NOTIFICATION

PAKISTAN PENAL CODE, 1860 (XLV OF 1860)

[Gazette of Pakistan, Extraordinary, Part-I, Part-II, 1st July, 2011]

            S.R.O. No. F-8(3) IF-IV/91 of 2011.—In pursuance of sub-section (2) of Section 323 of Pakistan Penal Code (Act, XLV of 1860) the Federal Government is pleased to declare Rs. 3,155,542/- (Rupees three million one hundred fifty five thousand five hundred forty two only), to be the value of thirty thousand six hundred and thirty (30,630) grams of silver for the financial year 2011-12 for the purpose of sub-section (1) thereof.

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ACT NO. IV OF 2011

GILGIT-BALTISTAN PARLIAMENTARY SECRETARIES (SALARY, ALLOWANCES AND PRIVILEGES) ACT, 2011

An Act to provide for salaries, allowance and privileges of the Parliamentary Secretaries Gilgit-Baltistan Legislative Assembly.

[Gazette of Pakistan, Extraordinary, Part-I, Part-I, 23rd May, 2011]

No. Secy-Law (Legis)-1/2008, dated 5.4.2011.—WHEREAS, it expedient to provide for salaries, allowances and privileges of the Parliamentary Secretaries of Gilgit-Baltistan Legislative Assembly.

It is hereby enacted as follows:--

1.         Short title and commencement.—(1) This Act may be called the Gilgit-Baltistan Parliamentary Secretaries (Salary, Allowances and Privileges) Act, 2011.

(2)  It shall come into force at once.

2.         Definitions.—In this Act, unless the subject or context otherwise requires, the following expressions shall have the meanings hereby respectively assigned to them, that is to say.—

(a)        "Assembly" means the Gilgit-Baltistan Legislative Assembly;

(b)        "Government" means Government of Gilgit-Baltistan;

(c)        "Maintenance" in relation to a residence includes the payment of local rates, taxes and the provision of electricity, gas and water;

(d)        "Meeting" means a meeting of the Assembly or any of its committees from the commencement of its business to the termination of the business of a day;

(e)        "Official residence" includes accommodation in Peoples House, a hostel, a rented house or any other accommodation owned, managed or arranged by the Government;

(f)        "Parliamentary Secretary" means the Parliamentary Secretary appointed as such by the Chief Minister; and

(g)        "Session" means the period commencing on the day of the first meeting of the Assembly after having been summoned and ending on the day the Assembly is prorogued or dissolved.

3.         Appointment and terms of office.—(1) the Chief Minister may appoint such number of Parliamentary Secretaries as may be determined.

(2)  A Parliamentary Secretary shall hold office during the pleasure of the Chief Minister.

4.         Salary.—(1) The salary of a Parliamentary Secretary shall be thirty thousand rupees per month.

(2)  The salary mentioned in sub-section (1) shall automatically be increased by the Government in proportion to the increase in the salary of the civil servants.

5.         Sumptuary allowance.—A Parliamentary Secretary shall be entitled to receive fifteen thousand rupees per month as sumptuary allowance.

6.         Transport.—(1) A Parliamentary Secretary shall be entitled to the use of one official car both for official and private use.

(2)        A sum of thirty thousand rupees per mensem shall be admissible to a Parliamentary Secretary as petrol and car maintenance allowance and the expense on petrol and maintenance of car shall be the responsibility of the Parliamentary Secretary.

(3)        The allowance mentioned in sub-section (2) shall be admissible to a Parliamentary Secretary whether or not an official car has been provided to him.

(4)        On ceasing to hold office, a Parliamentary Secretary, shall return the car within ten days.

7.         Official residence.—(1) A Parliamentary Secretary shall be entitled, without payment of rent, to the use of an official residence including accommodation on tour throughout his terms of office; and for a period of fifteen days immediately thereafter.

(2)        If at the time of entering upon office an official residence is not available, a Parliamentary Secretary shall, until such residence is provided by the Government, be paid the house rent at the rate of twenty five thousand rupees per month.

(3)        Where a Parliamentary Secretary chooses to reside.—

(i)         in his own house; or

(ii)        in a rented house occupied by him before his appointment as a Parliamentary Secretary, he may be paid a monthly sum of fifteen thousand rupees in lieu of Government Rest House and to cover all expenses on its maintenance.

8.         Traveling allowance and Daily allowance for business other than Assembly business.—Where a Parliamentary Secretary is called by a Government Department in connection with any official business in his capacity as a Parliamentary Secretary, he shall be paid by that Department, traveling allowance and daily allowance for the days of journey from and to his ordinary place of residence and for the day or days he is required to attend any such official business, at the rates admissible to him under his Act.

9.         Traveling within Pakistan.—(1) Subject to the provisions of this Act, a Parliamentary Secretary traveling on official duty shall be treated as the first grade officer.

(2)        A Parliamentary Secretary may, if he is on official duty and it is in the public interest, travel by air, in which case he shall be entitled to:—

(a)        Business class airfare; and

(b)        Cost of transporting personal luggage up to fifty kilograms including the free allowance given by the air company.

(3)        Wherever possible, a Parliamentary Secretary shall purchase a return air ticket.

(4)        A Parliamentary Secretary, traveling on official duty by rail, shall be entitled to receive traveling allowance equal to the fare of the class traveled, fare of personal luggage up to one hundred kilograms and half fare of the air conditioned class.

(5)        A Parliamentary Secretary, traveling on official duty by ship, steamer or launch, shall be entitled to receive traveling allowance equal to the actual fare paid for himself and the carriage of personal luggage up to one hundred kilograms.

(6)        A Parliamentary Secretary, traveling on official duty by road in a vehicle not owned by the Government, shall be entitled to receive traveling allowance at the rate of ten rupees per kilometer.

10.       Travel abroad.—A Parliamentary Secretary, traveling on official business outside Pakistan, shall be entitled to the business class airfare and such allowance as may be specified by the Government.

11.       Form of certificate.—Every claim by a Parliamentary Secretary for traveling allowance or daily allowance shall be supported by a written certificate in the following form signed by him:—

"Certified that the amount has not been claimed by me in any other bill or drawn by me from any other source."

12.       Additional traveling allowance.—Notwithstanding anything contained in Section 8, a Parliamentary Secretary shall be provided a sum of seventy five thousand rupees per annum to travel within Pakistan at any time.

13.       Compensation in case of death.—In case of death of a Parliamentary Secretary, his spouse, minor children and unmarried daughters shall be entitled to receive a sum of ten hundred thousand rupees as financial assistance from the Government.

14.       Daily allowance.—A Parliamentary Secretary while on tour shall be entitled to draw an allowance of six hundred and fifty rupees per day:

Provided that where the duration of tour is less than eight hours, one half daily allowance shall be admissible.

15.       Controlling Officer.—The Minister with whom a Parliamentary Secretary is attached shall be his Controlling Officer for purposes of traveling allowance and daily allowance.

16.       Medical facilities.—A Parliamentary Secretary shall be entitled, for himself and for his parents, spouse, real and step sons and daughters, wholly dependent upon him, to free indoor and outdoor medical facilities of the standard admissible to a Class-I Officer of the Government.

17.       Leave.—(l) The Chief Minister may grant a Parliamentary Secretary during his terms of office, at any one time or from time to time, leave of absence for urgent reasons of health or private affairs, for a period not exceeding three months in the aggregate.

(2) The leave allowance of a Parliamentary Secretary shall be the same as his salary.

18.       Telephone.—(1) A Parliamentary Secretary shall be entitled to, at the Government expense, the facility of a telephone at the place where he ordinarily resides:

Provided that Government shall pay only rupees seven thousand per month as charges of rent of the telephone and the calls made there from irrespective of whether the telephone is a private connection or installed at Government expense.

(2)  The telephone bills shall be paid by the Parliamentary Secretary himself.

19.       Office maintenance allowance.—A Parliamentary Secretary shall be entitled to receive an office maintenance allowance at the rate of twenty thousand rupees per month.

20.  Powers to make rules.—Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Act.

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ACT NO. XI OF 2011

ELECTION LAWS (AMENDMENT) ACT, 2011

An Act further to amend certain election laws

[Gazette of Pakistan, Extraordinary, Part-I, Part-I, 5th May, 2011]

The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 3rd May, 2011, and is hereby published for general information:—

WHEREAS it is expedient further to amend certain election laws for the purposes hereinafter appearing;

It is hereby enacted as follows:—

1.  Short title and commencement.—(1) This Act may be called the Election Laws (Amendment) Act, 2011.

(2)  It shall come into force at once.

2.         Amendment of Section 2, Act XXI of 1974.—In the Electoral Rolls Act, 1974 (Act XXI of 1974), hereinafter referred to as the said Act, in Section 2,—

(a)        after sub-section (1), the following new sub-sections shall be added, namely:—

            "(1A) "Commission" means the Election Commission constituted under Article 218 of the Constitution of the Islamic Republic of Pakistan.

            (1B) "data" means, any information in digital form contained in a database maintained by the Commission.

            (1C) "database" for the purpose of this Act, means the database of the Electoral Rolls maintained by the Commission; and

(b)        in sub-section (2), in clause (c), for the word "Commissioner", the word "Commission" shall be substituted.

3.         Amendment of Section 6, Act XXI of 1974.—In the said Act, in Section 6, in sub-section (2), for clause (b), the following shall be substituted, namely:—

            "(b) is not less than eighteen years of age and possesses National Identity Card issued by the National Database and Registration Authority constituted under the National Database and Registration Authority Ordinance, 2000 (VIII of 2000), or comes in possession of such National Identity Card on the last date fixed for inviting claims, objections and applications for corrections, if any, for the purpose of preparing or revising the electoral rolls:

            Provided that National Identity Card issued by National Database and Registration Authority shall be deemed to be valid for the purpose of registration as voter or casting vote at a poll, notwithstanding the expiry of its validity period."

4.         Amendment of Section 18, Act XXI of 1974.—In the said Act, in Section 18, in sub-section (1), the commas and words ",or deemed to have been issued," shall be omitted.

5.         Insertion of new Section 30A, Act XXI of 1974.—In the said Act, after Section 30, the following new section shall be inserted, namely:—

"30A. Information not to be divulged.—Any person who—

(a)        being an employee of the Commission publishes or communicates to any person, any information or data acquired by him in the course of such employment without being so authorized by the Commission;

(b)        breaches, in any manner, the security or integrity of the information or data contained in the electoral rolls database;

(c)        having possession of any information or data which to his knowledge has been obtained or disclosed in contravention of this Act or in breach of the security, secrecy or integrity thereof, publishes or communicates that information or data to any other person; or

(d)        misuses or abuses, in any manner, the information or data contained in the electoral rolls database, shall be punishable with imprisonment for a term which may extend to five years, or with fine which may extend to five million rupees, or with both.".

6.         Amendment of sections 3, 4, 5, 6, 9, 10, 18, 19, 22, 28, 29, 30 and 31, Act XXI of 1974.—In the said Act, in sections 3, 4, 5, 6, 9, 10, 18, 19, 22, 28, 29, 30 and 31 —


(a)        for the words "Commissioner" and "Chief Election Commissioner", wherever occurring, the word "Commission" shall be substituted; and

(b)        except in clause (b) of sub-section (2) of Section 5, sub-section (2) of Section 6 and Section 18, for the words "he" and "his", wherever occurring, the words "it" and "its" shall be substituted, respectively.

7.         Amendment of Section 33, Act LXXXV of 1976.—In the Representation of the People Act, 1976 (Act LXXXV of 1976), in Section 33,—

(a)        in sub-section (1), for the words, figures, commas and brackets "for that purpose, require the elector to produce his identity card provided for in the National Registration Act, 1973 (LVI of 1973) or", the words and comma "for the purpose, require the elector to produce his National Identity Card" shall be substituted; and

(b)        in sub-section (3), in clause (a), for the words, figures and brackets "identity card provided for in the National Registration Act, 1973 (LVI of 1973) or issued", the words "National Identity Card issued to him" shall be substituted.

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ACT NO. XII OF 2011

INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN (REORGANIZATION AND CONVERSION) ACT, 2011

An Act to provide for the reorganization and conversion of the Industrial Development Bank of Pakistan into a public limited company

[Gazette of Pakistan, Extraordinary, Part-I, 14th May, 2011]

No. F. 9(36)/2010-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on 10th May, 2011, is hereby published for general information:—

It is hereby enacted as follows:—

1.  Short title, extent and commencement.—(1) This Act may be called the Industrial Development Bank of Pakistan (Reorganization and Conversion) Act, 2011.

(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)        "assets" means rights and powers of every description and includes all properties, movable or immovable, tangible or intangible, mortgages, charges and claims in the name of the IDBP, as the case may be;

(b)        "Company" means the Industrial Development Bank Limited to be established and incorporated in accordance with Section 3;

(c)        "contracts" means all contracts, agreements, bonds guarantees, indemnities, representations, obligations, undertakings and other legal documents and instruments of every description executed by or on behalf of IDBP, as the case may be, including employment, investment, sales and financial contracts with whomsoever;

(d)        "effective date" means the date specified in the order issued under Section 5;

(e)        "IDBP" means the Industrial Development Bank of Pakistan established under the Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961);

(f)        "liabilities" means all liabilities lawfully incurred by IDBP, as the case may be, and includes duties and obligations of every kind imposed thereon;

(g)        "order" means an order made by the Federal Government under sub-section (1) of Section 5;

(h)        "proceedings" includes any suit, arbitration or other legal or administrative proceedings, applications, appeals, awards, reviews or revisions filed or pending;

(i)         "rules" means the rules made under this Act;

(j)         "transfer" means the transfer of assets, contracts, liabilities, proceedings and undertakings of IDBP, as the case may be, to the Company; and

(k)        "undertakings" includes all projects, ventures and any other operations undertaken by IDBP, as the case may be, individually or collectively in collaboration with some other person.

3.  Establishment of the Company, etc.—(1) As soon as may be, after the commencement of this Act, the Federal Government shall establish a Company to be known as the Industrial Development Bank Limited, limited by shares and cause it to be incorporated under the Companies Ordinance, 1984 (XLVII of 1984), with the principal object of taking over the business, functions, contracts, proceedings, undertakings, assets and liabilities of IDBP.

(2)  No stamp duty or any other charges shall be payable by the Company under any law for the time being in force for the transfer and vesting of the assets, contracts, liabilities, proceedings or undertakings of IDBP to the Company or any shares or securities issued in favour of the shareholders or financiers of IDBP by the Company.

