(1) In the said Act, after Section 9B, the following new section shall be inserted, namely:—

"9C. Limitation on Federal Government borrowing.—(1) Notwithstanding anything contained in Sections 9A and 9B, the Federal Government borrowing from the Bank shall be such that at the end of each quarter they shall be brought to zero barring the ways and means limit that shall be determined by the Central Board from time to time.

(2)     The debt of the Federal Government owed to the Bank as on the 30th April, 2011, shall be retired not later than eight years from that date.

(3)     If any of the provisions of sub-Sections (1) and (2) are not observed by the Federal Government, the Finance Minister shall place before the Parliament a statement giving detailed justification for the said failure.".

5.       Substitution of Section 18, Act XXXIII of 1956.—In the said Act, for Section 18 the following shall be substituted, namely:—

"18. Open market and credit operations.—(1) The Bank may operate in the financial markets by buying and selling outright (spot or forward) or under repurchase agreement of Government securities purchased in the secondary market or such other means as may be deemed expedient, and by lending or borrowing claims and marketable instruments, as well as precious metals and conduct credit operations with banks operating in Pakistan, with lending-based on adequate collateral.

(2)     The Central Board shall determine the types of instruments and activities and other operational methods of monetary control including Shariah-based instruments to be used for open market and credit operations and it shall announce the conditions under which the Bank stands ready to enter into such transactions.

(3)     For the purpose of regulating the monetary and credit system the Bank may issue certificates of deposit and new instruments including those that are Shariah-compliant.".

6.  Substitution of Section 23, Act XXXIII of 1956.--In the said Act, for Section 23 the following shall be substituted namely:—

"23. International reserves portfolio.—(1) The Bank may directly or indirectly purchase, hold and sell currencies, financial and capital instruments, including indices and derivatives, issued by governments, agencies, local authorities, corporate and supranational in countries, wherever issued, whose currency has been declared as approved foreign exchange and the remaining effective maturity of which is determined to be of not more than thirty years at the time of purchase:

          Provided that the restrictions relating to maturity shall not apply to securities held by the Bank on the date on which this Act comes into force or any securities that may be received as assets under the Pakistan (Monetary System and Reserve Bank) Order, 1947, the permissibility of each of asset class shall be determined by the Central Board.

(2) The Bank may appoint managers, custodians, consultants and any other professional advisors for the effective management of foreign exchange reserves of the country.".

7.  Substitution of Section 36, Act XXXIII of 1956.—In the said Act, for Section 36 the following shall be substituted, namely:—

"36. Minimum reserves.—(1) The Bank may require banks or financial institutions to hold minimum reserves on deposit accounts with the Bank in pursuance of its monetary policy objectives.

(2)  The Bank may require the banks and financial institutions to hold special reserves on deposit accounts with the Bank in pursuance of its monetary policy or risk management of banking or financial sector and may provide for any remuneration or return on such special reserves.

(3) The Bank shall by regulations, establish the method for calculating the minimum reserves required to be maintained under sub-section (2).".

8.       Amendment of Section 46B, Act XXXIII of 1956.—In the said Act, in Section 46B,—

(a)      the existing section shall be renumbered as sub-section (1) of that section and in sub-section (1), re-numbered as aforesaid, for the words, commas, brackets and figures "this Act, the Banking Companies Ordinance, 1962 (LVII of 1962) or any other law in force" the words "or in exercise of its powers under this Act or any other law in force" shall be substituted; and


(b)     after sub-section (1), re-numbered as aforesaid, the following new sub-section shall be added, namely:—

          "(2) The Bank, the members of the Central Board or the staff of the Bank shall not take instructions from any other person or entity, including government or quasi-government entities. The autonomy of the Bank shall be respected at all times and no person or entity shall seek to influence the members of the Central Board and Monetary Policy Committee or the staff of the Bank in the performances of their functions or interfere in the activities of the Bank.".

9.       Amendment of Section 47, Act XXXIII of 1956.—In the said Act, in Section 47 after the word "pension", a comma and the words, gratuity and provident fund", shall be inserted.

10.     Omission of Section 52, Act XXXIII of 1956.—In the said Act, Section 52 shall be omitted.

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ACT NO. X of 2012

INDUSTRIAL RELATIONS ACT, 2012

An Act to consolidate and rationalize the law relating to formation of trade unions, and improvement of relations between employers and workmen in the Islamabad Capital Territory and in trans-provincial establishments and industry

[Gazette of Pakistan, Extraordinary, 14th March, 2012]

No. F. 23(22)/2012-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 14th March, 2012 and is hereby published for general information:—

WHEREAS, the Constitution of the Islamic Republic of Pakistan recognizes the freedom of association as a fundamental right of the citizens;

AND WHEREAS the Islamic Republic of Pakistan has ratified ILO Convention No.87 on Freedom of Association and Convention No.98 on Right to Organize and Collective Bargaining;

AND WHEREAS it is expedient to consolidate and rationalize the law in Islamabad Capital Territory and at trans-provincial level, relating to formation of trade unions and federations or trade unions, determining the collective bargaining agents, regulation of relations between employers and workers, the avoidance and settlement of any differences or disputes arising between them or matters connected therewith and ancillary thereto;

It is hereby enacted as follows:—

CHAPTER-I
PRELIMINARY

1.  Short title, extent, application and commencement.—(1) This Act may be called the Industrial Relations Act, 2012.

(2)     Subject to sub-section (3), it extends to the whole of Pakistan.

(3)     It shall apply to all persons employed in any establishment or industry, in the Islamabad Capital Territory or carrying on business in more than one province, but shall not apply to any person employed—

(a)      in the Police or any of the Defence Services of Pakistan or any services or installations exclusively connected with the Armed Forces of Pakistan including an Ordnance Factory maintained by the Federal Government;

(b)     in the administration of the State other than those employed as workmen;

(c)      as a member of the Security Staff of the Pakistan International Airlines Corporation or drawing wages in pay group not lower than Group V in the establishment of that Corporation as the Federal Government may, in the public interest or in the interest of security of the Airlines, by notification in the official Gazette, specify in this behalf;

(d)     by the Pakistan Security Printing Corporation or the Security Papers Limited; and (e) by an establishment or institution for the treatment or care of sick, infirm, destitute or mentally unfit persons excluding those run on commercial basis.

(4)     It shall come into force at once.

2.  Definitions.—In this Act, unless there is anything repugnant in the subject or context,—

(i)      "arbitrator" means a person appointed as such under Section 40;

(ii)     "award" means the determination by the Commission or Arbitrator of any industrial dispute or any matter relating thereto and includes an interim award;

(iii)    "Bench" and "Full Bench" mean a Bench and Full Bench of the Commission;

(iv)    “collective bargaining agent" in relation to an establishment, group of establishments or industry, means the trade union of the workmen which under Section 19, is the agent of workmen in the establishment or, as the case may be, industry, in the matter of collective bargaining;

(v)     "collective bargaining unit" means those workers or class of workers of an employer in one or more establishment falling within the same class of industry whose terms and conditions of employment are, or could appropriately be, the subject of collective bargaining together;

(vi)    "Commission" means the Industrial Relations Commission constituted under Section 53;

(vii)   "conciliation proceedings" means any proceedings before a conciliator;

(viii)  "Conciliator" means a person appointed as such under Section 36;

(ix)    "employer" in relation to an establishment, means any person or body of persons, whether incorporated or not, who or which employs workmen in the establishment under a contract of employment and includes—

                   (a)        an heir, successor or assign, as the case may be, of such person or body as aforesaid;

                   (b)        any person responsible for the management and control of the establishment;

                   (c)        in relation to an establishment run by or under the authority of any department of the Federal Government, the authority appointed in this behalf or, where no authority is so appointed, the Head of the department;

                   (d)       in relation to an establishment run by or on behalf of a local authority, the officer appointed in this behalf, or where no officer is so appointed, the chief executive officer of that authority;

                               Explanation.—For the purpose of distinction from the category of "workers" or "workmen", officers and employees of a department of the Federal Government who belong to the superior, managerial, secretarial, directorial, supervisory or agency staff and who have been notified for this purpose in the official Gazette shall be deemed to fall within the category of "employers"; and

                   (e)        in relation to any other establishment, the proprietor of such establishment and every director, manager, secretary, agent or officer or person concerned with the management of the affairs thereof;

(x)     "establishment" means any office, firm, factory, society, undertaking, company, shop or enterprise, which employs workmen directly or through a contractor for the purpose of carrying on any business or industry and includes all its departments and branches in the Islamabad Capital Territory or falling in more than one province, whether situated in the same place or in different places and except in Section 62 includes a collective bargaining unit, if any, constituted by any establishment or group of establishments;

(xi)    "executive" means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted by its constitution;

(xii)   "Government" means the Federal Government;

(xiii)  "Group of establishments" means establishments belonging to the same employer and the same industry;

(xiv)  "illegal lock-out" means a lock-out declared, commenced or continues otherwise than in the provisions of this Act;

(xv)   "illegal strike" means a strike declared, commenced or continues otherwise than in accordance with the provisions of this Act;

(xvi)  "industrial dispute" means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or the terms of employment or the conditions of work of any person;

(xvii) "industry" includes any business, trade, calling, employment or occupation for production of goods or provisions of services in the Islamabad Capital Territory and falling in more than province, and excluding those set up exclusively for charitable purposes;

(xviii)     "industry-wise trade union" means a trade union having its membership in more than one province in a group of establishments owned by one employer;

(xix)  "inspector" means an inspector appointed under this Act;

(xx)   "Labour Court" means a Labour Court established in a province;

(xxi)  "lock-out" means the closing of place of employment or part of such place, or the suspension, wholly or partly, of work by an employer, or refusal, absolute or conditional, by an employer to continue to employ any number of workmen employed by him, where such closing, suspension or refusal occurs in connection with an industrial dispute or is intended for the purpose of compelling workmen to accept certain terms and conditions of or affecting employment;

(xxii) "officer" in relation to a trade union, means any member of the executive thereof but does not include an auditor or legal adviser;

(xxiii)     "organization" means any organization of workers or of employers for furthering and defending the interests of workers or of employers;

(xxiv)          "prescribed" means prescribed by rules;

(xxv) "public utility service" means any of the services specified in Schedule I;

(xxvi)     "registered trade union" means a trade union registered under this Act;

(xxvii) "Registrar" means a Registrar of trade unions appointed under Section 4;

(xxviii) "rules" and ''regulations” mean rules and regulations made under this Act;

(xxix)     "settlement" means a settlement arrived at in the course of a conciliation proceeding, and includes an agreement between an employer and his workmen where there is no Collective Bargaining Agent, or Collective Bargaining Agent, as the case may be, arrived at or in the course of any conciliation proceedings, where such agreement is in writing, has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to the Government, the Conciliator and such other person as may be prescribed;

(xxx) "strike" means a cessation of work by a body of persons employed in any establishment acting in combination or a concerted refusal, or refusal under a common understanding of any number of persons who have been so employed to continue to work or to accept employment;

(xxxi)     "trade union" means any combination of workmen or employers formed primarily for the purpose of regulating the relations between workmen and employers, or workmen and workmen or employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes a federation of two or more trade unions;

(xxxii) "trans-provincial" means any establishment, group of establishments, industry, having its branches in more than one province;

(xxxiii) "worker" and "workman" mean person not falling within the definition of employer who is employed (including employment as a supervisor or as an apprentice) in an establishment or industry for hire or reward either directly or through a contractor whether the terms of employment are express or implied, and, for the purpose of any proceedings under this Act in relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched, laid off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that dispute but does not include any person who is employed mainly in managerial or administrative capacity.

CHAPTER—II
REGISTRATION OF TRADE UNIONS

3.       Trade unions and freedom of association.—Subject to the provisions of this Act and notwithstanding any other law for the time being in force,—

(a)      workers, without distinction whatsoever, shall have the right to establish and, subject to the rules of the organization concerned, to join international associations of their own choice without previous authorization:

               Provided that in the establishment where women are also employed the Trade Union shall include the women in the executive of the said trade union with the same proportion in which they are employed in the establishment:

               Provided further that no worker shall be entitled to be a member of more than one trade union at any one time and on joining another union the earlier membership shall automatically stand cancelled;

(b)     employers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of the organization concerned, to join international associations of their own choice without previous authorization:

(c)      every trade union and employers association shall frame its own constitution and rules to elect its representatives in full freedom to organize its administration and activities and to formulate its programmes; and

(d)     workers and employers' organizations shall have the right to establish and join federations and confederations and any such organization, federation or confederation shall have the right to affiliate with international organizations and confederations of workers' and employers’ organisations.

4.       Registrar of trade unions.—For the purpose of this Act, the Government shall, by notification in the official Gazette, appoint the Registrar of Trade Unions who shall be assisted by one or more Joint Registrars.

5.       Powers and functions of Registrar.—The Registrar, and the Joint Registrars, as the case may be, shall have the following powers and functions:—

(a)      the registration of trade unions under this Act and the maintenance of a register for the purpose;

(b)     to lodge, or authorize any person to lodge, complaints with the Commission for action, including prosecution, against trade unions, employers, workers or other persons for any alleged offence or any unfair labour practice or violation of any provision of the Act or for expending the funds of a trade union in contravention of the provisions of its constitution;

(c)      the determination of the question as to which one of the trade unions in an establishment or an industry is entitled to be certified as the collective bargaining agent in relation to that establishment or industry;

(d)     to inspect the accounts and record of the registered trade unions, or investigate or hold such inquiry in the affairs of the trade unions as he deems fit either by himself or through any officer subordinate to him and to authorize him in writing in this behalf; and

(e)     such other powers and functions as may be prescribed.

6.       Application for registration.—Any trade union may, under the signature of its President and the Secretary, apply to the Registrar for registration of the trade union under this Act:

Provided that there shall be at least two trade unions in an establishment.

7.       Requirements for application.—Every application for registration of Trade Union shall be made to the Registrar and shall be accompanied by—

(a)     a statement showing,—

                   (i)         the name of the trade union and the address of its Head Office;

                   (ii)        date of formation of the union;

                   (iii)       the titles, names, ages, addresses and occupations of the officers of the trade union;

          (iv)    statement of total paid membership;

                   (v)        the name of the establishment or group of establishments, or the industry, as the case may be, to which the trade union relates along with a statement of the total number of workers employed therein;

                   (vi)       the names and addresses of the registered trade unions in the establishment group of establishments or industry, as the ease may be, to which the union relates; and

                   (vii)      in case of a federation of trade unions, the names, addresses and registration number of member-unions;

(b)     three copies of the constitution of the trade union together with a copy of the resolution by the members of the trade union adopting such constitution bearing the signature of the Chairman of the meeting;

(c)      a copy of the resolution by the members of the trade union authorizing its President and the Secretary to apply for its registration; and

(d)     in case of a federation of trade unions, a copy of the resolution from each of the constituent unions agreeing to become a member of the federation.

8.  Requirements for registration.—(1) A trade union shall not be entitled to registration under this Act unless the constitution thereof provides for the following matters, namely:—

(a)     the name and address of the trade union;

(b)     the objects for which the trade union has been formed:

(c)      the purposes for which the general funds of the union shall be utilized;

(d)     the number of persons forming the executive which shall not exceed the prescribed limit and shall include not less than seventy five percent from amongst the workmen actually engaged or employed in the establishment or establishments or the industry for which the trade union has been formed;

               Provided that the condition of being employed in any establishment or an industry as aforesaid shall not apply to the remaining twenty five percent of the members of such executives;

(e)      the conditions under which a member shall be entitled to any benefit assured by the constitution of the trade union and under which any fine or forfeiture may be imposed on him;

(f)      the maintenance of a list of the members of the trade union and of adequate facilities for the inspection thereof by the officers and members of the trade union;

(g)     the manner in which the constitution shall be amended, varied or rescinded;

(h)     the safe custody of the funds of the trade union, its annual audit, the manner of audit and adequate facilities for inspection of the account books by the officers and members of the trade union;

(i)      the manner in which the trade union may be dissolved;

(j)      the manner of election of officers by the general body of the trade union and the term, not exceeding two years, for which an officer may hold office upon his election or re-election;

(k)     the procedure for expressing no confidence in any officer of the trade union; and

(l)      the meeting of the executive and of the general body of the trade union so that the executive shall meet at least once in every three months and the general body at least once a year.

(2)     Without prejudice to the provisions of sub-section (1), a trade union of workmen shall not be entitled to registration under this Act—

(a)      unless all its members are workmen actually engaged or employed in the industry with which the trade union is connected;

          Explanation.—For the purpose of this clause, a dismissed, terminated of retrenched worker, whose dismissal, termination or retrenchment is pending adjudication before a Court of competent jurisdiction, shall be deemed to be an employed worker of that establishment, and

(b)     where there are two or more registered trade unions in the establishment, group of establishments or industry with which the trade union is connected, unless it has as its members not less than one-fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the ease may be.

9.       Registration.—(1) On receipt of application for registration, the Registrar shall ensure compliance of Sections 7 and 8 of this Act, and issue the registration certificate in the prescribed form within seven days.

(2)     In case the application has been rejected or a certificate of registration has not been issued within a period of seven days as provided in sub-section (1), as the case may be, the trade union may appeal to the Commission who, for reasons to be stated in its judgment, may pass an order directing the Registrar to register the trade union and to issue a certificate of registration or may dismiss the appeal.

(3)     Notwithstanding anything contained in any other provision of this Act, every alteration made in the constitution of a registered trade union and every change of its officers shall be notified by registered post by the trade union to the Registrar within fifteen days of such change.

(4)     The Registrar may refuse to register such change or alteration if it is in contravention of any of the provisions of this Act or if it is in violation of the constitution of the trade union.

(5)     Subject to the provision of sub-section (4), every inclusion or exclusion of any constituent unit of a federation of trade unions shall be notified by registered post by the federation to the Registrar within fifteen days of such inclusion or exclusion.

(6)     In case there is a dispute in relation to the change of officers of a trade union, or any trade union is aggrieved by the refusal of the Registrar under sub-section (4), the Registrar may, after satisfying himself that a dispute exists, hold fresh elections under his supervision.

10.     Certificate of registration.—The Registrar, on registering a trade union under Section 9, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the trade union has been duly registered under this Act.

11.     Cancellation of registration.—(1) Subject to other provisions of this section, the registration of a trade union may be cancelled by the Registrar if the trade union has—

(a)      contravened or has been registered in contravention of any of the provisions of this Act or the rules;

(b)     applied for such cancellation or ceased to exist;

(c)      obtained registration by fraud or by misrepresentation of facts;

(d)     obtained less than ten percent of total votes polled in an election for determination of a Collective Bargaining Agent, or is not a contestant in such election;

(e)      failed to submit its annual returns to the Registrar as required under this Act or the rules;

(f)      contravened any of the provisions of its constitution; or

(g)     made in its constitution any provision which is inconsistent with this Act or the rules.

(2)     Where the Registrar is of opinion that the registration of a trade union should be cancelled, he shall submit an application to the Commission praying for permission to cancel such registration.

(3)     The Registrar shall cancel the registration of a trade union within seven days from the date of receipt of permission from the Commission.

(4)     The registration of a trade union shall not be cancelled on the ground mentioned in clause (d) of sub-section (1) if the unfair labour practice is not committed within three months prior to the date of submission of the application to the Commission.

(5)     Where any person who is disqualified under Section 18 from being 10 member or elected as, or from being an officer of a trade union is elected as an officer of a registered trade union, the registration of that trade union shall be cancelled if the Commission, upon a complaint in writing made in this behalf by the Registrar, so directs.

(6)  The registration of a trade union shall be cancelled by the Registrar if, after holding such inquiry as he deems fit, he finds that such trade union has dissolved itself or has ceased to exist.

12.  Appeal against the order/decisions etc. of Registrar.—A trade union, its members or an officer may prefer an appeal against the order, decision and proceeding conducted by the Registrar within thirty days before the Commission.

13.     Incorporation of registered trade union.—(1) Every registered trade union shall be a body corporate by the name under which it is registered, shall have perpetual succession and a common seal and the power to contract and to acquire, hold and dispose of property, both movable and immovable, and shall by the said name sue or be sued.

(2)  The Societies Registration Act, 1860 (XXIV of I860), the Cooperative Societies Act, 1925 (W.P. Act VII of 1925) and the Companies Act, 1984 (XLVII of 1984), shall not apply to any registered trade union and the registration of any trade union under any of these Acts shall be void.

14.     Registration of federation of trade unions.—(1) Any two or more registered trade unions may, if their respective general bodies so resolve, constitute a federation by executing an instrument of federation whereas any four or more registered trade unions, (from any two or more provinces) may constitute a federation or confederation and apply to the Registrar for the registration of the federation:

Provided that a trade union of workmen shall not join a federation which comprises a trade union of employers; nor shall a trade union of employers join a federation which comprises a trade union of workmen.

(2)     An instrument of federation referred to in sub-section (1) shall, among other things, provide for the procedures to be followed by the federated trade unions and the rights and responsibilities of the federation and the federated trade union.

(3)     An application for the registration of a federation of trade unions shall be signed by the Presidents of all the trade unions constituting the federation or by the officers of these trade unions respectively authorized by the trade unions in this behalf and shall be accompanied by three copies of the instrument of federation referred to in sub-section (1).

(4)     No trade union federation or confederation shall be formed and registered having same, similar on identical name.

(5)     Subject to sub-Sections (1), (2), (3) and (4), the provisions of the Act shall, so far as may be and with the necessary modifications, apply to a federation of trade unions as they apply to a trade union.

15.     Registered trade union to maintain register, etc.—Every registered trade union shall maintain in such form as may be prescribed—

(a)      a register of members showing particulars of subscriptions paid by each member;

(b)     an accounts book showing receipts and expenditure; and

(c)     a minute book for recording the proceedings of meetings.

16.     Returns.—(1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered trade union during the year ending on the 31st day of December, next preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of December, as may be prescribed.

(2)     Together with the general statement there shall be sent to the Registrar a statement showing all changes of officers made by the trade union during the year to which the general statement refers, together also with statement of the total paid membership and a copy of the constitution of the trade union corrected up to the date of the dispatch thereof to the Registrar.

(3)     A copy of every alteration made in the constitution of a registered trade union and of a resolution of the general body having the effect of a provision of the constitution, shall be sent to the Registrar within fifteen days of the making of the alteration or adoption of the resolution.

(4)     In case the registered trade union is member of a federation, the name of the federation shall be given in the annual statement.

(5)     The Registrar shall audit the return and issue a certificate of acceptance. In case the statement of expenditure is found incorrect, he will submit a complaint before the Commission for initiation of cancellation proceedings of the union.

17.     Transfer, etc., of officer of trade union during pendency of application for registration.—Save with the prior permission of the Registrar, no officer or member of a trade union of workmen shall be transferred, discharged, dismissed or otherwise punished during the pendency of an application for registration of the trade union with the Registrar, provided that the union has notified the names of its officers and members to the employer in writing.

18.     Disqualification for being an officer or a member of a trade union.—Notwithstanding anything contained in the constitution or rules of a trade union, a person who has been convicted and sentenced to imprisonment for two years or more or in an offence involving moral turpitude under the Pakistan Penal Code (Act XLV of 1860) shall be disqualified from being elected as, or from being, an officer of a trade union, unless a period of five years has elapsed after the completion of the sentence.

CHAPTER—III
COLLECTIVE BARGAINING AGENT

19.  Collective bargaining agent.—(1) Where there is only one registered trade union in an establishment or a group of establishments, that trade union shall if it has as its members not less than one-third of the total number of workmen employed in such establishment or group of establishments, upon an application made in this behalf be certified by the Registrar in the prescribed manner to be the collective bargaining agent for such establishment or group of establishments.

(2)     Where there are more registered trade unions than one in an establishment or a group of establishments, the Registrar shall upon an application made in this behalf by any registered trade union of an establishment or group of establishments, hold within fifteen days from the making of the application, a secret ballot to determine as to which one of such trade unions shall be the collective bargaining agent for the establishment or group:

Provided that the Registrar may, in the case of a large establishment having its branches in more than one town, hold the secret ballot within thirty days from the making of the application:

Provided further that the Registrar shall not entertain any application under this sub-section in respect of an establishment or group of establishments, consisting of, or including, a seasonal factory within the meaning of Section 4 of the Factories Act, 1934 (XXV of 1934), unless such application is made during the month in which the number of workmen employed in such factory in a year is usually the maximum.

(3)     Upon receipt of an application under sub-section (2), the Registrar shall, by notice in writing call upon every registered trade union in the establishment or group of establishments to which the application relates:--

(a)      to indicate whether it desires to be a contestant in the secret ballot to be held for determining the collective bargaining agent in relation to such establishment or group; and

(b)     if it so desires, to submit to him within the time specified in the notice a list of its members showing, in respect of each member, his parentage, age, the section or department and the place in which he is employed, his ticket number and the date of his becoming a member and if union is a federation of trade unions, a list of its affiliated trade unions together with a list of members of each such trade union showing in respect of each such member the said particulars.

(4)     Every employer shall—

(a)      on being so required by the Registrar, submit a list of all workmen employed in the establishment excluding those whose period of employment in the establishment is less than three months and showing, in respect of each workman, his parentage, age, the Section or department and the place in which he is employed, his ticket number and the date of his employment in the establishment; and

(b)     provide such facilities for verification of the lists submitted by him and the trade unions as the Registrar may require:

               Provided that, in computing the period of three months referred to in clause (a) in the case of a workman employed in a seasonal factory within the meaning of Section 4 of the Factories Act, 1934 (XXV of 1934), the period during which he was employed in that factory during the preceding season shall also be taken into account.

(5)     The Registrar shall, after verification of the lists submitted by the trade unions, prepare a list of voters in which shall be included the name of every workman whose period of employment as computed in accordance with sub-section (4), is not less than three months and who is a member of any of the contesting trade unions and shall, at least four days prior to the date fixed for the poll, send to each of the contesting trade unions a certified copy of the list of voters so prepared.

(6)     Every workman who is a member of any of the contesting trade unions and whose name appears in the list of voters prepared under sub-section (5) shall be entitled to vote at the poll to determine the collective bargaining agent.

(7)     Every employer shall provide all such facilities in his establishment as may be required by the Registrar for the conduct of the poll, including actual expenditures of the poll, but shall not interfere with, or in any way influence, the voting.

(8)     No person shall canvass for vote within a radius of fifty metres of the polling station.

(9)     For the purpose of holding secret ballot to determine the collective bargaining agent, the Registrar shall—

(a)      fix the date for the poll and intimate the same to each of the contesting trade unions and also to every employer;

(b)     on the date fixed for the poll so placed in the polling station set up for the purpose the ballot boxes which shall be sealed in the presence of the representatives of the contesting trade unions as to receive the ballot papers;

(c)      conduct the poll at the polling station at which the representatives of the contesting trade unions shall have the right to be present;

(d)     after the conclusion of the poll and in the presence of such of the representatives of the contesting trade unions as may be present, open the ballot boxes and count the votes; and

(e)      after the conclusion of the count, certify the trade union which has received the highest number of votes to be the collective bargaining agent:

               Provided that no trade union shall be certified to be the collective bargaining agent for an establishment or group of establishments unless the number of votes received by it is not less than one-third of the total number of votes of workmen mentioned in the voters" list employed in such establishment or group of establishments:

               Provided further that, if no trade union secures such number of votes in the first poll, a second poll shall be held between the trade unions which secure the two highest numbers of votes in the first poll and the trade union which secures a majority of the votes cast at the second poll shall be certified in the prescribed manner to be the collective bargaining agent:

               Provided also that, if the number of votes secured by two or more trade unions securing the highest number of votes is equal, further poll shall be held between them until one of them secures a majority of the votes cast at such further poll.

(10)   If no trade union indicates under clause (a) of sub-section (3) that it desires to be a contestant in the secret ballot, the Registrar shall certify the trade union which has made the application under sub-section (2) to be the collective bargaining agent for a period of two years.

(11)   Where a registered trade union has been certified under clause (e) of sub-section (9) and sub-section (10) to be the collective bargaining agent for an establishment or group of establishments, no application for the determination of the collective bargaining agent for such establishment or group shall be entertained within a period of two years from the date of such certification except where the registration of such a registered trade union is cancelled before the expiration of the period:

Provided that for the trade unions having membership of more than five thousand and presence in more than one province, the period of two years will be enhanced to three years.

(12)   The Registrar may authorize in writing an officer to perform all or any of his functions under this section.

(13)   After an application under sub-section (2) is made to the Registrar, no employer shall transfer, remove, retrench or terminate any worker who is officer of any contestant trade union save with the permission of the Registrar.

20.     Functions of the Collective Bargaining Agent.—(1) The collective bargaining agent in relation to an establishment or group of establishments shall be entitled to—

(a)      undertake collective bargaining with the employer or employers on matters connected with employment, non-employment, the term of employment or the conditions of work other than matters which relate to the enforcement of any right guaranteed or secured to it or any workman by or under any law, other than this Act, or any award or settlement;

(b)     represent all or any of the workmen in any matter or judicial proceedings under this Act;

(c)      give notice of, and declare, a strike in accordance with the provisions of this Act; and

(d)     nominate representatives of workmen on the Board of Trustees of any welfare institutions or Provident Funds and of the Workers Participation Fund established under the Companies Profits (Workers Participation) Act, 1968 (XII of 1968).

(2)  A collective bargaining agent may, without prejudice to its own position, implead as a party to any proceedings under this Act to which it is itself a party or any federation of trade unions of which it is a member.

21.     Performance of functions pending ascertainment of collective bargaining agent.—Any act or function which is by this Act required to be performed by or has been conferred upon a collective bargaining agent may, until a collective bargaining agent has been certified under the provisions of this Act, be performed by a registered trade union which has been recognized by the employer or employers.

22.  Check off.—(1) If a collective bargaining agent so requests, the employer shall deduct from the wages of the workmen such amounts towards their subscription to the funds of the trade union as may be specified by each individual workman named in the demand statement furnished by the trade union.

(2)     An employer making any deductions under sub-section (1) shall, within fifteen days of the end of the period for which the deduction have been made, deposit the entire amount so deducted by him in the account of the trade union on whose behalf he has made the deductions.

(3)     A collective bargaining agent shall maintain with a branch of the National Bank of Pakistan, or with a scheduled bank with "AAA" credit-rating recognised by the State Bank of Pakistan, or with a Post Office Savings Bank an account to which shall be credited the entire amount deducted by the employer under sub-section (1) from the wages or the members of the trade union.

(4)  The employer shall provide facilities to the collective bargaining agent for ascertaining whether deductions from the wages of its members are being made under sub-section (1).

CHAPTER—IV
WORKERS PARTICIPATION

23.  Shop steward.—(1) In every factory/establishment in which twenty-five or more workmen are employed, shop stewards, from amongst the workmen in a shop. Section or department of the factory/establishment, shall,—

(a)      where there is a collective bargaining agent in the factory/establishment, be nominated by it, or

(b)     where there is no collective bargaining agent in the factory/establishment, be elected at a secret ballot held in the prescribed manner.

(2)  The employer shall provide all such facilities in his factory/ establishment as may be required for the holding of a ballot under sub-section (1) but shall not interfere with, or in any way influence, the voting.

(3)     A shop steward shall hold office for a period of one year from date of his election or nomination as the case may be.

(4)     Any dispute arising out of, or in connection with, the election of a shop steward shall be referred to the Registrar whose decision shall be final and binding on all parties to the dispute.

24.     Functions of Shop Steward.—The shop steward shall act as a link between the workers and the employer, assist in the improvement of arrangements for the physical working conditions and production work in the shop section or department for which he is elected and help workers in the settlement of their problems either connected with work or with any such individual grievance of a workman as is referred to in sub-section (1) of Section 33.

25.     Works Council.—(1) In every factory/establishment in which fifty or more workmen are employed or were employed on any day in the preceding twelve months, the employer shall constitute, in the prescribed manner, a work council consisting of representatives of the employer and the workmen in such a manner that the number of the representatives of the workmen is not less than the number of the representatives of the employer in the works council.

(2)  In the case of any factory/establishment where there are one or more trade unions, the collective bargaining agent shall nominate the representatives of the workmen on such Works Council:

Provided that if there is no collective bargaining agent, representatives of workmen on Works Council shall be chosen in the prescribed manner from amongst the workmen engaged in the factory/establishment for which the Works Council is constituted.

26.     Functions of Works Council.—The functions of Works Council shall be to promote measure for securing and preserving good relation between an employer and his workmen and, in particular;

(a)      To endeavour to maintain continuous sympathy and understanding between the employer and the workmen;

(b)     To promote settlement of differences and disputes through bilateral negotiations;

(c)      To promote security of employment for the workmen and conditions of safety, health and job satisfaction in their work;

(d)     To take measures of facilitating good and harmonious working condition in the factory/establishment; to provide vocational training and educational facilities for children of workmen in secretarial and accounting procedures and to promote their absorption in these departments of the factory/establishment; and

(e)      To discuss any other matter of mutual interest with a view to promoting better labour-management relations.

27.  Workers' Participation in Management.—(1) In every factory/ establishment employing fifty persons of more there shall be elected or nominated workers' representatives to participate to the extent of fifty per cent in the management of the factory/establishment:

Provided that there shall be elected or nominated at least one worker's representative to participate in the management of such factory/establishment:

Provided further that, for the purpose of determining the number of workers' representatives in the management of the factory/ establishment, fractions equal to, or greater than one half shall be regarded as one and lesser fractions shall be ignored.

(2)     The workers' representatives shall be workmen employed in the same factory/establishment and shall,—

(a)      where there is a collective bargaining agent in the factory/ establishment, be nominated by it, or

(b)     where there is no collective bargaining agent in the factory/establishment, be elected by simple majority at a secret ballot by all workmen employed in the factory/establishment.

(3)     The workers representative shall hold office for a period of two years from the date of their election of their election or nomination, as the case may be.

(4)     The workers' representatives shall participate in all the meetings of the management committee constituted in the prescribed manner and all matters relating to the management of the factory/establishment, except commercial and financial transaction, may be discussed in such meetings.

(5)     The management shall not take any decision in the following matters without the advice in writing of the workers' representative, namely--

(a)      framing of services rules and policy about promotion and discipline of workers;

(b)     changing physical working conditions in the factory/ establishment;

(c)     in-service training of workers;

(d)     recreation and welfare of workers;

(e)     regulation of daily working hours and breaks;

(f)      preparation of leave schedule; and

(g)     matters relating to the order and conduct of workers within the factory/establishment.

(6)     The workers' representatives may on their own initiative give advice in writing concerning the matters specified in sub-section (5) and, where they do so, the management shall convene a meeting within two weeks of the receipt of the advice to discuss its merits with them.

(7)     The management shall give reply to the workers' representative within two weeks of the receipt of their advice given under sub-section (5) or sub-section (6) and any such advice shall not be rejected except by the person holding the highest position in the management of the factory/establishment.

(8)  In case the advice of the workers' representatives is rejected by the management of the factory/establishment, the matter may, within fifteen days of the advice being so rejected, be taken up by the collective bargaining agent in the Works Council for bilateral negotiations and thereupon the provisions of Section 35 shall apply as they apply to the settlement of an industrial dispute in relation to which the views of the employer or the collective bargaining agent have been communicated to the Works Council under sub-section (1) of the section.

28.  Joint Management Board.—(1) Every company which owns or manages an factory/establishment, and in every factory/establishment which is not so owned or managed, and which employs fifty persons or more, the management shall, in the prescribed manner set up a joint management board in which the workers' participation shall be to the extent of thirty percent.

(2)  The employer's representatives on the joint management board shall be from amongst the Directors or senior executives and the workers' representatives shall be workmen employed in the factory/establishment.

(3)     The joint management board shall look after the following matters, namely:—

(a)     improvement in production, productivity and efficiency;

(b)     fixation of job and piece-rates;

(c)     planned regrouping or transfer of the workers;

(d)     laying down the principles of remuneration and introduction of new remuneration methods; and

(e)      provision of minimum facilities for such of the workers employed through contractors as are not covered by the laws relating to welfare of workers.

(4)     The joint management board may call for reasonable information about the working of the company or factory/establishment from its management and the management shall supply the information called for.

(5)     The joint management board shall meet at such intervals as may be prescribed.

(6)     The workers' representative shall hold office for such period as may be prescribed.

