AN ORDINANCE to provide for dealings in foreign exchange

WHEREAS it is necessary to impose certain temporary restrictions for and in relation to foreign exchange;

AND WHEREAS the National Assembly is not in session and the President is satisfied that circumstances exist which render it necessary to take immediate action;

Now, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following ordinance:

1. (1) This Ordinance may be called the Foreign Exchange (Temporary Restrictions) Ordinance, 1998.

(2) It shall come into force at once.

2. Notwithstanding anything contained in the Protection of Economic Reforms Act, 1992 (XII of 1992) but subject to section 3 it is hereby provided that during the period in which a Proclamation of Emergency under Article 232 of the Constitution of the Islamic Republic of Pakistan is in force, the various protections contained in the said Act, or in any other law for the time being in force, or in any agreement or contract, for or in relation to foreign exchange, or the right to bring, hold, sell, withdraw, transfer, pay or take out foreign exchange, shall remain suspended.

3. (1) The Federal Government may by rules make provision for regulating dealings and payments in foreign exchange and such rules may, without prejudice to the generality of the foregoing, empower the State Bank of Pakistan to grant permissions to make or receive payments in foreign exchange, or to permit the conversion of foreign exchange into rupees, either on a case to case basis, or on the basis of a classification of various types and categories.

(2) Pending the framing of rules under sub-section (1) withdrawals, remittances or payments in foreign exchange shall be made with the prior permission of the State Bank of Pakistan.