4.         Company to be deemed a banking company.—(1) The Company shall be deemed to be a banking company for the purposes of the State Bank of Pakistan Act, 1956 (XXXIII of 1956), Banking Companies Ordinance, 1962 (LVII of 1962) and any other law for the time being in force relating to banking companies until such time that the licence is granted to the Company under sub-section (2).

(2)  Without prejudice to the provisions of sub-section (1), the Company shall apply to the State Bank of Pakistan, for a licence for permitting to carry on the business of banking in Pakistan in accordance with the provisions of Section 27 of the Banking Companies Ordinance, 1962 (LVII of 1962), through the existing branches of IDBP.

5.         Transfer and vesting of assets, contracts, liabilities, proceedings and undertakings.—(1) After the registration of the Company, the Federal Government shall by an order, published in the official Gazette, direct that all the assets, contracts, liabilities, proceedings and undertakings of IDBP stand transferred to and vest in the Company, on the date specified therein, on such terms and conditions as may be determined by the Federal Government in this behalf.

(2)  The order issued under sub-section (1) shall, inter-alia, provide for—

(a)        the transfer of all the assets, contracts, liabilities, proceedings and undertakings of IDBP to the Company;

(b)        the allotment of shares or debentures of the Company to the shareholders, debenture-holders or bond-holders of IDBP in proportion to their shares, debentures, bonds or other securities in IDBP, as the case may be, after determining the net asset value of IDBP on the effective date;

(c)        the dissolution of IDBP from the effective date;

(d)        the transfer of guarantees issued in favour of the Company by the Government of Pakistan, a Provincial Government and other Government Agencies such as Sarhad Development Board and Punjab Small Industries Corporation for repayment of loans from borrowers; and

(e)        such incidental, consequential and supplemental matters as are necessary to secure the transfer of assets, contracts, liabilities, proceedings and undertakings under this Act;

(3)        The value ascribed to the assets and liabilities transferred to, and vested in, the Company by the Federal Government under the order shall represent the fair net value of the assets for taxation, depreciation or any other purposes.

(4)        Notwithstanding the provisions of Section 146 of the Companies Ordinance, 1984 (XLVII of 1984), the Company shall, upon transfer, continue all business and undertakings of IDBP as were being carried on immediately prior to the effective date.

6.         Continuation of service in the Company.—(1) All permanent employees and officers of IDBP, who were continuously in the service of IDBP for a period of one year or more immediately before the effective date, shall stand transferred to and become the employees of the Company as on the effective date on the same terms and conditions as were applicable to them before the effective date. The terms and conditions applicable to the retired employees of IDBP shall continue to apply to such retired employees.

(2)  Notwithstanding anything contained in any law, contract, agreement or conditions of service no person transferred to the Company pursuant to sub-section (1) shall be entitled to any compensation as a consequence of transfer to the Company.

7.         Contracts and proceedings.—(1) All contracts subsisting or having effect, immediately before the effective date, to which IDBP may have been a party or beneficiary, shall be deemed to have been made by the Company and shall remain in force for all intents and purposes.

(2)  All proceedings by or against or relating to IDBP pending on the effective date before any Court, tribunal, arbitrator or any other authority shall be continued, prosecuted, defended, enforced and executed by or against the Company in the same manner and to the same extent as might have been continued, prosecuted, defended, enforced and executed by or against IDBP, as the case may be, and for the purposes of the proceedings under Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961) the relevant provisions of Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961) shall, mutatis mutandis, continue to apply to these proceedings notwithstanding the repeal of the Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961).

8.         Certain guarantees to remain in force.—Notwithstanding the repeal of the said Industrial Development Bank, of Pakistan Ordinance, 1961 (XXXI of 1961) all guarantees given by the Government of Pakistan in favour of foreign and local institutions which extended loans to IDBP shall remain in force as though these guarantees were given on behalf of IDBP.

9.         Bar of jurisdiction.—No Court, tribunal, arbitrator or authority shall question or permit to be called in question, any transfer or order made, anything done or action taken or purported to be made, done or taken under this Act.

10.       Indemnity.—No suit, prosecution or other legal proceedings shall lie against the Federal Government, State Bank of Pakistan, IDBP, the Company or any other person for anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder.

11.       Act to override other laws, etc.—The provisions of this Act shall have effect notwithstanding anything contrary contained in any other law for the time being in force, or in any agreement, contract, decree, order or any other instrument whatsoever.

12.       Power to make rules.—The Federal Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Act.

13.       Removal of difficulties.—If any difficulty arises in giving effect to any provision of this Act, the Federal Government may 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 two years from the commencement of this Act.

14.       Repeal.—(1) Immediately after the dissolution of IDBP in pursuance of clause (c) of sub-section (2) of Section 5, the Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961), shall stand repealed.

(2)        This Act, save as is provided in sub-section (1) of Section 3 and Section 8, shall stand repealed after the expiry of a period of eighteen months from its commencement and, subject to sub-section (3), the Company shall continue to operate.

(3)        The top management of the Company under Section 6, as soon as may be possible after the commencement of this Act, shall make arrangements for a viable public private partnership or privatization of the Company.

15.  Validation of actions, etc.—Anything done, actions taken, orders passed, instruments made, notifications issued, agreements made, proceedings initiated, processes or communication issued, powers conferred, assumed or exercised, by the Industrial Development Bank of Pakistan, (IDBP) or its officers on or after the 26th November, 2009 and before the commencement of this Act, shall be deemed to have been validly done, made, issued, taken, initiated, conferred, assumed, and exercised and provisions of the Act shall have, and shall be deemed always to have had, effect accordingly.

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ACT NO. XIII OF 2011

NATIONAL DEFENCE UNIVERSITY ACT, 2011

An Act to provide for the establishment of the National Defence University at Islamabad

[Gazette of Pakistan, Extraordinary, Part-I, 17th May, 2011]

No. F. 9(4)/2011-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on 14th May, 2011, is hereby published for general information:—

WHEREAS, in view of the everlasting need of an apex institution to impart higher education in the fields of national defence and security to meet contemporary and future challenges and to promote our national interests, it is imperative to establish a world class seat of learning to disseminate knowledge related to strategy, statecraft, security, management and other relevant areas of study and to provide for matters connected therewith or ancillary thereto.


It is hereby enacted as follows:—

CHAPTER-I
PRELIMINARY

1.         Short title and commencement.—(1) This Act may be called the National Defence University Act, 2011.

(2)  It shall come into force at once and shall be deemed to have taken effect on the 5th day of June, 2007.

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

(a)        "Academic Council" means the Academic Council of the University;

(b)        "Affiliated College or Institute" means an educational institution affiliated to the University but not maintained or administered by it;

(c)        "Authority" means any of the authorities of the University specified or set up under Section 15;

(d)        "Chancellor" means the Chancellor of the University;

(e)        "Commandant" means the head of the constituent or affiliated college;

(f)        "College" means a college constituted or affiliated with the University;

(g)        "Commission" means the Higher Education Commission under the Higher Education Commission Ordinance, 2002 (LIII of 2002);

(h)        "Constituent College or Institute" means an educational institution, by whatever name described, maintained and administered by the University;

(i)         "Dean" means the head of a Faculty or the head of an academic body granted the status of a Faculty by this Act or by the Statutes or Regulations;

(j)         "Director-General" means the head of the constituent or affiliated institute;

(k)        "Department" means a teaching department maintained and administered or recognized by the University in the manner prescribed;

(l)         "Faculty" means an administrative and academic unit of the University consisting of one or more departments, as prescribed;

(m)       "Government" means the Federal Government;

(n)        "National Defence College" means the National Defence College established under the Government of Pakistan Resolution No. NDC/102/1/A, dated the 16th March, 1971;

(o)        "prescribed" means prescribed by Statutes, Regulations or Rules made under this Act;

(p)        "President" means President of the University appointed under Section 10;

(q)        "Representation Committees" means the Representation Committees constituted under Section 23;

(r)        "Review Panel" means the Review Panel set up by the Chancellor in accordance with the provisions of Section 8;

(s)        "Statutes", "Regulations" and "Rules" mean respectively the Statutes, the Regulations and the Rules made under this Act;

(t)         "Senate" means the Senate of the University;

(u)        "Syndicate" means Syndicate of the University;

(v)        "Teachers" include Professors, Directing Staff (DS), Associate Professors, Assistant Professors and Lecturers engaged whole-time by the University or by a constituent or affiliated college and such other persons as may be declared to be the teachers by regulations;

(w)       "University" means the National Defence University (NDU) established under this Act; and

(x)        "University Teacher" means a whole-time teacher appointed and paid by the University or recognized by the University as such.

CHAPTER-II
THE UNIVERSITY

3.         Establishment and incorporation of the University.—(1) There shall be established a University to be called the National Defence University which shall consist of the following, namely:—

(a)        the Chancellor, the members of the Senate and the President;

(b)        the members of the authorities of the University established under Section 15;

(c)        all University teachers and persons recognized as students of the University in accordance with terms prescribed from time to time; and

(d)        all other full-time officers and members of the staff of the University.

(2)        The University shall be a body corporate by the name of the National Defence University, having perpetual succession and a common seal, and may sue and be sued by the said name.

(3)        The principal seat of the University shall be at Islamabad and it may set up any number of campuses, colleges and institutes at such places in Pakistan and abroad as the Senate may, from time to time, determine in accordance with the prescribed procedure and applicable laws.

(4)        The University shall be competent to acquire and hold property, both movable and immovable and to lease, sell or otherwise transfer any movable and immovable property which may have become vested in or been acquired by it.

(5)        The University shall have academic, financial and administrative autonomy, including the power to employ officers, teachers and other employees on such terms as may be prescribed, subject to the provisions of this Act and the Higher Education Commission Ordinance, 2002 (LIII of 2002).

(6)        In particular and without prejudice to the authority granted to the Commission by the law, the Government or an authority or auditor appointed by the Government shall have no power to question the policy underlying the allocation of resources approved by the Senate in the annual budget of the University.

4.         Purposes and powers of the University.—The University shall have the following purposes and powers, namely:—

(i)         to provide for education and scholarship in such branches of knowledge as it may deem fit, and to make provision for research, service to society and for the application, advancement and dissemination of knowledge in such manner as it may determine;

(ii)        to prescribe courses of studies to be conducted by it and the colleges;

(iii)       to hold examinations and to award and confer degrees, diplomas, certificates and other academic distinctions to and on persons who have been admitted to and have passed its examinations under prescribed conditions;

(iv)       to prescribe the terms and conditions of employment of the officers, teachers and other employees of the University and to lay down terms and conditions that may be different from those applicable to Government servants in general;

(v)        to engage, where necessary, persons on contracts of specified duration and to specify the terms of each engagement;

(vi)       to confer honorary degrees or other distinctions on approved persons in the manner prescribed;

(vii)      to provide for such instruction for persons not being students of the University as it may prescribe, and to grant certificates and diplomas to such persons;

(viii)     to institute programmes for the exchange of students and teachers between the University and other universities, educational institutions and research organizations, inside as well as outside Pakistan;

(ix)       to provide career counselling and job search services to students and alumni;

(x)        to maintain linkages with alumni;

(xi)       to develop and implement fund raising plans;

(xii)      to provide and support the academic development of the faculty of the University;

(xiii)     to confer degrees on persons who have carried on independent research under prescribed conditions;

(xiv)     to affiliate and disaffiliate educational institutions under prescribed conditions;

(xv)      to inspect colleges and other educational institutions affiliated or seeking affiliation with it;

(xvi)     to accept the examinations passed and the period of study spent by students of the University at other universities and places of learning equivalent to such examinations and periods of study in the University, as it may prescribe, and to withdraw such acceptance;

(xvii)    to co-operate with other Universities, public authorities or private organizations, inside as well as outside Pakistan, in such manner and for such purposes as it may prescribe;

(xviii)   to institute professorships, associate professorships, assistant professorships and lectureships and any other posts and to appoint persons thereto;

(xix)     to create posts for research, extension, administration and other related purposes and to appoint persons thereto;

(xx)      to recognize selected members of the teaching staff of affiliated colleges or educational institutions admitted to the privileges of the University or such other persons as it may deem fit, as University teachers;

(xxi)     to institute and award financial assistance to students in need, fellowships, scholarships, bursaries, medals and prizes under prescribed conditions;

(xxii)    to establish teaching departments, colleges, faculties, institutes, workshops, libraries, museums and other centres of learning for the development of teaching and research and to make such arrangements for their maintenance, management and administration as it may prescribe;

(xxiii)   to provide for the residence of the students of the University and the colleges, to institute and maintain halls of residence and to approve or license hostels and lodging;

(xxiv)   to maintain order, discipline and security on the campuses of the University and the colleges;

(xxv)    to promote the extra curricular and recreational activities of such students, and to make arrangements for promoting their health and general welfare;

(xxvi)   to demand and receive such fees and other charges as it may determine;

(xxvii)  to make provision for research, advisory or consultancy services and with these objects to enter into arrangements with other institutions, public or private bodies, commercial and industrial enterprises under prescribed conditions;

(xxviii) to enter into, carry out, vary or cancel contracts;

(xxix)   to receive and manage property transferred and grants, contributions made to the University and to invest any fund representing such property, grants, bequests, trusts, gifts, donations, endowments or contributions in such manner as it may deem fit;

(xxx)    to provide for the printing and publication of research and other works; and

(xxxi)   to do all such other acts and things, whether incidental to the powers aforesaid or not, as may be requisite or expedient in order to further the objectives of the University as a place of education, learning, and research.

5.  University open to all classes, creeds, etc.—(1) The University shall be open to all persons of either gender and of whatever religion, race, creed, class, colour or domicile who qualify for admission to the courses of study offered by the University based on the criteria determined by the Syndicate and no person shall be denied the privileges of the University on the ground only of religion, race, caste, creed, class, colour or domicile.

(2)        An increase in any fee or charge that is in excess of ten percent per annum on an annualized basis from the last such increase shall not be made except in special circumstances, and only with the approval of the Chancellor.

(3)        The University shall institute financial aid programmes for students in need, to the extent considered feasible by the Senate given the resources available, so as to enable admission and access to the University and the various opportunities provided by it to be based on merit rather than ability to pay:

Provided that the University may institute self-finance schemes not covering more than ten percent of the total number of candidates in any on-campus taught course or research-based programme of study.

6.         Teaching at the University.—(1) All recognized teaching in various courses shall be conducted by the University or the colleges in the prescribed manner and may include lectures, tutorials, discussions, seminars, demonstrations, distance learning and other methods of instruction as well as practical work in the workshops and other Governmental or private organizations.

(2)  The authority responsible for organizing recognized teaching shall be such as may be prescribed.