(7)     In this section,—

(a)      "company" has the same meaning as in the Companies Act, 1984 (XLVII of 1984); and

(b)     " management" means the employer.

(8)     In the case of an factory/establishment where there are one or more trade unions, the collective bargaining agent shall nominate the representatives of the workmen on such join management board:

Provided that where there is no collective bargaining agent, representatives of workmen on the join management board shall be chosen in the prescribed manner from amongst the workmen engaged in the factory/establishment for which the joint management board is constituted.

29.     Inspector.—The inspectors appointed under Section 10 of the Factories Act, 1934 (XXV of 1934), and such other persons, not being Conciliators appointed under this Act, as the Government may. by notification in the official Gazette appoint, shall be inspectors for ensuring compliance with the provisions of this Act within the local limits assigned to each.

30.     Functions of the Inspector.—(1) The inspector may—

(a)      at all reasonable hours enter any premises and make such examination of any register and document relating to the provisions of Section 27 and Section 28 and take on the spot or otherwise such evidence of any person, and exercise such other powers of inspection, as he may deem necessary for discharging his duty;

(b)     call for such information from the management as he may deem necessary for the discharge of his functions and the management shall provide the information called for within such period as may be specified by him; and

(c)      make a report in writing to the Registrar having jurisdiction of any offence punishable under this Act.

(2)  Every Inspector shall be deemed to be a public servant within the meaning of Section 21 of the Pakistan Penal Code. 1860 (XLV of 1860).

CHAPTER—V
UNFAIR LABOUR PRACTICES

31.     Unfair labour practices on the part of employers.—(1) No employer or trade union of employers and no person acting on behalf of either shall—

(a)      impose any condition in a contract of employment seeking to restrain the right of a person who is a party to such contract to join a trade union or continue his membership of a trade union;

(b)     refuse to employ or refuse to continue to employ any person on the ground that such person is, or is not a member or officer of a trade union;

(c)      discriminate against any person in regard to any employment, promotion, condition of employment or working condition on the ground that such person is, or is not, a member or officer of a trade union;

(d)     dismiss, discharge, remove from employment or transfer or threaten to dismiss, discharge or remove from employment or transfer a workman or injure or threaten to injure him in respect of his employment by reason that the workman:

                   (i)         is or proposes to become, or seeks to persuade any other person to become, a member or officer of a trade union; or

                   (ii)        participates in the promotion, formation or activities of a trade union;

(e)      induce any person to refrain from becoming, or to cease to be a member or officer of a trade union, by conferring or offering to confer any advantage on, or by procuring or offering to procure any advantage for such person or any other person;

(f)      compel or attempt to compel any officer of the collective bargaining agent to arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of water, power and telephone facilities and such other methods;

(g)     interfere with or in any way influence the balloting for the determination of the Collective Bargaining Agent;

(h)     recruit any new workman during the period of a notice of strike under Section 41 or during the currency of a strike which is not illegal except where the Conciliator having been satisfied that complete cessation of work is likely to cause serious damage to the machinery or installation, has permitted temporary employment of a limited number of workmen in the section where the damage is likely to occur;

(i)      close down the whole of the establishment in contravention of Standing Order 11-A of the industrial and Commercial Employment (Standing Orders) Act, 1968 (W.P. Ord. VI of 1968); or

(j)      Commence, continue, instigate or incite others to take part in or expend or supply money or otherwise act in furtherance or support of, an illegal lockout.

(2)  Nothing in sub-section (1) shall be deemed to preclude an employer from requiring that a person upon his appointment or promotion to managerial position shall cease to be, and shall be disqualified from being, a member or officer of a trade union of workmen.

32.     Unfair labour practices on the part of a workmen.—(1) No workmen or other person or trade union of workmen shall—

(a)      persuade a workman to join or refrain from joining a trade union during working hours; or

(b)     intimidate any person to become, or refrain from becoming, or to continue to be, or to cease to be a member or officer of a trade union; or

(c)      induce any person to refrain from becoming, or cease to be a member or officer of a trade union, by intimidating or conferring or offering to confer any advantage on, or by procuring or offering to procure any advantage for such person or any other person; or

(d)     compel or attempt to compel the employer to accept any demand by using intimidation, coercion, pressure threat, confinement to, or ouster from, a place, dispossession, assault, physical injury, disconnection of telephone, water or power facilities or such other methods; or

(e)      commence, continue, instigate or incite others to take part in, or expend or supply money or otherwise act in furtherance or support of, an illegal strike or a go-slow; or

          Explanation.—In clause (e) the expression 'go-slow’ means an organized, deliberate and purposeful slowing down of normal output, or the deterioration of the normal quality of work by a body of workmen acting in a conceited manner, but does not include the slowing down of normal output, or the deterioration of the normal quality of work which is due to mechanical defect, breakdown of machinery, failure or defect in power supply or in the supply of normal materials and spare parts of machinery.

(2)  It shall be an unfair practice for a trade union to interfere with a ballot held under Section 19 by the exercise of undue influence, intimidation, impersonation or bribery through its executive or through any person acting on its behalf.

CHAPTER—VI
SETTLEMENT OF DISPUTES

33.     Redress of individual grievances.—(1) A worker may bring his grievance in respect of any right guaranteed or secured to him by or under any law or any award or settlement for the time being in force to the notice of his employer in writing, either himself or through his shop steward or collective bargaining agent within ninety days of the day on which the cause of such grievance arises.

(2)     Where a worker himself brings his grievance to the notice of the employer, the employer shall, within fifteen days of the grievance being brought to his notice, communicate his decision in writing to the worker.

(3)     Where a worker brings his grievance to the notice of his employer through his shop steward or collective bargaining agent, the employer shall, within seven days of the grievance being brought to his notice, communicate his decision in writing to the shop steward or as the case may be the collective bargaining agent.

(4)     If the employer fails to communicate a decision within the period specified in sub-section (2) or, as the case may be sub-section (3), or if the worker is dissatisfied with such decision, the worker or the shop steward may take the matter to his collective bargaining agent or to the Commission or, as the case may be, the collective bargaining agent may take the matter to the Commission, and where the matter is taken to the Commission, it shall give a decision within seven days from the date of the matter being brought before it as if such matter were an industrial dispute:

Provided that a worker who desires to so take the matter to the Commission shall do so within a period of sixty days from the date of the communication of the employer or, as the case may be, from the expiry of the period mentioned in sub-section (2), or sub-section (3), as the case may be.

(5)     In adjudicating and determining a grievance under sub-section (4), the Commission shall go into all the facts of the case and pass such orders as may be just and proper in the circumstances of the case.

(6)     If a decision under sub-section (4) or an order under sub-section (5) given by the Commission or a decision in an appeal against such a decision or order is not given effect to or complied with within seven days or within the period specified in such order or decision, the defaulter shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to seventy-five thousand rupees, or with both.

(7)     No person shall be prosecuted under sub-section (6) except on a complaint in writing—

(a)      by the workman if the order or decision in his favour is not implemented within the period specified therein; or

(b)     by the Commission if an order or decision thereof is not complied with.

(8)     For the purposes of this section, workers having common grievance arising out of a common cause of action may make a joint application to the Commission.

(9)     Any collective bargaining agent or any employer may apply to the Commission for the enforcement of any right guaranteed or secured to it or him by or under any law or any award or settlement.

(10)   There shall be a Tripartite Council for review of grievances of workers in the Islamabad Capital Territory comprising not less than three members each of the workers, employers and the Government:

Provided that the representatives of the workers and the employers shall be nominated by the Government after consultation with registered trade unions and employers' organizations to be notified in the Official Gazette.

34.     Raising of industrial disputes.—(1) No industrial dispute shall be deemed to exist unless it has been raised in the prescribed manner by a collective bargaining agent or an employer;

(2)     Notwithstanding anything contained in this Act, a federation of trade unions or federation may, if it is a collective bargaining agent, raise an industrial dispute affecting all employers or workers of the establishments represented by that federation and a decision of the Commission shall be binding on all such employers and workers.

(3)     No collective bargaining agent shall, at any time when a decision of the Commission in respect of any matter is effective, be entitled to raise a demand relating to that matter.

35.     Negotiations relating to differences and disputes.—(1) If at any time an employer or a collective bargaining agent finds that an industrial dispute has arisen or is likely to arise, the employer or, as the case may be, the collective bargaining agent, may communicate his or its views in writing either to the Works Council or to the other party and where the views are so communicated to the Works Council, a copy of the communication shall also be sent to the other party.

(2)  On receipt of the communication under sub-section (1) the Works Council or the party receiving it shall try to settle the dispute by bilateral negotiations within ten days of receipt of the communication or within such further period as may be agreed upon by the parties and, if the parties reach a settlement, a memorandum of settlement shall be recorded in writing and signed by both the parties and a copy thereof shall be forwarded to the Conciliator and the authorities mentioned in clause (xxx) of Section 2.

(3)  Where a settlement is not reached between the employer and the collective bargaining agent or, if the views of the employer or collective bargaining agent have been communicated under sub-section (1) to the Works Council, there is a failure of bilateral negotiations in the Works Council, the employer or the collective bargaining agent may, within seven days from the end of the period referred to in sub-section (2), serve on the other party to the dispute a notice of lock-out or strike, as the case may be, in accordance with the provisions of this Act.

36.     Conciliator.—The Commission may, appoint as many persons as it considers necessary to act as Conciliators under this Act.

37.     Conciliation after notice of strike or lock-out.—Where a party to an industrial dispute serves a notice of strike or lock-out under sub-section (3) of Section 35, it shall, simultaneously with the service of such notice, deliver a copy thereof to the Conciliator and to the Commission.

38.     Proceedings before Conciliator.—(1) The Conciliator shall within fifteen days call a meeting of the parties to the dispute for the purpose of bringing about a settlement.

(2)     The parties to the dispute shall be represented before the Conciliator by persons nominated by them and authorized to negotiate and enter into an agreement binding on the parties:

Provided that if, in the opinion of the Conciliator, the presence of the employer or any officer of the trade union connected with the dispute is necessary in a meeting called by him, he shall give notice in writing requiring the employer or such officer to appear in person before him at the place, date and time, specified in the notice and it shall be the duty of the employer or the officer of the trade union to comply with the notice.

(3)     The Conciliator shall perform such functions in relation to a dispute before him as may be prescribed and may, in particular, suggest to either party to the dispute such concessions or modifications in its demand as are in the opinion of the Conciliator likely to promote an amicable settlement of the dispute.

(4)     If a settlement of the dispute or of any matter in dispute is arrived at in the course of the proceedings before him, the Conciliator shall send a report thereof to the Commission together with a memorandum of settlement signed by the parties to the dispute.

(5)  If no settlement is arrived at within the period of the notice of strike or lock-out, the conciliation proceedings may be continued for such further period as may be agreed upon by the parties.

39.  Commencement and conclusion of proceedings.—(1) A conciliation proceeding shall be deemed to have commenced on the date on which a notice of strike or lock-out is received by the Conciliator under sub-section (3) of Section 35.

(2)     A conciliation proceeding shall be deemed to have concluded:

(a)      where a settlement is arrived at, on the date on which a memorandum of settlement is signed by the parties to the dispute; and

(b)     where no settlement is arrived at—

                   (i)         if the dispute is referred to an arbitrator under Section 40 on the date on which the arbitrator has given his award or otherwise; or

                   (ii)        on the date on which the period of the notice of strike or lock-out expires.

(3)     Proceedings before the Commission shall be deemed to have commenced—

(a)      in relation to an industrial dispute, on the date on which an application has been made under Section 42 or Section 60, or on the date on which it is referred to the Commission by the Federal Government under Section 42 or Section 45; and

(b)     in relation to any other matter, on the date on which it is referred to the Commission.

(4)  Proceedings before the Commission in relation to a dispute referred to it under Section 42 or Section 45 or to a dispute raised under sub-section (2) Section 34, shall be deemed to have commenced on the date on which the reference is made to it or, as the case may be, the dispute is raised before it.

(5)  Proceedings before the Commission shall be deemed to have concluded on the date on which the decision is delivered under sub-section (5) of Section 42.

40.     Arbitration.—(1) If the conciliation fails, the Conciliator shall try to persuade the parties to agree to refer the dispute to an arbitrator. In case the parties agree, they shall make a joint request in writing for reference of the dispute to an arbitrator agreed upon by them.

(2)     The arbitrator to whom a dispute is referred under sub-section (1) may be a person borne on a panel to be maintained by the Commission or any other person agreed upon by the parties.

(3)     The arbitrator shall give his award within a period of thirty days from the date on which the dispute is referred to him under sub-section (1) or such further period as may be agreed upon by the parties to the dispute.

(4)     After he has made an award, the arbitrator shall forward a copy thereof to the parties and to the Government for publication in the official Gazette.

(5)     The award of the arbitrator shall be final and no appeal shall lie against it.

(6)     The award shall be valid for a period not exceeding two years, as may be fixed by the arbitrator.

CHAPTER—VII
STRIKES AND LOCK-OUT

41.     Notice of strike or lock-out.—The period of a notice of lock-out or strike given under sub-section (3) of Section 35 shall be fourteen days.

42.     Strike and lock-out.—(1) If no settlement is arrived at during the course of conciliation proceedings and the parties to the dispute do not agree to refer it to an arbitrator under Section 40, the workmen may go on strike or, as the case may be, the employer may declare a lock-out, on the expiration of the period of the notice under Section 41 or upon a declaration by the Conciliator that the conciliation proceedings have failed, whichever is the later.

(2)  The party raising a dispute may at any time either before or after the commencement of a strike or lock-out make an application to the Commission for adjudication of the dispute.

(3)     Where a strike or lock-out lasts for more than thirty days, the Government, may by order in writing, prohibit the strike or lock-out:

Provided that the Government may, with respect to any other strike or lock-out relating to a dispute which the Commission is competent to adjudicate and determine, by order in writing, prohibit a strike or lock-out at any time before the expiry of thirty days, if it is satisfied that the continuance of such a strike or lock-out is causing serious hardship to the community or is prejudicial to the national interest.

(4)     In any case in which the Government prohibits a strike or lock-out, it shall forthwith refer the dispute to the Commission.

(5)     The Commission shall, after giving both the parties to the dispute an opportunity of being heard, make such order as it deems fit as expeditiously as possible but not exceeding thirty days from the date on which the dispute referred to it:

Provided that the Commission may also make an interim order on any matter in dispute:

Provided further that any delay by the Commission in making an order shall not affect the validity of any order made by it.

(6)     An award of the Commission shall be for such period as may be specified in the award which shall not be more than two years.

43.  Illegal strikes and lock-out.—(1) A strike or lock-out shall be illegal if—

(a)      it is declared, commenced or continued without giving to the other party to the dispute, in the prescribed manner, a notice of strike or lock-out or before the date of strike or lock-out specified in such notice, or in contravention of Section 46;

(b)     it is declared, commenced or continued in consequence of an industrial dispute raised in a manner other than that provided in Section 34;

(c)      it is continued in contravention of an order made under Section 42, Section 45, or Section 61 or sub-section (6) of Section 44; or

(d)     it is declared, commenced or continued during the period in which a settlement or award is in operation in respect of any of the matters covered by a settlement or award.

(2)  A lock-out declared in consequence of an illegal strike and a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal.

44.  Procedure in cases of illegal strikes or lock-out.—(1) Notwithstanding anything contained in any other provision of this Act or in any other law for the time being in force, an Officer of the Commission not below the rank of Deputy Registrar, hereinafter in this section referred to as the Officer, may be assigned by the Commission the duly to make enquiries in such manner as he may deem fit into an illegal strike or illegal lock-out in an establishment and make a report to the Commission.

(2)  The officer may, for the purpose of enquiry under sub-section (1), enter with such assistance by the persons in the service of Pakistan, as he thinks fit, in an establishment, where he has reason to believe an illegal strike or lock-out to be in progress, and make such examination of the premises and plant and of any registers maintained therein and take on the spot or otherwise such evidence of persons and exercise such other powers as he may deem necessary for carrying out the purposes of this section.

(3)     The officer shall have authority to call any party to such dispute to his office or secure his presence in the establishment and shall also have the power to bind any party to the dispute to appear before the Commission.

(4)     Where a party to an illegal strike or lock-out, on being required or bound under this section to appear before the officer or the Commission, does not so appear, the officer or the Commission, as the case may be, may, besides taking such other action as may be admissible under this Act, proceed ex-parte.

(5)     After receiving the enquiry report the Commission shall serve a notice on the employer and the collective bargaining agent or the registered trade union concerned with the dispute to appear before the Commission on a date which shall not be later than seven days.

(6)     The Commission may, within ten days following the day on which it receives a report under sub-section (1), and after considering the report and hearing such of the parties as may appear before it, order the strike to be called off or the lock-out to be lifted.

(7)     If the employer contravenes the order of the Commission under sub-section (6) and the Commission is satisfied that the continuance of the lock-out is causing serious hardship to the community or is prejudicial to the national interest, it may issue an order for the attachment of the establishment and for the appointment of an official receiver for such period as it deems fit, and such period may be varied from time to time.

(8)     The official receiver shall exercise the powers of management and may transact business, enter into contracts, give valid discharge of all moneys received and do or omit to do all such acts as are necessary for conducting the business of the establishment.

(9)     The Commission may, in appointing and regularizing the work of an official receiver exercise the powers of a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908).

(10)   If the workers contravene the order of the Commission under sub-section (6), the Commission may pass orders of dismissal against all or any of the striking workers and, notwithstanding anything to the contrary contained in this Act, if the Commission, after holding such inquiry as it deems fit, records its finding that any registered trade union has committed or abetted the commission of such contravention, the finding shall have the effect of cancellation of the registration of such trade union and debarring all officers of such trade union from holding office in that or in any other trade union for the un-expired term of their offices and for the term immediately following:

Provided that the Court may review its orders if good and sufficient cause is shown by an affected worker within seven days of such orders of dismissal.

45.     Strike or lock-out in public utility services.—(1) The Government, in the case of a strike or lock-out relating to—

(a)     an industrial dispute of national importance; or

(b)     an industrial dispute in respect of any of the public utility services which the Commission is competent to adjudicate and determine, may, by order in writing, prohibit a strike or lock-out at any time before or after the commencement of the strike or lock-out.

(2)  The provisions of sub-Sections (4), (5) and (6) of Section 42 shall also apply to an order made under Sub-section (1) above as they apply to an order made under sub-section (3) of that section.

46.     Prohibition of serving notice of strike or lock-out while proceedings pending.—No notice of strike or lock-out shall be served by any party to an industrial dispute during the pendency of any conciliation proceedings or proceedings before an Arbitrator or Commission in respect of any matter constituting such industrial dispute.

47.     Removal of fixed assets.—No employer shall remove any fixed assets of the establishment during the currency of an illegal lock-out or a strike which is not illegal:

Provided that the Commission may, subject to such conditions as it may impose, cause to be removed any such fixed assets for safe custody to avoid damage to such assets due to flood, fire, catastrophe or civil commotion.

48.     Protection of certain persons.—(1) No person refusing to take part or to continue to take part in any illegal strike or illegal lock-out shall, by reasons of such refusal, be subject to expulsion from any trade union or to any fine or penalty or to the deprivation of any right or benefit which he or his legal representatives would otherwise have been entitled, or be liable to be placed in any respect, either directly or indirectly, under any disability or disadvantage as compared with other members of the trade union.

(2)  Any contravention of the provisions of sub-section (1) may be made the subject matter of an industrial dispute, and nothing in the constitution of a trade union providing the manner in which any dispute between its executive and members, shall be settled shall apply to any proceedings for enforcing any right or exemption granted by sub-section (1). In any such proceeding, the Commission may, in lieu of ordering a person who has been expelled from membership of a trade union to be restored to membership, order that he be paid out of the funds of the trade union such sum by way of compensation or damages as the Commission thinks just.

CHAPTER—VII
AWARDS AND SETTLEMENTS

49.     Settlements and awards on whom binding.—(1) A settlement arrived at in the course of conciliation proceedings, or otherwise between the employer and the collective bargaining agent or an award of an arbitrator prescribed under Section 40, or an award or decision of the Commission delivered under Section 54 and Section 57 shall—

(a)     be binding on all parties to the industrial dispute;

(b)     be binding on all other parties summoned to appear in any proceedings before the Commission as parties to the industrial dispute, unless the Commission specifically otherwise directs in respect of any such party;

(c)      be binding on the heirs, successors or assignees of the employer in respect of the establishment to which the industrial dispute relates where an employer is one of the parties to the dispute; and

(d)     where a collective bargaining agent is one of the parties to the dispute, be binding on all workmen who were employed in the establishment or industry to which the industrial dispute relates on the date on which the dispute first arose or who are employed therein after that date:

               Provided that, where a collective bargaining agent or a trade union performing the functions of a collective bargaining agent under Section 21 exists, the employer shall not enter into a settlement with any other trade union, and any contravention of this provision shall be deemed to be an unfair labour practice under Section 31.

(2)  A settlement arrived at by agreement between the employer and a trade union otherwise than in the course of conciliation proceedings shall be binding on the parties to the agreement.

50.  Effective date of settlement, award, etc.—(1) A settlement shall become effective—

(a)      if a date is agreed upon by the parties to the dispute to which it relates, on such date; and

(b)     if a date is not so agreed upon, on the date on which the memorandum of the settlement is signed by the parties.

(2)     A settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon for a period of one year from the date on which the memorandum of settlement is signed by the parties to the dispute and shall continue to be binding on the parties after the expiry of the aforesaid period until the expiry of two months from the date on which either party informs the other party in writing of its intention no longer to be bound by the settlement.

(3)     An order passed by the Commission shall, unless an appeal against it is preferred to the Full Bench, become effective on such date and remain effective for such period, not exceeding two years, as may be specified therein. The Arbitrator or the Commission shall specify dates from which the award or decision on various demands shall be effective and the time limit by which it shall be implemented in each case;

Provided that if, at any time before the expiry of the said period, any party bound by an award or decision applies to the Commission for reduction of the said period on the ground that the circumstances in which the award or decision was made have materially changed, the Commission may, by order made after giving to the other party an opportunity of being heard, terminate the said period on a date specified in the order.

(4)  Notwithstanding the expiry of the period for which an award is to be effective under sub-section (3), the award shall continue to be binding on the parties until the expiry of two months from the date on which either party informs the other party in writing of its intention no longer to be bound by the award.

51.     Interpretation of settlement and awards.—(1) If any difficulty or doubt arises as to the interpretation of any provisions of an award or settlement, it shall be referred to the Full Bench constituted under this Act.

(2)  The Full Bench to which a matter is referred under sub-section (1) shall after giving the parties an opportunity of being heard, decide the matter, and its decision shall be final and binding on the parties.

52.     Recovery of money due from an employer under settlement or award.—(1) Any money due from an employer under a settlement, or under an award or decision of the Arbitrator, the Commission may be recovered as arrears of land revenue or as a public demand if, upon the application of the person entitled to the money, the Commission so directs.

(2)     Where any workman is entitled to receive from the employer any benefit, under a settlement or under an award or decision of the Arbitrator, the Commission, which is capable of being computed in terms of money, the amount at which such benefit shall be computed may, subject to the rules, be determined and recovered as provided for in sub-section (1) and paid to the workman concerned within a specified date.

(3)     The Commission shall have the powers of Collector Grade-I and shall exercise such powers of recovery as determined by it.

CHAPTER—VIII
NATIONAL INDUSTRIAL RELATIONS COMMISSION

53.     National Industrial Relations Commission.—(1) The Federal Government shall constitute a National Industrial Relations Commission.

(2)  The Commission shall consist of not less than ten full time members, including the Chairman.

(3)     The qualification for appointment as a member or as the Chairman of the Commission shall be such as may be prescribed.

(4)     The Chairman and other members of the Commission shall be appointed by the Government in the prescribed manner.

(5)     Two of the members shall be appointed in the prescribed manner to advise the Chairman, one to represent the employers and the other to represent trade unions and the federations of such trade unions.

(6)     The Chairman of the Commission may, in addition to the representatives of workers appointed to the Commission, co-opt, in cases where he deems it necessary, from amongst workers belonging to federations such representatives of workers as he may deem fit.

(7)     The worker's representative co-opted under sub-section (6) shall be entitled to such honorarium as may be prescribed.

54.  Functions of the Commission.—The following shall be the functions of the Commission, namely—

(a)      to adjudicate and determine an industrial dispute in the Islamabad Capital Territory and trans-provincial to which a trade union or a federation of such trade unions is a party and which is not confined to matters of purely local nature and any other industrial dispute which is, in the opinion of the Government, of national importance and is referred to it by that Government;

(b)     to register trade unions and industry-wise trade unions of an establishment or group of establishments in the Islamabad Capital Territory and trans-provincial, and federations of such trade unions;

(c)      to determine the collective bargaining agents amongst trade unions and industry-wise trade unions in the Islamabad Capital Territory and trans-provincial and federations of such trade unions;

(d)     to try offences punishable under—

                   (i)         Section 67 other than sub-sections (1) and (6) thereof; and

                   (ii)        any other section, in so far as they relate to employers or workers in relation to a trade union or an industry-wise trade union in the Islamabad Capital Territory and trans-provincial, and a federation of such trade unions, or officers of such union or federation;

(e)      to deal with cases of unfair labour practices specified in Sections 31 and 32 on the part of employers, workers, trade unions of either of them or persons acting on behalf of any of them, whether committed individually or collectively, in the manner laid down under Section 33 or sub-section (9) Section 33 or in such other way as may be prescribed, and to take, in such manner as may be prescribed by regulations under Section 66, measures calculated to prevent an employer or workman from committing an unfair labour practice;

(f)      to advise the Government, trade unions and industry-wise trade unions in the Islamabad Capital Territory and trans-provincial, and federations in respect to the education of workers in the essentials of trade unionism, including education in respect of their right and obligations, and to secure the provision of facilities required thereof, and to apportion the cost thereof between the Government, trade unions and federations of such trade unions, and the employers, in such manner as may be considered equitable by the Commission, subject to the approval of the Government;

(g)     to take measures calculated to prevent an employer or workman from committing an unfair labour practice in such manner as may be determined by regulations;

(h)     to deal with cases of individual grievance in the manners prescribed in Section 33.

(i)      to exercise exclusive jurisdiction over the establishment or group of establishments situated in the Islamabad Capital Territory and trans-provincial; and

(j)      such other powers and functions as the Government may, by notification in the official Gazette, assign to it from time to time.

55.  Benches of the Commission, etc.—(1) The Chairman shall exercise general superintendence over its affairs.

(2)     For the efficient performance of the functions of the Commission, the Chairman shall constitute—

(a)      a Full Bench of the Commission which shall consist of not less than three members of the Commission; and

(b)     as many other Benches of the Commission consisting of one member of the Commission, as he may deem fit.

(3)     The Benches shall—

(a)      adjudicate and determine an industrial dispute or any other matter which has been referred to, or brought before it under this Act;

(b)     enquire into and adjudicate any matter relating to the implementation or violation of a settlement which is referred to it by the Federal Government.

(c)     try offences under this Act ; and

(d)     exercise and perform such other powers and functions as are or may be conferred upon or assigned to it by or under this Act or any other law:

               Provided that, in the performance of those functions and in the exercise of those powers, the Benches shall, unless otherwise provided in this Act, follow the procedure laid down in the regulations.

(4)     If any member of the Commission is absent from, or is otherwise unable to attend any sitting of the Commission or of a Bench consisting of more than one members of which he is a member, the Chairman may reconstitute the Bench.

(5)     No act, proceedings, decision, or award of the Commission or Bench shall be invalid or be called in question merely on the ground of absence or of the existence of a vacancy in or any defect in the constitution of the Commission or Bench.

56.  Resolution of difference of opinion.—(1) If the members of a Bench differ in opinion as to the decision to be given on any point,—

(a)      the point shall be decided according to the opinion of the majority, if there is a majority; and

(b)     If the members are equally divided, they shall state, the point on which they differ and the case shall be referred by them to the Chairman for hearing on such point by one or more of the other members of the Commission, and such point shall be decided according to the opinion of the majority of the members of the Commission who have heard the case, including those who first heard it:

               Provided that if, upon any matter requiring the decision of a Bench which includes the Chairman of the Commission as one of its members, there is a difference of opinion among its members and the members so constituting the Bench are equally divided, the opinion of the Chairman shall prevail and the decision of the Bench shall be expressed in terms of the views of the Chairman.

(2)  Any order or decision made, award given, sentence passed, power exercised, functions performed or proceedings taken by any Bench of the Commission in accordance with this Act and the order constituting the Bench shall be deemed to be the order or decision made, award given, sentence passed, power exercised, functions performed or proceedings taken, as the case may be, by the Commission.

Explanation.—In this section, the expression "The Chairman of the Commission" includes such member of the Commission to be known as Senior Member as the Chairman may nominate to perform the functions, and exercise the powers of the Chairman during his absence.

57.  Additional powers of the Commission.--(1) In addition to powers which the Commission has under this Act—

(a)      the Commission shall have power to punish any person who obstructs or abuses its process or disobeys any of its orders or directions, or does anything which tends to prejudice the case of a party before it, or tends to bring it or any of its members in relation to proceedings of the Commission into hatred or contempt, or does anything which, by law, constitutes contempt of Court, with simple imprisonment which may extend to six months or with fine which may extend to fifty thousand rupees, or with both; and

(b)     for the purposes of any investigation, enquiry or adjudication to be made by the Commission under this Act, the Chairman or any member of the Commission may at any time between the hours of sunrise and  sunset, and any other person authorised in writing by the Chairman or any member of the Commission in this behalf may, after he has given reasonable notice, enter any building, factory, establishment, workshop or other place or premises whatsoever and inspect the same or any work, machinery, appliance or article therein or interrogate any person therein in respect of anything situated therein or any matter relevant to matters before the Commission; and

(2)     The Commission may, on the application of a party, or of its own motion,

(a)      initiate prosecution, trial or proceedings, or take action, with regard to any matter relating to its functions;

(b)     withdraw from a Labour Court of Province any application, proceedings or appeal relating to unfair labour practice, which fall within jurisdiction of the Commission; and

(c)      grant such relief as it may deem fit including interim injunction.

(3)     For the purpose of dealing with a case of unfair labour practice of which the Commission is seized, the Commission may—

(a)     proceed directly with the case;

(b)     ask the Provincial Registrar within whose jurisdiction the case has occurred or is likely to occur to enquire into it and submit a report; or

(c)      refer the case to a Provincial Labour Court within whose jurisdiction the case has occurred or is likely to occur, either for report or for disposal.

(4)     The Labour Court to whom the case is so referred shall enquire into it and, if the case was referred to it for report, forward its report thereon to the Commission or, if the case was referred to it for disposal, continue the proceedings and dispose of the case as if the proceedings had originally commenced before it and grant such relief as the Commission has the power to grant.

(5)     Save as provided in sub-section (4) no Registrar, Labour Court or Labour Appellant Tribunal shall take any action, or entertain any application or proceedings, in respect of any matter which falls within the jurisdiction of the Commission:

Provided that no Court, including Labour Court, shall take any action or entertain any application or proceedings in respect of a case of unfair labour practice which is being dealt with by the Commission.

Explanation.—The expressions "industry-wise trade union" and "federation of such trade unions" refer to a trade union membership of which extends to establishments in more than one Province and a federation of trade unions whose membership extends to registered trade unions in more than one Province.

58.  Appeals.—(1) Notwithstanding anything contained in this Act, or in any other law for the time being in force, any person aggrieved by an award or decision given or a sentence or order determining and certifying a collective bargaining unit passed by any Bench of the Commission, may, within thirty days of such award, decision, sentence or order prefer an appeal to the Commission.

(2)  An appeal preferred to the Commission under sub-section (1) shall be disposed of by the Full Bench of the Commission which shall--

(a)      if the appeal is from an order determining and certifying a collective bargaining unit, have the power to confirm, set aside, vary or modify such an order.

(b)     if the appeal relates to any other matter, the Full Bench may, confirm, set aside, vary or modify the decision or sentence passed and shall exercise all the powers required for the disposal of an appeal.

(c)      The decision of the Full Bench shall be delivered as expeditiously as possible, within a period of sixty days following the filing of the appeal, provided that such decision shall not be rendered invalid by reasons of any delay in its delivery.

(d)     The Full Bench may, on its own motion at any time, call for the record of any case or proceedings under this Act in which a Bench within its jurisdiction has passed an order for the purpose of satisfying itself as to the correctness, legality, or propriety of such order, and may pass such order in relation thereto as it thinks fit:

               Provided that no order under this sub-section shall be passed revising or modifying any order adversely affecting any person without giving such person a reasonable opportunity of being heard.

(3)     In an appeal preferred to it against the order of a Bench directing the re-instatement of a workman, the Full Bench may make an order staying the operation of the order of the Bench.

(4)     The Full Bench shall decide such appeal within twenty days of its being preferred:

Provided that, if such appeal is not decided within the period aforesaid, the stay order of the Full Bench shall stand vacated on the expiration of that period.

59.  Finality of order.—No Court shall entertain any plea as to the jurisdiction of the Commission or as the legality or propriety of anything done or purporting to be done by the Commission or any of its Benches, and no order, decision, judgment or sentence of the Commission shall be called in question in any manner, whatsoever, in or before any Court or other authority.

60.     Enforcement of guaranteed rights.—Any collective bargaining agent or any employer may apply to the Commission for the enforcement of any right guaranteed or secured to it or him or to the workers collectively by or under any law, award, settlement or decision.

61.     Powers of the Commission to prohibit strike, etc.—(1) When a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time when, in respect of such industrial dispute, there is made to, or is pending before, the Commission, an application under sub-section (9) Section 33, the Commission may, by an order in writing prohibit continuance of the strike or lock-out.

(2)  When an appeal in respect of any matter arising out of an industrial dispute is preferred to the Full Bench under Section 55, the Full Bench may, by an order in writing, prohibit continuance of any strike or lock-out in pursuance of such industrial dispute which had already commenced and was in existence on the date on which the appeal was preferred.

62.     Determination, etc., of collective bargaining unit.—(1) Where the Commission, on an application made in this behalf, by a trade union of Workmen or a federation of such trade unions, or on a reference made by the Federal Government, after holding such inquiry as it deems fit, is satisfied that for safeguarding the interest of the workmen employed in an establishment or group of establishments belonging to the same employer and the same industry, in relation to collective bargaining, it is necessary, just and feasible to determine one or more collective bargaining units of such workmen in such establishment or group, it may, having regard to the distribution of workers, existing boundaries of the components of such establishment, or group, facilities of communication, general convenience, sameness or similarity of economic activity and other cognate factors,—

(a)      determine and certify one or more collective bargaining units in such establishment or group;

(b)     Specify the modifications which, in consequence of the decision under this section, will take effect in regard to the registration of the trade unions and federations of trade unions affected by such decision and certification of collective bargaining agents among such unions and federations, nomination or election of shop stewards, and workers' representatives for participation in the management of the factories, if any, affected by such decision;

(c)      specify the date or dates from and the period, for which all or any of such changes shall take effect:

               Provided that the date so specified shall not be a date falling within the period of two years specified in sub-section (11) of Section 19, in its application to a collective bargaining agent certified in respect of an establishment or establishments:

               Provided further that, after the receipt of a reference for determination of a collective bargaining unit, the Commission may stop or prohibit the proceedings to determine collective bargaining agent under Section 19 for any establishment or group of establishments which is likely to be affected by a decision under this section:

(d)     take such measures or issue such directions to the Registrar as may be necessary to give effect to such modifications; and

(e)      determine and certify a collective bargaining agent for each such unit in accordance with Section 19 insofar as applicable and with the necessary modifications, if such a unit relates to more than one province, or direct the Registrar to take such action, if such a unit relates to the Islamabad Capital Territory.

(2)     Where the Commission issues any directions to the Registrar under this section, the Registrar shall comply with them within such period as the Commission may from time to time determine.

(3)     After the certification of a collective bargaining unit, no trade union shall be registered in respect of that unit except for the whole of such unit and no certification or proceedings for determination of collective bargaining agent under Section 19 shall take place for a part of a collective bargaining unit or a group of collective bargaining units.