CHAPTER-III
OFFICERS OF THE UNIVERSITY

7.         Principal officersThe following shall be the principal officers of the University, namely:—

(a)        the Chancellor;

(b)        the President;

(c)        the Deans;

(d)        the Commandants or the Directors-General of the constituent colleges and institutes;

(e)        the Chairpersons or Chief Instructors of teaching departments;

(f)        the Registrar;

(g)        the Controller of Examinations;

(h)        the Director Administration;

(i)         the Director Finance; and

(j)         such other persons as may be prescribed by the Statutes or Regulations to be the principal officers of the University.

8.         The Chancellor.—(1) The President of Islamic Republic of Pakistan shall be the Chancellor of the University.

(2)        The Chancellor shall, when present, preside at the meetings of the Senate and the Convocation of the University. In the absence of Chancellor the Senate may request the person of eminence or President to preside over the convocation of the University.

(3)        The members of the Senate shall be appointed by the Chancellor from amongst the persons recommended by the Representation Committee set up for this purpose under sub-section (1) of Section 23 alongwith those elected.

(4)        Every proposal to confer an honorary degree shall be subject to confirmation by the Chancellor.

(5)        If the Chancellor is satisfied that a serious irregularity or mismanagement with respect to the affairs of the University has occurred, he may,—

(a)        as regards proceedings of the Senate, direct that specified proceedings be reconsidered and appropriate action taken within one month of the direction having been issued:

            Provided that if the Chancellor is satisfied that either no reconsideration has been carried out or that the reconsideration has failed to address the concern expressed he may, after calling upon the Senate to show-cause in writing, appoint a five member review panel to examine and report to the Chancellor on the functioning of the Senate. The report of the review panel shall be submitted within such time as may be prescribed by the Chancellor. The review panel shall be drawn from persons of eminence in academics and in the fields of Defence and Security, law, accountancy and administration; and

(b)        as regards proceedings of any Authority or with respect to matters within the competence of any Authority other than the Senate, direct the Senate to exercise powers under Section 17.

9.  Removal from the Senate.—(1) The Chancellor may, upon the recommendation of the review panel, remove any person from the membership of the Senate on the ground that such person—

(a)        has become of unsound mind; or

(b)        has become incapacitated to function as member of the Senate; or

(c)        has been convicted by a Court of law for an offence involving moral turpitude; or

(d)        has absented himself from two consecutive meetings without just cause; or

(e)        has been guilty of misconduct, including use of position for personal advantage of any kind, or gross inefficiency in the performance of functions.

(2)  The Chancellor shall remove any person from the membership of the Senate on a resolution calling for the removal of such person supported by at least three-fourths of the membership of the Senate:

Provided that before passing such resolution the Senate shall provide the member concerned a fair hearing:

Provided further that the provisions of this section shall not be applicable to the President in his capacity as a member of the Senate.

10.  The President.—(1) There shall be a President of the University who shall be a senior military officer from Pakistan Army and shall be appointed on such terms and conditions as may be prescribed.

(2)        The President shall be the chief executive officer of the University responsible for all administrative and academic functions of the University and for ensuring that the provisions of the Act, Statutes, Regulations and Rules are faithfully observed in order to promote the general efficiency and good order of the University. The President shall have all powers prescribed for this purpose including administrative control over the officers, teachers and other employees of the University.

(3)        The President shall, if present, be entitled to attend any meeting of any Authority or body of the University.

(4)        The President may, in an emergency that in his opinion requires immediate action ordinarily not in the competence of the President, take such action and forward, within seventy-two hours, a report of the action taken to the members of the Emergency Committee of the Senate, to be set up by Statute, the Emergency Committee may direct such further action as is considered appropriate.

The President shall also have the following powers, namely:—

(a)        to direct teachers, officers and other employees of the University to take up such assignments in connection with examination, administration and such other activities in the University as he may consider necessary for the purposes of the University;

(b)        to sanction by re-appropriation an amount not exceeding an amount prescribed by the Senate for an unforeseen item not provided for in the budget and report it to the Senate at the next meeting;

(c)        to make appointments of such categories of employees of the University and in such manner as may be prescribed by the Statutes;

(d)        to suspend, punish and remove, in accordance with prescribed procedure, from service officers, teachers and other employees of the University except those appointed by or with the approval of the Senate;

(e)        to delegate, subject to such conditions as may be prescribed, any of his powers under this Act to an officer or officers of the University; and

            (f)        to exercise and perform such other powers and functions as may be prescribed.

(6)        The President shall present an annual report before the Senate within three months of the close of the academic year. The annual report shall present such information as regards the academic year under review as may be prescribed, including disclosure of all relevant facts pertaining to—

(a)        academics;

(b)        research;

(c)        administration; and

(d)        finances.

(7)        The President's annual report shall be made available, prior to its presentation before the Senate, to all officers and University teachers and shall be published in such numbers as are required to ensure its wide circulation.

11.  Appointment and removal of the President.—(1) Whenever the office of the President falls vacant, or is likely to fall vacant, the Chief of the Army Staff shall recommend a suitable officer selected through a search process for approval by the Chancellor for appointment as the President.

(2)        The President shall be appointed for a renewable tenure of five years or less on terms and conditions prescribed by the Statutes. The term of an incumbent President may be renewed by the Chancellor on recommendations of Chief of the Army Staff.

(3)        At any time when the office of the President is vacant, or the President is absent or is unable to perform the functions of his office due to illness or some other cause, the Senate shall make arrangements in accordance with the Statutes for the performance of the duties of the President.

12.       Registrar.—(1) There shall be a Registrar of the University who shall be appointed by the Senate on the recommendation of the President, on such terms and conditions as may be prescribed.

(2)        The experience as well as the professional and academic qualifications necessary for appointment to the post of the Registrar shall be such as may be prescribed.

(3)        The Registrar shall be a full-time officer of the University and shall—

(a)        be the administrative head of the secretariat of the University and be responsible for the provision of secretariat support to the Authorities of the University;

(b)        be the custodian of the common seal and the academic records of the University;

(c)        maintain a register of registered graduates in the prescribed manner;

(d)        supervise the process of election, appointment of nomination of members to the various authorities and other bodies in the prescribed manner; and

(e)        perform such other duties as may be prescribed.

(4)        The term of office of the Registrar shall, unless renewed, be for a period of three years:

Provided that the Senate may, on the advice of the President, terminate the appointment of the Registrar on ground of inefficiency or misconduct in accordance with prescribed procedure.

13.       Director Finance.—(1) There shall be a Director Finance of the University who shall be appointed by the Senate on the recommendation of the President on such terms and conditions as may be prescribed.

(2)  The experience and the professional and academic qualifications necessary for appointment to the post of the Director Finance shall be as may be prescribed.

(3)        The Director Finance shall be the chief financial officer of the University and shall—

(a)        manage the assets, liabilities, receipts, expenditures, funds and investments of the University;

(b)        prepare the annual and revised budget estimates of the University and present them to the Syndicate or a committee thereof for approval and incorporation in the budget to be presented to the Senate;

(c)        ensure that the funds of the University are expended on the purposes for which they are provided;

(d)        have the accounts of the University audited annually so as to be available for submission to the Senate within six months of the close of the financial year; and

(e)        perform such other duties as may be prescribed.

(4)        The term of office of the Director Finance shall, unless renewed, be for a period of three years:

Provided that the Senate may, on the advice of the President, terminate the appointment of the Director Finance on grounds of inefficiency or misconduct in accordance with prescribed procedure.

14.  Controller of Examinations.—(1) There shall be a Controller of Examinations, to be appointed by the Senate on the recommendation of the President, on such terms and conditions as may be prescribed.

(2)        The minimum qualifications necessary for appointment to the post of the Controller of Examinations shall be as may be prescribed.

(3)        The Controller of Examinations shall be a full-time officer of the University and shall be responsible for all matters connected with the conduct of examinations and perform such other duties as may be prescribed.

(4)        The Controller of Examinations shall be appointed for a renewable term of three years:

Provided that the Senate may, on the advice of the President, terminate the appointment of the Controller of Examinations on grounds of inefficiency or misconduct in accordance with prescribed procedure.

CHAPTER-IV
AUTHORITIES OF THE UNIVERSITY

15.       Authorities.—(1) The following shall be the authorities of the University, namely:—

(i)         the Senate;

(ii)        the Syndicate;

(iii)       the Academic Council;

(iv)       the Advanced Studies and Research Board;

(v)        the Board of Faculty;

(vi)       the Board of Studies;

(vii)      the Finance and Planning Committee;

(viii)     the Representation Committees for appointment to the Senate, Syndicate and the Academic Council in accordance with relevant provision of the Act;

(ix)       the Selection Board; and

(x)        such other authorities as may be constituted by the Senate.

(2)        The Senate, the Syndicate and the Academic Council may set up such other committees or sub-committees, by whatever name described, as are considered desirable through Statutes or Regulations as appropriate. Such committees or sub-committees shall be Authorities of the University for the purposes of this Act.

16.       Senate.—(1) The Senate shall be responsible for governance, general supervision and control of the affairs including laying down broad policies of the University and shall consist of the following, namely:—

(a)        the Chancellor who shall be the chairperson of the Senate;

(b)        the President;

(c)        the Chairman Joint Chiefs of Staff Committee, the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff or their nominees.

(d)        not less than one member of the Government not below the rank of Additional Secretary from the Ministry of Education or any other department relevant to the special focus of the University;

(e)        four persons from society at large being persons of distinction in the fields of defence and security, strategy, statecraft, administration and management, such that the appointment of these persons reflects a balance across the various fields:

            Provided that the special focus or affiliation of the University, to be declared in the manner prescribed, may be reflected in the number of persons of distinction in an area of expertise relevant to the University who are appointed to the Senate;

(f)        one person from amongst the alumni of the University;

(g)        two persons from the academic community of the country, other than an employee of the University, at the level of professor or principal of a college;

(h)        four University Teachers; and

(1)        one person nominated by the Commission.

(2)        The numbers of the members of the Senate described against clauses (f) to (i) of sub-section (1) may be increased by the Senate through Statutes subject to condition that the total membership of the Senate does not exceed twenty-one, with a maximum of five University Teachers and the increase is balanced to the extent possible, in proportion to different categories specified in sub-section (1).

(3)        All appointments to the Senate shall be made by the Chancellor. Appointments of persons described in clauses (f) and (g) of sub-section (1) shall be made from amongst a panel of three names for each vacancy recommended by the Representation Committee set up in terms of Section 23 and in accordance with procedure as may be prescribed:

Provided that effort shall be made, without compromising on quality or qualification, to give fair representation to women on the Senate:

Provided further that as regards the University Teachers described in clause (h) of sub-section (1) the Senate shall prescribe a procedure for appointment on the basis of elections that provide for voting by the various categories of University Teachers:

Provided also that the Senate may alternatively prescribe that appointment of University Teachers to the Senate shall also be in the manner provided by this sub-section for the persons described in clauses (f) and (g) of sub-section (1).

(4)        Members of the Senate, other than ex-officio members, shall hold office for three years. One-third of the members, other than ex-officio members, of the first restructured Senate, to be determined by lot, shall retire from office on the expiration of one year from the date of appointment by the Chancellor. One-half of the remaining members, other than ex-officio members, of the first restructured Senate, to be determined by lot, shall retire from office on the expiration of two years from the date of appointment and the remaining one-half, other than ex-officio members, shall retire from office on the expiration of the third year:

Provided that no person, other than an ex-officio member, may serve on the Senate for more than two consecutive terms:

Provided further that the University Teachers appointed to the Senate may not serve for two consecutive terms.

(5)        The Senate shall meet at least twice in a calendar year.

(6)        Service on the Senate shall be on honorary basis but actual expenses may be reimbursed as prescribed.

(7)        The Registrar shall be the secretary of the Senate.

(8)        In the absence of the Chancellor, meetings of the Senate shall be presided over by the senior most serving military officer from amongst the members of the Senate, not being an employee of the University as the Chancellor may, from time to time, nominate. The member so nominated shall be the convener of the Senate.

(9)        Unless otherwise prescribed by this Act, all decisions of the Senate shall be taken on the basis of the opinion of a majority of the members present. In the event of the members being evenly divided on any matter the person presiding over the meeting shall have a casting vote.

(10)      The quorum for a meeting of the Senate shall be two-thirds of its membership, a fraction being counted as one.

17.  Powers and functions of the Senate.—(1) The Senate shall have the powers of general supervision over the University and shall hold the President and the Authorities accountable for all the functions of the University. The Senate shall have all powers of the University not expressly vested in an Authority or officer by this Act and all other powers not expressly mentioned by this Act that are necessary for the performance of its functions.

(2)  Without prejudice to the generality of the foregoing powers, the Senate shall have the following powers, namely:—

(a)        to approve the proposed annual plan of work, the annual and the revised budget, the annual report and the annual statement of the account;

(b)        to hold, control and lay down policy for the administration of the property, funds and investments by the University, including the approval of the sale and purchase or acquisition of immovable property;

(c)        to oversee the quality and relevance of the University's academic programmes and to review the academic affairs of the University in general;

(d)        to approve the appointment of the Deans, Professors, Associate Professors and such other senior faculty and senior administrators as may be prescribed;

(e)        to institute schemes, directions and guidelines for the terms and conditions of appointment of all officers, teachers and other employees of the University;

(f)        to approve strategic plans;

(g)        to approve financial resource development plans of the University;

(h)        to consider the drafts of Statutes and Regulations proposed by the Syndicate and the Academic Council and deal with them in the manner as provided for in Sections 25 and 26, as the case may be:

            Provided that the Senate may make a Statute or Regulation on its own initiative and approve it after calling for the advice of the Syndicate or the Academic Council as the case may be;

(i)         to annul by order in writing the proceedings of any Authority or officer if the Senate is satisfied that such proceedings are not in accordance with the provisions of this Act, Statutes or Regulations after calling upon such Authority or officer to show cause why such proceedings should not be annulled;

(j)         to recommend to the Chancellor removal of any member of the Senate in accordance with the provisions of this Act;

(k)        to make appointments of members of Syndicates, in accordance with the provisions of this Act;

(l)         to make appointments of the members of Academic Council, other than ex-officio members, in accordance with the provisions of this Act;

(m)       to appoint Emeritus Professor on such terms and conditions as may be prescribed;

(n)        to remove any person from the membership of any authority if such person—

            (i)         has become of unsound mind; or

            (ii)        has become incapacitated to function as member of such Authority; or

            (iii)       has been convicted by a Court of law for an offence involving moral turpitude; and

(o)        to determine the form, provide for the custody and regulate the use of the common seal of the University.