63.  Certain matters to be kept confidential.—Any information obtained by a Registrar, Conciliator, Arbitrator or Commission in the course of any investigation or inquiry as to a trade union or as to any individual business (whether carried on by a person, firm or company) which is not available otherwise than through the evidence given before such authority shall not be included in any report, award or decision under this Act, if the trade union, person, firm, or company in question has made a request in writing to the authority that such information shall be treated as confidential, nor shall such proceedings disclose any such information without the consent in writing of the Secretary of the trade union or the person, firm or company in question, as the case may be:

Provided that nothing contained in this section shall apply to disclosure of any such information for the purpose of a prosecution under Section 193 of the Pakistan Penal Code (Act XLV of 1860).

64.     Conditions of service to remain unchanged while proceedings pending.—(1) No employer shall, while any conciliation proceedings or proceedings before an Arbitrator or the Commission in respect of an industrial dispute are pending, alter to the disadvantage of any workman concerned in such dispute, the conditions of service applicable to him before the commencement of such conciliation proceedings, or of the proceedings before an arbitrator, as the case may be, nor shall he save with the permission of the Conciliator, the Arbitrator or the Commission, discharge, dismiss or otherwise punish any workman except for misconduct not connected with such dispute.

(2)  Notwithstanding anything contained in sub-section (1), an officer of a registered trade union shall not, during the pendency of any proceedings referred to in sub-section (1), be discharged, terminated, dismissed or otherwise punished for misconduct, except with the previous permission of the Commission. However, the terms and conditions of employment secured by the workers through collective bargaining agreements, awards and decisions of Courts shall continue to be binding upon the parties until revised for betterment of workers.

65.     Representation of parties.—(1) A workman who is a party to an industrial dispute shall be entitled to be represented in any proceedings under this Act by an officer of a collective bargaining agent and subject to the provisions of sub-section (2) and sub-section (3) any employer who is a party to an industrial dispute shall be entitled to be represented in any such proceedings by a person duly authorised by him.

(2)     No party to an industrial dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings under this Act.

(3)     A party to an industrial dispute may be represented by a legal practitioner in any proceedings before the Commission, or before an Arbitrator, with the permission of the Commission or the Arbitrator, as the case may be.

66.     Power to make regulations.—(1) Subject to the provisions of this Act, the Commission may make such regulations relating to its procedure and the performance of its functions as it may deem fit.

(2)  In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely—

(a)      registration of trade unions and industry-wise trade unions in the Islamabad Capital Territory and trans provinces, and federations of such trade unions and the procedure, for such registration;

(b)     determination of collective bargaining units;

(c)      determination of collective bargaining agent from amongst the industry-wise trade unions, federations of such trade unions and the procedure thereof;

(d)     procedure, including rules of evidence, for adjudication of industrial dispute;

(e)      procedure, including rules of evidence, for trial of offences;

(f)      procedure for dealing with unfair labour practices;

(g)     superintendence of the Chairman over the affairs of the Commission;

(h)     forms of registers; processes and returns in respect of matters relating to the functions of the Commission; and

(i)      fixing of places and times of its sitting and deciding whether to sit in public or in private.

CHAPTER—IX
PENALTIES AND PROCEDURES

67.  Penalty for unfair labour practices.—(1) Whoever contravenes the provisions of Section 17 shall be liable to imprisonment which may extend to fifteen days or fine which may extend to ninety days thirty thousand rupees, or both.

(2)     Whoever contravenes the provisions of Section 31 shall be liable to imprisonment which may extend to thirty days or fine which may extend to fifty thousand rupees, or both.

(3)     Whoever contravenes the provisions of Section 32, other than those of clause (d) of sub-section (1) thereof, shall be liable to imprisonment which may extend to thirty days or fine which may extend to twenty thousand rupees, or both.

(4)     An officer of a trade union, a workman or person other than a workman who contravenes or abets the contravention of the provisions of clause (d) of sub-section (1) of Section 32 shall be liable to imprisonment which may extend to thirty days or fine which may extend to thirty thousand rupees, or both.

(5)     Where the person convicted of an offence under sub-section (4) is an officer of a trade union, the Commission may, in addition to any other punishment which it may award to such person under that sub-section, direct that he shall cease to hold the office of such officer and be disqualified from holding any office in any trade union during the term immediately following the term in which he so ceases to hold office.

(6)     Whoever contravenes the provisions of Section 47 shall be liable to imprisonment which may extend to thirty days or fine which may extend to seventy-five thousand rupees, or both.

(7)     Nothing in this Act shall be deemed to exclude the jurisdiction of a Labour Court of a province or the Court of a Magistrate to try a case under this section if it is authorized to do so by general or special order of the Commission.

68.     Penalty for committing breach of settlement.—Whoever commits any breach of any term of any .settlement, award or decision which is binding on him under this Act shall be punishable—

(a)      for the first offence, with imprisonment which may extend to thirty days or fine which may extend to thirty thousand rupees, or with both; and

(b)     for each subsequent offence, with fine which may extend to seventy-five thousand rupees.

69.     Penalty for failing to implement settlement, etc.—Whoever wilfully fails to implement any term of any settlement, award or decision which is his duty under this Act to implement shall be punishable with imprisonment which may extend to fifteen days or a fine which may extend to thirty thousand rupees, or with both and, in the case of continuing failure, with a further fine which may extend to five thousand rupees for every day after the first during which the failure continues.

70.     Penalty for false statement, etc.—Whoever wilfully makes or causes to be made in any application or other document submitted under this Act or the rules made thereunder, any statement which he knows or has reason to believe to be false, or wilfully neglects or fails to maintain or furnish any list, document or information he is required to maintain or furnish, under this Act or the rules made thereunder shall be punishable with imprisonment which may extend to fifteen days or fine which may extend to seventy-five thousand rupees, or with both.

71.     Penalty for discharging officer of trade union in certain circumstances, etc.—Any employer who contravenes the provision of Section 64 shall be punishable with imprisonment which may extend to fifteen days or fine which may extend to thirty thousand rupees, or with both.

72.     Penalty for embezzlement or misappropriation of funds.—Any officer or any employee of a registered trade union, guilty of embezzlement or misappropriation of trade union funds, shall be liable to imprisonment which may extend to thirty days and shall also be liable to a fine which shall not exceed the amount found by the Court to have been embezzled or misappropriated. Upon realisation, the amount of fine shall be reimbursed by the Court to the trade union concerned.

73.     Penalty for obstructing inspector.—Whoever wilfully obstructs an inspector in the exercise of any power under Section 29, or fails to produce on demand by an inspector any register or other document in his custody required by him under the provisions of this Act, or conceals or prevents any worker in an establishment from appearing before or being examined by an inspector, shall be punishable with fine which may extend to seventy-five thousand rupees.

74.     Penalty for contravening Section 27 or Section 28, etc.—(1) Whoever contravenes the provisions of Section 27 or Section 28 shall be punishable with imprisonment which may extend to fifteen days or fine which may extend to one hundred thousand rupees, or with both.

(2)  No Court shall take cognizance of any offence punishable under sub-section (1) except upon a complaint in writing made by the Registrar.

75.     Penalty for other offences.—Whoever contravenes, or fails to comply with, any of the provisions of this Act shall, if no other penalty is provided by this Act for such contravention or failure, be punishable with fine which may extend to ten thousand rupees.

76.     Offences to be non-cognisable.—Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898) no police officer shall be competent to arrest without warrant an employer or a worker for an offence under this Act.

77.     Offences by corporation.—Where the person guilty of any offence under this Act is a company or other body corporate, every director, manager, secretary or other officer or agent thereof shall, unless he proves that the offence was committed without his knowledge or consent or that he exercised all due diligence to prevent the commission of the offence, be deemed to be guilty of such offence:

Provided that, where a company has intimated to Government in writing the name of any of its directors resident in Pakistan whom it has nominated for the purpose of this section and the offence is committed while such director continues to be so nominated, only such director shall be so deemed to be guilty of such offence.

78.     Trial of offences.—Save as provided in this Act, no Court other than a Labour Court or that of a Magistrate of the first class, as the case may be, shall try any offence punishable under this Act.

79.     Indemnity.—No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule.

CHAPTER—X
SUPPLEMENTAL

80. Conformity with Ratified International Conventions.—The Government may co-ordinate with the provinces before enacting any law or rules for the effective enforcement of obligations of the State to international labour-related and employer related Conventions so ratified by the State and in case of difference of opinion, shall refer such matter, to the Council of Common interests for decision.

81.     Law of conspiracy limited in application.—No officer or member of a registered trade union or a collective bargaining agent as certified by the Registrar shall be liable to punishment under sub-section (2) of Section 120-B of the Pakistan Penal Code, 1860 (XLV of 1860), in respect of any agreement made between the members thereof for the purpose of furthering any such object of the trade union as is specified in its constitution, unless the agreement is an agreement to commit an offence, or otherwise violates any other law for the time being in force.

82.     Immunity from civil suit in certain cases.—(1) No suit or other legal proceedings shall be maintainable in any civil Court against any registered trade union or a collective bargaining agent or any officer or member thereof in respect of any action done in contemplation or furtherance of an industrial dispute to which the trade union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is an interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he desires.

(2)  A trade union shall not be liable in any suit or other legal proceedings in any civil Court in respect of any tortuous act done in good faith in contemplation or furtherance of an industrial dispute by an agent of the trade union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by, the executive of the trade union.

83. Enforceability of agreement.—Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a trade union shall not be void or voidable by reason only that any of the objects of the agreement are in restraint of trade:

Provided that nothing in this section shall enable any civil Court to entertain any legal proceedings instituted for the express purpose of enforcing, or covering damages for the breach of any agreement concerning the conditions on which any member of a trade union shall or shall not sell their goods, transact business or work, employ or be employed.

84.     Registrar, etc., to be public servants.—A Registrar, a Conciliator, the Chairman and a Member of the Commission shall be deemed to be a public servant within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

85.     Limitation.—The provisions of Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply in computing the period within which an application is to be made, or any other thing is to be done, under this Act.

86.     Power to make rules,—(1) The Government may make rules for carrying out the purposes of this Act.

(2)  Rules made under this section may provide that a contravention thereof shall be punishable with fine which may extend to ten thousand rupees.

87.     Act to override other laws.—The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

88.     Repeal and savings.—The Industrial Relations Act, 2008 (IV of 2008), having been repealed by virtue of sub-section (3) of Section 87 thereof, notwithstanding the repeal of the said Act, hereinafter to be called the repealed Act, and without prejudice to the provisions of Sections 6 and 24 of the General Clauses Act, 1897 (X of 1897)—

(a)      every trade union of an establishment or industry located in the Islamabad Capital Territory, or in more than one province and existing immediately before the commencement of this Act, which was registered under the repealed Act shall be deemed to be registered under this Act and its constitution shall continue in force until altered or rescinded;

(b)     anything done, rules made, notification or order issued, officer appointed Court constituted, notice given, proceedings commenced or other actions taken under the repealed Act shall be deemed to have been done, made, issued, appointed, constituted, given, commenced or taken, as the case may be, under the corresponding provisions of this Act; and

(c)      any document referring to the repealed Act relating to industrial relations shall be construed as referring to the corresponding provisions of this Act.

89.  Former registration offices, officers, etc., to continue.—(1) The offices existing at the commencement of this Act for registration of trade unions shall be continued as if they had been established under this Act.

(2)     Any person appointed to any office under, or by virtue of the provisions of the repealed Act shall be deemed to have been appointed to that office under or by virtue of this Act.

(3)     Any books of accounts, book, paper, register or document kept under the provisions of the repealed Act relating to companies shall be deemed to be part of the books of accounts, book, paper, register or document to be kept under this Act.

90.     Removal of difficulties.—If any difficulty arises in giving effect to any provisions of this Act, the Government may, by notification in the official Gazette, make such order, not inconsistent with the provisions, of this Act, as may appear to it to be necessary for the purpose of removing the difficulty:

Provided that no such power shall be exercised after the expiry of six months from the coming into force of this Act.

91.     Rights and duties of employers and workers.—The employers and workers shall within the bounds of this Act and other laws for the time being in force shall abide by a code of conduct to respect their rights and duties in accordance with the guidelines in Schedule II.

SCHEDULE—I

PUBLIC UTILITY SERVICES

[See Section 2(xxv)]

1.       The generation, production, manufacture, or supply of electricity, gas, oil or water to the public.

2.       Any system of public conservancy or sanitation.

3.       Hospitals and ambulance services.

4.       Fire-fighting service.

5.       Any postal, telegraph or telephone service.

6.       Railways and Airways.

7.       Ports.

8.       Watch and Ward Staff and security services maintained in any establishment.

SCHEDULE—II

RIGHTS AND DUTIES OF EMPLOYERS AND WORKERS

[See Section 91]

Rights and Duties of Workers and Employers

Workers and employers to respect each others' rights: Without prejudice to the provision of this Act and any other labour law in vogue, workers and employers in each establishment will respect each others’ rights and the rights of the enterprise to reasonable returns on investments and to expansion and growth. Such rights, among other, will include the following:—

Employers' Rights and Duties

a.       Right to conduct business.—The employer has the right to manage, control and use enterprise property and conduct its business in any manner considered prudent and satisfactory by it.

b.       Right to manage.—The employer has the right to manage the enterprise effectively and efficiently by finding the best use of its available resources, including human resource, in most prudent and fruitful manner in the general interest of the enterprise.

c.       Duties of the Employer.—(i) While exercising the right to conduct business and the right to manage the enterprise, it will be duty of the employer to act in accordance with the principles and guidelines provided under the law.

(ii)     The employee will implement all laws, including labour laws, in letter and spirit.

(iii)    The employer will protect and safeguard the interest and welfare of its workers to obtain maximum productivity and output to the mutual advantage of the enterprise.

(iv)    The Employer will respect the workers' rights to decent work, wages, decent living and quality of life, subject to the resources of the enterprise.

Workers' Rights and Duties

a.       Right to work, wage and welfare.—It is the right of a worker to work according to the job assigned and to receive wages as per agreed terms and conditions of employment and to such welfare benefits and safety measures as one is entitled to according to law, agreement settlement and/or award.

b.       Right to Freedom of association and collective bargaining and other rights secured or guaranteed under the Industrial Relations Act, 2011, and other laws.—Worker has unfettered right to enjoy the benefits guaranteed to him under the law, rules, settlement, agreement, award and in line with the principles of social justice.

c.       Duties of the Workers.—(i) Worker will perform their duties, as assigned by the employer or his representatives, according to his best ability with due diligence, care, honesty and commitment.

(ii)     Worker will fully observe norms of organizational discipline.

(iii)    Worker, in exercise of his right, will fully respect the rights of the employer and will fully cooperate with the employer in efficient conduct of the business of the establishment.

d.       Mutual obligations of employers and workers,—(1) Both employers and workers will promote and foster an atmosphere of trust confidence and understanding for each others' viewpoint and will at the first place make every effort not to let conflict arise among their relationship and if and when a conflict arises they will make every effort to resolve the same by bilateral negotiation at the establishment level.

(ii)     Both employers and workers will accept the same degree of responsibility for industrial relations as for other functions within their respective establishment and will establish formal and informal climate of communication and social dialogue on at the establishment level for discharging the responsibility.

(iii)    Both employers and workers will strive to develop good industrial relations within the framework of efficiency in the establishment.

(iv)    Both employers and workers take all reasonable steps to ensure compliance with agreements and agreed procedures so that the objectives of productivity and growth are served in atmosphere of industrial peace.

(v)     Both employers and workers in their mutual interaction will demonstrate mutual respect for each other and will not indulge in any act or insinuation to show person disrespect in any form in keeping with the Islamic tradition of love, fraternity, brotherhood and accepted social norms and civilized society.

e.       Incentives and Recognition for Promoting Good Industrial Relations.—Such establishment, which maintains a track record of good industrial relations through bilateral efforts of employers and workers and their representative organizations in the establishment, shall be recognized by the Government as a "Model Organisation in Industrial Relations" to be determined on the basis of such criterion and in such manner as may be prescribed in the rules to be provided for the purpose. Such recognition shall be in the form of a Certificate prescribed for the purpose which will entitle the establishments and their unions to inscribe the word "Model Organisation in Industrial Relations" on their letter-heads and official logo and monograms.

-------------------------

REGULATIONS, 2012

DEBT SECURITIES TRUSTEE REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 3rd April, 2012]

SRO 339(I)/2012, dated 30.3.2012.—In exercise of the powers conferred by Section 506A of the Companies Ordinance, 1984 (XLVII of 1984) and having being previously published in the official Gazette vide Notification No. SRO 712(I)/2011 dated July 18, 2011 as required by sub-section (1) of Section 506-A of the said Ordinance the Securities and Exchange Commission of Pakistan hereby makes the following Regulations, namely:—

CHAPTER-I
PRELIMINARY

1.  Short title and commencement.—(1) These Regulations shall be called the "Debt Securities Trustee Regulations, 2012".

(2)  They shall come into force at once.

2.  Definitions.—(1) In these Regulations, unless there is anything repugnant in the subject or context, —

(a)      "Act" means the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997);

(b)     "Constitutive Documents" includes the memorandum and articles of association and any document governing the formation of a company or a body corporate;


(c)      "Commission" means the Securities and Exchange Commission of Pakistan established under Section 3 of the Act;

(d)     "Debt Security" means any security which creates or acknowledges indebtedness and includes;

                   (i)         Corporate debt securities such as Term Finance Certificates (TFCs), Sukuk Certificates, Participation Term Certificates (PTCs), Commercial Papers, and all kinds of debt instruments issued by any Pakistani or foreign company or corporation registered in Pakistan; and

                   (ii)        Government debt securities such as Treasury Bills (T-bills), Federal Investment Bonds (FIBs), Pakistan Investment Bonds (PIBs), Foreign Currency Bonds, Government Papers, Municipal Bonds, Infrastructure Bonds and all kind of debt instruments issued by Federal Government, Provincial Governments, Local Authorities and other statutory bodies.

(e)      "Debt Securities Trustee" means a person appointed as a Debt Securities Trustee by virtue of a Trust Deed and registered under these Regulations;

(f)      "Form" means a form specified through these Regulations;

(g)     "Issue" includes issue of debt securities through,—

          (i)      initial public offering by an issuer;

          (ii)     secondary public offering by an issuer;

                   (iii)       an offer to the existing shareholders or debt securities holders by an issuer;

                   (iv)       private placement to persons referred to and notified under Section 120 of the Ordinance; or

          (v)     offer for sale to the public by an offer or.

(h)     "Investment Finance Company" means a company as defined in clause (xxiv) of sub-regulation (1) of Regulation 2 of Non-Banking Finance Companies and Notified Entities Regulations, 2008;

(i)      "Offeror" means any person who directly or indirectly holds ten percent or more debt securities and offers for sale such debt securities in full or in part to the general public;

(j)      "Ordinance" means the Companies Ordinance, 1984 (XLVII of 1984);

(k)     "Regulations" means these regulations along with all Schedules, Forms and Annexures attached to it;

(l)      "Schedule" means a schedule specified in these Regulations;

(m)    "Scheduled Bank" has the same meaning as defined in clause (m) of Section 2 of the State Bank of Pakistan Act, 1956 (XXXII of 1956); and

(n)     "Trust Deed" means a trust deed executed by an issuer or an Offeror, as the case may be, in accordance with the provisions of the Trust Act, 1882 (II of 1882).

(2)     Words and expressions used but not defined in these Regulations shall, unless there is anything repugnant in the subject or context, have the same meaning as are assigned to them in the Act, the Ordinance or the Securities and Exchange Ordinance, 1969 (XVII of 1969).

(3)     Headings and sub-headings given in these Regulations are given for ease of reference and shall not change meaning of the terms expressed in these Regulations.

CHAPTER-II
REGISTRATION OF DEBT SECURITIES TRUSTEE

3.  Prohibitions.—(1) No person shall act as or perform the functions of a Debt Securities Trustee unless such person is registered with the Commission under these Regulations.

(2)     Any person providing services as Debt Securities Trustee at the time of coming into force of these Regulations shall get itself registered under these Regulations within a period of three months from the date of notification of these Regulations in the official Gazette.

(3)     A Debt Securities Trustee shall not be eligible to act as a Debt Securities Trustee to any Issue,—

(a)     of its associated company or associated undertaking;

(b)     where the Debt Securities Trustee or any of its associated company or associated undertaking holds or has taken steps to acquire any shares or debt securities of the issuer;

(c)      where the Debt Securities Trustee has underwritten or intends to underwrite the Issue;

(d)     where the Debt Securities Trustee or any of its associated company or associated undertaking has provided any guarantee with respect to the amount payable under such Issue.

4.       Eligibility requirements for registration.—Any person may apply to the Commission for registration as a Debt Securities Trustee under these Regulations if such person is authorized by its Constitutive Document to act as a Debt Securities Trustee and is,—

(a)     a Scheduled Bank;

(b)     a Development Finance Institution as notified by the State Bank of Pakistan;

(c)     an Investment Finance Company;

(d)     a wholly owned subsidiary set up by a Scheduled Bank, Development Finance Institution or a depository company for carrying out the activities of Debt Securities Trustee; or

(e)      any other company or entity or class of companies/entities allowed by the Commission.

5.       Application procedure for registration.—(1) An application for registration as a Debt Securities Trustee shall be made to the Commission in Form A along with all the documents specified in Annexure-I and receipt evidencing payment of non-refundable fee of rupees one hundred thousand.

(2)     The Commission, while considering the application for grant of certificate of registration, may require the applicant to furnish such further information or clarification regarding its activities and businesses as it deems appropriate.

(3)     Any subsequent change in the information provided to the Commission at the time of filing of application under sub-regulation (1) shall be intimated to the Commission within a period of seven working days from the date of such change.

6.  Grant of registration.—(1) The Commission while considering the application for grant of certificate of registration made under sub-regulation(1) of Regulation 5 shall inter-alia take into account the following matters, namely,—

(a)      the ability of the applicant to safeguard the interest of debt securities holders;

(b)     the capability of the applicant to efficiently handle its functions as Debt Securities Trustee and its obligations under these regulations;

(c)      the availability of necessary infrastructure including but not limited to adequate office space, equipment, experienced manpower and financial and technical aspects to effectively discharge its activities as Debt Securities Trustee;

(d)     earlier refusal, if any, by the Commission for registration of the applicant as a Debt Securities Trustee;

(e)      conviction or adverse findings in investigation of directors or employees in the senior management level of the applicant in an offence involving, fraud or breach of trust;

(f)      penal action against the applicant or its director(s) including initiation of any kind of prosecution for an offence under the Ordinance, Act or the Securities and Exchange Ordinance, 1969 (XVII of 1969);

(g)     track record as a Debt Securities Trustee, if any; and

(h)     any other matter as deemed necessary by the Commission.

(2)  The Commission on being satisfied that the applicant is eligible for registration may grant a certificate of registration to the applicant in Form B and impose such conditions as it may deem necessary.

(3)  The certificate of registration shall remain valid for a period of three years from the date of registration unless it is restricted, suspended or cancelled earlier by the Commission.

7.       Renewal of Registration.—(1) A Debt Securities Trustee shall, three months prior to the date of expiry of its registration, apply to the Commission in Form C for renewal of its registration along with all the documents specified in Annexure III and receipt evidencing payment of non-refundable renewal fee of rupees one hundred thousand.

(2)     The Commission upon being satisfied that the applicant continues to meet the minimum requirement for registration and is eligible for renewal of registration shall renew the registration of Debt Securities Trustee and issue a certificate of renewal of registration to the applicant in Form D. Where the Debt Securities Trustee fails to meet the requirements as mentioned in Regulations 4 and 6 above, its application for renewal may be refused subject to the provisions of Regulation 8.

(3)     Where the application for renewal of registration is made within such time as specified in sub-regulation (1) but has not been decided by the Commission the registration shall continue to be valid until the application for renewal is decided by the Commission.

8.       Procedure where registration is not granted or renewed.—(1) The Commission, after giving a reasonable opportunity of hearing to the applicant, may refuse to grant or renew a certificate of registration if in the opinion of the Commission such applicant does not fulfill the requirements prescribed in these Regulations or where the Commission after taking in to account the facts, is of the view that it is not in the public interest or in the interest of the securities market to grant or renew such certificate of registration.

(2)     The decision of refusal to grant a certificate of registration or refusal of renewal of registration shall be communicated to the applicant stating therein the grounds on which the application has been rejected.

(3)     The applicant, if aggrieved by the decision of the Commission under sub-regulation (1) may, within a period of thirty days from the date of receipt of such refusal, apply to the Commission for review of its decision.

(4)     On receipt of the application made under sub-regulation (3), the Commission may review its decision and communicate its findings, in writing, to the applicant within sixty days and the decision of the Commission in this regard shall be final.

(5)     An applicant whose application for renewal of certificate of registration is refused by the Commission under sub-regulation (1) shall, from the date of receipt of the final decision of the Commission, not act as Debt Securities Trustee for any new Issue.

(6)     A Debt Securities Trustee whose application for renewal is refused shall, on the day of the receipt of the final decision of the Commission, intimate to all the concerned parties including the issuers, the debt securities holders, the concerned credit rating company and the stock exchange(s) in case of listed debt securities about its inability to act as a Debt Securities Trustee.

(7)     Debt Securities Trustee whose application for renewal of certificate of registration is refused by the Commission shall continue to act as such in all previous Issues in which it is acting as Debt Securities Trustee till the appointment of any other Debt Securities Trustee by the issuer or complete redemption of such Issues, whichever is earlier. Provided that the appointment of any other Debt Securities Trustee should be made within such time period as mentioned in the refusal order but not exceeding 60 days from the date of such refusal.

CHAPTER-III
DUTIES AND RESPONSIBILITIES OF DEBT SECURITIES TRUSTEE

9.  Obligations of Debt Securities Trustee. A Debt Securities Trustee shall,--

(i)      sign a Trust Deed with the issuer before commencement of the subscription period which inter-alia contain that the Debt Securities Trustee has agreed to act as a trustee under the Trust Deed for securing the interest of the Debt securities holders;

(ii)     ensure that the Trust Deed contains all terms and conditions specified in Schedule-I and required under the Trust Act, 1882 (II of 1882);

(iii)    ensure compliance with the provisions of the Trust Deed;

(iv)    put in place a mechanism to resolve any conflict of interest situation that may arise in the conduct of its business as Debt Securities Trustee and where any conflict of interest arises it shall take reasonable steps to resolve the same in an equitable manner;

(v)     ensure that in case of secured debt securities, appropriate security has been arranged and based on the information obtained from the issuer, the assets backing the debt security are maintained throughout the tenure of the Issue;

(vi)    enforce security, where necessary, in the interest of the debt securities holders according to the terms of the Trust Deed;

(vii)   efficiently do such acts as are necessary in the event the security becomes enforceable;

(viii)  regularly monitor compliance of the issuer with all the covenants of the Trust Deed and in case of listed debt securities, report the same on semi-annual basis to the concerned stock exchange and non-compliance, if any, of the covenants of the Trust Deed shall upon its occurrence and coming into its notice or knowledge be immediately reported to the concerned stock exchange and the Commission;

(ix)    monitor the status of the redemption reserve, if any, established by the issuer for the redemption of debt securities and furnish, on semi-annual basis an update on the same to the Commission and in case of listed debt securities to the concerned stock exchange as well;

(x)     regularly monitor payment of profits to the debt security holders and redemption of the debt security and inform the Commission and the concerned stock exchange, in case of listed debt securities of any default in payment of profit or redemption of debt securities;

(xi)    maintain proper record of the complaints received and a report on the number and nature of the complaints received and the manner in which such complaints have been redressed shall be provided to the Commission and in case of listed debt securities to the concerned stock exchange also, on annual basis;

(xii)   ascertain that the debt securities have been converted, where required, in accordance with the provisions and conditions under which they were issued;

(xiii)  inform the Commission immediately of any breach by the issuer of the Trust Deed or provision of the Ordinance or any other law applicable to the Issue which comes to its knowledge;

(xiv)  ensure that the Commission is promptly informed about any action, legal proceeding etc, initiated against it in respect of any material breach or non-compliance by it of any law, rules or regulations;

(xv)   file yearly report with the Commission within sixty days of the end of its financial year containing clause-wise status of the compliance with the provisions of this regulation;

(xvi)  comply with the code of conduct prescribed in Schedule II;

(xvii) call a meeting of all debt securities holders, within such time period as provided in the Trust Deed, on,—

                   (a)        a requisition in writing signed by at least one-tenth of the debt securities holders in value for the time being outstanding; and

                   (b)        the happening of any event, which pursuant to the Trust Deed constitutes a default by the issuer or which in the opinion of the Debt Securities Trustee adversely affects the interest of the debt securities holders.

(xviii)     not relinquish duties as Debt Securities Trustee to an Issue until another Debt Securities Trustee is appointed in its place;

(xix)  file its audited annual accounts with the Commission within thirty days of its issuance;

(xx)   submit any document or information as and when required by the Commission; and

(xxi)  provide, on request in writing, copy of certified Trust Deed to the debt security holders as and when required by them.

10.  Maintenance of books and records by Debt Securities Trustee.--(1) A Debt Securities Trustee shall properly maintain at least the following record in respect of each Issue:

(a)      all contracts relating to the Issue to which it is acting as a Debt Securities Trustee including but not limited to the Trust Deed, letter of hypothecation, memorandum of deposit of title deed and the charge registration certificate, where applicable etc;

(b)     statements relating to profit payment and principal redemption;

(c)      all documents relating to compliance with the covenants of the Trust Deed and enforcement of security, where applicable;

(d)     Debt Security holders complaints and subsequent correspondence; and

(e)      such other records as may be specified by the Commission from time to time.

(2)     The Debt Securities Trustee shall ensure that the record referred to in sub-regulation (1) is maintained and preserved in good order for a period of at least five years from the date of complete redemption of the Issue.

(3)     The Debt Securities Trustee shall,—

(a)      ensure that the record is kept at such a place and maintained in such a manner that the Commission or any person appointed by it has easy access to it; and

(b)     establish and follow record retention policies which shall ensure that all relevant legal and regulatory requirements are complied with.

11.     Appointment of Compliance Officer.—Every Debt Securities Trustee shall designate any of its officers as a compliance officer possessing relevant qualification and experience and certification as may be specified by the Commission. The Compliance Officer shall be responsible for,—

(a)     monitoring compliance with the terms of the Trust Deed;

(b)     redressal of investors' grievances and complaints; and

(c)      reporting to the Commission immediately if the Debt Securities Trustee ceases to maintain any of the requirements referred to in regulation 4 of these Regulations.

CHAPTER-IV
DISCIPLINARY PROCEEDINGS

12.     Restrictions, Suspension of Registration.—(1) Where a Debt Securities Trustee contravenes or fails to comply with any provision of these Regulations or fails to fulfill its obligations under the Trust Deed or is not in compliance with conditions of registration or any directive, circular or order issued by the Commission, the Commission, after providing a reasonable opportunity of representation to the Debt Securities Trustee may:

(a)      impose a restriction on its activities as Debt Securities Trustee;

(b)     suspend its registration; and/or

(c)      impose a penalty provided under sub-section (2) of Section 506A of the Ordinance.

(2)     Notwithstanding anything contained in sub-regulation (1), where the Commission is satisfied that a delay in suspension of registration of the Debt Securities Trustee will be detrimental to the interest of investors or the public in general or the capital market, the Commission may immediately suspend the registration of the Debt Securities Trustee till the time an opportunity of hearing is provided to the Debt Securities Trustee and a final order is passed under sub-regulation (1):

Provided that where the Commission suspends the registration under sub-regulation (2), the opportunity of hearing and final order must be passed within sixty days of the order under sub-regulation (2).

(3)     A Debt Securities Trustee whose registration has been suspended shall not act as a Debt Securities Trustee for any new Issue during the period of suspension and remove the cause of suspension as specified in the suspension order within a period of one hundred and twenty days from the receipt of the suspension order or such earlier period as provided in the said order.

(4)     The Commission while suspending the registration of a Debt Securities Trustee may impose such conditions as it deems appropriate.

13.  Cancellation of Registration.—(1) The Commission, after providing a reasonable opportunity of representation to the Debt Securities Trustee, may cancel the registration of a Debt Securities Trustee if,—

(i)      in the opinion of the Commission the Debt Securities Trustee has been in violation of these Regulations or the Trust Deed or restriction imposed under sub-regulation (1) of Regulation 12;

(ii)     it is found guilty of fraud; or

(iii)    its registration has been suspended and the cause of suspension has not been removed within one hundred and twenty days from the receipt of the suspension order or such earlier period as provided through the order of suspension .

(2)  The registration of a Debt Securities Trustee shall stand automatically cancelled if such Debt Securities Trustee,—

(i)      is declared insolvent by a Court;

(ii)     is wound up by an order passed by a Court, or

(iii)    ceases to hold valid license/registration as a Schedule Bank, Development Finance Institution or Investment Finance Company.

(3)  Upon the cancellation of the registration, the Debt Securities Trustee shall with immediate effect cease to solicit or enter into further business as a Debt Securities Trustee and transfer all necessary record to another Debt Securities Trustee appointed by the issuer, within thirty days of its appointment and the appointment of the new Debt Securities Trustee, shall be immediately communicated to the Commission, Debt security holders and the stock exchanges concerned in case of listed debt securities.

14.     Dissemination of information regarding cancellation of registration.—The Issuer upon cancelation of registration of the Debt Security Trustee by the Commission shall immediately notify such cancelation for information of the stakeholders, through press release in at least two newspapers, one English and one Urdu language, having wide circulation in the country.

15.     Relaxation: Where the Commission is satisfied that it is not practicable to comply with any of the requirements of these regulations in a particular case or class of cases, the Commission may for reasons to be recorded, relax such requirement(s) subject to such condition(s) as it may deem fit.

FORM A

[see regulation 5(1)]

APPLICATION FOR GRANT OF CERTIFICATE OF REGISTRATION AS DEBT SECURITIES TRUSTEE

(Please carefully read the instructions annexed to this Form)

To,

The Securities and Exchange Commission of Pakistan

Pursuant to the decision of the Board of Directors of .... [Name of the applicant] …. taken in its meeting held on ……… [Date of Meeting] ……, we hereby apply for registration under Regulation 5(1) of the Debt Securities Trustee Regulations, 2012.

The information and documents mentioned in Annexure-I are attached herewith.

Date:_________________     Signature: _________________

Place: _______________

                                                Name of the Chief Executive Officer, the Company Secretary or the Chief Financial Officer duly authorized by the Board of Directors through a resolution for signing and submission of this application.

Annexure-I

(see Form A)

1.       General and business Information:

1.1     Brief history of the applicant containing the name of the applicant; date and place of its incorporation; date of commencement of business; length of experience as Debt Securities Trustee, if any; names of its sponsors/promoters/major shareholders; group structure, if any and status of the applicant whether Scheduled Bank, Development Finance Institution as notified by the State Bank of Pakistan, Investment Finance Company or other.

1.2     Address of the Registered Office of the applicant (postal address, postal code, telephone & fax numbers).

1.3     Name and designation of the compliance officer along with contact detail i.e. postal address, postal code, telephone number, fax number and e-mail address.

1.4     Detail of ongoing legal or regulatory proceedings, if any, initiated against the applicant or any of its directors, Chief Executive Officer, Chief Financial Officer or Company Secretary by the Commission or any other regulatory authority.

1.5     Detail of penal or regulatory action(s), if any, taken against the applicant during the last three years by the Commission or any other regulatory authority.

1.6     In case any associated company of the applicant is already registered under these Regulations, the following details shall be provided:

          (i)      Name of such associated company;

                   (ii)        Detail of warning notices, if any, issued to such associated company by the Commission during the last three years;

                   (iii)       Detail of ongoing legal proceedings, if any initialed against such associated company or any of its directors, Chief Executive Officer, Chief Financial Officer or Company Secretary, by the Commission; or any other regulatory authority; and

                   (iv)       Penal action, if any, taken against such associated company by the Commission during the last three years.

2.       Other Information:

2.1     Detail of pending disputes:

Nature of dispute relating to the Trusteeship business of the Applicant

Name of the party

Name & Place of Court / Tribunal where dispute is pending

Amount Involved

Date of last hearing

Decision taken in the last hearing



 

 

 

 

 

2.2     List of financial or criminal offenses which have been alleged against the applicant or any of its sponsors, directors or employees during the last three years.

2.3     Procedures for redressal of complaints, if any, lodged by the Debt securities holders.

2.4     Any other information considered relevant to the business of the applicant as Debt Securities Trustee.

2.5     Any significant awards or recognition.

3.       List of documents to be provided along with application:

3.1     copy of Memorandum & Articles of Association of the applicant, certificate of incorporation and certificate of commencement of business

3.2     copy of Form 3, 27, 28 and 29 of the applicant duly certified from the Company Registration Office (CRO) concerned,

3.3     audited accounts of the applicant for the last three years and latest half yearly and quarterly accounts.

3.4     profile of Chief Executive Officer, Chief Financial Officer, Company Secretary, Compliance Officer and Directors, of the applicant [Name, Qualification, Experience and Date of Appointment, Directorship in other companies and Date of Appointment as director in such other companies).

3.5     date wise breakup of Issues, if any, in which the applicant acted as Debt Securities Trustee during the last three years. The statement should also contain size of each Issue.

3.6     list of Issues, if any, in which the applicant has enforced security or taken any other remedial action for safeguarding the interest of its debt securities holders.

3.7     an Affidavit as specified in Annexure-II signed by the Chief Executive or any director of the applicant authorized by the Board of Directors to do so through resolution passed in its meeting.

3.8     confirmation that the quantum of minimum capital or equity, as the case may be, required under the respective statute is maintained.

3.9     any other information/document as required by the Commission.

*Instructions:

(i)      The applicant must submit application for registration under regulation 5 on this form duly filled in and signed, together with supporting documents to the Commission.

(ii)     All columns of the application form should be filled in. In case a column is not relevant or not applicable, the same should also be filled in as "Not Applicable" or "Not Relevant".

(iii)    Information, which needs to be supplied in more details may be provided on separate sheet(s) and attached to the application.

Annexure-II

(See clause 3.7 of Annexure-I)

AFFIDAVIT

(On Stamp Paper of appropriate value)

I, _____________ son/daughter/wife of _____________ adult, resident of _______________ and holding CNIC/Passport No. _________ affirmation as under:--

1.       That I am the chief executive/director of ………. name of the applicant).... and as such I am well conversant with the facts deposed to below.

2.       That the statements made and the information and documents provided along with the application for registration as a Debt Securities Trustee under the Debt Securities Trustee Regulations, 2012 are correct and there are no facts which have been concealed.

3.       That the Securities Exchange Commission of Pakistan (the Commission) will be notified of any change in the information provided to it along with the application for registration under regulation 5 of the Debt Securities Trustee Regulations, 2012 during the period the applications for registration is being considered and after the grant of registration.

4.       That all the documents provided to the Commission are true copies of the originals.

That I do hereby verify that the statements made above are correct to the best of my knowledge and belief and nothing has been concealed therein.

DEPONENT

Signature. _____________

The Deponent is identified by me.

Signature. ____________

ADVOCATE
(Name & Seal)

Solemnly affirmed before me on this _____ day of ______ at ___________ by the Deponent above named who is identified to me by _______________, Advocate.

Signature ____________

OATH COMMISSIONER
FOR TAKING AFFIDAVIT
(Name & Seal)

FORM B
[see Regulation 6(2)]

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

CERTIFICATE OF REGISTRATION TO ACT AS DEBT SECURITIES TRUSTEE

Islamabad, the …….. (date)…………

Registration No ……………………..

1.       The Securities and Exchange Commission of Pakistan having considered the application for registration as a Debt Securities Trustee under Regulation 5(1) of the Debt Securities Trustee Regulations, 2012 (the Regulations) by ……… [Name of the applicant) …………. and being satisfied that the said ………. [Name of the applicant) ……… is eligible for registration and that it would be in the interest of the securities market so to do hereby grants Certificate of Registration, in exercise of the powers conferred under regulation 6(2) of the Regulations to .... [Name of the applicant).... as a Debt Securities Trustee to carry out the activities as specified in the Regulations subject to the condition that .... [Name of the applicant].... shall comply with all the provisions of the Regulations and to any other condition that may be imposed hereafter.

2.  Unless cancelled or suspended this certificate of registration is valid for a period of three years from the date of its issuance or the existence of ……. [Name of the applicant) ………. whichever is earlier provided that it remains eligible under the Regulations for registration as a Debt Securities Trustee.

For and on behalf of the
Securities and Exchange Commission of Pakistan
Authorized Signatory

FORM C
[see Regulation 7(1)]

APPLICATION FOR GRANT OF RENEWAL OF CERTIFICATE OF REGISTRATION AS DEBT SECURITIES TRUSTEE

(Please carefully read the instructions annexed to this Form)

To,

The Securities and Exchange Commission of Pakistan

Pursuant to the decision of the Board of Directors of .... [Name of the applicant] …… taken in its meeting held on ...... [Date of Meeting]………., we whereby apply for renewal of registration as Debt Securities, Trustee under Regulation 7(1) of the Debt Securities Trustee Regulations, 2012. The information and documents mentioned in Annexure-III are attached herewith.

Date: __________________              Signature:_________________

Place: _________________

                                                Name of the Chief Executive Officer, the Company Secretary or the Chief Financial Officer duly authorized by the BoD through a resolution for signing and submission of this application..

Annexure-III

(see Form C)

The following details shall be provided by a Debt Securities Trustee along with the relevant supporting documents:—

1.       Detail of non-compliance, if any, by the Debt Securities Trustee with any provision of the Debt Securities Trustee Regulations, 2012 and reasons thereof.

2.       Detail of non-compliance, if any by the Debt Securities Trustee with any provision of any Trust Deed to which it is a party and reasons thereof.

3.       Detail of the Issue(s) of securities for which the Debt Securities Trustee remained engaged during the last one year.

4.       Detail of legal proceedings initiated against the Debt Securities Trustee and penal actions taken against it by the Securities and Exchange Commission of Pakistan or any other regulatory authority during the last one year.

5.       Detail of changes, if any, in the status of the Debt Securities Trustee.

6.       Detail of complaints relating to the Issue of Debt Securities received in the capacity as Debt Securities Trustee during the last one year and their status.

7.       Detail of default, or delay in profit payment or redemption, if any, by the issuers including the following:

                   (a)        the action taken by the Debt Securities Trustee to safeguard the interest of debt securities holders;

          (b)     mode of enforcement of security, if any; and

          (c)      compensation provided to debt securities holders.

For and on behalf of ……….. (Name of the applicant) ....

Date: _________________    Signature: _________________

Place: ________________      __________________________

                                                Name of the Chief Executive Officer or any director of the applicant authorized by BoD to submit the above-mentioned information.

*Instructions:

(i)      The applicant must submit application for registration under Regulation 7 on this form duly filled in and signed, together with supporting documents to the Commission.

(ii)     All columns of the application form should be filled in. In case a column is not relevant or not applicable, the same should also be filled in as "Not Applicable" or "Not Relevant".

(iii)    Information, which needs to be supplied in more details may be provided on separate sheet(s) and attached to the application.

FORM D

[see Regulation 7(2)]

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

CERTIFICATE OF RENEWAL OF REGISTRATION AS DEBT SECURITIES TRUSTEE

Islamabad, the …….. (date)……….

Registration No. ………………….

1.       The Securities and Exchange Commission of Pakistan having considered the application of the Debt Securities Trustee for renewal of its registration under regulations 7(1) of the Debt Securities Trustee Regulations, 2012 by …….. [Name of the applicant] ……… and being satisfied that the said ……..[Name of the applicant] …….is eligible for renewal of registration and that it would be in the interest of the securities market so to do hereby grants renewal of Certificate of Registration, in exercise of the powers conferred under Regulation 7(2) of the Regulations to ....[Name of the applicant].... as a Debt Securities Trustee to carry out the activities as specified in the Regulations subject to the condition that ....[Name of the applicant].... shall comply with all the provisions of the Regulations and to any other condition that may be imposed hereafter.

2.       Unless cancelled or suspended this renewal of the certificate of registration is valid for a period of one year from the date of the issuance of this certificate of renewal or the existence of ……… [Name of the applicant] …….. whichever is earlier provided that it remains eligible under the Regulations for registration as a Debt Securities Trustee.

For and on behalf of the
Securities and Exchange Commission of Pakistan
Authorized Signatory

SCHEDULE-I

CONTENTS OF TRUST DEED

[see Regulation 9(ii)]

The Trust Deed should contain all the necessary terms and conditions including the following:--

1.       The Issuer

All obligations and responsibilities of the issuer under the Regulations, the Ordinance, the Act, the Trust Act and any other applicable law or directions by the Commission including the following:

(i)      its obligation for maintaining proper record of its books of accounts and keeping it open for inspection by the Debt Securities Trustee;

(ii)     its obligations for maintaining proper register of debt securities holders with their addresses, record of subsequent transfers and changes of ownership;

(iii)    its obligations for facilitating the Debt Securities Trustee to enter its premises and inspection of the charged assets, if any;

(iv)    its obligations for intimating the Debt Securities Trustee of all orders, directions, notices of the Courts of law affecting or likely to affect the charged assets or interest of the debt securities holders;

(v)     its obligations for submitting any document or information including copies of financial reports; auditor's certificate on maintaining minimum redemption reserve fund, if required; report on redemption of debt securities; report on conversion of debt securities, if they are convertible; report on dividend payment, contracts relating to the Issue and detail of the assets backing the debt security etc. as and when required by the Debt Securities Trustee;

(vi)    its obligations for keeping the charged assets, if any, in proper condition;

(vii)   its obligation to pay the profit and the principal amount;

(viii)  its obligation to seek prior consent of the Debt Securities Trustee for declaration of any dividend, if so required by the Trustee;

(ix)    its obligations for reporting to Debt Securities Trustee before any change in the nature and conduct of business of the issuer;

(x)     its obligations for submitting periodical report on semi-annual basis to the Debt Securities Trustee containing at least the following:

          (a)      register of debt securities holders;

                   (b)        number and nature of grievances received by the issuer from debt securities holders and status of resolution thereof;

                   (c)        amount of markup due but unpaid and reasons for non payment thereof and detail of unclaimed/undelivered payments, if any;

                   (d)       a declaration confirming that its assets which are available by way of security are sufficient to discharge the claims of the debt securities holders as and when they become due.

(xi)    its obligations for submission of its annual audited accounts to the Debt Securities Trustee within thirty (30) days from the date of the general meeting in which such accounts are approved;

(xii)   its obligations to conduct and manage its business affairs with due diligence and efficiency in accordance with sound financial practices;

(xiii)  its obligations to inform the Debt Securities Trustee about the material change in its shareholding structure and the Board of Directors;

(xiv)  its obligations to provide the Debt Securities Trustee information about its financial condition, business and operations as and when requested by the Debt Securities Trustee;

(xv)   its obligation to inform the Debt Securities Trustee regarding any change in the utilization of proceeds of the Issue where the offering document sets out specific purpose for the utilization of the proceeds of the issue;

(xvi)  its obligations to furnish to the Debt Securities Trustee copies of all documents, reports, notices, circulars and particulars which the issuer provides to its creditors;

(xvii) its obligations to immediately inform the Debt Securities Trustee of the occurrence of any event of default;

(xviii)     its obligations that until all the amounts payable by the issuer in relation to the debt security have been paid in full to the satisfaction of the Debt Securities Trustee, the issuer shall not without prior written consent of the Trustee;

                   (a)        sell, transfer or otherwise dispose of, except in the ordinary course of business, any of the charged assets or more than 20 per cent of its undertaking or assets or permit any merger, consolidation, dismantling or reorganization;

                   (b)        create or permit to subsist any pari passu or superior security interest over the charged assets or any portion thereof except in accordance with inter-creditor agreement if any, to which the Debt Securities Trustee is a party;

                   (c)        demolish or remove any part of the buildings which are part of the secured assets or the fixtures and fittings annexed thereto except in the ordinary course of repair, maintenance, replacement or improvement;

                   (d)       change its memorandum or articles of association, in a manner that may adversely affect its ability to perform its obligations in respect of the debt security Issue;

                   (e)        take any action which is likely to result in a material adverse change in the Issue; and

                   (f)        declare or pay any dividends after the occurrence of any event of defaults.

(xix)  its obligation to ensure that the assets of the Issuer backing the debt security are maintained and sufficient to discharge its obligations as the issuer

(xx)   its obligation to ensure that all information provided to the Debt Securities Trustee relating to the issue is accurate and that it has not concealed any material facts/information.

2.       Purpose and salient features of the Issue

Complete detail and information regarding the following:

(a)      Purpose of the Issue, utilization of the proceeds thereof and Issue size.

(b)     tenure of the Issue.

(c)     markup/coupon rate.

(d)     redemption schedule.

(e)      options like call option, put option and conversion option, if any, and in case of conversion option, the conversion procedure.

(f)      debt equity ratio (the company's long term debt/equity ratio and the company's total debt/equity ratio both before and after the issuance of the debt security).

(g)     debt service coverage ratio, if applicable.

3.       Details of the assets backing the debt security if applicable;

(a)     Nature of the assets.

(b)     Book value of the assets as per the latest audited accounts of the issuer.

(c)      Nature of the existing charge(s) viz floating, exclusive, pari passu, ranking etc. on the charged assets and total amount of such charges.

(d)     Nature of charge(s) established in favor of the Debt Securities Trustee.

(e)     Circumstances under which security becomes enforceable.

(f)      Restriction on the issuer with respect to creation of further charges or encumbrances of the assets without the consent of Debt Securities Trustee.

(g)     Minimum amount of the security to be maintained at all times during the tenure of the debt security.

(h)     Procedure for successive valuation of the assets backing the debt security.

(i)      Procedure for inspection of the charged assets and books of account by the Debt Securities Trustee or any person or persons authorized by it.

(j)      Mechanism for preservation of the assets backing the debt security.

(k)     Circumstances under which the security may be disposed off or leased out with the approval of the Debt Securities Trustee.

4.       Procedure for Enforcement of Security and related risk factors

The procedure for enforcement of security in case of default by the issuer and risk factors connected to the enforcement of security should be provided in detail.

5.       Representation and Warranties

Details regarding the issuer representation and warranties regarding any issue or creation of trust or the clause that execution of this declaration shall not contravene the memorandum and articles of association of the Issuer, any agreement which constitute legal and binding obligation of the issuer etc.

6.       Details of the agreements executed by the issuers with its creditors and covenants thereof.

7.       Events of Default

All the events, which if occurred shall require the Debt Securities Trustee to initiate the actions, proceedings including enforceability of the security for safeguarding interest of the debt securities holders, should be defined

8.       Rights of Debt Securities Trustee in case of issuer's default:

(i)      right of the Debt Securities Trustee to inspect any document of the issuer relating to the Issue including the books of accounts, contracts relating to assets backing the debt security, the register of debt securities holders and shareholders etc. and to take copies and extracts thereof.

(ii)     a statement whether, in case of default, the Debt Securities Trustee has the right to appoint nominee directors) on the board of the issuer or not.

(iii)    right of the Debt Securities Trustee to call meeting of the debt securities holders, the events under which such meeting may be called and minimum quorum for the meeting of debt securities holders.

(iv)    right of the Debt Securities Trustee to approach a Court of competent jurisdiction in the event of any default by the issuer and its failure to comply with the covenants of the Trust Deed.

9.       Rights of the debt securities holders

(i)      right of the debt securities holders to call meetings;

(ii)     to vote at the meetings of the debt securities holders;

(iii)    in the event the Debt Securities Trustee, upon receiving instructions from the debt securities holders in accordance with the provisions of the Trust Deed, refuses or fails to act in accordance with such instructions, then any of the debt securities holders, holding such number of debt securities as specified in the Trust Deed, may, on giving the Trustee a notice in writing of its intention to initiate proceedings against the issuer;

(iv)    to replace the Debt Securities Trustee if it contravenes any of its obligations under the Trust Deed and procedure for such replacement.

(v)     to replace the Debt Securities Trustee if it contravenes any provision of the Regulations or the Ordinance or the Act.

10.     Duties of Debt Securities Trustee

All obligations and duties of the Debt Securities Trustee under the Regulations, the Ordinance, the Act, the Trust Act, 1882 and any other applicable law including the following:

(i)      its obligation to regularly monitor payment of profit to the debt securities holders and redemption of the debt security and ensure that it is according to the redemption schedule provided to the debt securities holders.

(ii)     its obligation to monitor delay or default in payment of profit and redemption of principal amount to the debt securities holders.

(iii)    its obligations towards regularly monitoring compliance by the issuer with all the covenants of the Trust Deed.

(iv)    its obligations of reporting to the debt securities holders about actual or potential breaches of its own or the issuer's obligations along with remedial steps taken or to be taken and the manner and time period during which the debt securities holders shall be informed of such breaches.

(vi)    its obligations to initiate legal proceedings against the issuer where the issuer refuses or fails to fulfill its obligations under the Trust Deed.

(vi)    its obligation to monitor on semi annual basis the quantum of security, where the Issue is secured, and to ascertain whether the security of the issuer backing the debt security is sufficient to discharge the claims of debt securities holders as and when they become due.

(vii)   its obligation incase of impairment of the security; and

(viii)  its obligation to enforce security, where necessary, in the interest of the debt securities holders.

11.     Removal and Resignation of the Debt Securities Trustee

(i)      Provide in details the instances and procedure for the retirement, removal and resignation of the Debt Securities Trustee including appointment of new Debt Securities Trustee.

(ii)     Procedure for modifications/rectification in the Trust Deed.

(iii)    clause prohibiting any unilateral modification/ amendment by either party to the Trust Deed.

12.     Miscellaneous

(a)      Provisions for redressal of grievances of debt securities holders.

(b)     Provision that the Debt Securities Trustee shall not relinquish from its assignment unless another Debt Securities Trustee is appointed.

(c)     fee or commission of the Debt Securities Trustee.

(d)     Provisions relating to the quorum, voting, whether meeting of the debt securities holders may be convened by the issuer, the Debt Securities Trustee and/or by the debt securities holders, minimum holding for convening meeting by debt securities holders etc.

(e)      Conditions under which the provisions of Trust Deed or the terms and conditions of the issue may be changed.

(f)      Provisions relating to the creation and maintenance of redemption reserve fund, if any.

(g)     Indemnification of the Debt Securities Trustee.

Note:

(i)      The arrangement for rendering services as Debt Securities Trustee does not absolve the issuer of the obligations and responsibilities placed on it under the Ordinance, the Act, the Securities and Exchange Ordinance, 1969 and these Regulations.

(ii)     The Debt Securities Trustee may incorporate additional clauses, provided that the additional clauses do not dilute or contravene the provisions of the Regulations particularly of the above clauses.

SCHEDULE-II

CODE OF CONDUCT

[see Regulation 9]

The Debt Securities Trustee shall follow the following code of conduct:

1.       A Debt Securities Trustee shall protect the interest and rights of the debt security holders in accordance with the Trust Deed.

2.       The Debt Securities Trustee shall ensure that:

                   (i)         any change in registration status which may adversely affect the interest of the debt securities holders is promptly notified to the issuer, the Commission and in case of listed debt securities to the stock exchange concerned; and

                   (ii)        where the Debt Securities Trustee cease to act as a Debt Securities Trustee for the Issue, its business relating to the Issue is transferred to another trustee in consultation with the issuer.

3.       A Debt Securities Trustee shall take all reasonable steps to establish the true and full identity of the issuers and maintain proper record of the charged assets, if any, and the financial and operating position of the issuer.

4.       A Debt Securities Trustee shall not discriminate among the issuers.

5.       A Debt Securities Trustee shall share information regarding the Issue available to it with the concerned credit rating company, if so desired by such credit rating company.

6.       A Debt Securities Trustee shall provide the issuer and debt securities holders with adequate and appropriate information about its trusteeship business, including contact details, services available to issuers, and the identity and status of employees and other persons acting on its behalf with whom the issuer may have to interact.

7.       A Debt Securities Trustee shall not indulge in any unfair competition, which is likely to harm the interests of other Debt Securities Trustee.

8.       A Debt Securities Trustee shall ensure that the information shared with the debt security holders through correspondences or other means is correct, adequate, comprehensive and not misleading to the best of his knowledge and belief and is shared on timely basis.

9.       A Debt Securities Trustee shall ensure that its directors or managers having the management of the whole or substantially the whole of affairs of the trusteeship business, shall not either through its account or their respective accounts or through their associates or family members, relatives or friends indulge in any insider trading.

10.     A Debt Securities Trustee or any of its directors, employees, officers, etc. shall not divulge to anybody either orally or in writing, directly or indirectly, any confidential information about its clients which has come to its knowledge, without taking prior permission of its clients, except where such disclosures are required to be made in compliance with any law.

11.     A Debt Securities Trustee shall ensure that:

                   (i)         inquiries from debt securities holders are adequately dealt with; and

                   (ii)        grievances of debt securities holders are redressed in a timely and appropriate manner.

12.     A Debt Securities Trustee or any of its directors, employees, officers, etc. dealing with trusteeship business shall not render, directly or indirectly, any investment advice about any security in the media, whether real-time or non-real-time unless a disclosure of interest including long or short position in the said security has been made, while rendering such advice.

13.     A Debt Securities Trustee shall be responsible for the acts or omissions of its employees and agents in respect to the conduct of its business.

14.     Debt Securities Trustee shall provide adequate freedom and powers to its compliance officer for the effective discharge of its duties under these Regulations.

15.     A Debt Securities Trustee shall ensure that good corporate policies and corporate governance is in place.

16.     A Debt Securities Trustee shall not disclose the non-public price sensitive information it has due to its position as a trustee to any person.


17.     Debt Securities Trustee shall call for periodical reports regarding profit payment and redemption of the debt security from the issuer.

18.     A Debt Securities Trustee shall inspect books of accounts, records, registers of the issuer and the security to the extent necessary for discharging its obligations under the issue of debt security.

19.     Debt Securities Trustee shall maintain high standard of integrity and fairness in performing its functions and discharging all its obligations under these Regulations in a fair, efficient, transparent and ethical manner.

20.     A Debt Securities Trustee shall make every possible effort to avoid any conflict of interest relating to its trusteeship business with the issuer and in case conflict of interest exists, the Debt Securities Trustee shall immediately make a disclosure of the same to the debt securities holders, the stock exchange concerned in case of listed debt security and the Commission and shall try to resolve that conflict in an equitable manner.

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REGULATION, 2012

STOCK EXCHANGES (CORPORATISATION, DEMUTUALIZATION AND INTEGRATION) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 18th June, 2012]

S. R. O. 750 (I)/2012.—In exercise of its powers under Section 23 of the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012, the Securities and Exchange Commission of Pakistan hereby makes the following regulations namely:—

1.       Short title and commencement.—(1) These Regulations may be called the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012.

(2)  They shall come into force at once.

2.       Definitions.—(1) In these Regulations, unless there is anything repugnant in the context or subject:

(a)      "Act" means the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012; and

(b)     "Clearing House" includes any company formed and established to provide facilities for the clearing or settlement of securities traded on a securities market registered outside Pakistan.

(2) Words and expressions not defined herein shall have the same meaning as ascribed thereto in the Act, the Securities and Exchange Ordinance, 1969, the Companies Ordinance, 1984 and the Central Depositories Act, 1997 or any rules and regulations made thereunder.

3.  Criteria for approving a strategic investor.—(1) A strategic investor desirous of acquiring the shares of a stock exchange shall fulfil the following minimum criteria:—

(i)      In the case of a stock exchange or a derivative exchange:

                   (a)        is registered as a stock exchange or a derivative exchange:

                                         Provided that in the case of a stock exchange, the companies listed on the stock exchange have a total market capitalization of at least five times of the total market capitalization of companies listed on the stock exchange, shares of which it is desirous of acquiring;

          (b)     has a net equity equivalent to at least Rs. 20 billion;

                   (c)        has experience of at least five years as a demutualized exchange;

          (d)     is in operation since last ten years;

                   (e)        has profit after tax in at least three of the last five years as per the audited financial statements;

                   (f)        has a diverse range of actively traded products which may include futures, options and other internationally acceptable derivative instruments recognized by the Commission for this purpose;

                   (g)        has a robust risk management system and default handling mechanism and good track record of handling market settlements; and

                   (h)        has been provided such classification by an international index provider as acceptable by the Commission for this purpose.

(ii)     In the case of a depository company or a clearing house—

                   (a)        is registered as a depository company or a clearing house in the country in which it operates;

                   (b)        has a net equity equivalent to at least Rs, 20 billion or is a wholly owned subsidiary of a stock exchange which fulfills the criteria mentioned in sub-regulation 3(I )(i) above;

                   (c)        has for, at least the past five years, been associated with a stock exchange or a derivative exchange which fulfills the criteria mentioned in sub-regulation 3(1)(i) above; and

                   (d)       has profit after tax in at least three of the last five years as per the audited financial statements.

(iii)    has sufficient operational and technical resources to assist in the development and promotion of the stock exchange shares of which it is desirous of acquiring;

(iv)    any other condition as may be specified by the Commission at the time of granting the approval:

               Provided that the Commission may relax any of the conditions as contained in regulation 3(1 )(i) and 3(l)(ii) except regulation 3(l)(i)(c) after taking into consideration the reputation, past track record, overall financial and operational strengths and expected benefits from a stock exchange, derivative exchange, clearing company or a depository company.

(2)  Notwithstanding anything contained in sub-regulation (1) above, a registered stock exchange, derivative exchange, depository company or clearing house, as the case may be, shall not be approved as a strategic investor if it is a connected person of the trading right entitlement certificate ("TREC") holder(s) of the stock exchange shares of which it is desirous of acquiring.

4.  Criteria for approving a firm of Chartered Accountants.—The Commission shall approve a firm of Chartered Accountants for the purposes of revaluation of the assets and liabilities of a stock exchange in accordance with Section 4(1)(b) of the Act, in consideration of the following:

(a)      the partners or directors of the entity must not be a 'connected person' of the stock exchange or directors of the stock exchange of which the revaluation is to be carried out;

(b)     it must not be engaged either in the external or internal audit of the stock exchange of which the revaluation is to be carried out.

          Explanation,—For the purpose of this regulation the firm of Chartered Accountant shall include an entity providing audit services or an entity holding license for management consultancy from the Institute of Chartered Accountants of Pakistan.

5.  Manner of operating the blocked account.—The Board of Directors of a stock exchange operating a blocked account in pursuance of Section 9(2) of the Act, shall do so in the following manner:

(a)      A CDC Participant account shall be opened by the stock exchange under which separate sub-accounts for each initial shareholder shall be opened. The account .shall be opened on the basis of a resolution of the Board of Directors of the stock exchange;

(b)     Sixty per cent of the total shares of the stock exchange shall be held in the sub-accounts of the initial shareholders in a manner that each sub-account shall hold sixty per cent of the shares allotted to each initial shareholder.

(c)      No movement or pledging of shares held in the sub-accounts shall be allowed except the transfer pursuant to the sale of shares to the strategic investor, the general public and the financial institutions in accordance with the Act and requirements of these regulations;

(d)     When the stock exchange reaches an agreement for the sale of not more than forty per cent shares to the strategic investor in accordance with the requirements of Section 12(1)(a) of the Act, the shares may be transferred in the name of strategic investor subject to the following conditions:—

                   (i)         The stock exchange shall provide a copy of the agreement executed with the strategic investor to the Commission, showing the number of shares to be sold and the price at which the sale is agreed;

                   (ii)        The agreement shall describe among other matters the terms and conditions for payment and transfer of shares;

                   (iii)       Evidence regarding the sufficient funds available with the strategic share holder to execute the transaction including but not limited to account statement; and

                   (iv)       Any other condition as may be imposed by the Commission at the time of granting approval.

(c)      After completion of the conditions provided in sub-regulation (d) and obtaining prior approval of the Commission in writing, the Board of Directors of the stock exchange shall issue instructions to the CDC to transfer the shares to the strategic investor:

          Provided that no shares shall be transferred unless the payment for the same is received from the strategic investor and confirmation of the same is provided to the Commission by the stock exchange.

6.  Manner of issuance of TREC.—(1) The TREC shall be issued in physical form in accordance with the format prescribed in Annexurc-I.

(2)     Each TREC shall—

(a)     be allotted a distinctive number.

(b)     be prepared and delivered by the stock exchanges to the initial shareholders within thirty days of the grant of the Commission's approval under Section 4(2) of the Act.

(3)     The stock exchanges shall confirm in writing to the Commission the issuance of TRECs alongwith the names of initial shareholders and the distinctive numbers of the TREC so issued.

(4)     The TREC to be issued under Section 16(5) & (6) of the Act shall be issued by the stock exchange within fifteen days of completion of all procedures/requirements for issuance of TREC in accordance with the requirements of these regulations and any other regulations of the stock exchange(s).

(5)     The stock exchanges shall maintain a register of TREC holders which shall contain the name, CNIC/Company Registration Number, address of the TREC holder and any other matters as may be specified by the Commission from time to time.

(6)  A stock exchange shall issue a TREC under Section 16(5) & (6) of the Act on the basis of a written application which shall be accompanied by such documents as a stock exchange may specify from time to time.

(7)  The TREC under Section 16(5) & (6) of the Act shall only be issued to a person upon satisfaction by the Exchange that the applicant fulfills the fit and proper criteria specified by the Commission from time to time for registration as a broker and the stock exchange shall obtain such documents from the applicant as may be necessary for this purpose.

7.       Manner of Transfer of TREC—(1) The stock exchanges shall ensure that not more than one transfer is registered in respect of a TREC issued under Section 5 of the Act:

Provided that no transfer shall be executed or registered in respect of TREC issued under Section 16(5) & (6) of the Act;

Provided further [hat any change in the name of TREC holder as a result of conversion of status from an individual TREC holder to a corporate TREC holder shall not be considered as a transfer of TREC, if the concerned individual member retains the majority shareholding and management control of the company.

(2)     A TREC holder who has been issued a TREC under Section 5 of the Act shall request the stock exchange to provide a no objection certificate (NOC) before entering into any transaction for the transfer of TREC.

(3)     Any TREC issued under Section 5 of the Act by the stock exchanges shall only be transferred to a person who fulfills the fit and proper criteria for the brokers as specified by the Commission from time to time and before registering any transfer of TREC, the stock exchange shall ensure that the transferee fulfills the fit and proper criteria.

(4)     The stock exchanges may require transferor and transferee of the TREC issued under Section 5 of the Act to provide such information as may be required for determining the fit and proper status for registering a transfer of TREC or for issuing a NOC for such transfer.

(5)     The TREC issued under Section 5 of the Act shall only be transferred on the basis of a written application signed by both the transferor and transferee, the contents of which and the signatures of the transferor shall be verified by the stock exchange before registering the transfer.

8.       Manner of disposal of shares of a stock exchange.—After demutualization, shares of a stock exchange held in the blocked account may be disposed in the following manner:

(a)      The Demutualization Committee of a stock exchange shall exercise its best efforts to attract a strategic investor which fulfills the eligibility criteria prescribed in these Regulations:—

               Provided that the stock exchange shall take all necessary steps for the implementation of necessary reforms and upgrading its systems to fulfill this objective;

(b)     If, as a result of negotiation, the Demutualization Committee of a stock exchange receives multiple offers which are above the valuation of such stock exchange, it shall accept the highest offer:

               Provided that, it may grant any other offerors the opportunity to match the highest offer:

               Provided further that the Demutualization Committee of a stock exchange may accept an offer which is not the highest offer but is greater than the valuation of the stock exchange after considering the reputation, past track record and expected future benefits from the participation of such offeror;

(c)      Shares sold to a strategic investor shall be held in a blocked account in the name of such strategic investor and shall only be transferred with the prior written approval of the Commission.

9.  Allotment of shares of stock exchange to the initial shareholders.—(1) Within 30 days of receiving approval under Section 4(2) of the Act, or a determination under Section 4(6) of the Act, the stock exchange shall forward to the CDC the list of initial shareholders, submitted to the Commission under Section 4(1)(d) of the Act, with the instructions to credit forty per cent shares out of total shares allotted to such initial shareholder in the account of each initial shareholder;

(2)  On the basis of instructions of the stock exchange, CDC shall credit in the account of each initial shareholder, forty per cent shares out of total shares allotted to such initial shareholder.

10.  Segregation of Commercial and Regulatory Functions.—(1) Each stock exchange shall ensure compliance with the plan for segregation of commercial and regulatory functions approved by the Commission under Section 4(2)(f) of the Act in accordance with the timelines provided in the plan.

(2)  Any modifications to address foreseeable events of non-compliance with the approved plan must be submitted to the Commission for approval alongwith detailed rationale, well in advance of occurrence of any such event/modification.

ANNEXURE-I

[See Regulation 6(1)]

______________ STOCK EXCHANGE

TRADING RIGHT ENTITLEMENT (TRE) CERTIFICATE

The _________ Stock Exchange, in pursuance of Section 5 or Section 16, whichever applicable, of the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012 read with regulation 6 of the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012 hereby grants a TRE Certificate to ___________________________, subject to the requirements of the Regulations of the ___________________ Stock Exchange, where applicable.

2.  TRE Certificate number: _____________________

Dated:        _________________

Place :         _________________

By order

Sd/-
For and on behalf of

            _________________ STOCK EXCHANGE

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REGULATIONS, 2012

CELLULAR MOBILE NETWORK QUALITY OF SERVICE (AMENDMENT) REGULATIONS, 2012

 [Gazette of Pakistan, Extraordinary, Part-II, 13th June, 2012]

S. R. O. 737(I)/2012, dated 12.4.2012.—In exercise of powers conferred under clause (o) of sub-section (2) of Section 5 of the Pakistan Telecommunication (Re-organization) Act, 1996 the Pakistan Telecommunication Authority hereby notifies the following amendments in the Cellular Mobile Network Qos Regulations 2011, namely:—


1.  Short title and commencement.—(1) These Regulations shall be called the Cellular Mobile Network Quality of Service (Amendment) Regulations, 2012.

(2)  These regulations shall come into force from the date of gazette notification.

2.       Amendment of regulation 4, S.R.O. 309(1) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1279 sub-clause (i) of clause (a) of regulation 4 shall be substituted and read as follows:—

"(i)     Network Accessibility & Network Downtime

Network Accessibility*

"The probability that mobile services are available to an end customer by display of the network indicator on the mobile test equipment throughout the entire duration of the samples"

Benchmark

Network Accessibility should be > 99%

*To be measured through drive test/survey in accordance with the methodology provided at Annex-A.

Network Downtime *

"The probability that mobile services are not available to end customer ".

Benchmark

Network Down-time should be <1%

**To be measured as average across all sites from the Network Management System (NMS) of the operator."

3.       Amendment of regulation 4, S.R.O. 309(1) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1279 sub-clause (ii) of clause (a) of regulation 4 shall be substituted and read as follows:

"Grade of Service

"The probability that the end customer cannot access the moble services when requested if it is offered by display of the network indicator on the mobile equipment.

Grade of Service (%)=(total no. of unsuccessful calls/total no. of calls) *100%.

Benchmark

Grade of Service should be < 2%."

4.       Amendment of Regulation 4, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1281 in sub-clause (ii)of clause (b) of regulation 4 the 'Benchmark" shall be .substituted and read as follows:—

"Benchmark

End-to-End Delivery should be < 12 seconds"

5.       Amendment of Regulation 5, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1281 regulation 5 shall be omitted.

6.       Amendment of Regulation 6, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1281 regulation 6 shall be omitted.

7.       Amendment of Regulation 7, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1281 clause (a) of sub-regulation (1) of Regulation 7 shall be substituted and read as follows:

"(a)    To monitor the quality of telecommunication service being provided by the Licensee and adherence to the criteria laid down in the License and Regulations, each Licensee shall conduct end-to-end drive tests and surveys at intervals as required by the Authority. The Licensee shall procure the test instruments and equipment as and when required for the purpose".

8. Amendment of Regulation 7, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1282 clause (b) of sub-regulation (1) of Regulation 7 shall be substituted and read as follows:

"The tests and surveys shall be so designed as to give the overall as well as the detailed picture of the network, of the Quality of Service provided by the Licensee with fifteen (15) days prior intimation to the Authority."

9. Amendment of Regulation 7, S.K.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1282 after clause (f) of Regulation 7 a new clause (g) shall be inserted and read as follows:

''Unless otherwise stated in these regulations, the reporting periods, which are periods of time over which measurements are taken and recorded shall be one month starting on 1st January of the applicable calendar year or as the Authority may from time to time specify. The Licensee shall consolidate and maintain the reports for each month and submit the record on a quarterly basis".