(3)  The Senate may, subject to the provisions of this Act, delegate all or any of its powers and functions to any Authority, officer or employee of the University at its main campus, to any Authority, committee, officer or employee at its additional campus for the purpose of exercising such powers and performing such functions in relation to such additional campus, and for this purpose the Senate may create new posts or positions at the additional campus.

18.       Visitations.—The Senate may, in accordance with terms and procedures as may be prescribed, cause an inspection to be made in respect of any matter connected with the University.

19.       Syndicate.—(1) There shall be a Syndicate headed by the President to formulate rules, regulations and statutes and so on, for day to day functioning of the University, within the framework of policies laid down by the Senate. Other members of the committee shall consist of—

(a)        the President who shall be its Chairperson;

(b)        the Deans of Faculties of the University;

(c)        Heads of the constituent colleges and institutes;

(d)        three professors or directing staff from different departments who are not members of the Senate to be elected by the University Teachers in accordance with procedure to be prescribed by the Senate;

(e)        the Registrar;

(f)        the Director Finance; and

(g)        the Controller of Examinations;

(2)        Members of the Syndicate, other than ex-officio members, shall hold office for three years.

(3)        As regards three professors specified in clause (d) of sub-section (1), the Senate may, as an alternative to elections, prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 23. Appointment of persons proposed by the Representation Committee may be made by the Senate on the recommendation of the President.

(4)        The quorum for a meeting of the Syndicate shall be one-half of the total number of members, a fraction being counted as one.

(5)        The Syndicate shall meet at least once in each quarter of a year.

20.  Powers and duties of the Syndicate.—(1) The Syndicate shall be the executive body of the University and shall, subject to the provisions of this Act and the Statutes, exercise general supervision over the affairs and management of the University.

(2)  Without prejudice to the generality of the foregoing powers and subject to the provisions of this Act, the Statutes and directions of the Senate, the Syndicate shall have the following powers, namely:—

(a)        to consider annual report, the annual and revised budget estimates and to submit these to the Senate;

(b)        to transfer and accept transfer of moveable property on behalf of the University;

(c)        to enter into, vary, carry out and cancel contracts on behalf of the University;

(d)        to cause proper book of the account to be kept for all sums of money received and expended by the University and for the assets and liabilities of the University;

(e)        to invest any money belonging to the University including any un-applied income in any of the securities described in Section 20 of the Trusts Act, 1882 (Act II of 1882), or in the purchase of immovable property or in such other manner, as it may prescribe, with the like power of varying such investment;

(f)        to receive and manage any property transferred and grants, bequests, trusts, gifts, donations, endowments and other contributions made to the University;

(g)        to administer any funds placed at the disposal of the University for specified purposes;

(h)        to provide the buildings, libraries, premises, furniture, apparatus, equipment and other means required for carrying out the work of the University;

(i)         to establish and maintain halls of the residence and hostels or approve or license hostels or lodging for the residence of students;

(j)         to recommend to the Senate affiliation or disaffiliation of the colleges;

(k)        to recommend to the Senate admission of educational institutions to the privileges of the University and withdraw such privileges;

(l)         to arrange for the inspection of the colleges and the departments;

(m)       to institute Professorships, Associate Professorships, Assistant Professorships, Lectureships and other teaching posts or to suspend or to abolish such posts;

(n)        to create, suspend or abolish such administrative or other posts as may be necessary;

(o)        to prescribe the duties of officers, teachers and other employees of the University;

(p)        to report to the Senate on matters with respect to which it has been asked to report;

(q)        to appoint members to various Authorities in accordance with the provisions of this Act;

(r)        to propose drafts of the Statutes for submission to the Senate;

(s)        to regulate the conduct and discipline of the students of the University;

(t)         to take actions necessary for the good administration of the University in general and to this end exercise such powers as are necessary;

(u)        to delegate any of its powers to any Authority or officer or a committee; and

(v)        to perform such other functions as have been assigned to it by the provisions of this Act or may be assigned to it by the Statutes.

21.  Academic Council.—(1) There shall be an Academic Council, which would lay down academic policies, decide on the syllabi and curricula of various courses at the university and the affiliated institutions to ensure excellence and the requisite joint-ness in training activities. The Academic Council of the University shall consist of the following, namely:—

(a)        the President who shall be its Chairman;

(b)        the Deans of Faculties and Heads of Colleges and Departments as may be prescribed;

(c)        five members representing the departments, institutes and the constituent colleges to be elected in the manner prescribed by the Senate;

(d)        two Heads of affiliated colleges;

(e)        five Professors including Emeritus Professors;

(f)        the Registrar;

(g)        the Controller of Examinations; and

(h)        the Librarian.

(2)        The Senate shall appoint the members of the Academic Council on the recommendation of the President:

Provided that as regards the five professors and the members representing the departments, institutes and the constituent colleges the Senate may, as an alternative to elections, prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 23. Appointment of persons proposed by the Representation Committee shall be made by the Senate on the recommendation of the President.

(3)        The Academic Council shall act as an advisory and implementing body for the decisions of the Syndicate on all matters relating to the conduct of examinations, conferment of degrees, revision and updating of course syllabi, quality of education and duration of all courses including conduct of postgraduate classes in specified disciplines.

(4)        The Academic Council shall also assist the President in evaluating, proposing and coordinating research and development projects at respective institutes and colleges both constituent and affiliated.

(5)        Members of the Academic Council shall hold office for three years.

(6)        The Academic Council shall meet at least once in each quarter.

(7)        The quorum for meetings of the Academic Council shall be one-half of the total number of members, a fraction being counted as one.

22.  Powers and functions of the Academic Council.—(1) The Academic Council shall be the principal Academic body of the University and shall, subject to the provisions of this Act and the Statutes, have the power to lay down proper standards of instruction, research and examinations and to regulate and promote the academic life of the University and the colleges.

(2)  Without prejudice to the generality of the forgoing powers and subject to the provisions of this Act and the Statutes, the Academic Council shall have the power to—

(a)        approve the policies and procedures pertaining to the quality of academic programmes;

(b)        approve academic programmes;

(c)        approve the policies and procedures pertaining to the student related functions including admissions, expulsions, punishments, examinations and certification;

(d)        approve the policies and procedures assuring quality of teaching and research;

(e)        recommend the policies and the procedures for affiliation of other educational institutions;

(f)        propose to the Syndicate schemes for the constitution and organization of Faculties, teaching departments and boards of studies;

(g)        appoint paper setters and examiners for all examinations of the University after receiving panels of names from the relevant authorities;

(h)        institute programmes for the continued professional development of University teachers at all levels;

(i)         recognize the examinations of other universities or examining bodies as equivalent to the corresponding examinations of the University.

(j)         regulate the award of studentship, scholarships, exhibitions, medals and prizes;

(k)        frame Regulations for submission to the Senate;

(l)         prepare an annual report on the academic performance of the University; and

(m)       perform such functions as may be prescribed by Regulations.

23.  Representation Committees.—(1) There shall be Representation Committees constituted by the Senate through Statutes to recommend persons for appointment to the Senate in accordance with the provisions of Section 16.

(2)        There shall also be a Representation Committee constituted by the Senate through Statutes to recommend persons for appointment to the Syndicate and the Academic Council in accordance with the provisions of sections 19 and 21.

(3)        Members of the Representation Committee for appointments to the Senate shall consist of the following, namely:—

(a)        three members of the Senate who are not University Teachers;

(b)        two persons nominated by the University Teachers from amongst themselves in the manner prescribed;

(c)        one person from the academic community, not employed by the University, at the level of professor or college head to be nominated by the University Teachers in the manner prescribed; and

(d)        one eminent citizen with experience in administration, philanthropy, development work, law or accountancy to be nominated by the Senate.

(4)        The Representation Committee for the appointment to the Syndicate and the Academic Council shall consist of the following, namely:—

(a)        two members of the Senate who are not University Teachers;

(b)        three persons nominated by the University Teachers from amongst themselves in the manner prescribed.

(5)        The tenure of the Representation Committee shall be three years:

Provided that no member shall serve for more than two consecutive terms.

(6)        The procedures of the Representation Committee shall be such as may be prescribed.

(7)        There may also be such other Representation Committees set up by any of other Authorities of the University as are considered appropriate for recommending persons for appointments to the various Authorities and other bodies of the University.

24.  Appointment of committees by certain authorities.—(1) The Senate, the Syndicate, the Academic Council and other Authorities may, from time to time, appoint such standing, special or advisory committees, as they may deem fit, and may place on such committees persons who are not members of the Authorities appointing the committees.

(2)  The constitutions, functions and powers of the Authorities for which no specific provision has been made in this Act, shall be such as may be prescribed by Statutes or Regulations.

CHAPTER-V
STATUTES, REGULATIONS AND RULES

25.  Statutes.—(1) Subject to the provisions of this Act, Statutes may be made to regulate or prescribe all or any of the following matters, namely:—

(a)        the contents of and the manner in which the annual report to be presented by the President before the Senate shall be prepared;

(b)        the University fees and other charges;

(c)        the constitution of any pension, insurance, gratuity, provident fund and benevolent fund for University employee;

(d)        the scales of pay and other terms and conditions of service of officers, teachers and other University employees;

(e)        the maintenance of the register of registered graduates;

(f)        affiliation and disaffiliation of educational institutions and related matters;

(g)        admission of educational institutions to the privileges of the University and the withdrawal of such privileges;

(h)        the establishment of Faculties, departments, institutes, colleges and other academic divisions;

(i)         the powers and duties of officers and teachers;

(j)         conditions under which the University may enter into arrangements with other institutions or with public bodies for purposes of research and advisory services;

(k)        conditions for appointment of Emeritus Professors and award of honorary degrees;

(l)         efficiency and discipline of University employees;

(m)       the constitution and procedure to be followed by Representation Committees in carrying out functions in terms of this Act;

(n)        the constitution, functions and powers of the Authorities of the University; and

(o)        all other matters which by this Act are to be or may be prescribed or regulated by Statutes.

(2)  The draft of Statutes shall be proposed by the Syndicate to the Senate which may approve or pass with such modifications as the Senate may think fit or may refer back to the Syndicate, as the case may be, for reconsideration of the proposed draft:

Provided that Statutes concerning any of the matters mentioned in clauses (a) and (1) of sub-section (1) shall be initiated and approved by the Senate after seeking the views of the Syndicate:

Provided further that the Senate may initiate a Statute with respect to any matter in its power or with respect to which a Statute may be framed in terms of this Act and approve such Statute after seeking the views of the Syndicate.

26.  Regulations.—(1) Subject to the provisions of this Act and the Statutes, the Academic Council may make Regulations to be published in official Gazette, for all or any of the following matters, namely:—

(a)        the courses of study for degree, diplomas and certificates of the University;

(b)        the manner in which the teaching referred to in sub-section (1) of Section 6 shall be organized and conducted;

(c)        the admission and expulsion of students to and from the University;

(d)        the conditions under which students shall be admitted to the courses and the examinations of the University and shall become eligible for the award of degrees, diplomas and certificates;

(e)        the conduct of examinations;

(f)        the conditions under which a person may carry on independent research to entitle him to a degree;

(g)        the institution of fellowships, scholarships, exhibitions, medals and prizes;

(h)        the use of the Library;

(i)         the formation of Faculties, departments and board of studies; and

(j)         all other matters which by this Act or the Statutes are to be or may be prescribed by Regulations.

(2)        Regulations shall be proposed by the Academic Council and shall be submitted to the Senate which may approve them or withhold approval or refer them back to the Academic Council for reconsideration. A Regulation proposed by the Academic Council shall not be effective unless it receives the approval of the Senate.

(3)        Regulations regarding or incidental to matters contained in clauses (g) and (i) of sub-section (1) shall not be submitted to the Senate without the prior approval of the Syndicate.

27.       Amendment and repeal of Statutes and Regulations.—The procedure for adding to, amending or repealing the Statutes and the Regulations shall be the same as that prescribed respectively for making Statutes and Regulations.

28.       Rules.—(1) The Authorities and the other bodies of the University may make Rules, to be published in official Gazette, consistent with this Act, Statutes or the Regulations, to regulate any matter relating to the affairs of the University which has not been provided for by this Act, or that is not required to be regulated by Statutes or Regulation, including Rules to regulate the conduct of business and the time and place of meeting and related matters.

(2)  Rules shall become effective upon approval by the Syndicate.

CHAPTER-VI
UNIVERSITY FUND

29.       University fund.—(1) The University shall have a fund to which shall be credited all direct donations, trusts, bequests, endowments, grants, proportionate grant from the Federal Government, Joint Staff Headquarters, Ministry of Defence, Higher Education Commission, Ministry of Education, assistance from international agencies, contributions, shares of fee and income from any other source.

(2)        The present recurring and non-recurring grants being allocated by the Ministry of Defence to the National Defence College immediately in existence before the commencement of this Act, shall continue to be allocated in future to the National Defence University, with suitable upward adjustments from time to time.

(3)        All expenditure of the University shall be met within the sanctioned budget of the University or as approved by the Syndicate.

30.  Audit and accounts.—(1) The accounts of the University shall be maintained by Director Finance in such form and in such manner as may be prescribed.

(2)        The teaching departments, constituent colleges and institutes and all other bodies designated as such by the Syndicate in terms of Statutes shall be independent cost centres of the University with authority vested in the head of each cost centre to sanction expenditure out of the budget allocated to it:

Provided that re-appropriation from one head of expenditure to another may be made by the head of a cost centre in accordance with and to the extent prescribed by the Statutes.

(3)        All funds generated by a teaching department, constituent college or other unit of the University through consultancy, research or other provision of service shall be made available without prejudice to the budgetary allocation otherwise made, after deduction of over heads in the manner and to the extent prescribed by Senate, to the teaching department, constituent college or other units for its development. A part of the funds so generated may be shared with the University teachers or researchers in charge of the consultancy, research or service concerned in the manner and to the extent prescribed by the Statutes.

(4)        No expenditure shall be made from the funds of the University, unless a bill for its payments has been issued by the head of the cost centre concerned in accordance with the relevant Statutes and the Director Finance has verified that the payment is provided for in the approved budget of the cost centre, subject to the authority to re-appropriate available to the head of the cost centre.

(5)        Provision shall be made for an internal audit of the finances of the University.

(6)        Without prejudice to the requirement of audit by any auditor appointed by Government in accordance with the provision of any other law in force, the annual audited statement of account shall be prepared in conformity with the Generally Accepted Accounting Principles (GA AP) by a reputed firm of charted accountants and signed by Director Finance. The annual audited statement of accounts so prepared shall be submitted to the Auditor General of Pakistan for his observations.