10. Amendment of Regulation 8, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1283 sub-regulation (7) of Regulation 8 shall be substituted and read as follows:

"The Licensee shall immediately take all remedial measures to remove the shortfalls identified in the inspection report and submit compliance report within thirty (30) days of the issuance of the inspection report, in confirmation that all stated shortfalls have been removed:

Provided that Authority shall provide the opportunity to remove the shortfalls identified in the inspection report for the same city, against/on account of only two tests carried out in a calendar year and not thereafter”.

11.     Amendment of Regulation 8, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1283 after sub-regulation (7) a new sub-regulation (8) of Regulation 8 shall be inserted and read as follows:

"(8) The Authority shall measure the performance of the Licensees using modes for collection of data or documents, including but not limited to surprise drive tests etc. The main aspects of the methodology for taking measurements through drive tests shall be as specified in Annex-A to these regulations. The Authority may review or define new thresholds as and when required. "

12.     Amendment of Annex-A, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1284 clause (d) appearing in Annex-A shall be substituted and read as follows:

"(d)   A and B  party

(i)      A-party (originating number)

          -         moving continuously during drive test

(ii)     B Party (terminating number)

          -         moving

          -         static"

13.     Amendment of Annex-B, S.R.O. 309(I) 2011 of 2011.—In the Cellular Mobile Network Quality of Service Regulations, 2011, at page 1285 in Part-B of Annex-B the 'Minimum Target' for 'End to End SMS Delivery’ shall be substituted and read as follows:

" < 12 seconds"

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REGULATIONS, 2012

PAKISTAN TELECOMMUNICATION AUTHORITY (FUNCTIONS & POWERS) (AMENDMENT) REGULATIONS, 2012.

[Gazette of Pakistan, Extraordinary, Part-II, 13th June, 2012]

S.R.O. 736 (I)/2012, dated 12.4.2012.—In exercise of powers conferred under clause (o) of sub-section (2) of Section 5 of the Pakistan Telecommunication (Re-organization) Act, 1996, the Pakistan Telecommunication Authority hereby notifies the following amendment in the PTA (Functions & Powers) Regulations, 2006 namely:—

1.       Short title and Commencement.—(1) These Regulations shall be called the Pakistan Telecommunication Authority (Functions & Powers) (Amendment) Regulations, 2012.

(2)  They shall come into force from the date of gazette notification.

2.       Amendment of regulation 23, S. R. O. 1015 (I)/2008 of 2008.—In the Pakistan Telecommunication Authority (Functions and Powers) (Amendments Regulations, 2008, after sub-regulation (3) a new sub-regulation (4) shall be inserted and read as follows:—

''(4)  The Authority may impose any other fee with suitable nomenclature with respect to activity related to licensing or renewing the license from time to time".

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REGULATIONS, 2012


SUBSCRIBER ANTECEDENTS VERIFICATION (AMENDMENT) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 2nd June, 2012]

S.R.O.678 (I)/2012.—In exercise of powers conferred under clause (o) of sub-section (2) of Section 5 of the Pakistan Telecommunication (Re-organization) Act, 1996, the Pakistan Telecommunication Authority hereby makes the following regulations, namely:—

1.  Short title and commencement.—(1) These Regulations shall be called the Subscriber Antecedents Verification (Amendment) Regulations, 2012.

(2)  They shall come into force at once.

2.  Amendment of Regulation 7, S.R.O. 1189(I)/2010 of 2010.—At page 3975 Regulation 7 shall be substituted and read as follows:

"Maximum Number of SIM(s) to be issued to Individual CNIC holders.—All CNIC holders shall be entitled to purchase in their name upto a maximum of five SIM(s) whether from one or more Operators".

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REGULATIONS, 2012

TELECOM CONSUMERS PROTECTION (AMENDMENT) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 2nd May, 2012]

S.R.O. 452(I)/2012, dated 25.4.2012.—In exercise of powers conferred under clause (o) of sub-section (2) of Section 5 of the Pakistan Telecommunication (Re-organization) Act, 1996 the Pakistan Telecommunication Authority hereby makes as follows, namely:

1. Short title and Commencement.—(1) These Regulations shall be called the Telecom Consumers Protection (Amendment) Regulations, 2012.

(2)  These regulations shall come into force with immediate effect.

2.  Amendment of Regulation 8, S.R.O 300(I)/2009 of 2009.—In the Telecom Consumer Protection Regulations, 2009, clause (i) of sub-regulation (5) of Regulation 8 shall be omitted.

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REGULATIONS, 2012

PAKISTAN ELECTRONIC MEDIA REGULATORY AUTHORITY (RADIO BROADCAST STATION OPERATIONS) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 10th April, 2012]

S.R.O. 361(I)/2012, dated 31.1.2012.—In exercise of the powers conferred under sub-section (3) of Section 4 read with all other enabling provisions of Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002) the Pakistan Electronic Media Regulatory Authority is pleased to make the following Regulations namely:—

1.  Short title and commencement.—(1) These regulations shall be called Pakistan Electronic Media Regulatory Authority (Radio Broadcast Station Operations) Regulations, 2012.

(2)  They shall come into force at once.

PART-I
Definitions

2.  Definitions.—(1) Terms and expressions used in these regulations shall have, unless it appears repugnant to the context or provided otherwise, following meanings:

a.       "radio advertisement" means a set of audio messages for the projection of a product, service, or idea with the object of propagating sale, purchase or hire of the product, service or idea for creating other related effects.

b.       "annual gross advertisement revenue" means the total revenue receipts from advertisements calculated before realizing the liabilities and expenses etc.

c.       "amplitude modulation (AM)" means a mode of broadcasting radio waves by varying amplitude of the carrier signal in response to the amplitude of the signal to be transmitted.


d.       "AM radio" means the radio broadcast that uses amplitude modulation.

e.       "application form" means the application form as specified by the Authority for the grant of a licence / permission as prescribed by the Authority from time to time.

f.       "applicable licence fee" means the licence fee prescribed by the Authority from time to time or where applicable, determined through bidding, and to be paid for obtaining a licence.

g.       "annual fee" means fees and charges both fixed and variable portion payable by the licensee for ensuing year's upto the expiry of the licence term.

h.       "renewal fee" means fee payable for renewal of a licence on expiry of the term of the licence;

i.        "Authority" means the Pakistan Electronic Media Regulatory Authority (PEMRA)

j.        "authorized officer" means the Chairman or a member, or any member of staff, expert, consultant, adviser, other officer or employee of the Authority to whom the Authority has by general or special order delegated its powers, responsibilities or functions under the Ordinance for carrying out the purposes of the Ordinance, rules or regulations made there under.

k.       "base price" means the minimum fee determined by the Authority from time to time for the purpose of conducting bidding for a particular category of the licence.

l.        "broadcast media" means such media which originate and propagate broadcast and prerecorded signals by terrestrial means or through satellite for radio or television and includes teleporting, provision of access to broadcast signals by channel providers and such other forms of broadcast media as the Authority may, with the approval of the Federal Government, by notification in the Official Gazette, specify.

m.      "broadcaster" means a person engaged in broadcast media except broadcast journalists not actively involved in the operation, ownership, management or control of the broadcast media.

n.       "broadcast station" means physical, technical and software infrastructure for the operation of radio or television and also includes satellite up-linking from ground, repeaters and all such other accessories.

o.       "Chairman" means the Chairman of the Authority.

p.       "Chairperson" means the head of a Council of Complaint.

q.       "channel" means the set of frequencies that a broadcast station occupies for broadcasting.

r.        "Code" means the code of conduct for media broadcasters and distribution service operators specified in the rules.

s.       "company" means a company as defined in the Companies Ordinance, 1984 (XLVII of 1984)

t.        "copyright" means copyright as defined in the Copyright Ordinance, 1962 (XXXIV of 1962)

u.       "Council" means Council of Complaints established under Section 26 of the Ordinance.

v.       "digital audio broadcasting (DAB)" means digital radio broadcasting system that through the application of multiplexing and compression combines multiple audio streams onto a relatively narrow band centered on a single broadcast frequency.

w.      "foreign Broadcasting Service" means a broadcasting service which is up linked from outside Pakistan and downlink / received in Pakistan.

x.       "foreign company" means a company or body corporate organized, and registered under the laws of a foreign government.

y.       "foreign content" means the content that is produced under the (direct or indirect) creative control of foreigners, foreign company or foreign broadcaster.

z.       "frequency" means the frequency of the electromagnetic wave number measured in Hertz and used for transmission.

aa.     "FAB" means the Frequency Allocation Board established under Section 42 of the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996)

bb.     "frequency modulation" means a mode of broadcasting radio waves by varying frequency of the carrier signal in response to the amplitude of the signal to be transmitted.

cc.     "FM radio" means broadcast that uses frequency modulation.

dd.    "illegal operation" means the broadcast or transmission or distribution of, or provision of access to, programmes or advertisements in the form of channels without having a valid licence / permission from the Authority.

ee.     "Internet radio" means provision of radio service through audio streaming over the uniform resource locator.

ff.      "licence" means a licence issued by the Authority to establish and operate a broadcast media or distribution service.

gg.     "licensee" means a person to whom the Authority has issued a licence.

hh.     "media enterprise" means an enterprise concerned with the publication of a printed newspaper or a broadcast media or distribution service.

ii.       "Member" means a member of the Authority.

jj.       "national broadcaster" means the Pakistan Broadcasting Corporation, the Pakistan Television Corporation and the Shalimar Recording and Broadcasting Company.

kk.     "non-commercial licence" means a licence under which the licensee is not allowed to air any advertisements or otherwise sell its air time;

ll.       "Ordinance" means the Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002)

mm.   "person" includes an individual, partnership, association, company, trust or corporation.

nn.     "prescribed" means prescribed by the rules and regulations made under the ordinance.

oo.     "PTA" means the Pakistan Telecommunication Authority established under the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996)

pp.     "radio programme" means any systematic broadcasting of visual or sound images by a broadcast station but does not include an advertisement.

qq.     "renewal of licence" means grant / revalidation of a licence for a similar or an other term after expiry of the original term.

rr.      "Regulations" means the regulations made under the Ordinance and the rules;

ss.      "Rules" means the rules made under the Ordinance.

tt.      "satellite radio" means digital radio signal that is relayed through one or more satellites and can be received in a wider geographical area.

uu.     "schedule" means the Schedule annexed to these regulations.

vv.     "subscriber's equipment" means radio receiver equipment used for receiving the radio service signals.

(2)  Words and phrases used but not defined in these regulations, unless the context otherwise requires, shall have the meanings assigned to them in the Ordinance and the rules made there under.

PART- II
Licensing Criteria

3.       Licence to operate.—(1) No person shall engage in radio broadcasting without obtaining a licence from the Authority.

(2)  Every licence shall be subject to such terms and conditions as provided in the Ordinance, the rules and these regulations or otherwise specified by the Authority.

4.       Application for grant of a licence.—(1) The Authority may invite, by advertising through media, the expression of interest (EOI) or applications from the general public, interested in establishing and operating radio broadcasting stations in any particular category or area of coverage in Pakistan, for award of licences through bidding under Section 19 of the Ordinance.

(2)     The application for grant of a licence to establish and operate a radio broadcast station shall be made on the application form specified by the Authority for such purpose from time to time.

(3)     The applicant shall indicate the desired category of licence, in terms of the area of coverage from amongst the given categories and shall also provide the details of equipment intended to be used.

(4)     Each application for grant of a radio broadcast station licence shall be accompanied by such application processing fee (non-refundable) as determined by the Authority from time to time.

(5)     The Authority may, where applicable, forward the application to the Frequency Allocation Board (FAB) through Pakistan Telecommunication Authority (PTA) for frequency allocation.

(6)     The application may be processed simultaneously, however, the licence shall be issued only after security clearance from the Ministry of Interior, allocation of the frequency by FAB where applicable and on completion of other legal requirements.

(7)     Base price for the licence shall be determined by the Authority.

5.  Criteria for evaluating licence application:—(1) Applications for the grant of a radio broadcast station licence shall in the first instance be evaluated and short listed as per prescribed criteria.

(2)     The applicant who is, directly or indirectly, holding a licence issued by the Authority shall not be issued any further licence unless all outstanding dues in respect of all the licences held by such applicant, directly or indirectly, have been paid and a satisfactory report has been obtained regarding compliance with the relevant laws of the Authority:

Provided that a maximum number of radio licences that may be issued to a person or any of its directors or partners where such person is a company or firm, directly or indirectly, shall not exceed a total of four radio licences.

(3)     A person shall not be granted more than, one radio licence in the same area of operation and where two or more companies or firms having one or more common directors/shareholders or partners, as the case may be, have applied for grant of licence in the same area, only one of such companies shall be allowed to participate in the bidding:

Provided that if the companies or firms, as the case may be, are not able to decide as to which firm or company shall be participating in the bidding, all such companies or firms shall be declared ineligible for participation in the bid.

(4)  The applicant shall certify that it is not a defaulter of the Authority, any financial institution, Federal Board of Revenue or any other organization/entity owned or operated by the government.

(5)  The applicant shall be registered with the relevant tax authorities for, inter alia, sales tax and income tax.

(6)     A licensee who owns, controls, operates or manages directly or indirectly broadcast media or landing rights permission shall not be granted distribution service licence and vice versa.

(7)     Non-commercial licences for educational and specialized subjects may be issued by the Authority on case to case basis in accordance with the prescribed criteria to following organizations:

(a)      Educational institutions recognized by the Higher Education Commission; and

(b)     governmental organizations working for sector/industrial development:

          Provided that in the case of grant of non-commercial radio licences, public sector institutions and governmental organizations shall be exempt from the requirements of security clearance, provincial consultation and public hearing.

6.       Issuance and refusal of licence:—(1) The Authority shall process each application and on being satisfied that the applicant(s) fulfils the eligibility criteria and requirements of the Ordinance, rules & regulations may, on receipt of the applicable licence fee and prescribed security deposit, issue licence to the applicant(s);

Provided that security deposit shall be refundable after one year of satisfactory performance by the licensee and may be forfeited where the licensee has failed either to commence its operation within given time or show satisfactory performance for one year:

Provided further that if at any time it is found that the licensee had provided false or misleading information/certificate/documents for issuance of the licence, the licence shall be withdrawn.

(2)     The Authority, if satisfied that the applicant is not eligible for grant of licence or the issuance of licence to a particular person is not in the public interest, may refuse grant of licence to such person by recording reasons in writing.

(3)     Any change in the particulars of the applicant provided in the application shall be notified to the Authority without any delay.

(4)     The Authority shall take decision on the application for a licence within one hundred days from receipt of the application subject to fulfillment of all the legal requirements, security clearance from the Ministry of Interior, and frequency allocation by FAB in relevant cases:

Provided that if more time is consumed in the processing of the application, the same shall not be construed as an expectancy to get a licence merely by reason that the application was not decided within 100 days.

7. Fees and security deposits:—(1) The licence fee, annual fee, other charges and licence renewal fees payable pursuant to these regulations shall be as determined by the Authority from time to time.

(2)  A surcharge at the rate of five percent per month, upto a maximum of fifteen percent, for late payment of annual fee or licence renewal fee, as the case may be, shall be payable:

Provided that without prejudice to the power of the Authority to revoke a licence, if a licensee fails to pay the outstanding dues including surcharge after expiry of three months from the due date, the licence shall be suspended and equipment shall be seized. However, the licence may be reinstated and equipment may be returned on payment of outstanding dues and such fine as the Authority may impose:

Provided further that if the licensee shows sufficient and reasonable cause, the Chairman may relax the due date by a maximum of seven days in exceptional cases for the reasons to be recroded in writing.

(3)  The annual fee payable pursuant to the Ordinance, rules & regulations shall include such percentage of the gross advertisement revenue as determined by the Authority from time to time.

Part-III
Licence Terms & Renewal

8.  Licence terms & conditions:—(1) The licensee shall not be allowed to shift or transfer its station from the area for which it has been licensed.

(2)     A licensee shall maintain a record and register of the programs and advertisements aired by it for a period not less than ninety days.

(3)     A licensee shall not change its management, shareholding or transfer control otherwise to any person not being the shareholder at the time of grant of licence without obtaining prior permission from the Authority after fulfillment of prescribed criteria, payment of applicable fee and security clearance:

(4)     A licence shall be withdrawn, if the licensee fails to put into operation the broadcast station within a period of one year or as specified in its licence.

(5)     A licensee shall not change the location of its broadcast station, business address, data center, transmitter location, complaint center etc. as the case may be, without prior written permission of the Authority.

(6)     A licensee shall not air programs or news bulletins of any foreign company or broadcaster or sister concern of such foreign company or broadcaster, or provide its air time to any other person without prior approval of the Authority.

(7)  A licensee shall comply with the local laws of Pakistan and shall not enter into any foreign or local agreement that is in violation of the Ordinance and the rules and regulations made thereunder.

9.  Renewal of licence on expiry of the licence term:—(1) A licensee desirous of getting its licence renewed may, at least six months prior to the expiry of the licence, apply to the Authority for renewal of its licence and the Authority may renew the licence for such terms as deemed appropriate subject to:

a.       fulfillment of eligibility criteria and other conditions as provided in the Ordinance, rules, regulations or otherwise prevalent at the time of renewal of the licence;

b.       satisfactory past performance;

c.       security clearance of the applicant by the Ministry of Interior:

          Provided that if decision of Ministry of Interior regarding security clearance of the applicant is not received within a period of six months or before expiry of the licence, whichever is earlier, subject to fulfillment of other conditions, the licence may be renewed conditionally subject to security clearance by the Ministry of Interior and if the security clearance is refused the licence shall be withdrawn immediately without incurring any liability on part of the Authority.

d.       proof of registration with tax authorities for income tax and sales tax;

e.       the applicant must not be a defaulter of any financial institution, Federal Board of Revenue or any organization/entity owned or operated by the Government of Pakistan;

f.       payment of renewal fee as applicable at the time of renewal; and

g.       payment of outstanding dues in respect of all licences that are held by the applicant, directly or indirectly.

(2)  Licence renewal fee shall be prevailing applicable licence fee for the respective area and category of licence plus rate of inflation calculated as prescribed by the State Bank of Pakistan:

Provided that if bidding has not been held for such licence, the renewal fee shall be determined by the Authority.

(3)  The Authority may decide not to renew a licence beyond the expiry date of the on-going term after recording reasons in writing.

10.     Sharing of Facilities:—The licensees shall be liable to comply with the guidelines issued by the Authority for sharing of facilities by the licensees.

11.     Maintenance of accounts.—(1) The licensee shall maintain proper accounts, as required by the applicable laws and the rules & regulations made under the Ordinance, and shall cause to be carried out the audit of his accounts by one or more auditors who are chartered accountants within the meaning of Charted Accountants Ordinance, 1961 (X of 1961) and shall submit the audited financial statement to the Authority not later than three months after the closing date of its financial year.

(2)     If the Licensee is operating multiple businesses, it shall separately disclose gross advertisement revenue accruing from each business or in case the licensee has been issued more than one licences, the licensee shall specify gross advertisement revenue for each licensed service separately in its financial statement.

(3)     If deemed necessary, the Authority may itself conduct or cause to be conducted through Chartered Accountants, audit of a licensee and the licensee shall provide access to relevant record, information, data and assistance in this regard.

12.     Media ownership concentration and exclusion of monopolies.—(1) To ensure that fair competition is facilitated, media diversity and plurality are promoted in the society and undue concentration of media ownership is not created, maximum number of licences that may be issued to a person or any of its directors or partners where such person is a company or firm, who is directly or indirectly, controlling, owning or operating more than one media enterprise, shall not exceed a total of four satellite TV, four Radio licences and two landing rights permissions.

(2)  A licensee having direct or indirect interest in any other media enterprise shall ensure—

(a)      appointment of separate editorial boards and monitoring facilities for each medium under its control;

(b)     establishment of separate management structures for each medium under its control; and

(c)      maintenance of separate accounting record for each medium under its control.

(3)  A licensee who owns, controls or operates directly or indirectly broadcast media licence or landing rights permission shall not be granted a distribution service licence and vice versa.

13.     Provision for live broadcasting of certain events.—For the purpose of ensuring the widest availability of listening in Pakistan of a national or international event of general public interest, the Authority, may notify the same.

14.     Copyright:—(1) The licensee shall be responsible for ensuring that copyright obligations as required under the copyrights Ordinance, 1962, with respect to the programmes being relayed over the system are fulfilled.

(2)  No suit, prosecution, or other legal proceeding shall lie against the Federal Government or any Provincial Government, the Authority or Local Authority or the Authorized Officer or any other person exercising any power or performing any function under the PEMRA Ordinance rules and regulation made there under or for any violation of copyrights or other intellectual property rights by any licensee.

15.     Monitoring:—(1) Without prejudice to any provision of the Ordinance, the rules and regulations made there under, the licensed system may be monitored by the Authority with respect to quality of transmitted signal, content of the broadcast, compliance with installation standards and complaints of consumers etc. and the licensee shall provide all necessary assistance and equipment for this purpose.

(2)     In case installation of improper or sub-standard equipment is detected, the licensee shall rectify the same immediately but not later than one week of detecting or being informed of the problem and also inform the listeners about the problem and its rectification.

(3)     The Councils of Complaints as established under the Ordinance, or the authorized officers of the Authority, may monitor the broadcast operations with a view to ensuring ethical standards, programming contents, Code of Conduct and technical and quality standards of the broadcast operations.

(4)     The licensee shall facilitate the authorized representatives of the Authority, or as the case may be, the Council, to visit his premises at any time for the purpose of inspection.

PART- IV
Inspection and Operations

16.  Inspection and Operations.—(1) An authorized officer or his nominee may physically inspect a radio broadcast station at any time and if any violation of the Ordinance, rules, regulations or licence terms and conditions is found, shall direct the operator to rectify the same within such time as may be reasonable for this purpose and may also seize the equipment being used in such violation.

(2)     Where a licensee has been found involved in violation of the relevant laws, the regional general manager may, after the licensee has been provided opportunity to show cause, impose a fine not exceeding one hundred thousand rupees:

Provided that where the officer is of the view that the violation is of severe nature, he may forward the case to the Council of Complaints or the Chairman through proper channel, along with appropriate recommendation.

(3)     A licensee shall be served a prior show cause notice for violation before seizure of equipment and equipment so seized may be returned after deposit of such fine as may be imposed:

Provided that the equipment seized for being used for illegal operation or without having a valid licence shall be confiscated.

(4)     The authorized officer shall have the following powers--

i.        to exercise the powers regarding inspection, search and seizure conferred under Section 29 of the Ordinance;

ii.       to request the officers of Federal Government, Provincial Governments and Local Governments including the Capital Territory Police and the Provincial Police for their assistance in discharge of its functions under the provisions of the Ordinance and the rules and regulations made thereunder;

iii.      to sign plaint, reply in Court cases, criminal complaint under Section 34 of the Ordinance for any violation of provisions of the Ordinance; and

iv.      to apply for issuance of warrants under Section 33B of the Ordinance.

(5)  Any person aggrieved by any decision of an authorized officer, may appeal to the Authority within 30 days of receipt of such decision.

17.  Events initiating investigations by the Authority:—(1) The Authority or authorized officer, as the case may be, may commence an investigation concerning the licensee's performance or compliance with the relevant laws and code of conduct when inter alia, any of the following events occur--

i.        failure to comply with the service provision, regulatory and technical standards requirements;

ii.       failure to comply with any of the performance obligation set forth in the licence;

iii.      unauthorized change of management, shareholding, directorship or CEO of the licensee;

iv.      partial or total suspension of the service for a continuous period of 48 hours in the service area;

v.       failure of the licensee to comply with the quality / of Services requirements of the licence;

vi.      repeated complaints by the general public about the inadequate quality standards of the service;

vii.     use of unauthorized frequencies;

viii.    provision of the telecommunication services which are not authorized by the licence or without obtaining a licence from relevant bodies e.g. PTA etc.

ix.      failure of the licensee to provide information to the Authority as and when required by the Authority;

x.       failure of the licensee to maintain proper accounting systems and separate records of account for each of its licensed service;

xi.      any violation of the laws of Pakistan as they exist or come into force from time to time;

xii.     violation of the terms and conditions of the licence by the licensee.

(2)  During the course of the investigation, the licensee and its staff shall fully cooperate with the Investigating Officer or team and provide all information that is required by the authorized officer in this regard.

PART-V
Standards of Programmes

18.  General standards for programmes:—(1) Without prejudice to anything contained in Schedule-A of the PEMRA Rules, 2009 or any other regulations for the time being in force, the licensee shall comply with the following also:

a.       the licensee shall ensure to provide a proportion of programmes of indigenous origin as per approved program mix not being less than 90% of the total programming;

b.       The licensee shall broadcast programmes in the public interest specified by the Federal Government or the Authority in the manner indicated by the Government or, as the case may be, the Authority:

          Provided that the duration of such mandatory programmes shall not exceed ten per cent of the total duration of broadcast or operation by a station in twenty-four hours except if, by its own volition, a station chooses to broadcast such content for a longer duration;

c.       The licensee shall ensure that nothing is contained in any programme, or an advertisement, which is prejudicial to the interests of the sovereignty and integrity of Pakistan, Ideology of Pakistan, security, friendly relations with foreign states, public order or which may constitute contempt of Court, defamation or incitement to an offence or brings into disrepute the State institutions including armed forces;

d.       The licensee shall ensure emphasis on promotion of national dignity and character, values of national integration, religious, sectarian and communal harmony and a visible deference to the social, cultural, moral and traditional values of the Pakistani society, in relaying the programmes;

e.       The licensee shall show sensitivity and respect to all ethnic groups and minorities;

f.       The licensee shall not broadcast, transmit, retransmit or relay any indecent, vulgar, pornographic or obscene content;

g.       The licensee, while airing any content relating to a crime, shall not reveal the identity of victim or relatives of victims without prior written permission of the victim or where the victim is a minor, the guardian of the victim;

h.       The licensee shall comply with the guidelines and directives issued by the Authority from time to time and also appoint an in-house monitoring committee, under intimation to the Authority, to ensure compliance with the Ordinance, rules and regulations made thereunder.

i.        The programmes and advertisements shall conform to the provisions of the laws of the country.

j.        During a regular programme a continuous break for advertising shall not exceed three minutes and duration between two such successive breaks shall not be less than fifteen minutes:

          Provided that during the transmission of any given one hour, the total duration of advertisements shall not exceed a maximum of twelve minutes.

k.       The licensee shall abide by the electoral code of conduct promulgated by the Election Commission of Pakistan and as devised by the Authority.

l.        The licensee shall not air any health related advertisements unless prior no objection certificate has been obtained under the relevant laws;

m.      Any material that might seriously impair the physical, mental or moral development of children, promote the use and abuse of drugs, smoking, violence, whether verbal or physical, that is easily imituble by children in a manner that is harmful or dangerous must not be included in programmes made primarily for children;

n.       Privacy of any individual and the privacy of home shall not be violated;

o.       Personal data of any individual shall not be disclosed unless prior written permission has been obtained from such individual;

p.       While reporting any incident of sexual assault or rape, the identity of the victim and victim's family shall not be disclosed unless the victim has himself/herself consented in writing where victim is an adult and where victim is a minor his/her guardian has consented to disclose his/her identity in the electronic media;

q.       not broadcast any programme or discussion to speculate or influence a matter which is sub-judice;

19.     General conditions and quality standards applicable to the broadcasting equipment:—(1) The licensee shall ensure that the installed system meets the Technical Standards as provided or adopted by the Authority from time to time.

(2)  The licensee shall obtain NOC from the Authority before importing any broadcast equipments.

20.     Safety standards:—(1) The licensee shall ensure that the system does not cause interference with the transmission of any other broadcast station.

(2)     The licensee shall obtain necessary permissions from the municipal authorities and the utility companies, in order to established station.

(3)     The licensee shall abide by the specifications and criteria as laid down by the Civil Defense Authorities, Air Traffic Control System, the Armed Forces or other governmental departments/agencies while constructing, erecting and installing the transmission antennas for the broadcast stations.

(4)     The licensee shall ensure such security arrangements as may be required to protect the broadcasting station against unauthorized access or control.

(5)     In case of a national emergency or internal strife, the licensee shall immediately notify the situation to the Authority and comply with all such instructions as may be given by the authorized officer of the Authority or the Federal Government, including linking the transmitters with the national broadcaster.

(6)     The licensee shall make appropriate arrangements to receive emergency related messages from the Authority or the Government.

22.  Repeal and savings.—(1) The Pakistan Electronic Media Regulatory Authority (TV/Radio Broadcast Operations) Regulations, 2002, hereinafter referred to as the said regulations, are hereby repealed to the extent of Radio Broadcast operations.

(2)  Notwithstanding anything contained in sub-regulation (1):

(a)      Any licence, permission or lease granted or renewed under the said regulations which are not inconsistent with provisions of the Ordinance, rules and these or any other regulations made there under shall be deemed to have been so granted or renewed under these regulations;

(b)     Any fee, security deposit, fine and surcharge etc. charged under the said regulations shall be payable as such and any fee, security deposit, fine and surcharge payable under these regulations shall apply to such licence, permission or lease granted or renewed under the said regulations; and

(c)      Any application made for the grant of a licence and pending consideration under the said regulations, shall be deemed to have been so made and pending consideration under these regulations.

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REGULATIONS, 2012

PUBLIC SECTOR COMPANIES (CORPORATE GOVERNANCE) REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 22nd March, 2012]

S. R. O. 283(I)/2012.—The following draft of the Public Sector Companies (Corporate Governance) Regulations, 2012 which is proposed to be made by the Securities and Exchange Commission of Pakistan in exercise of the powers conferred by Section 506A of the Companies  Ordinance,  1984  (XLVII  of  1984)  is hereby published for


eliciting public opinion thereon and notice is hereby given that comments, if any, received within fourteen days of the date of this notification will be taken into consideration.

1.  Short title, commencement and applicability.—(1) These Regulations may be called the Public Sector Companies (Corporate Governance) Regulations, 2012.

(2)  They shall come into force at once.

(3)  These Regulations shall apply to all Public Sector Companies, whether listed or unlisted.

(4)  In the case of listed Public Sector Companies, any provision contained in these Regulations shall be applicable even if it is not contained in the Code of Corporate Governance:

Provided that the provisions of these Regulations shall apply notwithstanding anything to the contrary contained in the Code of Corporate Governance.

2.  Definitions.—(1) In these Regulations, unless there is anything repugnant in the subject or context:

(a)      "Board" means board of directors of a Public Sector Company;

(b)     "Commission" means the Securities and Exchange Commission of Pakistan established under the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997);

(c)      "Executive" means an employee of a Public Sector Company, who is entrusted with responsibilities of an administrative or managerial nature, including the Chief Executive and Executive Director;

(d)     "Government" includes the federal, provincial or local government;

(e)      "Independent Director" means a Non-Executive Director who is not in the service of Pakistan or of any statutory body or any body or institution owned or controlled by the Government and who is not connected or does not have any other relationship, whether pecuniary or otherwise, with the Public Sector Company, its associated companies, subsidiaries, holding company or directors. The test of independence principally emanates from the fact whether such person can be reasonably perceived as being able to exercise independent judgment without being subservient to any form of conflict of interest.

          Without prejudice to the generality of the foregoing definition, no director shall be considered independent if one or more of the following circumstances exist:

                   (i)         he has been an employee of the Public Sector Company, any of its subsidiaries, or holding company within the last three years;

                   (ii)        he has, or has had within the last three years, a material business relationship with the Public Sector Company either directly or indirectly, or director of a body that has such a relationship with the Public Sector Company;

                   (iii)       he has received remuneration in the three years preceding his appointment as a director or receives additional remuneration excluding retirement benefits from the Public Sector Company apart from a director's fee or has participated in the Public Sector Company's share option or a performance-related pay scheme;

                   (iv)       he is a close relative of the company's promoters, directors or major shareholders;

                   (v)        Explanation: close relative includes spouse, lineal ascendants and descendants and brothers and sisters.

                   (vi)       he holds cross-directorships or has significant links with other directors through involvement in other companies or bodies; and

                   (vii)      he has served on the board for more than two consecutive terms from the date of his first appointment provided that such person shall be deemed "independent director" after a lapse of one term.

(f)      "Non-Executive Director" means a director of a Public Sector Company who is not entrusted with responsibilities of an administrative or managerial nature;

(g)     "Ordinance" means the Companies Ordinance, 1984 (XLVII of 1984);

(h)     "Public Sector Company" means a company, whether public or private, which is directly or indirectly controlled, beneficially owned or more than fifty percent of the voting securities of which are held by the Government or any instrumentality or agency of the Government or a statutory body, or in respect of which the Government or any instrumentality or agency of the Government or a statutory body, has otherwise power to elect, nominate or appoint more than fifty percent of its directors;

(2)  All other terms and expressions used but not defined in these Regulations shall have the same meaning as assigned to them in the Ordinance.

3.  Composition of the Board.—(1) There shall be a balance of executive and non-executive directors, including independent directors and those representing minority interests with the requisite range of skills, competence, knowledge, experience and approach so that the Board as a group includes core competencies and diversity considered relevant in the context of the company's operations.

(2)     The Board shall have a majority of its total members as independent directors. The Public Sector Company shall disclose in the annual report non-executive, executive and independent director(s).

(3)     No Independent Directors shall participate in share options or any similar schemes of the Public Sector Company which entitle him to acquire any interest in the Public Sector Company.

(4)     Any casual vacancy in the Board shall be filled up by the directors at the earliest but not later than 60 days thereof.

(5)     The Public Sector Company shall undertake an annual evaluation of its Board's performance. The Board shall establish a process, including evaluation of independent directors. The chairman of the Board shall take leadership of such an assessment.

(6)     Public Sector Companies shall, where necessary, take necessary steps to ensure that the minority shareholders, as a class, are facilitated by proxy solicitation, for which purpose the Public Sector Companies shall:

(a)      annex with the notice issued under Section 178(4) of the Ordinance, a statement by a candidate from among the minority shareholders who seek to contest election to the Board, which statement may include a profile of the candidate;

(b)     provide information regarding shareholding structure and copies of the register of members to the candidates representing minority shareholders; and

(c)      on a request by the candidates representing minority shareholders and at the cost of the company, annex to the notice issued under Section 178(4) of the Ordinance an additional copy of proxy form duly filled in by such candidates.

(7)  The appointing authorities, including the government and other shareholders, shall apply the "fit and proper criteria" given in Annexure to these regulations in making nominations of the persons for election as Board members under the provisions of the Ordinance.

4.       Role of the Chairman and Chief Executive and separation of the two positions.—(1) The office of the Chairman shall be separate, and his responsibilities distinct, from those of the Chief Executive.

(2)     The Chairman of the Board shall:

(a)      ensure that the Board is properly working and all matters relevant to the governance of the Public Sector Company are placed on the agenda of Board meetings;

(b)     conduct the board meeting including fixing the agenda; and

(c)      ensure that all the directors are enabled and encouraged to fully participate in the deliberations and decisions of the Board; While the Chairman has a responsibility to lead the board and ensure its effective functioning and continuing development, he shall not be involved in day to day operations of the Public Sector Company.

(3)     The Chief Executive is responsible for the management of the Public Sector Company and for its procedures in financial and other matters under the oversight of the Board. His responsibilities include implementation of strategies and policies approved by the Board, making appropriate arrangements to ensure that funds and resources are properly safeguarded and are used economically, efficiently and effectively and in accordance with any statutory obligations.

(4)     Every Public Sector Company shall elect the Chairman of the Board from amongst the Independent Directors so as to achieve an appropriate balance of power, increasing accountability, and improving the Board's capacity for exercising independent judgment.

5.       Responsibilities, Powers and Functions of the Board.—(1) The board shall exercise their powers and carry out their fiduciary duties with a sense of objective judgment and independence in the best interest of the company. This provision shall apply to all directors, including ex-officio directors. A director, once appointed / elected, shall hold office for a period of three years in accordance with the provisions of the Ordinance, unless he resigns or is removed in accordance with the provisions of the Ordinance. A removal of directors shall only take place, in the event of misconduct or substandard performance determined through a performance evaluation.

(2)     The Board shall exercise its power of appointing the Chief Executive of the Company, as per the provisions of the Ordinance, using the fit and proper criteria developed and approved by the Board for this purpose. Board shall also be responsible for development and succession planning of the Chief Executive Officer.

(3)     The Board of every Public Sector Company shall ensure that Obligations to all shareholders are fulfilled and they are duly informed in a timely manner of all material events through shareholder meetings and other communications as are considered necessary;

(4)     The Board shall ensure that Professional standards and corporate values are in place that promote integrity for the board, senior management and other employees in the form of a "Code of Conduct". The code of conduct shall articulate acceptable and unacceptable behaviors. The board shall ensure that appropriate steps are taken to communicate throughout the company the code of conduct it sets together with supporting policies and procedures, including posting the same on the company's website. The Board shall also ensure that adequate systems and controls are in place for the identification and redressal of grievances arising from unethical practices;

(5)     The Board shall establish a system of sound internal control, which shall be effectively implemented at all levels within the Public Sector Company, to ensure compliance with the three fundamental principles of probity and propriety; objectivity, integrity and honesty; and relationship with the stakeholders, as follows:

(a)      The principle of probity and propriety entails that company's assets and resources are not used for private advantage and due economy is exercised so as to reduce wastage. The principle shall be adhered to, especially with respect to the following:

                   (i)         Handling of public funds, assets, resources and confidential information by directors and executives; and

          (ii)     Claiming of expenses;

(b)     The principle of objectivity, integrity and honesty requires the following:

                   (i)         That directors and executives of a Public Sector Company do not allow a conflict of interest to undermine their objectivity in any of their activities, both professional and private and that they do not use their position in the Public Sector Company to further their private gains in a social or business relationship outside the Public Sector Company. Should a situation arise where an actual or potential conflict of interest exists, there shall be appropriate identification, disclosure and management of such conflict of interest.

                   (ii)        That an appropriate conflict of interest policy is developed and duly enforced. Such a policy shall clearly lay down circumstances or considerations when a person may be deemed to have actual or potential conflict of interest; and the procedure for disclosing such interest;

                               Explanation. For the purposes of this clause a person shall be deemed to have an interest in a matter if he has any stake, pecuniary or otherwise, in such matter which could reasonably be regarded as giving rise to a conflict between his duty to objectively perform his functions under these Regulations and so that his ability to consider and decide any matter impartially or to give any advice without bias, may reasonably be regarded as impaired;

                   (iii)       That where a director, executive or other employee has a conflict of interest in a particular matter, such person shall play no part in the relevant discussion, decision or action;

                   (iv)       That a "register of interests" is maintained to record all relevant personal, financial and business interests, of directors and executives who have any decision making role in the company, which shall be made publicly available. Such interests may include, for instance, any significant political activity, including office holding, elected positions, public appearances and candidature for election, undertaken in the last five years; and

                   (v)        A declaration by the directors and executives that they shall not offer or accept any payment, bribe, favor or inducement which might influence (or appear to influence) their decisions and actions.

                   (vi)       The board shall also develop and implement a policy on "anti-corruption" to minimize actual or perceived corruption in the company.

(c)      The principle of relationship with stakeholders requires the following:

                   (i)         Ensuring that the directors and executives uphold the reputation of the company by treating the general public, institutional investors and other stakeholders with Courtesy, integrity and efficiency;

                   (ii)        Ensuring equality of opportunity by establishing open and fair procedures for making appointments and for determining terms and conditions of service. The Board shall nominate a committee, one of its members or senior Executives for investigating, where necessary, on a confidential basis, any deviation from the company's code of ethics; and

                   (iii)       Ensuring compliance with the law and the Public Sector Company's internal rules and procedures relating to public procurement, tender regulations, purchasing and technical standards, when dealing with suppliers of goods and services. The Board shall ensure that quality standards are followed with due diligence and that suppliers comply with the standards specified and are paid for supplies or services within the time agreed.

(6)  The Board shall adopt a vision/mission statement and corporate strategy for the Public Sector Company.

(7)  The Board shall be responsible to monitor and assess the performance of CEO and senior management on a periodic basis, at least once in a year, and hold them accountable for accomplishing objectives and goals set for this purpose.

(8)  The Board shall also formulate significant policies of the Public Sector Company, which may include the following:--

(a)      the formal approval and adoption of the annual report of the Public Sector Company, including the financial statements;

(b)     the implementation of an effective communication policy with all the stakeholders of the Public Sector Company;

(c)      the identification and monitoring of the principal risks and opportunities of the Public Sector Company and ensuring that appropriate systems are in place to manage these risks and opportunities, including, safeguarding the public reputation of the Public Sector Company,

(d)     procurement of goods and services so as to enhance transparency in procurement transactions;

(e)      marketing of goods to be sold and/or services to be rendered by the Public Sector Company;

(f)      determination of terms of credit and discount to customers;

(g)     write-off of bad/doubtful debts, advances and receivables;

(h)     acquisition/disposal of fixed assets and investments;

(i)      borrowing of moneys up to a specified limit, exceeding which the amounts shall be sanctioned/ratified by a general meeting of shareholders;

(j)      Corporate Social Responsibility initiatives including, donations charities, contributions and other payments of a similar nature; Where decisions are taken in fulfilling social objectives of the Government but which are not in the commercial interest of the entity, appropriate subsidy shall be extended by the government.

(k)     determination and delegation of financial powers to Executives and employees;

(l)      transactions or contracts with associated companies and related parties;

(m)    health, safety and environment;

(n)     development of whistle-blowing policy and protection mechanism;

(o)     capital expenditure planning and control; and

(p)     protection of public interests.

(9)     A complete record of particulars of the above-mentioned policies along with the dates on which they were approved or amended by the Board shall be maintained.

(10)   The Board shall define the level of materiality, keeping in view the specific context of the Public Sector Company and the recommendations of any technical or Executive sub-committee of the Board that may be set up for the purpose.

6.       Meetings of the Board.—(1) The Board shall meet at least once, each quarter of a year, to ensure that it discharges its duties and obligations to shareholders and other stakeholders efficiently and effectively. In case of non-compliance, it shall be reported to the Commission with reasons of non-compliance, within fourteen days of the end of the quarter when the meeting should have been held.

(2)     Written notices of meetings, including the agenda, duly approved by the Chairman, shall be circulated not less than seven days before the meetings, except in the case of emergency meetings, where the notice period may be reduced or waived by the Board.

(3)     The Chairman of the Board shall ensure that minutes of meetings of the Board are appropriately recorded by approving them under his signature. The minutes of meetings shall be circulated after approval of the Chairman, to directors and officers entitled to attend Board meetings, not later than fourteen days thereof, unless a shorter period is provided in the Articles of Association of the Public Sector Company.

(4)     In the event that a director of a Public Sector Company is of the view that his dissenting note has not been satisfactorily recorded in the minutes of a meeting of the Board, he may refer the matter to the company secretary, or the chairman of the Board. The director may require the note to be appended to the minutes failing which he may file an objection with the Commission.

7.       Key Information to he placed for decision by the Board.—(1) The Board shall establish appropriate arrangements to ensure it has access to all relevant information, advice and resources necessary to enable it to carry out its role effectively. Significant issues shall be placed before the Board for their information and consideration, in order to formalize and strengthen the corporate decision making process.

(2)  For the purpose of sub-regulation (1), significant issues shall, inter-alia include the following--

(a)      annual business plans, cash flow projections, forecasts and long term plans; budgets including capital, manpower and expenditure budgets, along with variance analyses;

(b)     internal audit reports, including cases of fraud or irregularities of a material nature;

(c)     management letters issued by the external auditors;

(d)     details of joint ventures or collaboration agreements or agreement with distributors, agents, etc;

(e)      promulgation or amendment of a law, rule or regulation or, enforcement of an accounting standard or such other matters as may affect the Public Sector Company;

(f)      status and implications of any law suit or judicial proceedings of material nature, filed by or against the Public Sector Company;

(g)     any show cause, demand or prosecution notice received from any revenue or regulatory authority, which may be material;

(h)     material payments of government dues, including income tax, excise and customs duties, and other statutory dues.

(i)      inter-corporate investments in and loans to or from associated concerns in which the business group, of which the Public Sector Company is a part, has significant interest;

(j)      policies related to the award of contracts and purchase and sale of raw materials, finished goods, machinery etc.;

(k)     default in payment of principal and/or interest, including penalties on late payments and other dues, to a creditor, bank or financial institution or default in payment of public deposit;

(l)      failure to recover material amounts of loans, advances, and deposits made by the Public Sector Company, including trade debts and inter-corporate finances;

(m)    any significant accidents, dangerous occurrences and instances of pollution and environmental problems involving the Public Sector Company;

(n)     significant public or product liability claims made or likely to be made against the Public Sector Company, including any adverse judgment or order made on the conduct of the Public Sector Company or of another company that may bear negatively on the Public Sector Company;

(o)     disputes with labor and their proposed solutions, any agreement with the labor union or Collective Bargaining Agent and any charier of demands on the Public Sector Company;

(p)     payment for goodwill, brand equity or intellectual property; and

(q)     annual, quarterly, monthly or other periodical accounts as are required to be approved by the board for circulation amongst its members.

(r)      reports on governance, risk and compliance issues

(s)      whistle-blower protection mechanism

(t)      report on CSR activities

(u)     related party transactions.

8.       Refuted Party Transactions.—(1) The details of all related party transactions shall be placed before the Audit Committee of the company and upon recommendations of the Audit Committee the same shall be placed before the board for review and approval.

(2)     The related party transactions which are not executed at arm's length price shall also be placed separately at each Board meeting along with necessary justification for consideration and approval of the Board on recommendation of the Audit Committee of the listed company.

(3)     The Board shall approve the pricing methods for related party transactions that were made on the terms equivalent to those that prevail in arm's length transaction only if such terms can be substantiated.

(4)     Every company shall maintain a party wise record of transactions, in each financial year, entered into with related parties in that year along with all such documents and explanations. The record of related party transaction shall include the following particulars in respect of each transaction:

(a)     Name of related party;

(b)     Nature of relationship with related party;

(c)     Nature of transaction;

(d)     Amount of transaction;

(e)      Terms and conditions of transaction, including the amount of consideration received or given.

9.       Quarterly and Monthly Financial Statements and Annual Report.—(1) Every Public Sector Company shall, within one month of the close of first, second and third quarter of its year of account, prepare a profit and loss account for, and balance-sheet as at the end of that quarter, whether audited or otherwise, for the board's approval. Annual report including annual financial statements shall be placed on the Public Sector Company's website.

(2)  Every Public Sector Company shall also prepare monthly accounts, whether audited or otherwise, for circulation amongst the Board members.

10.  Board Orientation & Learning.—(1) Orientation courses shall be held by all Public Sector Companies, to enable directors to better comprehend the specific context in which it operates, including its operations and environment, awareness of public sector company's values and standards of probity and accountability as well as their duties as directors.

(2)     In order to ensure that the directors are well conversant with the corporate laws and practices, they are encouraged to have certification under an appropriate director training/education program offered by any institution, local or foreign. Provided that from June 30, 2012 to June 30, 2016 every year minimum one director on the Board shall acquire the said certification under this program and thereafter all directors are encouraged to obtain such certification.

(3)     In order to acquaint the Hoard members with the wider scope of responsibilities concerning the use of public resources and to act in good faith and in the best interests of the Public Sector Company, at least one orientation course in year shall be arranged for the directors and the following information in writing, inter-alia, shall be provided--

(a)     Public Sector Company's aims and objectives,

(b)     Control environment and control activities,

(c)     Key policies and procedures,

(d)     Risk management & internal control framework,

(e)      Background of key personnel, including their job descriptions,

(f)      Delegation of financial and administrative powers,

(g)     Board and staff structure, and

(h)     Budgeting, planning and performance evaluation systems.

11.  Formation of Board Committees.—(1) The Board shall set up the following committees to support it in performing its functions efficiently, and for seeking assistance in the decision making process:

(a)      Audit Committee, for an effective and efficient internal and external financial reporting mechanism;

(b)     Risk Management Committee, in case of Public Sector Companies in the financial sector, to effectively review the risk function;

(c)      Human Resources Committee, to deal with all employee related matters including recruitment, training, remuneration, performance evaluation, succession planning, and measures for effective utilization of the employees of the PSC; and

(d)     Procurement Committee, to ensure transparency in procurement transactions and in dealing with the suppliers.

(2)  The Board committees shall be chaired by non-executive directors and the majority of their members shall be independent. However, the existence of such committees shall not absolve the board from its collective responsibility for all matters. Such committees shall have written terms of reference that define their duties, authority and composition, shall report to the full board, and the minutes of their meetings shall be circulated to all board members.

(3)  The committees formed by the board, shall also carry out the evaluation of their performance on annual basis and submit such assessment to the board. The Chairman of the Board shall take leadership role in the ensuring completion of such evaluation process.

(4)  The board shall concern itself with policy formulation and oversight and not the approval of individual transactions except which are of an extraordinary nature or involve materially large amount.

12.     Chief Financial Officer, Company Secretary and Chief Internal Auditor-appointment and removal.—(1) Every Public Sector Company shall appoint a chief financial officer, company secretary and chief internal auditor.

(2)     The appointment, remuneration and terms and conditions of employment of the chief financial officer, the company secretary and the chief internal auditor of Public Sector Companies shall be determined with the approval of the Board.

(3)     The chief financial officer, the company secretary, or the chief internal auditor of Public Sector Companies shall not be removed except with the approval of the Board.

13.     Role and qualification of Chief Financial Officer and Company Secretary.—(1) The chief financial officer shall be responsible for ensuring that appropriate advice is given to the Board on all financial matters, for keeping proper financial records and accounts, and for maintaining an effective system of internal financial control.

(2)     No person shall be appointed as the chief financial officer of a Public Sector Company unless he is:--

(a)      a member of a recognized body of professional accountants; or

(b)     a person holding a master degree in business administration or commerce from a university recognized by the Higher Education Commission with at least five years relevant experience.

(3)     The company secretary shall be responsible for ensuring that Board procedures are followed, and that all applicable statutes and regulation and other relevant statements of best practice are complied with. Where the company secretary is not separately appointed, the roleof Company Secretary and CFO may be combined or any other member of senior management.

(4)  No person shall be appointed as the company secretary of a Public Sector Company unless he is:

(a)      a member of a recognized body of professional accountants; or

(b)     a member of a recognized body of corporate or chartered secretaries; or

(c)      a person holding a master degree in business administration or commerce or being a law graduate from a university recognized by the Higher Education Commission with at least five years relevant experience: or

(5)  No person shall be appointed to the positions of the chief financial officer and company secretary unless he is fit and proper for the position.

14.  Requirement to attend Board Meetings.—(1) The chief financial officer and the company secretary of a Public Sector Company shall attend all meetings of the Board:

Provided that unless elected as a director, the chief financial officer and the company secretary shall not be deemed to be a director or entitled to cast a vote at meetings of the Board for the purposes of these Regulations:

Provided further that the chief financial officer and the company secretary shall not attend such part of a meeting of the Board, which involves consideration of an agenda item relating to them or that relating to the Chief Executive or any director.

(2)  In pursuance of sub-regulation (1), the Board shall ensure that the chief financial officer and the company secretary attend Board meetings, wherever required.

15.     Financial Reporting Framework.—Every Public Sector Company shall adopt International Financial Reporting Standards, as are notified by the Commission under clause (i) of sub-section (3) of Section 234 of the Ordinance.

16.     Directors' Report to the Shareholders.—(1) The Board shall submit an annual report to the shareholders.

(2)  The Board shall make the following statements and provide the following information in their report to the shareholders, prepared under Section 236 of the Ordinance:

(a)      that the Board has complied with the relevant principles of corporate governance, and has identified the regulations that have not been complied with, the period such non-compliance continued, and reasons for such non-compliance.

(b)     that the financial statements, prepared by the management of the Public Sector Company, present fairly its state of affairs, the result of its operations, cash flows and changes in equity.

(c)      that proper books of account of the Public Sector Company have been maintained.

(d)     that appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment.

(e)      that they recognize their responsibility to establish and maintain sound system of internal control, which is regularly reviewed and monitored.

(g)     that the appointment of chairman and other members of Board and the terms of their appointment along with the remuneration policy adopted are in the best interests of the Public Sector Company as well as in line with the best practices.

(4)  The disclosure of an Executive's remuneration is an important aspect for Public Sector Companies. The annual report of a Public Sector Company shall contain a statement on the remuneration policy and details of the remuneration of members of the Board. Separate figures need to be shown for salary, fees, other benefits and other performance-related elements.

(5)  The directors' report of Public Sector Companies shall also include the following, where applicable:--

(a)      Where the Public Sector Company is reliant on a subsidy or other financial support from the Government, a detailed disclosure of the fact;

(b)     Significant deviations from last year in operating results of the Public Sector Company shall be highlighted and reasons thereof shall be explained;

(c)      Key operating and financial data of last six years shall be summarized;

(d)     Performance indicators of the Public Sector Company relating to its social objectives as outcomes which significantly reflect the work and impact of Public Sector Company, and a comparison of actual results with the budgeted figures. Such indicators shall focus on as how well the Public Sector Company has responded to accountability requirements, improved service delivery, reduced costs and adherence to the principles of environmental and corporate social responsibilities;

(e)      Where any statutory payment on account of taxes, duties, levies and charges is outstanding, the amount together with a brief description and reasons for the same shall be disclosed;

(f)      Significant plans and decisions, such as corporate restructuring, business expansion and discontinuance of operations, shall be outlined along with future prospects, risks and uncertainties surrounding the Public Sector Company;

(g)     A statement as to the value of investments of provident, gratuity and pension funds, based on their respective audited accounts, shall be included;

(h)     The number of Board meetings held during the year and attendance by each director shall be disclosed; and

(i)      The pattern of shareholding shall be reported to disclose the aggregate number of shares (along with name wise details, where stated below) held by:

          (i)      Government;

                   (ii)        associated companies, undertakings and related parties (name wise details);

          (iii)    NIT and ICP;

                   (iv)       directors, Chief Executive, and their spouse and minor children (name wise details);

          (v)     Executives;

          (vi)    Public Sector Companies and corporations;

                   (vii)      banks, development finance institutions, non-banking finance companies, insurance companies, modarabas and mutual funds; and

                   (viii)     shareholders holding ten percent or more voting rights in the Public Sector Company (name wise details).

17.  Disclosure of interests by Directors and Officers.—(1) Every director of a Public Sector Company, if he or his relative, is in any way, directly or indirectly, concerned or interested in any contract or arrangement entered into, or to be entered into, by or on behalf of the Public Sector Company shall disclose the nature of his concern or interest at a meeting of the directors.

(2)     Any other officer (including the Chief Executive and other Executives) of a Public Sector Company, if he or his relative, is in any way, directly or indirectly, concerned or interested in any proposed contract or arrangement by the company shall disclose to the Company through a communication to the company secretary, the nature and extent of his interest in the transaction. Such officer and the company shall ensure that such information is properly place and considered by any forum where the matter relating such proposed contract or arrangement is to be discussed and approved.

(3)     If a director or officer has an existing interest, before joining the Board, he shall disclose such interest to the Board, which shall take such facts into consideration for any current and future decision making.

18.     Directors' Remuneration.—(1) There shall be a formal and transparent procedure for fixing the remuneration packages of individual directors. No director shall be involved in deciding his own remuneration.

(2)     Directors' remuneration packages shall encourage value creation within the company, and shall align their interests with those of the company. These shall be subject to prior approval of shareholders / board as required by company's Articles of Association. Levels of remuneration shall be sufficient to attract and retain the directors needed to run the company successfully.

(3)     Subject to the provisions of the company's Articles of Association, the shareholders / board shall determine the scale of remuneration for non-executive directors. However, it shall not be at a level that could be perceived to compromise their independence.

(4)     The Company's Annual Report shall contain criteria and details of the Remuneration of each director, including salary, benefits and performance linked incentives.

19.     Responsibility for Financial Reporting and Corporate Compliance.—No Public Sector Company shall circulate its financial statements unless the Chief Executive and the chief financial officer, present the financial statements, duly certified under their respective signatures, for consideration and approval of the Audit Committee and the Board. The Board shall, after consideration and approval, authorize the signing of financial statements for issuance and circulation.

20.     Audit Committee.—(1) The Board of every Public Sector Company shall establish an audit committee, which shall comprise not less than three members, including the chairman. Members of the committee shall be financially literate and majority of them, including its chairman, shall be Independent Non-Executive Directors. The names of members of the audit committee shall be disclosed in each annual report of the Public Sector Company.

(2)     The chairman of the Board shall not be a member of the audit committee.

(3)     The chief financial officer, the chief internal auditor, and a representative of the external auditors shall attend all meetings of the audit committee at which issues relating to accounts and audit are discussed.

Provided that at least once a year, the audit committee shall meet the external auditors without the presence of the chief financial officer, the chief internal auditor and other executives being present, to ensure independent communication between the external auditors and the Audit Committee.

Provided further that at least once a year, the audit committee shall meet chief internal auditor and other members of the internal audit function without the chief financial officer and the external auditors being present.

(4)     The Board shall determine the terms of reference of the Audit Committee. The terms of reference shall be in writing, specifying the mandate of the Audit Committee. The Committee shall have full and explicit authority to investigate any matter within its terms of reference and shall be provided with adequate resources and access to all relevant information.

(5)     The audit committee shall, inter-alia, be responsible for recommending to the Board the appointment of external auditors by the Public Sector Company's shareholders and shall consider any questions of resignation or removal of external auditors, audit fees and provision by external auditors of any service to the Public Sector Company in addition to audit of its financial statements. In the absence of strong grounds to proceed otherwise, the Board shall act in accordance with the recommendations of the audit committee in all these matters. However, the Board shall not be deemed to absolve itself of its overall responsibility for the functions delegated to the audit committee.

(6)     The terms of reference of the audit committee may also include the following:

(a)      determination of appropriate measures to safeguard the Public Sector Company's assets;

(b)     review of preliminary announcements of results prior to publication;

(c)      review of quarterly, half-yearly and annual financial statements of the Public Sector Company, prior to their approval by the Board, focusing on:--

          (i)      major judgment areas;

          (ii)     significant adjustments resulting from the audit;

          (iii)    the going-concern assumption;

                   (iv)       any changes in accounting policies and practices; and

          (v)     compliance with applicable accounting standards.

                               Explanation.—The appropriateness of the use of the going concern assumption in the preparation of the financial statements is generally not in question when auditing Public Sector Company having funding arrangements backed by a Government. However, where such arrangements do not exist, or where Government funding of the Public Sector Company may be withdrawn and the existence of the Public Sector Company may be at risk, International Standards on Auditing provide useful guidance. This issue is increasingly important for Public Sector Companies which have been privatized.

(d)     facilitating the external audit and discussion with external auditors of major observations arising from interim and final audits and any matter that the auditors may wish to highlight (in the absence of management, where necessary);

(e)      review of management letter issued by external auditors and management's response thereto;

(f)      ensuring coordination between the internal and external auditors of the Public Sector Company;

(g)     review of the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the Public Sector Company;

(h)     consideration of major findings of internal investigations and management's response thereto;

(i)      ascertaining that the infernal control system including financial and operational controls, accounting system and reporting structure are adequate and effective;

(j)      review of the Public Sector Company's statement on internal control systems prior to endorsement by the Board;

(k)     recommending or approving the hiring or removal of the chief internal auditor;

(l)      instituting special projects, value for money studies or other investigations on any matter specified by the Board, in consultation with the Chief Executive and to consider remittance of any matter to the external auditors or to any other external body;

(m)    determination of compliance with relevant statutory requirements;

(n)     monitoring compliance with the best practices of corporate governance and identification of significant violations thereof;

(o)     overseeing whistle-blowing policy and protection mechanism; and

(p)     consideration of any other issue or matter as may be assigned by the Board.

(7)     The audit committee shall be responsible for managing the relationship of Public Sector Company with the external auditors. In managing the Public Sector Company's relationship with the external auditors on behalf of the Board, the audit committee's responsibilities include:--

(a)      suggesting the appointment of the external auditor to the Board, the audit fee, and any questions of resignation or dismissal;

(b)     considering the objectives and scope of any non-financial audit or consultancy work proposed to be undertaken by the external auditors, and reviewing the remuneration for this work;

(c)      discussing with the external auditor before the audit commences the scope of the audit and the extent of reliance on internal audit and other review agencies;

(d)     discussing with the external auditors any significant issues from the review of the financial statements by the management, and any other work undertaken or overseen by the audit committee;

(e)      reviewing and considering the external auditor's communication with management and management's response thereto; and

(f)      reviewing progress on accepted recommendations from the external auditors.

(8)     The recommendations of the audit committee for appointment of retiring auditors or otherwise, as mentioned in sub-regulation (7) above, shall be included in the directors report. In case of a recommendation for change of external auditors before the lapse of three consecutive financial years, the reasons for the same shall be included in the directors' report.

(9)  The audit committee of a Public Sector Company shall appoint a secretary of the Committee. The secretary shall circulate minutes of meetings of the audit committee to all members, directors and the chief financial officer, within fourteen days of the meeting.

21.  Internal Audit.—(1) There shall be an internal audit function in every Public Sector Company. The chief internal auditor, who is the head of the internal audit function in the company, needs to be accountable to the audit committee and have unrestricted access to the Audit Committee.

(2)     No person shall be appointed to the position of the chief internal auditor unless he is considered and approved as "fit and proper" for the position by the Audit Committee. No person shall be appointed as the Head of Internal Audit of a listed company unless he has 5 years of relevant experience in and is:

(a)      a member of a recognized body of professional accountants; or

(b)     a Certified Internal Auditor, or

(c)     a Certified Fraud Examiner, or

(d)     a Certified Internal Control Auditor

(3)     Every Public Sector Company shall ensure that internal audit reports are provided for the review of external auditors. The auditors shall discuss any major findings in relation to the reports with the audit committee, which shall report matters of significance to the Board.

(4)  The internal audit function shall have an audit charter, duly approved by the audit committee and shall work, as far as practicable, in accordance with the Standards for the Professional Practice of internal Auditors issued by the Institute of Internal Auditors Inc., the global professional organization of internal audit profession.

22.  External Auditors.—(1) Every Public Sector Company shall ensure that its annual accounts are audited by external auditors, as envisaged under Section 252 of the Ordinance. When carrying out audits of Public Sector Companies, the external auditor shall need to take into account the specific requirements of any other relevant regulations, ordinances or ministerial directives which affect the audit mandate and any special auditing requirements.

(2)     In assessing materiality, the external auditor of a Public Sector Company must, in addition to exercising professional judgment, consider any legislation or regulation which may impact that assessment.

(3)     The external auditors of a Public Sector Company shall independently report to the shareholders in accordance with statutory and professional requirements. They shall also report to the board and audit committee the matters of audit interest, as laid down in the international standards on auditing.

(4)     No Public Sector Company shall appoint as external auditors a firm of auditors which firm or a partner of which firm is non-compliant with the International Federation of Accountants' (1FAC) Guidelines on Code of Ethics, as adopted by the Institute of Chartered Accountants of Pakistan.

(5)     The external auditors shall observe applicable guidelines issued by the International Federation of Accountants with regard to restriction of non-audit services. The Audit Committee shall also ensure that the auditors do not perform management functions or make management decisions, responsibility for which remains with the Board and management of the Public Sector Company.

(6)     Every Public Sector Company in the financial sector shall change its external auditors every five years. Financial sector, for this purpose, means banks, non-banking finance companies, modarabas and insurance companies; whereas every Public Sector Company other than, those in the financial sector shall, at a minimum, rotate the engagement partner after every five years.

(7)     No Public Sector Company shall appoint a person as the Chief Executive, the chief financial officer, a chief internal auditor or a director of the Public Sector Company who was a partner of the firm of its external auditors (or an employee involved in the audit of the Public Sector Company) at any time during the two years preceding such appointment.

(8)     Every Public Sector Company shall require external auditors to furnish a management letter to its Board not later than 30 days from the date of audit report.

23.     Compliance with the Regulations.—(1) Every Public Sector Companies shall publish and circulate a statement along with its annual report to set out the status of its compliance with these Regulations, and shall also file with the Commission and the registrar concerned such statement alongwith its annual report.

(2)     Every Public Sector Company shall ensure that the statement of compliance with the Regulations is reviewed and certified by external auditors, where such compliance can be objectively verified, before publication by the Public Sector Company.

(3)     Where the Commission is satisfied that it is not practicable to comply with any of these Regulations, the Commission may, for reasons to be recorded, relax the same subject to such conditions as it may deem fit to impose.

24.     Penalty for contravention of the Regulations.—Whoever fails or refuses to comply with, or contravenes any provision of these Regulations, or knowingly and willfully authorises or permits such failure, refusal or contravention shall, in addition to any other liability under the Ordinance, he shall be punishable with fine and, in the case of continuing failure, to a further fine, as provided in sub-section (2) of Section 506A of the Ordinance.

ANNEXURE

CRITERIA FOR DETERMINING A 'FIT AND PROPER PERSON’

(1)  For the purpose of determining as to whether a person proposed to be appointed as director is a "fit and proper person', the Commission shall take into account any consideration as it deems fit, including but not limited to the following criteria—

(a)      is a reputed businessman or a recognised professional with relevant experience;

(b)     has financial integrity;

(c)     has no convictions or civil liabilities;

(d)     known to have competence;

(e)     has good reputation and character;

(f)      has the traits of efficiency and honesty;

(g)     does not suffer from any disqualification to act as a director stipulated in Companies Ordinance;

(h)     an order cancelling the certificate of registration granted to the person individually or collectively with others has not been passed by the SECP on the ground of its indulging in insider trading, fraudulent and unfair trade practices or market manipulation. illegal banking, forex or deposit taking business;

(i)      an order withdrawing or refusing to grant any license / approval to him which has a bearing on the capital market, has not been passed by the SECP or any other regulatory authority ;

(j)      is not a stock broker or agent of a broker;

(k)     does not suffer from a conflict of interest; this includes political office holders in a legislative role.

(2)  A person shall cease to be considered as a "fit and proper person" for the purpose, if he incurs any of the following disqualifications:--

(a)      he is convicted by a Court for any offence involving moral turpitude, economic offence, disregard of securities and company laws or fraud;

(b)     an order for winding up has been passed against a company of which he was the officer (as defined in Companies Ordinance 1984).

---------------------------

RULES, 2012

NATIONAL INSTITUTE OF OCEANOGRAPHY'S EMPLOYEES (PENSION) RULES, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 28th May, 2012]

S.R.O 571(I)/2012, dated 16.5.2012.—In exercise of the powers conferred by Section 29 of the National Institute of Oceanography Act, 2007 (III of 2007), the Federal Government is pleased to make the following rules, namely:--

CHAPTER-I
PRELIMINARY

1.       Short title, commencement and application.—(1) These rules may be called the National Institute of Oceanography's Employees (Pension) Rules, 2012.

(2)  They shall come into force at once.

(3)  They shall apply to the employees of the Institute, except.--

(a)      persons on deputation to the Institute or persons transferred for service to the Institute or persons whose services have been borrowed by the Institute from Government or an agency or a statutory body;

(b)     the employees appointed on contract or working of part time basis;


(c)      the employees who are paid from the contingencies or borne on work charged establishment;

(d)     such employees who hold posts which have been declared by competent authority to be non-pensionable; or

(e)      such employees who have, in pursuance of sub-section (5) of Section 16 of the Act, exercised the option to be deemed to be civil servants under the Civil Servants Act, 1973 (LXXI of 1973) and shall be entitled to all the privileges and facilities of the Federal Government such as pension, gratuity, housing and health.

2.  Definitions.—In these rules, unless there is anything repugnant in the subject or context.—

(a)      "Act" means the National Institute of Oceanography Act, 2007 (III of 2007);

(b)     "competent authority", in relation to the appointment in various posts, means the authority declared by rules competent to make appointments to the posts of the Institute and in relation to the grant of pension or gratuity to employees means Secretary of administrative Ministry of the Institute for the employees in Basic Pay Scale 20 and above and Director General for employees in Basic Pay Scale 19 and below;

(c)      "contributory provident fund" means contributory provident fund subscribed by employees of the Institute maintained and regulated by the Institute under these rules.

(d)     "employees" means officers and other members of the staff of all categories of the Institute; and

(e)     "schedule" means the schedule to these rules;

3.       Creation of pension fund.—A pension fund shall be created and maintained which shall consist of —

(a)      all accumulated balances of subscriptions towards contributory provident fund in respect of employees governed under these rules including the employees who have opted to be deemed civil servants;

(b)     any profit or interest etc. obtained or accrued from investment of the funds;

(c)      all funds provided in contributory provident fund account available in annual budget; and

(d)     pension contribution of every employee of the Institute according to Government prescribed rates provided by Government in the annual budget in each financial year.

CHAPTER-II
ORDINARY PENSION

PART-1
GENERAL PROVISIONS

4.       Pension or gratuity on retirement.—(1) Except as otherwise provided, an employee shall on retirement from service be entitled to receive such pension or gratuity as provided under these rules.

(2)  In the event of death of an employee, whether before or after retirement, his or her family shall be entitled to receive such pension or gratuity or both, as provided under these rules.

(3)     No pension or gratuity shall be admissible to an employee who is dismissed or removed from service for reasons of indiscipline but the Institute may sanction compassionate allowance to such an employee when he is deserving of special consideration, provided that the allowance granted to any employee shall not exceed one-third of the pension or gratuity which would have been admissible to him or her had he or she been retired from service on the date of such dismissal or removal.

(4)     If the determination of the amount of pension or gratuity admissible to an employee is delayed beyond one month of the date of his or her retirement or death, he or she or his or her family, as the case may be, shall be paid provisionally such anticipatory pension or gratuity according to the length of service of the employee which qualifies for pension or gratuity and any over payment consequent upon such provisional payment shall be adjusted against the amount of pension or gratuity finally determined as payable to such employee or his or her family.

Explanation.—In these rules unless the term "pension" is used in distinction to the term "gratuity" or there be something repugnant in the subject or context, pension includes gratuity.

(5)     Where no provision exists under these rules to cover any matter of pension, gratuity or similar other matter of any employee, the provisions of Civil Servants Act, 1973 (LXXI of 1973) and the rules made or deemed to have been made thereunder, so far as not inconsistent with these rules, shall apply mutatis mutandis, provided that in case of the inconsistency, if any, provisions of these rules shall prevail or, as the case may be, the matter shall be referred to the Federal Government for final decision.

5.  Withholding of pension.—(1) Future good conduct is an implied condition for every grant of pension. The competent authority may withhold a pension or a part thereof if the pensioner is finally convicted of an offence of moral turpitude or guilty of misconduct under this rule.

(2)  Except with the previous sanction of the Institute, no pensioner shall, within a period of two years from the date of his or her retirement, engage in any political activity of any kind.

(3)     The contravention of sub-rule (2) shall be deemed to be a misconduct within the meaning of this rule.

(4)     The power to withhold or withhold a pension or any part thereof shall not be exercised until an opportunity has been given to the pensioner to explain his or her conduct in writing.

6.  Recovery of losses from pension.—The Institute shall have a right to order the recovery from the pension of an employee of any amount on account of losses found in final judicial or departmental proceedings to have been caused to the Institute or the Government by the negligence or fraud of such employee during his or her service:

Provided that—

(i)      such departmental proceedings, if not instituted while the employee was on duty,—

                   (a)        shall not be instituted save with the sanction of the Institute;

                   (b)        may be instituted before the employee's retirement from service or within a year from the date on which he or she was last on duty, whichever is later;

                   (c)        shall be in respect of an event which took place not more than one year before the date on which the employee was last on duty; and

                   (d)       shall be conducted by such authority and in such manner, whether in Pakistan or elsewhere, as the Institute may direct.

(ii)     all such departmental proceedings shall be conducted if the employee concerned so requests, in accordance with the procedure applicable to departmental proceedings on which an order of dismissal from service may be made; and

(iii)    such judicial proceedings, if not instituted while the employee was on duty, may be instituted in accordance with sub-clauses (b) and (c) of clause (i).

7.       Case in which claims are inadmissible.—(1) No pension shall be granted when an employee--

(a)      is appointed for a limited time only or for a specified duty, on the completion of which he or she is to be discharged;

(b)     serves under a covenant or contract;

(c)     is paid from contingencies;

(d)     holds a post which has been declared by competent authority as non-pensionable; or

(e)      is employed on part-time basis or his or her whole-time is not retained for service in the Institute but he or she is merely paid for work done for the Institute.