(7)        The observations of the Auditor General of Pakistan, if any, together with such annotations as the Director Finance may make, shall be considered by the Syndicate and shall be placed before the Senate within six months closing of the financial year.

CHAPTER-VII
GENERAL PROVISIONS

31.       Opportunity to show cause.—Except as otherwise provided, no officer, teacher or other employee of the University holding a permanent post shall be reduced in rank or removed or compulsorily retired from service unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken.

32.       Appeal to the Syndicate and the Senate.—Where an order is passed imposing penalty on any officer (other than the President), teacher or other employee of the University or altering or interpreting to his disadvantage the prescribed terms or conditions of his service, he shall, where the order is passed by any officer or teacher of the University other than the President, have the right to appeal to the Syndicate against the order and, where the order is passed by the President, have the right to appeal to the Senate.

33.       Service of the University.—(1) All persons employed by the University in accordance with the terms and conditions of service prescribed by Statutes shall be persons in the service of Pakistan for the purposes of any Court or tribunal set up by law in terms of Article 212 of the Constitution of the Islamic Republic of Pakistan:

Provided that any provision as regards the terms and the conditions of the employment of persons in the service of Pakistan in general or in comparable employment notwithstanding the service of persons employed by the University shall be entirely governed by the terms and conditions prescribed by the relevant Statutes.

(2)        An officer, teacher or other employee of the University shall retire from service on the attainment of such age or tenure of service as may be prescribed.

(3)        No adverse change shall be made in the terms and conditions of employment of any University Teacher in the employment of the University from the commencement of this Act.

(4)        Persons above the age of sixty years may be re-employed on contract in the manner prescribed by the Senate, in conformity with the Government rules and regulations.

34.       Benefits and insurance, gratuity, provident fund and benevolent fund.—(1) The University shall constitute for the benefit of its officers, teachers and other employees schemes, as may be prescribed, for the provision of post-employment benefits as well as health and life insurance while in service.

(2)  Where any provident fund which has been constituted under this Act, the provisions of the Provident Funds Act, 1925 (XIX of 1925), shall apply to such fund as if it were the Government Provident Fund.

35.       Commencement of term of office of members of Authority.—(1) When a member of a newly constituted Authority is appointed or nominated, his terms of office as fixed under this Act, shall commence from such date as may be prescribed.

(2)  Where a member who has accepted any other assignment or for any other similar reason remains absent from the University for a period of not less than six months, he shall be deemed to have resigned and vacated his seat.

36.       Filling of casual vacancies in authorities.—Any casual vacancy in the appointment or nominated member of any Authority shall be filled, as soon as conveniently may be, by the person or the body who appointed or nominated the member whose position has become vacant and the person appointed or nominated to the vacancy shall be member of such Authority for the residue of the term for which the person whose place he fills would have been a member.

37.       Flaws in the constitution of authorities.—Where there is flaw in the constitution of an Authority, as constituted under this Act, the Statutes or the Regulations on account of abolition of a specified office under Government or because an organization, institution or other body outside the University has been dissolved or has ceased to function, or because of some other similar reason, such flaw shall be removed in such manner as the Senate may direct.

38.       Proceedings of authorities not invalidated by the vacancies.—No act, resolution nor decision of any Authority shall be invalid by reason of any vacancy in the Authority doing, passing or making it or by reason of any want of qualification or invalidity in the election, appointment or nomination of any de facto member of the Authority, whether present or absent.

39.       First Statutes and Regulations.—Notwithstanding anything to the contrary contained in the Act, the President of Islamic Republic of Pakistan shall promulgate the first Statutes and Regulations which shall be deemed to be Statutes and Regulations framed under sections 25 and 26 and shall continue to remain in force unless amended.

40. Repeal and Savings.—Upon the commencement of this Act—

(a)        the Government of Pakistan's Resolution, U.O No NDC/102/1/A, dated the 16th March 1971, shall stand repealed;

(b)        all funds, assets, properties, rights and interests of whatsoever kind issued, used, enjoyed, owned or vested in National Defence College, in existence immediately before such commencement and any liabilities subsisting against the aforesaid National Defence College shall stand transferred to the University established under this Act;

(c)        all persons serving in connection with the affairs of the aforesaid National Defence College shall stand transferred to the University established under this Act and become employees of the University on the same terms and conditions to which they were entitled before such commencement;

(d)        the person holding the Office of Commandant in the National Defence College, in existence immediately before such commencement, shall stand transferred to, and appointed as the President of the National Defence University established under this Act;

(e)        everything done, action taken, obligations or liabilities incurred, rights and assets acquired, persons appointed or authorized, jurisdiction or powers conferred, endowments, bequests, funds or trusts created, donations or grants made, scholarships, studentship, or exhibitions instituted, affiliations or privileges granted and orders issued under any of the provisions of the repealed Resolution or other legislative instruments or the Statutes, the Regulations and the Rules made or deemed to have been made thereunder, shall, if not inconsistent with the provisions of this Act, or the Statutes, the Regulations or the Rules made under this Act, be continued and, so far as may be, be deemed to have been respectively done, taken, incurred, acquired, appointed, authorized, conferred, created, made, instituted, granted and issued under this Act, and any documents referring to any of the provisions of the repealed Resolution and other legislative instruments or the Statutes, the Regulations and the Rules first referred shall, so far as may be, be considered to refer to the corresponding provisions of the Act or the Statutes, the Regulations and the Rules made under this Act;

(f)        all institutes, colleges or other constituent units of the University functioning in terms of the provisions of the repealed Resolution or other legislative instruments shall continue to function in terms of the relevant repealed provisions till such time that the Senate through Statute has prescribed otherwise; and

(g)        any Statutes, Regulations or Rules made or deemed to have been made under the repealed Resolution or other legislative instruments shall, if not inconsistent with the provisions of this Act, be deemed to be Statutes, Regulations or Rules made under this Act, having regard to the various matters which by this Act, have to be regulated or prescribed by Statutes, Regulations and Rules respectively and shall continue to be in force until they are repealed, rescinded or modified in accordance with the provisions of this Act.

41.       Transitory provisions.—Notwithstanding anything contained in this Act, the members of the first Senate, except the University Teachers, shall be appointed by the Chancellor in accordance with the numbers and criteria for membership specified in this Act. The first Senate so constituted shall initiate, as soon as possible, the process for the recruitment of University Teachers and appointment of the members of the Syndicate and the Academic Council in accordance with the terms of this Act. The University Teachers to be appointed to the first Senate shall be appointed as soon as the procedure prescribed for appointment of University Teachers to the Senate has to be complied with. The term of tenure provided in sub-section (4) of Section 16 notwithstanding one-third of the members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of one year from the date of appointment by the Chancellor. One-half of the remaining members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of two years from the date of appointment and the remaining one-half, other than ex-officio members, shall retire from office on the expiration of the third year.

42.       Removal of difficulties.—(1) Any question that may arise as to the interpretation of any of the provisions of this Act, shall be placed before the Chancellor whose decision thereon shall be final.

(2)        If any difficulty arises in giving effect to any provision of this Act, the Chancellor may make such order or direction, not inconsistent with the provisions of this Act, as may appear to him to be necessary for the purpose of removing such difficulty.

(3)        The Chancellor may issue directions or decide such matters as are covered by this Act in the manner he considers appropriate.

43.       Indemnity.—No suit or legal proceedings shall lie against the Government, the University or any authority, officer or employee of the Government or the University or any person in respect of anything which is in good faith done under this Act.

44.  Power to allow appointment of employees of the Government, other universities or educational or research institutions to the University.—(1) Notwithstanding anything contained in this Act, the Senate may, on the advice of the Syndicate, allow any post in the University to be filled by appointment, on such terms as the Senate may specify, an employee of the Government or any other university or educational research institution.

(2)  Where any appointment has been made under this section, the terms and condition of service of the appointee shall not be less favourable than those admissible to him immediately before such appointment and he shall be entitled to all benefits of his past service.

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

ACT NO. XV OF 2011

NATIONAL VOCATIONAL AND TECHNICAL TRAINING COMMISSION ACT, 2011

An Act to Provide for regulation, coordination and policy direction for vocational and Technical Training

[Gazette of Pakistan, Extraordinary, Part-I, 29th June, 2011]

No. F. 9(9)/2011-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on 25th June, 2011, is hereby published for general information:—

WHEREAS it is expedient to provide for an autonomous organization for regulation, coordination and policy direction for vocational and technical training and for matters ancillary thereto or connected therewith;

It is hereby enacted as fallows:—

1.  Short title, extent and commencement.—(1) This Act may be called the National Vocational and Technical Training Commission Act, 2011.

(2)        It extends to the whole of Pakistan.

(3)        It shall come into force on and from the 28th February, 2011.


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

(a)        "Board" means the Board established under Section 4;

(b)        "Chairman" means Chairman of the Board;

(c)        "Commission" means the National Vocational and Technical Training Commission established under Section 3;

(d)        "member" means the member of the Board;

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

(f)        "regulations" means regulations made under this Act;

(g)        "rules" means rules made under this Act; and

(h)        "technical and vocational training" means training in any professional skill, trade, calling or occupation.

3.         Establishment of the Commission.—(1) As soon as may be after the commencement of this Act, the Federal Government shall, by notification in the official Gazette, establish a Commission to be called the National Vocational and Technical Training Commission.

(2)        The headquarters of the Commission shall be at Islamabad and it may establish regional offices at such places as it may decide.

(3)        The Commission shall be a body corporate, having perpetual succession and a common seal with powers, subject to the provisions of this Act, to hold and dispose of property, both moveable and immovable, and shall by the said name sue and be sued.

(4)        For the purpose of coordination the Commission shall be administratively attached with Prime Minister's Secretariat.

4.         Management.—(1) The general direction, all matters of policy and administration of the Commission and its affairs shall vest in a Board which may exercise all powers, perform all functions and do all acts and things which may be exercised, performed or done by the Commission.

(2)        There shall be a Chairman of the Board who shall be appointed by the Federal Government on such terms and conditions as the Federal Government may determine.

(3)        The Board shall be the apex body and shall consist of the following members, namely:—

(a)        Chairman of the Commission.             Chairman

(b)        Secretary, Ministry of Labour,
Manpower and Overseas Pakistanis.    Member

(c)        Secretary, Ministry of Finance.            Member

(d)        Secretary, Ministry of Industries,
Production and Special Initiatives.       Member

(e)        Secretary, Capital Administration
and Development Division.                 Member

(f)        Secretary of the concerned provincial
department.                                          Member

(g)        Executive Director.                              Member

(h)        Not less than six members from the
private sector who have experience in
the area of skills development and
technical training.                                Member

(4)        The Executive Director shall also act as Secretary of the Board.

(5)        The Board may co-opt any person as a member of the Board for a specific purpose and for a specified period.

(6)        The Federal Government may, by notification in the official Gazette, increase or decrease the number of the members of the Board, from time to time, as it deems fit:

Provided that the total number of members of the Board shall not exceed twenty.

(7)        The Board in discharge of its functions shall be guided by such directions as the Federal Government may give to it from time to time.

(8)        A member, other than an ex-officio member, may, by writing under his hand addressed to the Federal Government, resign his office.

(9)        The Federal Government may, on the recommendation of the Chairman, remove any member, other than an ex-officio member, if he has persistently failed to perform the duties assigned to him or he has abused his position.

(10)      The Chairman shall, unless he resigns from office earlier, hold office for a period of three years and shall be eligible for re-employment for such term or terms as the Federal Government may determine, provided that the Chairman shall cease to hold office on attaining the age of sixty-five years or expiry of the term, whichever is earlier.

(11)      A member, other than and ex-officio member, shall, unless he resigns from office earlier, hold office for a period of three years and shall be eligible for re-appointment for such term or terms as the Federal Government may determine, provided that the member shall cease to hold office on attaining the age of sixty-five years or the expiry of the term, whichever is earlier.

5.         Meeting of the Board.—(1) The meetings of the Board shall be held as and when required, but once at least in a quarter, at the time and place as the Chairman of the Board may determine.

(2)        The meetings of the Board shall be conducted in accordance with such procedure as may be specified by the Board.

(3)        Half of the total membership of the Board shall constitute the quorum for the meeting.

(4)        The decisions of the Board shall be taken by the majority of the members present and, in case of a tie, the person presiding over the meeting shall have a casting vote.

(5)        All orders, determinations and decisions of the Board shall be reduced in writing together with a record of the discussions held in the meeting.

6.         Functions of the Commission.—The functions of the Commission shall be to—

(a)        devise and review policies and evolve strategy relating to human resource development with a focus on vocational and technical training and employment in general;

(b)        prepare for approval of the Board, national training plans, programmes and projects in coordination with stakeholders for the expansion of vocational and technical training infrastructure in the country;

(c)        formulate policies for capacity building in the field of vocational and technical training;

(d)        develop national occupational skill standards, curricula and trade testing certification systems for all sectors in which vocational and technical training is imparted;

(e)        prescribe conditions under which institutions in the public and private sector may be established and operated;

(f)        facilitate skill development and employment generation through enhancement of public-private partnership;

(g)        improve quality of training of instructors through skill up-gradation programmes;

(h)        regulate affiliation of establishments and institutions offering vocational and technical training;

(i)         issue regulations for licensing of Federal establishments and institutions;

(j)         organize workshops, seminars, symposia and panel discussions in respect of employment and training issues;

(k)        establish National and International linkages with organizations of repute to make national programmes credible and promote marketing of manpower;

(l)         establish an internationally acceptable system of accreditation for vocational and technical training;

(m)       coordinate with the Provincial Governments in the field of vocational and technical training.

(n)        review existing laws and regulations on vocational and technical training and recommend appropriate legislation;

(o)        carry out training needs assessment survey;

(p)        prepare and maintain a data bank of institutions and establishments imparting vocational and technical training and directory of their graduates and their placements;

(q)        suggest innovative programmes for promotion of vocational and technical training among females, challenged and neglected sections of society;

(r)        suggest performance evaluation parameters for vocational and technical training programmes and conduct performance evaluation of technical and vocational institutes;

(s)        bridge the widening gap between planning and implementation for improving access, delivery and quality of vocational and technical training by applying new instructional and communication technologies;

(t)         suggest ways and means for effective coordination and linkage between vocational and technical training and industry, business and commerce to make vocational and technical training relevant and responsive to market needs;

(u)        formulate and recommend strategies for pre-service and in-service training of vocational and technical training staff; and

(v)        develop code of conduct for vocational and technical training institutions and staff for meeting quality assurance standards.