(2)     Not more than one pension in the same post, at the same time or for the same continuous service shall be paid to any employee.

(3)     Service of two employees shall not simultaneously be counted in respect of the same office.

PART-II
CONDITIONS OF QUALIFYING SERVICE

8.       Beginning of service.—Unless it be otherwise provided, the service of an employee to qualify for pension shall begin on the date he or she takes charge of the post to which he or she is first appointed.

9.  Conditions of qualifying service.—(1) Except as otherwise provided in these rules, the service of an employee does not qualify for pension unless it conforms to the following conditions, namely:—

(a)     the service of the employee must be under the Institute;

(b) the appointment of the employee must be substantive and permanent; and

(c)     the service of the employee must be paid by the Institute.

(2)     The service of an employee does not qualify for pension unless he or she is appointed and his or her duties and pay regulated by the Institute or under conditions determined by the Institute.

(3)     Service of a temporary employee subsequently appointed: to a permanent post shall be deemed to be a service on substantive and permanent basis for the purpose of pension.

(4)     An employee without a substantive appointment officiating in a post which is vacant or the permanent incumbent of which does not draw any part of pay or count service for pension may, if he or she is confirmed without interruption in his or her service, count for pension his or her officiating service.

(5)     Notwithstanding anything contained in sub-rules (1), (3) and (4) or sub-rule (3) of Rule 7 temporary and officiating service of employees who joined service on or after the 6th June, 1981 and borne on temporary establishment having rendered more than five years continuous temporary service shall count such service for the purpose of pension or gratuity excluding broken periods of temporary service, if any, rendered previously.

(6)     The service of a probationer, who holds a substantive post and draws substantive pay, shall be a service qualifying for pension.

PART-III

RECKONING OF SERVICE

10.  Leave.—Service during all periods of leave, other than extraordinary leave, shall be a service qualifying for pension.

11.  Suspension.—(1) Period under suspension followed by reinstatement shall count for pension irrespective of whether the employee was or was not allowed pay and allowances for that period.

(2)  Where an employee dies or retries on attaining the age of superannuation while under suspension during any disciplinary proceedings the proceedings against such employee shall abate and the period of suspension shall be treated as duty.

12.  Deputation.—(1) Where the Institute acquires on deputation or otherwise service of an employee of Government or other organization service in which is a service qualifying for pension and who is subsequently absorbed by the Institute, his or her service in Government or such organization, as the case may, shall be counted as qualifying for purposes of pension with the approval of competent authority, provided that—

(i)      the application for appointment to the relevant post in the Institute was made by the employee with the approval of the Ministry, Division, department or office of the Government or such organization, as the case may be;

(ii)     the Institute on its own accord, have absorbed the employee with consent of the employee and the lending Government or, as the case may be, such organization;

(iii)    the service rendered by the employee in Government or such organization was pensionable and he or she has not been paid any pensionary or other retiring benefits by Government or such organization; or

(iv)    Government or such organization, as the case may be, pays pension contribution at prescribed rates for the period and service rendered by the employee in Government or such organization;

(2)     Provisions of sub-rule (1) shall apply mutatis mutandis where an employee of the Institute joins in or out of Pakistan service of Government or such organization.

13.     Training.—Period spent on approved training except the period spent on training before actual appointment in the Institute shall be service qualifying for pension:

Provide that the competent authority may, in the case of a person on training before actual appointment in the Institute who is selected to undergo a course of training, decide whether the period spent on such training shall count as service qualifying for pension.

14.     Resignation, removal or dismissal from service.—Resignation from service or removal or dismissal from service entails forfeiture of past service:

Provided that resignation from service to take up another appointment service in which counts for pension shall not be a resignation from service of the Institute for the purpose of pension only:

Provided further that where on appeal or revision, the appellate or competent authority sets aside the order of removal or dismissal from service of an employees, such past service shall qualify for pension.

15.     Interruption.—Interruption in service of an employee entails forfeiture of his or her past service, except in the case of —

(a)      discontinuance of service owing to abolition of post or reduction in establishment;

(b)     transfer to non-qualifying service in an establishment or post under the Institute, if the transfer is made by the competent authority:

               Provided that voluntary resignation from qualifying service of this exception, except to take up another appointment service in which counts towards pension, shall not be exception under this rule;

(c)     period spent in transit from one appointment to another; or

(d)     due to any other reason provided the interruption is not due to any fault or willful act of the employee.

16.     Power of competent authority to commute absence.—The competent authority may commute any period of absence without leave into extraordinary leave.

17.     Condonation of interruption.—The competent authority may upon an application made to him in this behalf by the employee, or any member of family of the deceased employee, and upon such conditions and reasons to be recorded in writing as it may think fit in each case, condone any or all interruptions in service of such employee.

18.     Condonation of deficiencies.—(1) A deficiency of a period not exceeding six months in the qualifying service of an employee shall be deemed to have been condoned.

(2)  The competent authority may condone a deficiency in service of more than six months but less than a year subject to the condition that the employee has died while in service or has retired under circumstances beyond his or her control, such as invalidation or the abolition of his or her post and would have completed another year of service if he or she had not died or retired and that the service rendered by him or her had been meritorious.

PART-IV
KINDS OF PENSION

19.  Compensation pension.—(1) Owing to abolition of a permanent post, if an employee is selected for discharge and unless appointed to another post the conditions of which are deemed by the authority competent to discharge him or her to be least equal to those of his or her own, such employee shall have the option—

(a)      of taking any compensation pension or gratuity to which he or she may be entitled for the service he or she has already rendered; or

(b)     of accepting another appointment or transfer to another establishment even on a lower pay, if offered, and continuing to count his or her previous service for pension.

(2)  An employee not employed in a substantive permanent capacity shall be granted compensation gratuity, owing to the abolition of his or her post for service of less than twenty-five years but not less than ten years and compensation pension if he or she is discharged after completing qualifying service of twenty - five years or more.

20.     Invalid pension.—(1) An employee permanently incapacitated for further service of the Institute owing to bodily or mental infirmity shall be granted invalid pension.

(2)  An employee shall be entitled to invalid pension if he or she dies before attaining the age of superannuation, and his or her family shall be granted such invalid pension calculated on the day next following the day of decease of the employee.

21.     Application to retire for invalid pension.—(1) An application to retire for invalid pension shall be made to the competent authority and shall be supported by a medical certificate as set out in Schedule-I and issued by a medical board or a medical committee as may be specified by the competent authority.

(2)  No medical certificate of incapacity for service may be issued unless the employee produces a letter to show that the competent authority is aware of the employee's intention to appear before the medical board or medical committee as the case may be. The medical board or the medical committee may also be supplied by the Institute a statement showing name of the employee, name of his or her father or husband, as the case may be, designation, basic pay scale, total qualifying service and the date of birth as per service record and if possible a succinct statement of medical case and of the treatment adopted should also be appended.

(3)     If the incapacity is directly due to irregular or intemperate habits, no pension can be granted. If it has not been directly caused by such habits, but has been accelerated or aggravated by them, the competent authority may decide reduction, if any, to be made on this account.

(4)     An employee who has submitted under sub-rule (1) a medical certificate of incapacity for further service may not, except for special reasons to be recorded in writing by the competent authority, be retained in active service pending a decision on his or her application for pension, nor can be granted leave of absence. The competent authority may allow up-to the maximum of one month the service intervening between the date of such medical certificate and the date on which the discharge is actually effected to count for pension.

22.     Superannuation pension.—A superannuation pension shall be granted to an employee entitled to retire on attaining the age of superannuation or required by these rules to retire at a particular age.

23.     Pre-mature retirement pension.—(1) An employee who on exercise of his or her option is retired from service any time after completing twenty-five years qualifying service shall be granted pre-mature retirement pension.

(2)  Subject to the provisions of the Pakistan Essential Services (Maintenance) Act, 1952 (L III of 1952), an employee, other than an employee against whom disciplinary proceedings are pending, shall have the right to retire on pre-mature retirement pension after twenty-five years qualifying service. Such an employee shall, at least three months before the date on which he or she intends to retire, make an application to the competent authority specifying the date on which he or she intends to retire, and such application once made shall be final and shall not be allowed to be modified or withdrawn after acceptance and duly notified by the competent authority.

PART-V
AMOUNT OF PENSION

24.     Amount of pension determined by length of service.—(1) The amount of pension that may be granted shall be determined subject to the length of service and fractions of a year shall not be taken into account in the calculation of any pension under these rules.

(2)  An employee entitled to pension shall not be paid a gratuity instead of pension.

25.  Full pension subject to satisfactory service.—(1) The full pension admissible under these rules shall not be granted unless the service rendered by the employee has been satisfactory and if the service has not been satisfactory, the competent authority may make from the pension such reduction of the amount as he thinks proper:

Provided that such deduction from the pension shall not be made without affording to the person entitled to it, an opportunity in writing, to show cause against the proposed reduction:

Provided further that an employee compulsorily retired from service of the Institute shall be entitled to pension or gratuity, as may be admissible under the normal rules and the certificate of satisfactory service shall not be required in such a case.

26.  Calculation of gratuity or pension.—(1) After a service of five years or more but less than ten years, an employee shall be entitled to a gratuity not exceeding one month's emoluments for each completed year of service and an employee if dies during service, family of such employee shall be entitled to a gratuity not exceeding one and a half month's emoluments for each completed year of service and if the emoluments of the employee have been reduced during the last twelve months or thirty-six months of his or her service, as the case may be, otherwise than as a penalty, average emoluments may be substituted for emoluments:

Provided that if the employee retires on account of invalidation due to illness, accident, earthquake or terrorism, he or she shall be granted complete pension benefits, and the condition of ten years service shall not apply in such cases.

(2)  After a service of ten years or more, the pension of an employee shall be calculated at the rate of seventy per cent of last pay or emoluments on completion of thirty years qualifying service in accordance with the scale as set out in Schedule-II which shall apply to all cases of compensation pension, invalid pension, superannuation pension and pre-mature retirement pension. If qualifying service is less than thirty years but not less than ten years, proportionate reduction in percentage shall be made. Employees who joined service before the 1st July, 1986 and who retire from service after commencement of these rules, shall have the option to get their pension calculated on the basis of average emoluments or, as the case may be, last pay or emoluments drawn.

(3)     A pensioner shall be allowed to commute upto thirty-five per cent of the gross pension. Commutation shall not be subject to medical certification if it is opted for within one year of the date of retirement. In the case of pre-mature retirement on medical grounds, the requirement of medical examination shall not be waived.

(4)     An employee seeking retirement on attaining the age of superannuation and making an application for commutation while in; service shall be allowed commuted values of pension as applicable at the age of superannuation instead of at the age of sixty-one years. In all other cases, the commuted value of pension shall be admissible under the formula of age-next-birth-day.

(5)     Monthly gross pension of a retired employee under these rules shall not be less than rupees three thousand. For the purpose of this sub-rule gross pension means gross pension before commutation plus any dearness or adhoc increases and indexation, if any.

(6)     Monthly family pension allowed to the family under these rules of a deceased employee, shall not be less than rupees two thousand two hundred and fifty. The family pension for the purpose of this sub-rule means pension plus dearness or adhoc increases and indexation, if any.

(7)     Commutation of any part of the increase in pension allowed under sub-rules (5) and (6) shall not be admissible.

27.  Pension while not employed in substantive and permanent capacity.—Provision of Rule 25 shall not apply to an employee who is not employed in a substantive and permanent capacity and who is discharged from service owning to the abolition of his or her post. Such employee shall be entitled to—

(a)      after a service of ten years or more but less than twenty-five years, gratuity not exceeding one month's emoluments for each completed year of service subject to the maximum of rupees one hundred seventy-five thousand; or

(b)     after a service of five years or more, a pension at the rates and subject to the conditions laid down under Rule 26.

28.  Gratuity to the family of deceased employee.—For the purpose of payment of death-cum-retirement's gratuity, the family of a deceased employee shall include—

(a)      widow or widows in case of a male employee or widower in case of female employee;

(b)     children of the employee where there is no widow or widow or widower, as the case may be; and

(c)      children of a deceased son of the employee where there is no widow, widower or children of the employee.

          Explanation I.—A child means legitimate child. An adopted child will be considered to be child when the competent authority is satisfied that under the personal law of the employee concerned adoption is legally recognized as confirming the status of a natural child but in this case only.

          Explanation II.—Where it is proved that the wife has been judicially separated from the employee or has ceased under the customary law of the community to which she belongs to be entitled to maintenance, she shall no longer be deemed to be a member of the family unless the employee has himself intimated in writing to the accounts office that she shall continue to be so regarded.

          Explanation III.—In the case of female employee, where she intimates in writing to the accounts office that her husband shall not be included as a member of her family, then he shall no longer be considered a member of her family unless she subsequently cancels in writing her intimation excluding him.

29.  Payment of gratuity to family.—When the amount of gratuity becomes payable to the family of a deceased employee the accounts office shall make payment to the family according to the following procedure, namely:—

(I)      when the employee leaves a family, the amount of gratuity shall become payable to the members of family of the employee in equal shares:—

          Provided that no share shall be payable to—

          (i)      sons who have attained the age of twenty-one years;

                   (ii)        sons of a deceased son who have attained the age of twenty one years;

          (iii)    married daughters whose husbands are alive; and

                   (iv)       married daughters of a deceased son whose husbands are alive:

                                         Provided further that the widow or widows and the child or children of a deceased son shall receive in equal share only the share which that son would have received if he had survived that employee and had been exempted from the operation of the first proviso.

Explanation 1.—When the beneficiary' is a minor and has no regularly appointed guardian, the competent authority may allow the payment of pension or shares of gratuity of minor children of a deceased employee to their mother. In case the mother is not alive or was judicially separated from the employee in his life, the competent authority may nominate any suitable person to be the guardian of such minor children for the purpose of receiving payment of pension and or share of gratuity on their behalf.

Explanation 2.—When the deceased employee was a female, the competent authority may, under the circumstances stated above, allow the payment of pension or shares of gratuity of minor children of the deceased, to their father; or

(II)    when the employee leaves no family under these rules, the amount of gratuity shall be payable to the following surviving relatives, if any, of the employee in equal share, namely:--

                   (a)        mother, excluding judicially separated or divorced mother who has re-married;

          (b)     father;

                   (c)        un-married sister below the age of twenty-one years and widowed sisters; and

          (d)     brothers below the age of twenty-one years:

30.  No gratuity shall be payable after the death of an employee if he does not leave a family under clause (I) of Rule 29 or an eligible dependent relative or relatives under clause (II) thereof.

31.  Family pension.—(1) Where an employee deceases while in service, gratuity in lieu of one fourth of the gross pension shall be allowed to the family at commutation rate applicable on age-next-birthday of the deceased and also family pension shall be admissible at seventy-five per cent of the gross pension, as the case may be, to the widow for life or until re-marriage and in case the deceased was a female employee, to the widower for life or till remarriage.

(2)  Notwithstanding anything contained in sub-rule (I), if the deceased employee had more than one wife and the number of his surviving widows and children docs not exceed four, the pension shall be divided equally. If the number of surviving widows and children together is more than four, the pension shall be divided--

(a)      so that each surviving widow shall get one-forth of the pension and the balance, if any, shall be divided equally among the surviving children. For the purpose of this clause, the term "children" excludes sons above the age of twenty-one years and married daughters above the age of twenty-one years; or

(b)     if the deceased had no widow or widower, as the case may be,—

                   (i)         it shall be paid to the surviving son till he attains the age of twenty-one years; or

                   (ii)        eldest surviving un-married daughter till she attains the age of twenty-one years or till her marriage whichever is earlier; if the eldest daughter marries or dies, then the next eldest daughter till she attains the age of twenty-one years or until her marriage whichever is earlier; or

                   (iii)       eldest widowed daughter for ten years or un-expired portion of ten years; or

                   (iv)       eldest widow of a deceased son of the employee for ten years or un-expired portion of ten years; or

                   (v)        eldest surviving son below twenty-one years of age of a deceased son of the employee for ten years or un-expired portion of ten years; or

                   (vi)       eldest un-married daughter below twenty-one years of age of a deceased son of the employee for ten years or un-expired portion of ten years; or

                   (vii)      eldest widowed daughter of a deceased son of the employee for ten years or un-expired portion often years.

(3)     In the event of death of an employee having no family under these rules, the family pension may be granted for life in order of preference —

(i)      to the father; or

(ii)     if there is no father, then to the mother; or

(iii)    if there is no father and the mother, then to the eldest surviving brother below the age of twenty-one years; or

(iv)    if there is no father, mother and eldest surviving brother, then to the eldest surviving un-married sister below the age of twenty-one years and if she marries or dies, then the next below sister under the age of twenty-one years; or

(v)     if there is no father, mother, eldest brother and un-married sister, then to the eldest surviving widowed sister till her re-marriage.

(4)     No pension shall be payable under this rule —

(a)      to a person under sub-rule (3) without production of a reasonable proof that such person was dependent on the deceased employee for support;

(b)     to an un-married female of an employee's family in the event of her marriage;

(c)      to a widowed female of an employee's family in the event of her re-marriage;

(d)     to the brother of an employee on his attaining the age of twenty-one years; and

(e)     to a person who is not a member of an employee's family.

(5)  A pension awarded under this rule shall not be payable to more than one member of employee's family at the same time except as provided for in clause (a) of sub-rule (2).

32.     Family gratuity.—Provisions of Rules 27, 28, 29, 30 and 31 which apply to grant of ordinary pension shall apply mutatis mutandis in respect of gratuity.

33.     Reckonable emoluments for pension.—The following shall be emoluments reckonable for the purpose of pension which the employee was receiving immediately before his retirement, namely:—

(a)      pay as defined in the Civil Servants Act, 1973 (LXXI of 1973);

(b)     senior post allowance;

(c)     indexation on pay;

(d)     increments accrued during leave; and

(c)      any other addition to pay which may be specially classed as emoluments reckoning for pension.

34.  Calculation of pension on last pay or emoluments drawn.—(1) The pension of an employee shall be calculated at the existing rate on last pay or emoluments drawn, provided the post has been held by him or her on a regular basis.

(2)     Where during the last twelve months or thirty-six months of his service an employee has been absent from duty on leave with allowances, or having been suspended and has been reinstated without forfeiture of service, his emoluments, for the purpose of calculating the average, shall be taken into account such as he would have been entitled to it if he had not been absent from duty or suspended provided always that his pension shall not be increased on account of increase in pay not actually drawn.

(3)     Where during the last twelve months or thirty-six months of his service the pay of an employee has been re-fixed as a result of revision or up-gradation of the post held by him with retrospective effect but arrears have not been allowed and recoveries have not been made in respect of the past period, his emoluments, for the purpose of calculating the averages, shall be taken into account such as he would have been entitled to it if the arrears had not been disallowed or the recoveries had been made.

(4)     Where during the last twelve months or thirty-six months of his service an employee has been absent from duty on leave with allowances the periods so passed should be disregarded in the calculation of the average, an equal period before the twelve months or, as the case may be, thirty-six months being included.

(5)     Except as provided under sub-rules (2), (3) and (4), the emoluments actually received shall be accounted for pension and when an employee is allowed to count time retrospectively towards increase of pay but is not allowed to receive retrospectively the intermediate periodical increments, such intermediate increments shall not reckon in the calculations.

PART-VI
APPLICATION FOR GRANT OF PENSION

35.  Application for Pension.—(1) For the purpose of grant of pension to each of the two categories of the employees the officer, declared as competent authority under these rules, shall be responsible for initiating and completing pension papers of such employees without waiting for the formal application from the employee concerned and one year before the employee is due to retire.

(2)  Each employee, six months in advance of the date of his or her actual or anticipated retirement or, in the case of death of an employee while in service, entitled member of the family, shall, on the format set out in Schcdule-III, make to the Director General an application for pension:

Provided that—

(a)      where the date of retirement cannot be foreseen six months in advance, the application shall be submitted immediately after the date of retirement is settled; or

(b)     an employee proceeding on leave preparatory to retirement, shall submit the application at the lime of proceeding on leave; or

(c)      if the application is for invalid pension, the requisite medical certificate shall be attached to the application and the condition of making application six months in advance to the retirement shall not apply and also if the medical examination of the applicant was not conducted on the date on which he ceased to perform duty, the competent authority may accept a medical certificate bearing a later date.

(3)  The instructions as set out in schedule-III shall be followed for timely processing of pension and gratuity cases.

36.  Processing of application for pension.—(1) The authority receiving the formal application shall immediately arrange to draw up the application in the prescribed form and through the relevant officer declared responsible in this behalf certify the form. It shall also record its own opinion whether the service claimed has been established and should be admitted or not.

(2)     All periods of extraordinary leave, and other periods which are not reckoned as service qualifying for pension shall be recorded in the relevant section of the form.

(3)     The Director General receiving the application shall arrange to calculate the employee's qualifying service in the relevant section of the form and arrange for its verification according to the following procedure, namely:—

(a)      in the case of employee for whom a service book is maintained, unless a certificate of verification is already recorded thereon, all the information procurable like the service book, pay bills and acquittance rolls, shall be consolidated from official records, and service verified with reference to these records;

(b)     if the service cannot be wholly verified from the records of any one office, reference shall be made to the offices in which the employee has served;

(c)      if, in any particular case, neither service book nor service roll is maintained, and it is not possible to verify the service of an employee from official records under clauses (a) and (b), a statement of the employee in writing as to the particulars of his service, statements in writing of other employee who served contemporaneously with him or her and documents and letters not forming part of official records may be received in evidence and the employee's service verified on these basis:

          Provided that the power to admit such service shall be exercisable by the competent authority.

(4)  After completing process on the application in all respect and after consideration of facts of the case, relevant record and having regard to the provisions of these rules, the competent authority shall accord its sanction to the grant of full or reduced pension or gratuity or both and the case shall then be forwarded alongwith necessary documents to the accounts office.

37.     Sanction of pension and issue of pension payment order.—On receipt of the pension papers and sanction of the competent authority under sub-rule (4) of Rule 37, the accounts office shall apply the requisite checks and if it finds that all the necessary information and documents are available in the pension papers, it shall prepare the pension payment order for the amount of pension sanctioned by the competent authority but shall not issue it earlier than a fortnight prior to the date on which the employee is due to retire;

38.     Refund of excess amount and payment of arrears of pension.—(1) Where the amount of pension, gratuity or commutation granted to an employee is found afterwards to be in excess of the amount to which he or she is entitled under these rules, the employee shall be called upon to refund, and he or she shall refund such excess amount.

(2)  Where the pension sanctioned to an employee falls in arrears it shall be allowed to be paid to him or her by the disbursing officer or bank without any reference to the audit or the competent authority:

Provided that the pension remaining undrawn for three years or more shall be paid with the authority of the audit office:

Provided further that a gratuity payment order shall remain in force for one year only and no such order shall be retained if payment has not been made on it within a year of its issue.

(3)  The payment of arrears of pension due in respect of a deceased pensioner shall be due and made till and for the day of pensioner's death and the hour at which death takes place shall have no effect on the claim.

39.  Payment of pension.—(1) A pension shall become due on and from the date on which the pensioner ceased to be regular employee and shall be payable, in rupees, in Pakistan, monthly on and after the first day of the following month.

(2)     A gratuity shall be paid in a single sum and not in installments.

(3)     On receipt of the pension payment order in duplicate, the disbursing officer shall deliver one copy thereof to the pensioner, and keep the other copy carefully in such manner that the pensioner shall not have access to it. Each payment made is to be entered on the reverse of both the copies and attested at the time of payment by the signature of the disbursing officer.

(4)     A pensioner shall take payment in person after identification by comparison with his pension payment order.

(5)     A female pensioner not accustomed to appear in public or a male pensioner who is unable to appear in consequence of bodily illness or infirmity, may receive her or his pension through any person duly nominated in this behalf by the pensioner upon production of a life certificate signed by a responsible officer of the Government or the Institute or by some well known and trust worthy person.

(6)     A pensioner of any description is also exempted from personal appearance, who produces a life certificate signed by any officer of the Government or the Institute or a pensioned officer, who before retirement held a gazetted appointment, in pay scale 17 and above or by a munsif or by any person holding a title.

(7)     For receipt of pension, a pensioner shall append to his or her bill a certificate as set out in Schedule-IV.

(8)     Any person claiming as the heir of a deceased pensioner may be required to produce the pensioner's portion of the pension payment order or if no pension payment order has been issued, the copy of the order in which the sanction to the pension was communicated to the pensioner or the heir.

PART-VII
ANTICIPATORY PENSION

40.  Provisional payment of pension pending final assessment.—(1) Where an employee is likely to retire before his pension is finally assessed and settled under these rules, the accounts office of the Institute shall sanction the disbursement of such pension to which, after the most careful summary investigation it can make without delay, it believes that the employee is entitled to, provided that such disbursement shall be made only after a declaration is signed by the retiring employee on the format as set out in Schedule-V.

(2)     Where it appears to the accounts office that the employee would be entitled to gratuity only, one-sixth of the amount of such probable gratuity shall, upon a similar declaration under sub-rule (1), be disbursed to him monthly until the amount is finally settled.

(3)     The payment of anticipatory pension shall be so arranged that it is not delayed beyond the first day of the month following the month in which the employee is due to retire.

(4)     Where the pension summarily assigned differs from the pension finally settled, the difference shall be adjusted in the first subsequent payment:

Provided that where a gratuity assigned under sub-rule (2) is greater than the amount found actually due upon completion of inquiries, the employee shall not be required to refund any excess actually paid to him except as provided in these rules relating to pension on retirement.

 

(5)     Where the competent authority has reason to believe that the pension cannot possibly be sanctioned by the date on which the employee is due to retire, it shall furnish to the accounts office without delay the fullest information regarding the employee's service, the probable amount of pension etc. unless the pension papers containing such information are already in the possession of accounts office.

PART-VIII
SPECIAL ADDITIONAL PENSION

41.     Special additional pension,—A retiring employee in basic pay scale 20, 21 and 22 shall be allowed a special additional pension equal to his or her pre-retirement orderly allowance.

CHAPTER - III
COMMUTATION

42.     Admissibility of commuted portion of pension.—(1) Commutation shall be admissible upto a maximum of thirty-five per cent of gross pension, at the option of the pensioner and admissibility of monthly pension shall be sixty-five per cent of the gross pension.

(2)     Commutation shall not be subject to medical certificate or to administrative sanction if an application is made for within one year of the date of retirement. The date of application by the retired employee in such a case will be the date of commutation becoming absolute. Where commutation is applied for before retirement, the commutation shall become absolute on the date of retirement.

(3)     In case of invalid pension, the requirement of medical examination shall not be waived. On receipt of an application on prescribed form for commutation the competent authority shall transmit to the applicant a copy of the certificate of the accounts section of the Institute of the lump sum amount payable on commutation in the event of his being reported by such medical authority as the competent authority may specify and shall at the same time require the applicant to appear for such medical examination. The certificate shall lapse if the medical examination docs not take place within the period prescribed therein and when the applicant does not appear for examination before the said medical authority within the prescribed period, the competent authority may, at its discretion, renew its sanction for a further period of three months without obtaining fresh application for commutation by written notice dispatched at any time before medical examination is due to take place, but this option shall expire on his or her appearance before a medical authority:

Provided that if the medical authority directs that age of the applicant for the purpose of commutation shall be assumed to be greater than his or her actual age, the applicant may withdraw his or her application by written notice dispatched within two weeks from the date on which he or she receives intimation of the finding of the medical authority. If the applicant does not withdraw in writing his or her application within the period of two weeks he or she shall be assumed to have accepted the sum offered.

(4)     Where the pensioner dies on or after the day following that on which commutation becomes absolute but before receiving the commutation value, this value shall be paid to his or her heirs.

(5)     Subject to sub-rule (4) and to the withdrawal of application under the proviso to sub-rule (3), the commutation shall become absolute that the title to receive the commuted portion of the pension shall cease and the title to receive the commuted value shall accrue on the date on which the medical authority signs the medical certificate. The payment of the commuted value shall be made as expeditiously as possible, but in the case of an impaired life no payment shall be made until either a written acceptance of the commutation has been received or the period within which the application for the commutation may be withdrawn has expired. Whatever the date of actual payment, the amount paid and the effect upon the pension shall be the same as if the commuted value was paid on the date on which commutation became absolute. If the commuted portion of the pension has been drawn after the date on which the commutation became absolute, the amount drawn shall be deducted from the amount payable on commutation.

(6)  If the applicant makes any statement found to be false or willfully suppresses any material fact in answer to any question, written or oral, put to him in connection with his medical examination, the competent authority may cancel the sanction at any time before payment is made actually or such a statement or suppression may be treated as grave misconduct for the purpose of Rule 5.

43. Calculation of lump sum payment on commutation of pension.—(1) Subject to sub-rule (3) of Rule 26 the lump sum payment on commutation shall be calculated in accordance with the present values in Schedule-VI.

(2)  The age in the case of impaired lives shall be assumed to be such age, not being less than the actual age, as the certifying medial authority may certify. In the event of the present values applicable to an applicant having been modified between the date of sanction to commutation and the date on which the commutation is due to become absolute, payment shall be made in accordance with the modified value however to the applicant may if the modified value is less favorable to him or her than previously in force, withdraw his or her application by notice in writing dispatched within fourteen days of the date on which he or she receives notice of the modification.

44.     Provisional commutation.—In the case of provisional pension, the commutation may be provisionally sanctioned on that basis. When the pension is finally sanctioned, the final payment order should be substituted for the provisional payment order for the purpose of commutations as also for all other purposes.

45.     Restoration of commuted pension.—The benefit of restoration of surrendered portion of pension in lieu of commutation or gratuity shall not be admissible.

46.     Procedure for commutation of pension.—(1) An application for commutation of pension shall be made on the format of Form-A as set out under Schedule-Ill and sent to the competent authority through the head of office in which the applicant was employed.

(2)     The application received under sub-rule (I), shall be transmitted forthwith to the accounts office of the Institute to report on the title to pension.

(3)     The accounts office shall complete relevant portion of the said Form-A without delay as per provision under sub-rule (2) and transmit it to the competent authority to sanction the commutation, and in other cases accounts office shall submit the relevant portion of the Form-A together with copies of the medical reports under clause (b) of sub-rule (5), if they are on record in its office, transmit it, to the competent authority to sanction the commutation, and the competent authority shall thereupon accord his or her administrative sanction for commutation, whereafter the sanctioning authority shall--

(a)      transmit to the applicant on the format of Form-B set out under Schedule-Ill a certified copy of the accounts office certificate contained in Section II of Form-A under Schedule-III and one copy of Form-C, Section I of which shall be filled in by the applicant before his medical examination and handed over to the medical authority; and

(b)     forward to the medical authority in original the completed Form-A, together with a copy of Form-C and an extra copy of Section III of that Form and copies of the previous medical reports or statement of his or her case if the applicant has been granted an invalid pension or has provisionally commuted any portion of his pension or declined to accept commutation on the basis of an addition of years to his actual age or has been refused commutation on medical grounds.

(4)     The medical authority should arrange for the medical examination of the applicant by a medical authority prescribed in sub-rule (5) at the nearest available station to that named by the applicant in Section I of Form-A and as early as possible within the period prescribed and inform the applicant direct. The forms and other documents should be transmitted by the prescribed medical authority to the examining medical authority.

(5)     Before any commutation administratively sanctioned becomes absolute, the applicant must be examined—

(a)      in the case of any applicant who has been or is about to be granted an invalid pension, by a medical board as may be specified by the sanctioning authority under Rule 21 before which the applicant must appear in person; or

(b)     in the case of any other applicant, by a medical board as may be specified by the sanctioning authority before which the applicant must appear in person if such a board is appointed to meet at a station reasonably near to the applicant's residence within the period prescribed by the sanctioning authority.

(6)     The examining medical authority after obtaining from the applicant a statement as set out in Section I of Form-C in Schedule-Ill which must be signed in its presence shall subject him to a strict examination and enter the results in Section II of the said Form-C and record its opinion as to the accuracy with which the pensioner has answered the questions prescribed in Section I regarding his medical history and habits. Lastly it shall complete the certificate contained in Section III of the said Form-C.

(7)     In the case of an applicant who has been or is about to be granted invalid pension, the grounds of invaliding or the statement of the medical case shall be duly considered by the certifying medical authority before the certificate in Section III of Form-C in Schedule-Ill is signed.

(8)     The ultimate medical authority under sub-rule (5) shall without delay forward the completed Forms-A and C set out in Schedule - III in original to the accounts office of the Institute which shall give the certificate contained in Section II of Form-A, a certified copy of completed Form-C to the sanctioning authority and a certified copy of Section III of Form-C to the applicant.

Note.-1.—A pensioner after he or she has once been refused commutation on medical ground or after he or she has once declared to accept commutation on the basis of an addition of years to his or her actual age may apply for a second medical examination at his or her own expense if at least a year has elapsed, since his or her first medical examination. Such a re-examination shall invariably be made by a medical board.

Note.-2.—If in the opinion of the medical authority, specified in sub-rule (5), some examination is necessary while it is not in a position to carry out itself, it may require the applicant to undergo such examination at his or her own expense. The refund of such expenditure to the applicant shall be made by the Institute irrespective of the result of the examination.

(9)     The accounts office on receipt of the completed Forms-A and C set out in Schedule - III shall arrange forthwith for the payment of the appropriate commuted value and corresponding reduction of pension. Where the medical certificate certifies that more than five years should be added to the applicant's actual age, the accounts office shall forthwith inform the applicant of the revised sum payable on commutation.

47.  Contributory provident fund.—For the purpose of regulating contributory provident fund of the employee of the Institute, provisions of General Provident Fund (Central Services) Rules applicable to the civil servants shall mutatis mutandis apply:

Provided that the said Rules shall be applicable if therein,—

(a)      for the words "Government Servant" wherever occurring, the word "employee" were substituted;

(b)     for the words "General Provident Fund", wherever occurring, the words "contributory provident fund" were substituted;

(c)      in Rule 2 in sub-rule (1), for clause (a) the following were substituted, namely:—

                   "(a)      accounts officer means accounts officer, or any other officer, of the Institute responsible to deal with matters of pay, pension and contributory provident fund, etc of employees of the Institute";

          (d)     in rule 4, the first proviso were omitted;

                   (e)        for the word "President", used in relation to an authority to sanction any pay, pension, leave, allowance, rate or other condition of service, the words "appropriate authority of the Institute" were substituted; and

                   (f)        Rule 8 and other provisions relating thereto were omitted.

CHAPTER - IV
EXTRAORDINARY PENSION

48.     Admissibility of extraordinary pension.—The rules under this chapter shall apply to all employees other than those to whom the Workmen's Compensation Act, 1923 (VIII of 1923) applies, whether their appointment is permanent or temporary. It shall include all those employees already covered in the preceding chapters.

49.     Definitions under this chapter.—For the purpose of rules under this chapter, unless there is anything repugnant in the subject or context,--

(a)     "accident" means—

          (i)      a sudden and unavoidable mishap; or

                   (ii)        a mishap due to an act of devotion to duty in an emergency arising otherwise than by violence out of and in the course of service;

(b)     "date of injury" means—

                   (i)         in the case of accident or violence, the actual date on which the injury is suffered or such date not being later than the date of the report of the medical board, as the Institute may fix; and

                   (ii)        in the case of disease, the date on which the medical board reports or such earlier date as may be fixed by the Institute with due regard to the opinion of the medical board;

(c)     "disease" means—

                   (i)         veneral disease or septicaemia where such disease or septicaemia is contracted by a medical officer while on his official duty on an infected patient or of conducting a post-mortem in the course of the duty; or

                   (ii)        disease solely or directly attributable to an accident; or

                   (iii)       an epidemic disease contracted by an employee in consequence of his being ordered on duty to an area in which such disease is prevalent, or in consequence of his or her standing voluntarily, out of humanitarian motives, upon any patient suffering from any such disease in any area where he or she happens to be in the performance of his or her duties;

(d)     "injury" means bodily injury resulting from violence, accident or disease assessed by a medical board as being not less than one of the following grievous injuries, namely:—

          (i)      equal to loss of limb including—

                   (a) hemiplegia without aphasia; or

                   (b)            permanent use of a tracheotomy tube; or

                   (c) artificial anus; or

                   (d)            total deafness;

          (ii)     very severe including—

                   (a) complete unilateral facial paralysis likely to be permanent; or

                   (b)            lesion of kidney, ureter or bladder; or

                   (c) compound fracture, except phalanges; or

                   (d)            such gross destruction of soft parts as to lead to permanent disability or loss of function; and

          (iii)    severe and likely to be permanent including--

                   (a) ankylosis of or considerable restriction in the movement of one of the joints, knee, elbow, shoulder, hip, ankle, temporomaxillary or rigidity of the dorsilumber or surgical Sections of the spine; or

                   (b)            partial loss of vision of one eye; or

                   (c) destruction or loss of one testicle; or

                   (d)            retention of foreign bodies not causing permanent or serious symptoms;

(e)      "pay" means the pay as defined in the Civil Servants Act, 1973 (LXXI of 1973) which a person was drawing on the date of his death or injury:

               Provided that in the case of person remunerated by piece work rates, pay means the average earnings of the six months, ending with the date of his death or injury;

(f)      "risk of office" means any risk not being a special risk of accident or disease to which an employee is exposed in the course and as a consequence of his official duties, but nothing shall be deemed to be risk of office which is a risk common to human existence in modern conditions in Pakistan unless such risk is definitely enhanced in kind or degree by the nature, conditions or incidents of service.

          Explanation.—If an employee who is suffering from a disease which is certified by the competent medical authority as requiring complete rest, is not granted leave because of the exigencies of service and thereby suffered damage to his health which eventually contributes to or causes his death, it shall, if the medical authority certifies that the damage was suffered in the course and as a consequence of his or her duties, be regarded as having been established that the risk of office in the case of the deceased employee was definitely enhanced by the nature, conditions, obligation or incidents of service;

(g)     "special risk" means—

          (i)      a risk of suffering injury by violence;

                   (ii)        a risk of injury by accident to which an employee is exposed in the course and as a consequence of the performance of any particular duty which has the effect of materially increasing his or her liability to such injury beyond the normal risks of his or her office; or

                   (iii)       a risk of contracting disease to which a medical officer is exposed as a result of attending in the course of his or her official duties to a veneral or septicaemic patient or conducting a post-mortem in pursuance of that duty;

(h)     "violence" means the act of a person who inflicts an injury on an employee—

                   (i)         by assaulting or resisting him or her in the discharge of his or her duties, or in order to deter or prevent him or her from performing his or her duties; or

                   (ii)        because of anything done or attempted to be done by such employee or by any other public servant in the lawful discharge of his or her duties as such; or

          (iii)    because of his or her official position.

50.  Award of extraordinary pension by the Institute.—(1) No award of pension shall be made under the rules in this chapter except with the sanction of the competent authority who may take into consideration the degree of default or contributory negligence on the part of the employee who sustains an injury or dies or is killed as a result of an injury.

(2)     Except as otherwise provided in these rules, an award of pension made under the rules in this chapter shall not affect any other pension or gratuity for which the employee concerned or his or her family may be eligible under these rules or any other rules for the time being in force and the pension granted under the provisions of these rules under this chapter shall not be taken into account in fixing the pay of the pensioner on his or her continued employment or re-employment in service of the Institute.

(3)     No award of pension under this chapter shall be made in respect of—

(a)      an injury sustained more than five years before the date of application; or

(b)     death which occurred more than seven years—

          (i)      after the injury due to violence; or

                   (ii)        after the employee was medically reported as unfit for duty on account of the disease of which he or she died.

(4)     All awards of pension under the rules in this chapter shall be made in Pakistan in rupees.

51.  Classification of disability.—For the purpose of the rules in this chapter, the disability shall be classified as follows, namely:—

(a)     Class A includes—

                   (i)         loss of a hand and foot or loss of use of two or more limbs;

          (ii)     total loss of eye sight;

          (iii)    total loss of speech;

          (iv)    total deafness of both ears;

          (v)     paraplegia or hemiplegia;

          (vi)    lunacy;

          (vii)   very severe facial disfigurement;

          (viii)  advanced cases of incurable diseases;

                   (ix)       wounds, injuries or diseases resulting in disability due to which a person becomes incapacitated; or

          (x)     emasculation.

                               Explanation,—Wounds, injuries or diseases of limb resulting in damage of nerves, joints or muscles making the whole of limb useless, would mean loss of that limb. Cases in which a partial function is retained shall not be included in this class. However, if the partial retention of function does not help in walking in case of leg or does not help in holding an object in case of hand even with partial efficiency, it shall be considered as total loss of function. Those cases shall also be included in this class where the earning of the employee has been totally impaired due to the invaliding disability;

(b)     Class B includes—

          (i)      loss of thumb or at least three fingers of hand;

                   (ii)        partial loss of one or both feet at or beyond tarsometatarsal joint;

          (iii)    loss of vision of one eye; or

          (iv)    loss of all toes of one or both feet;

(c)     Class C includes--

                   (i)         limited restriction of movement of joint due to injuries; or

          (ii)     disease of a limb restricting performance of duties;

Explanation—When the disability is not one or more of the above classifications, the disability shall be assessed by the medical board at the classification most closely corresponding to those given in this rule.

52.     Award of pension for classified disability.—(1) Where an employee sustains an injury or suffers from a disease which falls in the disability classified under Rule 51, he or she or the entitled members of his or her family, as the case may be, shall also be awarded disability or death pension, gratuity or children allowance according to the class of injury set out in Schedule-VII and at the rates as set out in Schedule-VIII respectively.

53.     Principles and procedures for award.—(1) Any award under these rules shall be decided taking into consideration the principles and procedures set out in Schedule - IX.

(2)     An award of pension, as set out in the Schedule-VIII shall be made to the widow and children of an employee in the event of death of the employee in the course or as a consequence of duty.

(3)     Where the deceased employee has left neither a widow nor a child, an award may be made to his or her father and his or her mother individually or jointly and in the absence of the father and mother, to minor brothers and sisters individually or collectively, if they were largely dependent on the employee for support and are in pecuniary need:

Provided that the total amount of the awards shall not exceed one-half of pension that would have been admissible to the widow or widower under sub-rule (2):

Provided further that total amount of the awards of each minor brother and sister shall not exceed the amount of pension specified in Schedule-VIII for a child who is not motherless.

(4)     Any award made under sub-rule (3) shall in the event of an improvement in the pecuniary circumstances of the pensioner, be subject to review in such manner as the Institute may determine.

(5)     A family pension shall take effect from the day following the death of the employee or from such other date as the Institute may direct.

(6)     A family pension shall ordinarily be tenable—

                   (a)        in the case of a widow or mother, until death or re-marriage whichever is earlier;

                   (b)        in the case of a minor son or minor brother, until he attains the age of eighteen years;

                   (c)        in the case of an unmarried daughter or minor sister, until marriage or until she attains the age of twenty-one years; or

          (d)     in the case of a father, for life.

54.     Any award made under these rules shall be decided taking into consideration the principles and procedures specified in Schedule-IX.

55.     Principles for award of pension.—Any award made under the rules in this chapter shall be decided taking into consideration the following principles and procedures, namely:—

(A)    casualties due to wound or injury—

                   (i)         shall be established where cause of the casualty was the result of duty in service; or

                   (ii)        shall be established where the injury resulted from the risk inherent in service, attributability shall be conceded;

Explanation 1.—an individual shall be deemed to be in the performance of duty when—

(a)      he or she is physically present in his or her headquarters, sub station and on duty in the field;

(b)     he or she is travelling on leave at the Institute's expense;

(c)      when travelling to or from duty (e.g. from residence to place of duty and back but not whilst he or she is in his or her residence); or

(d)     whilst travelling on duty i.e. where it is established that but for the duty he or she would not have been traveling at all;

Explanation 2.—Disability resulting from—

(a)      purely personal acts such as shaving or similar private pursuits, would not normally be treated as attributable to service; or

(b)     violence provoked by performance of duty shall be viewed as attributable to service unless the circumstances of the case warrant of different conclusion.

Explanation 3.—if circumstances are such that service played no part in the causation of disability, attributability shall not be conceded.

Illustration,—if a person driving motor cycle, on duty, collides with a truck, the injury received may be attributed to service but if he is out for a walk and sustains injury from a passing truck, his case shall not qualify.

(B)    in case of casualties due to disease —

(i)      the cause of disability resulting from a disease shall be regarded as attributable to service only when it is directly due to risk which may be regarded as peculiar due to the circumstances of duty in service. In determining attributability in such cases, due regard shall be paid to the question whether service in a particular region, or of a particular type, involved exposure to exceptional risk of contraction of, or infection by, a disease, as well as to the actual circumstances of the case;

(ii)     attributability shall not be conceded if, though contracted during the period of actual performance of duty, the disease is, in the opinion of the medial authority concerned, due to risk which cannot be regarded as peculiar to duty in service;

(iii)    where a disease or its aggravation resulted from the risk of duty, attributability or aggravation shall be conceded;

(iv)    all cases of tuberculosis and bronchial asthma shall be accepted as attributable to or aggravated by service where the medical opinion is in favour of acceptance;

(v)     attributability or aggravation in all cases of cardiac diseases shall be determined in accordance with the guidelines in clause (C) of this rule; and

(vi)    where medical or other supporting documents are incomplete, cases shall be dealt with on merit with due regard to medical opinion and other evidence.

(C)     the following guidelines for determining attributability or aggravation in the case of cardiac diseases shall be followed, namely:—

                   (i)         there are many pre-disposing factors which may precipitate in attack of coronary occlusion. No single factor can be pin-pointed as being responsible for such an attack. It is, therefore, not easy to lay any hard and fast rule for awarding attributability or aggravation in such cases. For the guidance of medical and administrative authorities, some of the factors which may precipitate the attack of heart disease, are enumerated below, namely:—

                   (a) physical exertion.—coronary occlusion is known to have precipitated during or immediately following physical exertion. Physical exertion may not necessarily be of an unusual character i.e. lifting of a heavy truck or bundle, pushing a stalled vehicle or an up-till climbing have in many instances been followed by an attack of coronary occlusion. The effects of exertion are worse if the individual is unusually fatigued, has lack of sleep or is under emotional stress. Attributabilty might be conceded if a person undergoing stress and strain, pressure and counter pressure by virtue of the nature of his duties, develops psychiatric problem; and

                   (b)            emotional strain.—The occurrence of coronary disease in person who had been under an unusually severe and protracted emotional strain points to a probable relationship between the two. Separation from .families, uncongenial atmosphere, frequent moves, all add to the mental strain and psychological trauma;

                   (ii)        the question of attributability or aggravation of heart disease on occurrence in otherwise a normal individual who is subjected to the above mentioned factors, shall, therefore have to be considered and decided in the light of known history and merits of each case; and

                   (iii)       while dealing with such cases, the precaution shall be exercised by all concerned to carefully bring out detailed merits of the case as award of attributability or aggravation depends on their candid opinion.

56.  Claim for injury, gratuity or family pension.--When a claim for any injury or gratuity or family pension arises, the head of office in which the deceased was employed, shall forward the claim to Director General of the Institute with the fallowing documents, namely:—

(a)      a full statement of circumstances in which the injury was received, the disease was contracted or the death occurred;

(b)     the application for injury pension in Form-D as set out in Schedule-X, or as the case may be, the application for family pension in Form-E of the forms set forth in Schedule-X;

(c)      in the case of an injured employee or one who has contracted a disease, a medical report in Form-F set forth in Schedule-X. In the case of a deceased employee, a medical report as to the death or reliable evidence as to the actual occurrence of death if the employee lost his or her life in such circumstances that a medical report cannot be secured; and

(d)     a report of the accounts office of the Institute as to whether an award is admissible under the rules and if so, of what amount.

Schedule -1
[see Rule 21]

Form of medical certificate to be given respecting an employee applying for invalid pension.

(a)      Certified that I (we) carefully examined ………………… S/D/W/o …………….. in the …………………………… His/Her age is by his/her own statement …………………. years and by appearance about ……………………… years. I (we) consider him/her to be completely and permanently incapacitated for further service of any kind in consequence of …………………………. (here state the disease or cause). His/Her incapacity docs not appear to me (us) to have been caused by irregular or intemperate habits.

          Note: If the incapacity is obviously the result of intemperance, substitute the following of the last sentence. "In my (our) opinion his/her incapacity is the result of irregular and intemperate habits”.

(b)     If the incapacity does not appear to be competent and permanent, the certificate should be modified accordingly and the following addition should be made:--

          I am (we are) of opinion that …………………….. is fit for further service of a less laborious character than that which he/she has been doing, or ………………………. may after resting for …………. months be fit for further service of a less laborious character than that which he/she has been doing.

The objective of the alternative certificate (of partial incapacity) is that an employee should, if possible, be employed on lower pay so that the expenses of pensioning him/her may be avoided. If there be no means of employing him/her even on lower pay, then he/she may be admitted to pension; but it should be considered whether in view of his/her incapacity for partially earning a living, it is necessary to grant to him/her the full pension admissible under the rules.

Schedule-II
[see Rule 26(2)]

PENSION TABLE

Completed years of
qualifying service

Scale of pension expressed as fraction of emoluments/average emoluments

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 And above.

70/300
77/300
84/300
91/300
98/300
105/300
112/300
119/300
126/300
133/300
140/300
147/300
154/300
161/300
168/300
175/300
182/300
189/300
196/300
203/300
210/300

Schedule-III
[see rules 35(2) and 46(1)]

Part-I

APPLICATION FOR PENSION OR GRATUITY

(To be filled in and signed by the applicant himself/herself)

To,

The

Sir,

I have the honour to say that I have retired /1 have been permitted to retire from service and am due to retire on (Date)_______________.

2.       I, therefore, request that the pension/gratuity admissible under the rules may kindly be sanctioned to me.

3.       I, declare that I have neither applied for nor received any pension or gratuity for any portion of this service, nor shall I submit any application hereafter without quoting a reference to this application and to the orders which may be passed thereon.

4.       Should the amount of pension or gratuity granted to me afterwards found to be in excess of that to which I am entitled under the rules, I hereby under-take to refund any such excess.

5.       I wish to commute my pension to the extent of Rs. ______

6.       I wish to draw my pension from (write branch and name of the bank) _____________________________________________ at ____________________ (Place)         ________________________.

7.       The following documents duly attested are enclosed, namely:--

(a)      my three specimen signatures and two sets of my thumb and finger impressions on the prescribed form;

(b)     my three photographs; and

(c)     list of my family members.

Yours sincerely

                                                            Signature;
S/o
W/o
D/o
Post held on the
date of retirement

Dated: _____________

APPLICATION FOR FAMILY PENSION

(to be filled in and signed by the applicant himself/herself)

To,

The

Dear Sir,

1.       I have the honour to say that my spouse, namely has expired on. I, therefore, request that the family pension admissible under the rules may kindly be sanctioned to me.

2.       I declare that I have neither applied for nor received any family pension.

3.       Should the amount of family pension granted to me be afterward found to be in excess of that to which I am entitled under the rules, I hereby under-take to refund any such excess.

4.  I wish to draw my pension from the ______________, (write branch and name, of the scheduled bank wherefrom pension is desired to be drawn).

5. The following documents, duly attested, are enclosed, namely:—

(a)      my three specimen signatures duly attested and two sets of my thumb and finger impressions on the prescribed form;

(b)     my three photographs;

(c)     list and particulars of my family members;

(d)     descriptive roll;

(e)     death certificate of the deceased;

(f)      non-re marriage and non-separation certificates.

Yours faithfully,

                                                Signature
Name/
Relationship with the deceased
Postal Address

Dated: __________________

Part-II
(To be completed by the office/department receiving the application for pension)

Section 1

 

Entries
Nos. 1,2,3,4 and
17 should
be in
capital
letters



Particulars of applicant

1.       NAME OF THE EMPLOYEE

2.       FATHER'S NAME

3.       NATIONALITY

4.       POSTAL ADDRESS

5.       Post held on the date of retirement/death.

6.       BPS _____________ date of birth _______________

7.       Date of commencement of service retirement / death/ application for pension

8.       Length of service:—

Y       M      D

From _____________ to ____________  _________________

From _____________ to ____________  _________________

From _____________ to ____________  _________________

TOTAL:

9.  Date of commencement and ending of each spell of military service, if any:—

Y       M      D

From _____________ to ____________  _________________

From _____________ to ____________  _________________

From _____________ to ____________  _________________

10.  Government under which service has been rendered, in chronological order;

Government of ____________ from __________ to __________

Government of ____________ from __________ to __________

Government of ____________ from __________ to __________

TOTAL:

11.     Class of pension or gratuity applied for _______________

12.     Average emoluments/last pay drawn of the post held on regular basis. ___________________________________

13.     Proposed gross pension/gratuity ____________________

14.     Proposed family pension __________________________

15.     Proposed value of commutation ____________________

16.     Proposed net pension ____________________________

17.     Name and branch of bank _________________________

18.     Date from which pension is to commence. ____________

                                    Official seal
Signature of Head of Office/Department
Name
Designation

Section 2
Calculation of qualifying service

1.       Total length of service as per entry 10 of Section I, non-qualifying service from ____________ to _____________.

                                                                               Period

Y       M      D

(i)      Extra ordinary leave                  ________________

(ii)     Un-authorized absence              ________________

(iii)    Spell of service not                    ________________

          qualifying for pension under rules 10, 11, 12, 13, 14 and 15 TOTAL :(i) + (ii) + (iii)

2.       Non-qualifying service:--  _________________________

          Add from to ____________________________________

                                                                               Period

Y       M      D

(i)      Periods, if any, of military service or    ____________

          war service allowed to count for pension

(ii)     Benefit of condonation of deficiency in           ____________

          total qualifying service.

Total: (i) + (ii) _____________

Total qualifying service _____________

Section 3

Calculation of average emoluments
under Rule 34

Statement of emoluments during the last 36/12 months

Period

Duration of emoluments in months and days

Monthly rate drawn

Amount

From _______
To ________

M – D

Rs. ---Ps.

Rs. --- Ps.

The total emoluments for 36/12 months are __________________ Therefore, average emoluments work out to

                                                Rs. _____________ % 36/12

                        =                      Rs.       /p.m.

Section 4
Calculation of pension

Length of total qualifying service in years

Emoluments/average emoluments/ last pay drawn
of the post held on regular basis.                    Rs. _________

Amount of gratuity (in case where qualifying
service is 5 years or more but less
than 10 years).                                                 Rs. _________

Amount of gratuity on discharge from temporary
service where qualifying service is 10 years or
more but less than 25 years.                            Rs. _________

Gross pension calculated upto 30 years
qualifying service                                            Rs. _________

                                    Total                            Rs. _________

                                    Commutation              Rs. _________

                                    Net Pension                 Rs. _________

Section 5
Commuted value of pension

Amount of pension to be commuted Rs. ___________________

(i)      Age next birthday of 60 in case of
superannuation (if applicable) ______________________ years ________________

(ii)     Rate of commuted value for every one rupee
Rs. _______________

(iii)    Commuted value of pension     Rs. ________________

Section 6
Orders of sanctioning authority

1.       The competent authority is satisfied that the service of ________________ has been satisfactory. The grant of full pension or gratuity which the administrative officer may find to be admissible under the rules is hereby sanctioned.

          The competent authority is satisfied that the service of _____________ has not been satisfactory and it has been decided that the full pension or gratuity found by the administrative officer to be admissible under the rules should be reduced by specific amounts or percentage given below:—-

          Amount or percentage of reduction in pension _________

          Amount or percentage of reduction in gratuity _________

2.       The payment of pension or gratuity may commence from ___________. Before issuing the pension payment order the officer-in-charge administration may kindly ascertain whether the last pay and no demand certificates has/have been received by him. In case the last pay certificate and/or no demand certificate has/have not been received with the pension papers, the officer-in-charge administration should issue pension payment order subject to the production of the last pay certificate and/or an undertaking at the time of first payment of pension/ gratuity, by the pensioner, or his family (in case of his death) to the effect that any demand coming to notice within a period of one year after issue of pension payment order would be recovered from him/her.

Signature ____________

Designation __________

(Director General) _____

NIO

Section 7

Certified that--

(a)      Rs. ___________ being the amount of gratuity or commutation pension have been paid to Mr./Mrs./Miss/. ____________ through cheque No. __________ dated ____________ through ____________ bank.

(b)     Instructions have been issued for payment of pension of Rs. __________ per month to Mr./Mrs./Miss/ __________ as pension through _________________ bank, under intimation to the pensioner.

                                                            ___________________
            (Signature)
Drawing and Disbursing Officer
(Accounts Office)

Dated: __________

Gratuity of the pensioner, or his family (in case of his death), to the effect that any demand coming to notice within a period of one year after the issue of pension payment order would be recovered from him/her.

                                                            Signature

                                                            Official Seal

                                                            Designation

                                                            (Director General, NIO)

Part - III

(For use of office to calculate pension or gratuity)

(a)      The calculations contained in the preceding pages have been checked.

(b)     Length of qualifying service accepted in years, ______

(c)      Reasons for difference, if any, between this and the length of qualifying service worked out by the office. _______________

(d)     Amount of pension ____________ Rs. ____________

(e)      Reasons for discrepancy, if any, between this amount and that calculated by the office.

(f)      Amount of family pension Rs. _________________

(g)     Reasons for discrepancy, if any, between this amount and that calculated by the office.

(h)     Amount of commutation for the pension commuted Rs. _____________

(i)      Reasons for discrepancy, if any, between this amount and that calculated by the department.

(j)      Amount of net pension Rs. ______________

(k)     The pension will commence on ______________

(l)      Allocation of the pension and commutation pension or gratuity

Pension            Gratuity or commutation pension

Government of _______________________________________

Government of _______________________________________

Government of _______________________________________

Defence estimates _____________________________________

Total _______________________________________________

(m)    Anticipatory pension of Rs. ________________ (Rupees ……………………..) per month, granted with effect from __________________ vide pension payment order No. ____________________ under rules _____________ to be adjusted in the final pension payment order.

(n)     Amount of original pension commuted Rs. ____________

(o)     Checked with the last pay certificate and no demand certificate

(p)     Pension payment order issued vide No. __________ dated ________________

----------------------------
(Signature)
Drawing and Disbursing Officer
Accounts Office.

----------------------------
(Signature)
Administrative Officer
Administration Section.

Instructions to be followed for timely processing of pension / gratuity cases

[see Rule 35(3)]

(1)     The administrative officer, responsible for initiating the case, should start filling in Section 2 of the working copy of the Form one year before the expected date of retirement.

(2)     Six months before the date of retirement, the employee concerned should be asked to fill in and sign Part I in a fresh copy of the Forms and submit it alongwith the required enclosures mentioned in the last Paragraph of the application for pension.

(3)     Part I of the working copy will be filled in by copying from Part I of the signed copy received back from the applicant. Similarly, Sections 2 and 4 of Part II of the signed copy will be filled in by copying from Part III of the working copy. Section I of Part II and both the Forms should then be filled in.

(4)     The signed copy should be forwarded to the administrative officer after filling in and signing Section 5 while the working copy will be retained in the initiating office as an office copy. If any extra enclosures such as list of family members, death certificate, invalid certificate, etc are required by the special nature of the case these should be attached with the Form.

(5)     After administrative officer filled in Section 6 of Part II the Form will be sent to the Drawing and Disbursing Officer (accounts office) for filling Section 7 of Part II. The Form will then be returned to administrative officer for obtaining orders of the authority.

(6)     The authority will accord sanction and send it to the Drawing and Disbursing Officer for payment action.

(7)     The Drawing and Disbursing Officer will then fill in Part III of the Form. He will also inform the employee concerned of the final amount of gratuity or commutation or pension and pension per month payable to him or her in the form of an office order copies of which will be marked to administrative officer.

(8)     On the death of pensioner, the payment of any arrears due may be made by the Drawing and Disbursing Officer, or the bank to the heirs of the deceased, without any reference to pension sanctioning authority provided they apply for such payment within one year of the pensioner's death.

Form - A

[see Rule 46]

COMMUTATION OF PENSIONES

Section I

Form of application

To,

The ……………. here enter the designation…………..and address of the accounts office

I ________________________ desire to commute Rs. ____________ of my pension of Rs. ________________ Ps. __________ a month, I certify that I have correctly furnished the following particulars as required.

1.       Date of birth.

2.       Date of retirement.

3.       Amount of pension to be commuted. ________________

4.       (a)      Portion of pension already commuted.

                   (b)        Particulars of any application for commutation of pension ever been rejected, or ever accepted/declined to accept commutation to pension on the basis of and addition of years to the actual age recommended by the medical authority.

5.       Branch and name of scheduled bank from where commutation money is to be drawn __________________

6.       If drawing pension abroad which accounts office issued the authority for payment of pension _________________

7.       If already drawing pension, quote the number and date of the pension payment order and the name of manager and branch of the bank at which drawn. __________________

8.       Without prejudice to the direction of the sanctioning authority, from what date approximately this commutation should have effect ?

9.       Station at which medical examination is preferred.

Place                                                    Signature

Date                                                    Designation

                                                            Address

(a)      To be filled only if commutation is applied for after one year of the date of retirement.

(b)     If the commutation is applied within one year of the date of retirement the accounts office will authorize the commutation admissible and the Form will not be forwarded to the authority competent to sanction pension.

Section - II

Forwarded to _______________

(here enter the designation and address of the sanctioning authority).

1.       Subject to the medical authority's recommending commutation, the lump-sum commutation payable will be as stated below:—

 

Sum payable if the commutation becomes absolute before the applicant's next birth day which falls on _________

On the basis of normal age, i.e. _______ years, Rs. ____

 

 

1. Year i.e ___ years, Rs. __

                      Plus

2. Year i.e ___ years, Rs. __

                      Plus

3. Year i.e ___ years, Rs. __

                      Plus

4. Year i.e ___ years, Rs. __

                      Plus

5. Year i.e ___ years, Rs. __

                      Plus

2.

Sum payable if the commutation becomes absolute after the

applicant's next birth day
but before his next birth day but one.

On the basis of normal age, i.e. _______ years, Rs. ____

 

 

1. Year i.e ___ years, Rs. __

                      Plus

2. Year i.e ___ years, Rs. __

                      Plus

3. Year i.e ___ years, Rs. __

                      Plus

4. Year i.e ___ years, Rs. __

                      Plus

5. Year i.e ___ years, Rs. __

3.       The sum payable will be charged on —

                   (a)        Pension and gratuity fund of NIO's employees
Rs. ____

          (b)     Government of Pakistan Rs. _____________

Signature of Accounts Officer/ DDO

Section - III

Administrative sanction of ______________________________ is accorded to the above commutation. A certified copy of Paragraph 2 of Section II of the Form has been forwarded to the applicant in Form-B.

Place ______________________

Date ______________________

Signature ____________________

Designation __________________

Forwarded to (here enter the designation and address of the chief medical officer) _________________ in original ____________ with the request that he wilt arrange the medial examination of the applicant by the proper medical authority as early as possible within three months from the _________________ to (here enter the date of retirement) and inform the applicant direct in sufficient time where and when he or she should appear for examination with one copy of Form-C and an extra copy of Section III of the Form.

(Signature and designation of the sanctioning authority)

Note:—This Form is to be used only if commuted value of the pension has not been applied for in the pension application.

Form-B

[see Rule 46(3)(a)]

Section - I

Forwarded to

(here enter the designation and address of the sanctioning authority).

1.       Subject to the medical authority's recommending commutation, the condition prescribed in Section II of this Form, commutation will be as stated below:—

 

Sum payable if the commutation becomes absolute before the applicant's next birth day which falls on _________

On the basis of normal age, i.e. _______ years, Rs. ____

 

 

6. Year i.e ___ years, Rs. __

                      Plus

7. Year i.e ___ years, Rs. __

                      Plus

8. Year i.e ___ years, Rs. __

                      Plus

9. Year i.e ___ years, Rs. __

                      Plus

10. Year i.e ___years, Rs. __

2.

Sum payable if the commutation becomes absolute after the applicant's next birth day but before his next birth day but one.

On the basis of normal age, i.e. _______ years, Rs. ____

 

 

1. Year i.e ___ years, Rs. __

                      Plus

2. Year i.e ___ years, Rs. __

                      Plus

3. Year i.e ___ years, Rs. __

                      Plus

4. Year i.e ___ years, Rs. __

                      Plus

5. Year i.e ___ years, Rs. __

Station ______________

Dated: ______________

Signature of Accounts Officer / DDO

Section - II

1.       The commutation for a lump sum payment of the pension is administratively sanctioned on the basis of the report of the accounts officer specified in Section I above. The table of present values, on the basis of which the calculation in the accounts officer's report have been made, is subject to alteration at any time without notice and consequently they are liable to revision before payment is made. The sum payable will be the sum appropriate to the applicant's age on his birthday next after the date on which the commutation becomes absolute or, if the medical authority directs that years shall be added to that age, to the consequent assumed age.

2.       The _________________________________________ (here enter the designation and address of the medical officer) has been requested to arrange for the medical examination and inform Mr. _______________ direct where and when he should appear for the examination. He should bring with him the enclosed From-C with the particulars required in Section I completed except for the signature.

Station ____________________

Date ______________________

Signature ____________________

Designation __________________

To,

(the name and address of the applicant)

----------------------------------------

----------------------------------------

----------------------------------------

Form - C

[see Rule 46]

Medical examination by the ____________________________

(here enter the authorized medical officer)

Section - I

Statement by the applicant for commutation of a portion of his pension. The applicant must complete this statement prior to his examination by the ______________________ and must sign the declaration appended thereto in the presence of the authority.

Form to be filled in by applicant

1.       State your name in full. …………………………………

          (in Block Letter)

2.       State place of birth ………………………………………..

3.       State your age and date of birth …………………………

4.       Furnish the following particulars concerning your family.

Parent's age if living and state of health

Parent's age at death if dead and cause of death

Number of brothers and sisters living, their ages and health

Number of brothers and sisters dead, their ages and cause of death.

5.       Have any of your relatives suffered from tuberculosis (Consumption, Scrofula) cancer, asthma, fits, epilepsy, insanity or any other nervous disease ?

6.       Have you ever been abroad? If yes, where and for what period and how long?

7.       Have you ever served in the Navy, Army, Air Force, or in any Government department ?

8.       Have you ever been examined,—

          (a)      for life insurance; and

                   (b)        by any Government medical officer or medical board, civil or military ? If so, state the details and with what result ?

9.       Have you ever—

                   (a)        had small pox, intermittent or any other fever, enlargementor or suppuration of glands, spitting of blood asthma, inflammation of lungs, pleurisy, heart disease, fainting attack the munatism, appendicitis, epilepsy, insanity, or other nervous disease, discharge from, or other disease of, the ear, syphilis, genorrhoes; or

                   (b)        had any other disease or injury which required confinement to bed or medical or surgical treatment; or

          (c)      undergone any surgical operation;

10.     Have you rupture ?

11.     Have you varicocels, varicose, veinsorpites ?

12.     Is your vision in each eye good ?

13.     Is your hearing in each ear good ?

14.     Have you any congenital or acquired malformation, defect or deformity ?

15.     When were you last vaccinated ?

16.     Is there any further matter concerning your health not covered by the above questions, which should be communicated to the medical authority.

DECLARATION BY APPLICANT

(To be signed in presence of the medical authority)

I declare that all the above answers, are true and correct to the best of my belief.

I will fully reveal to the medical authority all circumstances within my knowledge that concern my health and fitness.

I am fully aware that by willfully making a false statement or concealing a relevant fact, I shall incur the risk of losing the commutation I have applied for and of having my pension withheld or withdrawn.

Signed in the presence of (enter name, designation of medical authority)

Applicant's signature ____________________

Section - II

(To be filled in by the examining medical authority)

1.       Apparent age.

2.       Height.

3.       Weight

4.       Girth of abdomen at level of umbilicus.

5.       Pulse rate.

          (a)      Sitting

          (b)     Standing

6.       What is the condition of arteries ?

7.       Blood pressure:—

          (a)      Systolic

          (b)     Diastolic

8.       Is there any evidence of disease of the main organs:--

          (a)      Heart

          (b)     Lungs

          (c)      Liver

          (d)     Spleen

9.       Does chemical examination of urine shows—

          (i)      Albumen  (ii) Sugar ?

                   State specific gravity.

10.     Has the applicant a rupture ? If so, state the kind and if reducible.

11.     Describe any scars or identifying marks.

12.     Any additional information.

Section - III

I/we have carefully examined __________________ and am/are of opinion that:—

he/she is in good health and has the prospect of an average duration of life.

Is not a fit subject for commutation as he or she is suffering from_____________

Age for the purpose of commutation i.e his/her age next ……… birth day should be taken to be ________________

Station ________________

Date __________________

Signature and designation of
examining medical authority

Schcdule-IV
[See Rule 39 (7)]

Certificate to be appended on the bill for payment of pension

I declare that I have not received any remuneration as a regular employee under Government or any other autonomous body set up, controlled or managed by the Federal or Provincial Government, during the period for which the amount of pension claimed in this bill is due.

Note.—In the case of a pensioner permitted to draw pension after employment, the certificate should be modified accordingly.

Schedule - V
[See Rule 40(1)]

Declaration for anticipatory pension

Whereas the (here state the designation of the officer sanctioning the advance) has consented provisionally to advance to me a pension of Rs ……………… per month and a lump sum commutation pension / gratuity in anticipation of the completion of the enquiries necessary to enable the Institute fix the amount of any pension or gratuity, I hereby acknowledge that in accepting this advance, I fully understand that my pension or gratuity is subject to revision on the completion of the necessary formal enquiries, and I undertake to raise no objection to such revision on the ground that the provisional pension or gratuity now being paid to me may exceed the pension to which I may be eventually found entitled. I further undertake to repay any amount advanced to me in excess of the pension or gratuity which I may be eventually found entitled.

Schedule-VI
[See Rule 43(1)]

COMMUTATION TABLE

AGE NEXT BIRTHDAY

NUMBER OF YEARS PURCHASED

AGE NEXT BIRTH DAY

NUMBER OF YEARS PURCHASED

1

2

3

4

20

40.5043

51

17.6526

21

39.7341

52

17.0050

22

38.9653

53

16.3710

23

38.1974

54

15.7517

24

37.4307

55

15.1478

25

36.6651

56

14.5602

26

35.9006

57

13.9888

27

35.1372

58

13.4340

28

34.3750

59

12.8953

29

33.6143

60

12.3719

30

32.8071

61

11.8632

31

32.0974

62

11.3684

32

31.3412

63

10.8872

33

30.5869

64

10.4191

34

29.8343

65

9.9639

35

29.0841

66

9.5214

36

28.3362

67

9.0914

37

27.5908

68

8.6742

38

26.8482

69

8.2697

39

26.1009

70

7.8778

40

25.3728

71

7.4983

41

24.6406

72

7.1314

42

23.9126

73

6.7766

43

23.1840

74

6.4342

44

22.4713

75

6.1039

45

21.7592

76

5.7858

46

21.0538

77

5.4797

47

20.3555

78

5.1854

48

19.6653

79

4.9030

49

18.9841


80


4.6321

50

18.3129

SCHEDULE-VII

[See Rule 52]

CLASSIFICATION OF INJURIES

Equal to loss of limb—

          Hemiplegia without aphasia.

          Permanent use of a tracheotomy tube.

          Artificial anus.

          Total deafness of both ears.

Very Severe—

          Complete unilateral facial paralysis, likely to be permanent.

          Lesion of kidney, ureter or bladder.

          Compound fractures (except phalanges).

          Such gross destruction of soft parts as to lead to permanent disability or loss of function.

Severe and likely to be permanent—

          Ankylisis of, or considerable restriction in, the movement of one of the following joints:—

          Knee, elbow, shoulder, hip, ankle, temporo-maxillary or rigidity of the dorsilumber or cervical Sections of the spine.

Partial loss of vision of one eye.

Destruction of loss of one testicle.

          Retention of foreign bodies not causing permanent or serious sympotoms.

 

 

Schedule-VIII

[See Rule 52]

Disability pension or gratuity

CLASS OF INJURY

PENSION

GRATUITY

CHILDREN'S ALLOWANCE

 

 

 

Child without own mother

Child with own mother living

1

2

3

4

5

A

Twenty per cent of pay (Note: After death it shall devolve on widow)

Six months pay

Five per cent of pay.