7.  Powers of the Commission.—The Commission may—

(a)        take measures, including the allocation of funds, for the establishment of scholarships and stipends for students and training of teachers abroad and within the country;

(b)        establish an endowment fund for vocational and technical training with contributions from Government as well as non-Governmental resources;

(c)        allocate funds for infrastructure development, training of faculty as an incentive to improve quality of vocational and technical training;

(d)        set up such administrative and technical committees, working groups, skill development councils, trade testing boards or other such bodies and entrust them such functions as it may consider necessary;

(e)        regulate quality control for implementation of skills standards, syllabi, trade testing and certification of vocational and technical training institutions;

(f)        advise the Federal Government and Provincial Governments on proposals for grant of diplomas and certificates by vocational and technical training institutions;

(g)        determine equivalence and recognition of diplomas, certificates awarded by institutions within the country and abroad; and

(h)        approve projects up to a ceiling fixed by the Federal Government for Departmental Development Working Party (DDWP).

8.         Executive Director of the Commission.—(1) There shall be an Executive Director of the Commission appointed by the Federal Government on such terms and conditions as it may determine.

(2)  The Executive Director shall be the head of the Secretariat of the Commission. The Secretariat shall act as the executing wing of the Commission and shall be responsible for implementation of all the orders, decisions, directives and policies of the Commission.

9.         Delegation of Powers.—The Board may delegate all or any of its powers to its Executive Director or any officer of the Commission, as the case may be.

10.       Committee.—(1) The Commission may set up as many committees and working groups as may be required to effectively perform its functions.

(2)  The composition and functions of a committee and working group shall be such as the Commission may determine.

11.       Appointment of officers and staff.—(1) The Commission may, subject to general or special orders, as the Federal Government may give to it from time to time and subject to such rules as may be made in this behalf, create posts, appoint such officers, advisers, consultants and employees as it considers necessary for the efficient performance of its functions on such terms and conditions as may be prescribed.

(2)  The Commission shall make rules for the recruitment of its employees.

12.       Funds.—(1) The Federal Government shall provide funds to the Commission for meeting all expenses required for discharging its functions.

(2)        The Federal Government may provide annual grants to the Commission for carrying out its functions.

(3)        All receipts of the Commissions from any source whatsoever shall be credited to a fund to be called National Vocational and Technical Training Commission Fund (NAVTTC Fund) and shall vest in the Commission with power to manage and operate.

(4)        The mechanism for operation of the Fund shall be prescribed by the Commission with the prior approval of the Federal Government.

13.       Submission of reports.—The Commission shall submit an annual report to the Federal Government in respect of its activities or as and when required by the Federal Government.

14.       Audit and accounts.—(1) The Commission shall maintain its accounts of receipts and expenditure in such manner as may be prescribed by the Controller General of Accounts.

(2)        The accounts of the Commission shall be audited every year by the Auditor-General of Pakistan.

(3)        The Commission may also get its accounts audited by a chartered accountants firm to be appointed with the approval of the Board.

15.       Employees of the Commission to be public servants.—Every employee of the Commission and every person acting or purporting to act under this Act and the rules and regulations made thereunder shall be deemed to be a public servant within the meaning of Section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860).

16.       Indemnity.—No suit, prosecution or other legal proceedings shall lie against any person exercising the powers, or for anything done in good faith or intended to be done, under this Act.

17.       Power to make rules.—The Federal Government may make rules for carrying out the purposes of this Act.

18.       Power to make regulations.—The Commission may, with the approval of the Federal Government, make regulations, not inconsistent with this Act and the rules, for carrying out the purposes of this Act.

19.       Removal of difficulties.—If any difficulty arises in giving effect to any of the provisions of this Act, the Federal Government may make such order, not inconsistent with the provisions of this Act, for removing the difficulty.

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

21.       Repeal and savings.—On the commencement of this Act,—

(a)        the Cabinet Division's Notification No.4-16/2005-Min-I, dated the 30th December, 2005, shall stand rescinded;

(b)        the National Vocational and Technical Education Commission constituted under the aforesaid notification shall stand dissolved and all its assets, liabilities, members and staff shall become assets, liabilities, members and staff of the Commission established under this Act; and

(c)        notwithstanding anything contained herein before, all orders made, actions taken, vesting orders or notifications issued under any of the powers conferred or vested under the Cabinet Division's Notification No. 4-16/2005-Min-I, dated the 30th December, 2005 shall be deemed always to have been lawfully and validly made, taken, issued and vested under the provisions of this Act.

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ACT NO. XVI OF 2011

FINANCE ACT, 2011

An Act to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2011 and to amend certain laws.

[Gazette of Pakistan, Extraordinary, Part-I, 30th June, 2011]

No. F. 22 (10)/2011-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 29th June, 2011, and is hereby published for general information:—

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2011 and to amend certain laws for the purposes hereinafter appearing;


It is hereby enacted as follows:—

1. Short title, extent and commencement.—(1) This Act may be called the Finance Act, 2011.

(2)  It extends to the whole of Pakistan.

(3) It shall, unless otherwise provided, come into force on the first day of July, 2011.

2.         Amendments of Act IV, 1969.—In the Customs Act, 1969 (IV of 1969), the following amendments shall be made, namely:—

(1)        in Section 15, in clause (c), the comma, words and figure ", or goods imported or exported in contravention of the provisions of Section 32" shall be omitted;

(2)        in Section 21, in clause (c), after the word and comma "exportation," the words and comma "or for supplies against international tenders," shall be inserted;

(3)        in Section 22, in the proviso, the words "or Deputy Collector" shall be omitted;

(4)        in Section 32, in sub-section (3A), for the word "three", the word "five" shall be substituted;

(5)        in Section 33, after sub-section (2), the following new sub-section shall be added, namely:—

            "(3)  In the case where refund has become due in consequence of any decision or judgment by any appropriate officer of Customs or the Board or the Appellate Tribunal or the Court, the said period of one year shall be reckoned from the date of such decision or judgment, as the case may be." ;

(6)        in Section 34, the words "or Deputy Collector" shall be omitted;

(7)        in Section 96, in sub-section (1), the words "or Deputy Collector”, shall be omitted;

(8)        after Section 129, the following new section shall be inserted, namely:—

            "129A. Levy of transit fee.—A transit fee may be levied on any goods or class of goods in transit across Pakistan to a foreign territory at such rates as the Board may, by notification in the official Gazette, prescribe."; and

(9)        the amendments set out in the Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969).

3.         Amendment of Act XXVII of 1974.—In the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974), the following further amendments shall be made namely:—

In Section 12, the existing provision shall be renumbered as sub-section (1) thereof and after sub-section (1), re-numbered as aforesaid, the following new sub-section shall be added, namely:—

"(2) An ex-member who remained a member of either House of Parliament for at least one term shall also be entitled to such facilities as are notified from time to time and also to medical facilities as are admissible to a sitting member under sub-section (1)."

4.         Amendment of Act V of 1989.—In the Finance Act, 1989 (V of 1989), in Section 7,—

(1)        in sub-section (1), after the word "thereof, the words, figures, commas and brackets "or purchase of modaraba certificate or a registered instrument of redeemable capital as defined in the Companies Ordinance, 1984 (XLVII of 1984), or shares of a public company, listed on a registered stock exchange in Pakistan by a resident person defined in Section 81 of the Income Tax Ordinance, 2001 (XLIX of 2001), such as is specified in sub-section (2), at the rates specified in that sub-section" shall be omitted; and

(2)        in sub-section (4), the second proviso shall be omitted.

5.         Amendments of the Sales Tax Act, 1990—In the Sales Tax Act, 1990, the following further amendments shall be made, namely:—

(1)        in Section 3, for the word "seventeen", the word "sixteen" shall be substituted; provided, in case of imports, such substitution shall be deemed to have been made on 20th June, 2011;

(2)        in Section 8B, in sub-section (1), for the first proviso, the following shall be substituted, namely:--

            "Provided that the restriction on the adjustment of input tax in excess of ninety per cent of the output tax shall not apply in case of fixed assets or capital goods:";

(3)        in Section 21,—

            (a)        after sub-section (2), the following new sub-section (3) shall be added, namely:—

                        "(3) During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales tax refund or input tax credit, and once such person is blacklisted, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such blacklisting, shall unless the registered buyer has fulfilled his responsibilities under Section 73 be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person.";

(4)        in Section 26, in sub-section (3), after the brackets and figure "(2)", the words, letters, figure and brackets "or under clause (a) or clause (b) of Section 27" shall be inserted;

(5)        in Section 30,—

            (a)        in sub-section (1),—

                        (i)         in clause (i), the word "and" shall be omitted; and

                        (ii)        after clause (i), the following new clause shall be inserted, namely:—

                                    "(ia) an Inspector Inland Revenue; and";

            (b)        in sub-section (3), after the word "Officer", occurring for the second time, the comma and words ", Inspector Inland Revenue" shall be inserted; and

            (c)        in sub-section (4), after the word "Officer", occurring for the second time, the comma and words ", Inspector Inland Revenue," shall be inserted;

(6)        in Section 30A, in the heading and in this section wherever occurring, for the letters "CBR", the words "Inland Revenue" shall be substituted;

(7)        in Section 38B, in sub-section (1), for the words "a Deputy", the words "an Assistant" shall be substituted;

(8)        in Section 47A, for sub-section (4A), the following shall be substituted, namely:—

            "(4A) Notwithstanding anything contained in sub-section (4), the Chairman FBR and a Member nominated by him may, on the application of an aggrieved person, for reasons to be recorded in writing, and on being satisfied that there is an error in order or decision, pass such order as may be deemed just and equitable.";

(9)        in Section 66, in the third proviso, for the full stop, at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

            "Provided also that no refund shall be admissible under this section if incidence of tax has been passed directly or indirectly to the consumer.";

(10)      in Section 74, after the proviso, the following explanation shall be added, namely:—

            "Explanation.—For the purpose of this section, the expression "any act or thing is to be done" includes any act or thing to be done by the registered person or by the authorities specifipd in Section 30 of this Act."; and

(11)      in the Sixth Schedule,—

            (a)        in Table-I, in column (1), Serial Numbers 29A, 29B, 30, 34, 35, 41, 42, 43, 44, 62, 64, 65, 66, 67, 68, 69 and 70 and the corresponding entries relating thereto in columns (2) and (3) shall be omitted; and

            (b)        In Table-II, in column (1), serial number 5 and the corresponding entries relating thereto in columns (2) and (3) shall be omitted.

6.  Amendment of Ordinance XLIX, 2001.—In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made, namely:—

(1)  in Section 2,—

(a)        in clause (5), after the word "includes", the words and comma "provisional assessment," shall be inserted; and

(b)        after clause (11B), the following new clause shall be added, namely:—

            "(11C) "Collective Investment Scheme" shall have the same meanings as are assigned under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003;";

(2)        in Section 18, in sub-section (1), in clause (d), for the semicolon and word "; and", a full stop shall be substituted and thereafter the following Explanation shall be added, namely:—

"Explanation.—For the purposes of this clause, it is declared that the word 'benefit' includes any benefit derived by way of waiver of profit on debt or the debt itself under the State Bank of Pakistan, Banking Policy Department's Circular No.29 of 2002 or in any other scheme issued by the State Bank of Pakistan;";

(3)        in Section 28, in sub-section (1), in clause (g), for the word "Corporation", the letters and word "SME Bank" shall be substituted;

(4)        for Section 62, the following shall be substituted, namely:—

            "62.  Tax credit for investment in shares and insurance.—(1) A resident person other than a company shall be entitled to a tax credit for a tax year either—

            (i)         in respect of the cost of acquiring in the year new shares offered to the public by a public company listed on a stock exchange in Pakistan, provided the resident person is the original allottee of the shares or the shares are acquired from the Privatization Commission of Pakistan; or

            (ii)        in respect of any life insurance premium paid on a policy to a life insurance company registered by the Securities and Exchange Commission of Pakistan under the Insurance Ordinance, 2000 (XXXIX of 2000), provided the resident person is deriving income chargeable to tax under the head "salary" or "income from business".

            (2)        The amount of a person's tax credit allowed under sub-section (1) for a tax year shall be computed according to the following formula, namely:—

(A/B) x C

            where—

A         is the amount of tax assessed to the person for the tax year before allowance of any tax credit under this Part;

B          is the person's taxable income for the tax year; and

C         is the lesser of —

(a)        the total cost of acquiring the shares, or the total contribution or premium paid by the person referred to in sub-section (1) in the year;

(b)        fifteen per cent of the person's taxable income for the year; or

(c)        five hundred thousand rupees.

(3)  Where--

(a)        a person has been allowed a tax credit under sub-section (1) in a tax year in respect of the purchase of a shared and

(b)        the person has made a disposal of the share within thirty six months of the date of acquisition, the amount of tax payable by the person for the tax year in which the shares were disposed of shall be increased by the amount of the credit allowed.";

(5)        in Section 63, in sub-section (2), in definition 'C’—

            (a)        in clause (ii), for the semicolon and word "; or", a full stop shall be substituted; and

            (b)        clause (iii) shall be omitted;

(6)        in Section 65C, in sub-section (1), for the word "five", the word, "fifteen" shall be substituted;

(7)        after Section 65C, the following new sections shall be inserted, namely:—

            "65D. Tax credit for newly established industrial undertakings.—(1) Where a taxpayer being a company formed for establishing and operating a new industrial undertaking for manufacturing in Pakistan sets up a new industrial undertaking, it shall be given a tax credit equal to hundred per cent of the tax payable on the taxable income arising from such industrial undertaking for a period of five years beginning from the date of setting up or commencement of commercial production, whichever is later.

            (2)  Tax credit under this section shall be admissible where—

            (a)        the company is incorporated and industrial undertaking is setup between the first day of July, 2011 and 30th day of June, 2016;

            (b)        industrial undertaking is managed by a company formed for operating the said industrial undertaking and registered under the Companies Ordinance, 1984 (XLVII of 1984) and having its registered office in Pakistan;

            (c)        the industrial undertaking is not established by the splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an industrial undertaking established in Pakistan at any time before 1st July 2011; and

            (d)        the industrial undertaking is set up with hundred per cent equity owned by the company.

(3)        The amount of credit admissible under this section shall be deducted from the tax payable by the taxpayer in respect of the tax year in which the plant or machinery referred in sub-section (1) is purchased and installed.

(4)        Where any credit is allowed under this section and subsequently it is discovered, on the basis of documents or otherwise, by the Commissioner inland Revenue that any of the condition specified in this section was not fulfilled, the credit originally allowed shall be deemed to have been wrongly allowed and the Commissioner inland Revenue may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant year and the provisions of this Ordinance shall, so far as may be, apply accordingly.

            65E.  Tax credit for industrial undertakings established before the first day of July, 2011.—(1) Where a taxpayer being a company invests any amount, with hundred per cent equity investment, in the purchase and installation of plant and machinery for the purposes of balancing, modernization, replacement, or for expansion of the plant and machinery already installed in an industrial undertaking setup in Pakistan before the first day of July 2011, a tax credit shall be allowed against the tax payable in the manner provided hereinafter, in the same proportion, which exists between the total investment and such equity investment made by the industrial undertaking.

            (2)        The provisions of sub-section (1) shall apply if the plant and machinery is purchased and installed at any time between the first day of July, 2011, and the 30th day of June, 2016.

            (3)        The amount of credit admissible under this section shall be deducted from the tax payable by the taxpayer in respect of the tax year in which the plant or machinery referred in sub-section (1) is purchased and installed and for the subsequent four years.

            (4)        Where no tax is payable by the taxpayer in respect of the tax year in which such plant or machinery is installed, or where the tax payable is less than the amount of tax credit, the amount of such credit or so much of it as is in excess thereof, shall be carried forward and deducted from the tax payable by the taxpayer in respect of the following tax year:

                        Provided that no such amount shall be carried forward for more than four tax years:

                        Provided further that deduction made under sub-section (1) and under this sub-section shall not exceed in aggregate the limit of the tax credit specified in sub-section (1).

            (5)        Where any credit is allowed under this section and subsequently it is discovered, on the basis of documents or otherwise, by the Commissioner Inland Revenue that any of the condition specified in this section was not fulfilled, the credit originally allowed shall be deemed to have been wrongly allowed and the Commissioner Inland Revenue may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant year and the provisions of this Ordinance shall apply accordingly.";

(8)        in Section 111, in sub-section (1),—

            (a)        in clause (b), the word "or", at the end, shall be omitted;

            (b)        in clause (c), for the comma at the end, a semicolon and word ";or" shall be substituted;

            (c)        after clause (c), amended as aforesaid, the following new clause shall be added, namely:—

            (d)        any person has concealed income or furnished inaccurate particulars of income including—

                        (i)         the suppression of any production, sales or any amount chargeable to tax; or

                        (ii)        the suppression of any item of receipt liable to tax in whole or in part,"; and

            (d)        after the word "made" occurring for the second time, the words and commas "suppression of any production, sales, any amount chargeable to tax and of any item of receipt liable to tax" and after the word "expenditure", occurring for the third time, the words and commas "suppressed amount of production, sales or any amount chargeable to tax or of any item of receipt liable to tax" shall be inserted.

(9)        in Section 113,—

            (a)        in sub-section (2), in the proviso, for the word "three", the word "five" shall be substituted; and

            (b)        in sub-section (3), in clause (a), after the word "the", occurring for the first time, the words "gross sales or" shall be inserted;

(10)      in Section 113B, in clause (b), for the words, letters figure and comma "Chapter III of the Sales Tax Special Procedure Rules, 2006", the words, letters figure and comma "Chapter II of the Sales Tax Special Procedures Rules, 2007"shall be substituted;

(11)      in Section 114,—

            (a)        in sub-section (1),—

                        (i)         in clause (ab), after semicolon at the end, the word "or" shall be added; and

                        (ii)        in clause (ac), the word "and", at the end, shall be omitted;

                        (iii)       in clause (b),—

                        (a)        in sub-clause (vi), the word "and", at the end, shall be omitted;

                        (b)        in sub-clause (vii) for the full stop at the end, a semicolon and the word "; or" shall be substituted; and

            (c)        after sub-clause (vii), amended as aforesaid, the following shall be added, namely:—

                        "(viii)   is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees one million.";

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

            "(1A) Every individual whose income under the head 'Income from business' exceeds rupees three hundred thousand but does not exceed rupees three hundred and fifty thousand in a tax year is also required to furnish return of income for the tax year.";

(c)        in sub-section (2),—

            (i)         in clause (b), the word "and", at the end, shall be omitted;

            (ii)        in clause (c), for the full stop, at the end, a semi-colon shall be substituted; and

            (iii)       after clause (c), the following clauses shall be added, namely:—

                        (d)        shall be accompanied with evidence of payment of due tax as per return of income; and

                        (e)        shall be accompanied with a wealth statement as required under Section 116 ."; and

(d)        in sub-section (6A),—

            (i)         for the words "wishes to file", the word "files" shall be substituted;

            (ii)        in the first proviso, for the words "wishes to deposit", the word "deposits" shall be substituted; and

            (iii)       in the second proviso, for the words "wishes to revise", the word "revises" shall be substituted;

(12)      in Section 115, in sub-section (4),—

            (a)        the words, brackets, letters, comma and figure "clauses (a), (b) and (d) of sub-section (1)" shall be omitted;

            (b)        for the words, brackets, letters and figures "clauses (a) and (c) of sub-section (1) of Section 153" the words, brackets, letters and figures "clauses (a),(c) and (d) of sub-section (3) of Section 153" shall be substituted; and

            (c)        the words, brackets, letters and figures "clauses (a) and (b) of sub-section (1) of Section 233 A" shall be omitted;

(13)      in Section 116,—

            (a)        in sub-section (2),—

                        (i)         after the word "taxpayer", the words and commas, ",being an individual," shall be inserted;

                        (ii)        for the word "five hundred thousand", the word "one million" shall be substituted; and

                        (iii)       for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

                                                "Provided that every member of an association of persons whose share from the income of such association of persons, before tax, for the year is one million rupees or more shall also furnish wealth statement and wealth reconciliation statement for the year alongwith return of income of the association."; and

            (b)        for sub-section (2A), the following shall be substituted, namely:—

                        "(2A) Where a person, being an individual or an association of persons, files a return in response to a provisional assessment order under Section 122C, such return shall be accompanied by wealth statement alongwith a wealth reconciliation statement and an explanation of source of acquisition of assets specified therein in the case of an individual and wealth statements of all members in the case of an association of persons and such wealth statements shall be accompanied by wealth reconciliation statements and explanation of source of acquisition of assets specified therein.";

(14)      in Section 127, in sub-section (1), after the word "person", occurring for the fifth time, the words, figure, letter and commas ",except a provisional assessment order under Section 122C," shall be inserted;

(15)      insertion 130,—

(a)        in sub-section (8A), for the word "Chairman", the word "Chairperson" shall be substituted;

(b)        in sub-section (8AA),—

            (i)         for the word "Chairman", occurring twice, the word "Chairperson" shall be substituted; and

            (ii)        for the word "five" , the word "one" shall be substituted;

(16)      in Section 132, in sub-section (2), the words and commas "may, if it deems fit, dismiss the appeal in default, or" shall be omitted;

(17)      in Section 137, in sub-section (2), in the proviso,—

            (a)        after the word "assessment", the word "order" shall be inserted; and

            (b)        after the word "payable", occurring for the second time, the word "immediately" shall be inserted;

(18)      in Section 147, in sub-section (5B), in first proviso, for the word "seven", the words "twenty-one" shall be substituted;

(19)      in Section 151, in sub-section (3), the words, brackets, letters, comma and figure "from transactions referred to in clauses (a), (b) and (d) of sub-section (1)" shall be omitted;

(20)      for Section 153, the following shall be substituted, namely:—

            "153. Payments for goods, services and contracts.—(1) Every prescribed person making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person—

            (a)        for the sale of goods;

            (b)        for the rendering of or providing of services;

            (c)        on the execution of a contract, other than a contract for the sale of goods or the rendering of or providing of services.

                        shall, at the time of making the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in Division III of Part III of the First Schedule.

            (2)        Every exporter or an export house making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a non-resident person for rendering of or providing of services of stitching, dying, printing, embroidery, washing, sizing and weaving, shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division IV of Part III of the First Schedule.

            (3)        The tax deducted under clauses (a) and (c) of sub-section (1) and under sub-section (2) of this section, on the income of a resident person or permanent establishment of a non-resident person, shall be final tax.

                        Provided that,—

                        (a)        tax deducted under clause (a) of sub-section (1) shall be adjustable where payments are received on sale or supply of goods, by a,—

                        (i)         company being a manufacturer of such goods; or

                        (ii)        public company listed on a registered stock exchange in Pakistan;

                        (b)        tax deducted shall be a minimum tax on transactions referred to in clause (b) of sub-section (1); and

                        (c)        tax deducted under clause (c) of sub-section (1) shall be adjustable if payments are received by a public company listed on a registered stock exchange in Pakistan, on account of execution of contracts.

            (4)        The Commissioner may, on application made by the recipient of a payment referred to in sub-section (1) and after making such inquiry as the Commissioner thinks fit, may allow in cases where tax deductible under sub-section (1) is adjustable, by an order in writing, any person to make the payment,—

                        (a)        without deduction of tax; or

                        (b)        deduction of tax at a reduced rate.

            (5)        Sub-section (1) shall not apply to—

                        (a)        a sale of goods where the sale is made by the importer of the goods and tax under Section 148 in respect of such goods has been paid and the goods are sold in the same condition as they were when imported;

                        (b)        payments made to traders of yarn by the taxpayers specified in the zero-rated regime of sales tax (as provided under clause (45A) of Part-IV of the Second Schedule );

                        (c)        a refund of any security deposit;

                        (d)        a payment made by the Federal Government, a Provincial Government or a Local Government to a contractor for construction materials supplied to the contractor by the said Government or the authority;

                        (e)        a cotton ginner who deposits in the Government Treasury, an amount equal to the amount of tax deductible on the payment being made to him, and evidence to this effect is provided to the "prescribed person";

                        (f)        the purchase of an asset under a lease and buy back agreement by a modaraba, leasing company, banking company or financial institution; or

                        (g)        any payment for securitization of receivables by a Special Purpose Vehicle to the Originator.

            (6)        Where any tax is deducted by a person making a payment for a Special Purpose Vehicle, on behalf of the Originator, the tax is credited to the Originator.

            (7)        In this section,—

                        (i)         "prescribed person" means—

                        (a)        the Federal Government;

                        (b)        a company ;

                        (c)        an association of persons constituted by, or under law;

                        (d)        a non-profit organization;

                        (e)        a foreign contractor or consultant;

                        (f)        a consortium or joint venture;

                        (g)        an exporter or an export house for the purpose of sub¬section (2);

                        (h)        an association of persons, having turnover of fifty million rupees or above in tax year 2007 or in any subsequent tax year; or

                        (i)         an individual, having turnover of fifty million rupees or above in the tax year 2009 or in any subsequent year;

                        (ii)        "services" includes the services of accountants, architects, dentists, doctors, engineers, interior decorators and lawyers, otherwise than as an employee;

                        (iii)       "sale of goods" includes a sale of goods for cash or on credit, whether under written contract or not;

                        (iv)       "manufacturer" means a person who is engaged in production or manufacturing of goods, which includes—

                        (a)        any process in which an article singly or in combination with other articles, material, components, is either converted into another distinct article or product is so changed, transferred, or reshaped that it becomes capable of being put to use differently or distinctly; or

                        (b)        a process of assembling, mixing, cutting or preparation of goods in any other manner; and

            (v)        "turnover" means—

                        (a)        the gross sales or gross receipts, inclusive of sales tax and federal excise duty or any trade discounts shown on invoices, or bills, derived from the sale of goods;

                        (b)        the gross fees for the rendering of services for giving benefits including commissions;

                        (c)        the gross receipts from the execution of contracts; and

                        (d)        the company's share of the amounts stated above of any association of persons of which the company is a member.";

(21)      in Section 156-B, in sub-section (1), in clause (b), for the figure and sign "25%", the words "fifty per cent" shall be substituted;

(22)      in Section 165,—

            (a)        in sub-section (1),—

                        (i)         after the word, "a", occurring for the second time, the word "monthly" shall be inserted;

                        (ii)        in clause (a), after the word "name" the words and comma "Computerized National Identity Card Number, National Tax Number" shall be inserted, and for the word "quarter", the word "month" shall be substituted;

                        (iii)       in clause (b), for the word "quarter", the word "month" shall be substituted; and

                        (iv)       in clause (c), for the word "quarter", the word "month" shall be substituted;

            (b)        for sub-section (2), the following shall be substituted, namely:—

                        "(2) Every prescribed person collecting tax under Division II of this Part or Chapter XII or deducting tax from a payment under Division III of this Part or Chapter XII shall furnish or e-file statements under sub-section (1) by the 15th day of the month following the month to which the withholding tax pertains.";

            (c)        in sub-section (3),

                        (i)         the word, "periodically" shall be omitted; and

                        (ii)        for the colon , at the end, a full stop shall be substituted; and

            (d)        after sub-section (5), the following new sub-section shall be added, namely:—

                        "(6)      Every person deducting tax from payment under Section 149 shall furnish to the Commissioner an annual statement in the prescribed form and manner:

                                                Provided that annual statement shall also be filed where the income exceeds three hundred thousand rupees but does not exceed three hundred and fifty thousand rupees in a tax year.";

(23)      in Section 168, for sub-section (3), the following shall be substituted, namely:—

            "(3)      No tax credit shall be allowed for any tax collected or deducted that is a final tax under—

                        (a)        sub-section (7) of Section 148;

                        (b)        sub-section (3) of Section 151;

                        (c)        sub-section (IB) and (IBB) of Section 152;

                        (d)        clauses (a), (c) and (d) of sub-section (3) of Section 153;

                        (e)        sub-section (4) of Section 154;

                        (f)        sub-section (3) of Section 156;

                        (g)        sub-section (2) of Section 156A;

                        (h)        sub-section (3) of Section 233;

                        (i)         sub-section (5) of Section 234; and

                        (j)         sub-section (3) of Section 234A.";

(24)      in Section 169, in sub-section (1), in clause (b),—

            (a)        for the words, brackets, letters, comma and figure "clauses (a), (b) and (d) of sub-section (1) of Section 151" the words, brackets and figures "sub-section (3) of Section 151" shall be substituted;

            (b)        for the words, brackets and figures "sub-section (6) of Section 153" the words, brackets, letters and figures "clauses (a), (c) and (d) of sub-section (3) of Section 153" shall be substituted;

(25)      in Section 176, in sub-section (5), for the words "rule of law" the words "law or rules" shall be substituted;

(26)      in Section 182, in sub-section (1), in the Table, in column (1),—

            (a)        Against S. No. 1, in column (3), for the full stop, at the end, a colon shall be substituted and thereafter the following shall be inserted, namely:—

                        "Explanation.—For the purposes of this entry, it is declared that the expression "tax payable" means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under sections 120, 121, 122 or 122C"; and

            (b)        in sub-section (1), in the Table, in Column No. 1 against Sr. No. 5, in column (2), the following new proviso shall be added, namely:

                        "Provided that if the person opts to pay the tax due on the basis of an order under Section 129 on or before the due date given in the notice under sub-section (2) of Section 137 issued in consequence of the said order, and does not file an appeal under Section 131 the penalty payable shall be reduced by 50%.";

(27)      in Section 206A, in sub-section (3), for the full stop, at the end, colon shall be susbstituted and thereafter the following proviso shall be added, namely:—

            "Provided that this section shall not apply to a non resident tax payer having a permanent establishment in Pakistan.";

(28)      in Section 209, in sub-section (1), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

            "Provided that the Board or the Chief Commissioner, as the case may be, may transfer jurisdiction in respect of cases or persons from one Commissioner to another.";

(29)      in Section 236A, in sub-section (1),—

            (a)        after the word "auction", the words "or auction by a tender" shall be inserted; and

            (b)        for the words "of Income Tax", the words "Inland Revenue" shall be substituted;

(30)      in Section 216, in sub-section (5), for the word "Commissioner" the word "Board", shall be substituted;

(31)      in Section 236B, after sub-section (2), the following new subjections shall be added, namely:—

            "(3)      The advance tax collected under sub-section (1) shall be adjustable.

            (4)        The advance tax under this section shall not be collected in the case of—

                        (a)        the Federal Government or a Provincial Government; or

                        (b)        a person who produces a certificate from the Commissioner Inland Revenue that income of such person during the tax year is exempt.";

(32)      in the FIRST SCHEDULE,—

            (I)        in Part I —

                        (A)       in Division I,—

                                    (a)        in clause (1),—

                                    (i)         the words, brackets and figures "to which sub-section (1) of Section 92 applies" shall be omitted; and

                                    (ii)        for the TABLE, the following shall be substituted, namely:—

"TABLE

S.No.

Taxable Income.

Rate of tax.

(1)

(2)

(3)

1.

Where the taxable income does not exceed Rs.350,000

0%

2.

Where the taxable income exceeds Rs.350,000 but does not exceed Rs.500,000

7.50%

3.

Where the taxable income exceeds Rs.500,000 but does not exceed Rs.750,000

10%

4.

Where the taxable income exceeds Rs.750,000 but does not exceed Rs. 1,000,000

15%

5.

Where the taxable income exceeds Rs. 1,000,000 but does not exceed Rs. 1,500,000

20%

6.

Where the taxable income exceeds Rs. 1,500,000

25%"; and

 

                        (iii)       the first proviso shall be omitted; and

            (b)        in clause (1 A), for the TABLE, the following shall be substituted, namely:—

"TABLE

S.No.

Taxable Income.

Rate of tax.

(1)

(2)

(3)

1.

Where the taxable income does not exceed Rs.350,000

0%

2.

Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000

1.50%

3.

Where the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000

2.50%

4.

Where the taxable income exceeds Rs.450,000 but does not exceed Rs.550,000

3.50%

5.

Where the taxable income exceeds Rs.550,000 but does not exceed Rs.650,000

4.50%

6.

Where the taxable income exceeds Rs.650,000 but does not exceed Rs.750,000

6.00%

7.

Where the taxable income exceeds Rs.750,000 but does not exceed Rs.900,000

7.50%

8.

Where the taxable income exceeds Rs.900,000 but does not exceed Rs. 1,050,000

9.00%

9.

Where the taxable income exceeds Rs. 1,050,000 but does not exceed Rs. 1,200,000

10.00%

10.

Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,450,000

11.00%

11.

Where the taxable income exceeds Rs. 1,450,000 but does not exceed Rs. 1,700,000

12.50%

12.

Where the taxable income exceeds Rs. 1,700,000 but does not exceed Rs. 1,950,000

14.00%

13.

Where the taxable income exceeds Rs. 1,950,000 but does not exceed Rs.2,250,000

15.00%

14.

Where the taxable income exceeds Rs.2,250,000 but does not exceed Rs.2,850,000

16.00%

15.

Where the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550,000

17.50%

16.

Where the taxable income exceeds Rs.3,550,000 but does not exceed Rs.4,550,000

18.50%

17.

Where the taxable income exceeds Rs.4,550,000.

20.00%"; and

 

(B)       in Division VII, for the TABLE, the following shall be substituted, namely:—

 


"TABLE

S. No.

Period.

Tax Year.

Rate of tax.

1.

Where holding period of a security is less than six months.

2011
2012
2013
2014
2015

10%
10%
12.5%
15%
17.5

2.

Where holding period of a security is six months or more but less than twelve months.

2011
2012
2013
2014
2015
2016

7.5%
8%
8.5%
9%
9.5%
10%

3.

Where holding period of a security is one year or more.

--

0%”; and

            (II)       in Part III, in Division IV, in clause (3) for the figure, brackets and letter "(1A)” the figure and brackets "(2)" shall be substituted; and

            (III)      in Part IV, in Division VI, for the figure "0.3", the figure "0.2" shall be substituted;

(33)      in the SECOND SCHEDULE—

            (i)         in Part I,—

                        (a)        in clause (61), sub-clauses (xi) and (xxv) shall be omitted;

                        (b)        clause (74A) shall be omitted;

                        (c)        clause (93) shall be omitted;

                        (d)        after clause (107), the following new clause shall be inserted, namely:—

                                    "(107A) Any income derived by the Islamic Development Bank from its operations in Pakistan in connection with its social and economic development activities."; and

                        (e)        clause (114A) shall be omitted;

            (ii)        in Part II, in clause (5A), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

                        "Provided that tax deducted on profit on debt from debt instruments, Government securities including treasury bills and Pakistan Investment Bonds shall be final tax on profit on debt payable to a non-resident person having no permanent establishment in Pakistan and the investments are exclusively made through a Special Rupee Convertible Account maintained with a Bank in Pakistan.";

            (iii)       in Part III, for clause (4), the following shall be substituted, namely:—

                        "(4)      In respect of old and used automotive vehicles, tax under Section 148 shall not exceed the amount specified in Notification No. S.R.O. 577(I)/2005, dated the 6th June, 2005.";

            (iv)       in Part IV—

                        (a)        in clause (11 A), in sub-clause (i), after the figure and comma "2006," the words, comma and figure "or a pension fund registered under the Voluntary Pension System Rules, 2005" shall be inserted;

                        (b)        after clause (38B), the following new clause shall be inserted, namely:—

                                    "(38C) The provisions of Section 151, 152, 153 and 233 shall not apply to the Islamic Development Bank.";

                        (c)        in clause (42), for the brackets and figure "(6)" the brackets and figure "(3)" shall be substituted;

                        (d)        in clause (46A), for the brackets and figure "(6)" the brackets and figure "(3)" shall be substituted; and

                        (e)        for clause (47D), the following shall be substituted;

                                    "(47D) The provisions of clause (a) of sub-section (3) of Section 153 shall not apply to cotton ginners"; and

(34)      in the SEVENTH SCHEDULE,—

            (a)        in Rule 1, in clause (c),—

                        (i)         after the figure and sign "1%" occurring for the second time, the words, figures, letters and sign "of total advances for a banking company and 5% of total advances for consumers and small and medium enterprises (SMEs)" shall be inserted; and

                        (ii)        for the proviso the following shall be substituted, namely:—

                                                "Provided that if provisioning is less than 1 % of advances, for a banking company then actual provisioning for the year shall be allowed:

                                                Provided further that if provisioning is less than 5% of advances for consumers and small and medium enterprises (SMEs) then actual provisioning for the year shall be allowed and this provisioning shall be allowable from the first day of July, 2010."; and

            (b)        in Rule 6, in the proviso, for the full stop, at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

                                    "Provided further that the "Dividend" received by a banking company from its asset management company shall be taxed at the rate of 20%.".

7.  Amendments of the Federal Excise Act, 2005.—In the Federal Excise Act, 2005, the following further amendments shall be made, namely:—

(1)        in Section 2, in clause (16), in sub-clause (b), for the word and comma "snuff," the words and commas "snuff or preparation of unmanufactured tobacco by drying, cutting and thrashing of raw tobacco," shall be substituted;

(2)        Section 3 A shall be omitted provided in case of imports, such omission shall be deemed to have been made on 20th June, 2011;

(3)        in Section 8, after the word "percent", the words and comma "per annum ," shall be inserted;

(4)        in Section 14,—

            (a)        in sub-section (1), for the word "three", the word "five" shall be substituted; and

            (b)        in sub-section (2), for the full stop, at the end, a colon shall be substituted and thereafter, the following new provisos shall be inserted, namely:—

                                    "Provided that an order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, fix, provided that such extended period shall in no case exceed sixty days:

                                    Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days shall be excluded from the computation of the periods specified in the first proviso.";

(5)        in Section 26, in sub-section (1), after the word "cigarettes" ,wherever occurring, the words "or beverages" shall be inserted;

(6)        in Section 27,—

            (a)        in the heading, after the word "cigarettes", the words "or beverages" shall be inserted; and

            (b)        in sub-sections (1), (2) and (3), after the word "cigarettes", wherever occurring, the words "or beverages" shall be inserted;

(7)        in Section 29, in sub-section (2), in clause (a), for the acronym "CBR", the words "Inland Revenue" shall be substituted;

(8)        in Section 34, in the heading, the words "and Reference to High Court" shall be omitted;

(9)        in Section 38, in sub-section (4), after the word "appropriate", the words "within forty-five days of the receipt thereof shall be inserted;

(10)      in Section 43, after sub-section (2), the following explanation shall be added, namely:—

            Explanation.—For the purposes of this section, the expression "any act or thing is to be done" includes "any act or thing to be done by the registered person or by the authorities specified in Section 29 of this Act.";

(11)      In the First Schedule,—

            (a)        in Table I, in column (1),—

                        (i)         against serial numbers 4 and 5, in column (4), for the word "Twelve", the word "Six" shall respectively be substituted;

                        (ii)        against serial number 6, in column (4), for the word "Ten", the word "Six" shall be substituted;

                        (iii)       against serial number 7, in column (4), for the word "Five", the word "Ten" shall be substituted;

                        (iv)       for serial numbers 9, 10 and 11 and the corresponding entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:—

"9.

Locally produced cigarettes if their retail price exceeds twenty one rupees per ten cigarettes.

24.02

Sixty-five per cent of the retail price.

10.

Locally produced cigarettes if their retail price exceeds eleven rupees and fifty paisa per ten cigarettes but does not exceed twenty-one rupees per ten cigarettes.

24.02

Six rupees and four paisa per ten cigarettes plus seventy per cent per incremental rupee or part thereof.

11.

Locally produced cigarettes if their retail price does not exceed eleven rupees and fifty paisa per ten cigarettes.

24.02

Six rupees and four paisa per ten cigarettes";

                        (v)        against serial number 13, in column (4), for the word "Seven", the word "Five" shall be substituted;

                        (vi)       serial numbers 17,18,21,26,28,29, 30,39,40,46,47,48,49,51 and 52, and the corresponding entries relating thereto in columns (2), (3) and (4) shall be omitted;

                        (vii)      against serial number 50, in column (4), for the words "one rupee per filter rod", the words and full stop "Twenty per cent ad val." shall be substituted;

                        (viii)     after serial number 52 and the corresponding entries relating thereto in columns (2), (3) and (4), omitted as aforesaid, the following new serial number and corresponding entries relating thereto shall be added, namely:—

                                    "53. White Crystalline Sugar 1701.9910 and 1701.9920. Eight per cent ad val"; and

                        (ix)       in the Restriction, at the end, for the figures and hyphen "2010-11", the figures and hyphen "2011-12" shall be substituted; and

            (b)        in Table-II, serial number 12 and the corresponding entries relating thereto in columns (2), (3) and (4) shall be omitted; and

(12)      in the Second Schedule, in the Table, in column (1), after serial number 2 and the entries relating thereto in columns (2) and (3), the following new serial number and the corresponding entries relating thereto shall be added, namely:—

"3.

White Crystaline Sugar

1701.9910 1701.9920".

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

THE SCHEDULE

[See Section 2 (9)]

AMENDMENT IN THE CUSTOMS ACT, 1969 (IV OF 1969)

In the Customs Act, 1969 (IV of 1969), in the First Schedule, for the corresponding entries against "PCT Code", "Description" and "CD%" specified in columns (1), (2) and (3) appearing in chapters 1 to 99, the following corresponding entries relating to "PCT Code", "Description" and "CD%" specified in columns (1), (2) and (3) of the Table below shall be substituted, namely:—

"TABLE

PCT CODE

DESCRIPTION

CD%

(1)

(2)

(3)

2923.9010

- - - Betaine

5

2930.9060

---0.0.diethy10-(3,5,6-trichloro2-pyridyl)
phosphorothioate

5

74.04

Copper waste and scrap.

 

7404.0010

- - - Brass scrap

0

7404.0090

- - -Other

0

7407.1010

- - - Bars

5

7407.2100

- - - Of copper-zinc base alloys (brass)

5

87.10

Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles.

 

8710.0010

Armoured cash carrying vehicles

20

8710.0090

---Other

20

9918

Machinery, equipment, apparatus, appliances, components, sub-components and parts not produced or manufactured in Pakistan which are re-imported by industrial concerns after having been exported and have not undergone any process outside Pakistan since their exportation. In case the machinery, equipment, apparatus, appliances, components, sub-components and parts have undergone any alterations, renovations, additions or repairs prior to their re-import into Pakistan, the cost incurred on such alterations, renovations, additions or repairs (excluding the element of freight and other incidentals) shall be liable to duty as leviable under its respective PCT heading determined at the time of original import provided the same was or were, as the case may be, exported under a contract of alteration, renovation, addition or repairs and that the supplier and the receiver as well as the make, model, weight and other specifications remain the same as were at the time of the original import.

0"


DECLARATION UNDER THE PROVISIONAL COLLECTION OF TAXES ACT, 1931 (XVI OF 1931)

The provisions of sub-section (9) of Section 2, sub-section (11) of Section 4 and sub-clauses (iii), (iv), (viii) and (ix) of clause (a) of sub-section (10) and sub-section (11) of Section 12 of this Act shall have effect for the purposes of this declaration and of the provisions of Provisional Collection of Taxes Act, 1931 (XVI of 1931), as if they were provisions of imposition of duties and taxes of customs, sales tax and federal excise. It is hereby declared accordingly in terms of Section 3 of the Provisional Collection of Taxes Act, 1931 (XVI of 1931), that it is expedient in the public interest that the aforesaid provisions of this Act shall have effect from the 4th June, 2011.

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