ACT No. XLIII of 1950

19th April, 1950

An Act to implement the International Monetary
Fund and Bank Agreements

WHEREAS, at the United Nations Monetary and Financial Conference held at Bretton Woods, New Hampshire, in July 1944, Articles of the following agreements were drawn up, and set out in the Final Act of the said Conference that is to say,

1. Short title extent and commencement. (1) This Act may be called the International Monetary Fund and Bank Act, 1950.
(2) It extends to the whole of Pakistan.
(3) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint.

2. Payment to International Fund and Bank. (1) There shall be paid out of the revenues of the Central Government all such sums as may from time to time be required for the purpose of paying
(a) the subscriptions payable by the Central Government, to the International Fund under paragraph (a) of section 3, and paragraph (a) of section 4, of Article III of the Fund Agreement, and to the International Bank under [paragraphs (a) and (c) of section 3 of Article II of the Bank Agreement];
(b) any sums payable by the Central Government to the International Fund under paragraph (b) of section 8 of Article IV of the Fund Agreement, and to the International Bank under section 9 of Article II of the Bank Agreement;
(c) any charges payable by the Central Government to the International Fund under section 8 of Article V of the Fund Agreement;
(d) any sums required for implementing the guarantee of the Central Government referred to in section 3 of Article XIII of the Fund Agreement;
(e) any compensation required to be paid by the Central Government to the International Fund or to any member thereof under Schedule D or Schedule E to the Fund Agreement.
(2) The Central Government may, if it thinks fit so to do, create and issue to the International Fund or International Bank, in such form as it thinks fit, any such non interest bearing and non negotiable notes or other obligations as are provided for by section 5 of Article III of the Fund Agreement and section 12 of Article V of the Bank Agreement.

3. State Bank to be depository for International Fund and Bank. The State Bank of Pakistan (hereinafter referred to as the State Bank) shall be the depository of the Pakistan currency holdings of the International Fund and International Bank.

4. Power to call information. (1) Where under section 5 of Article VIII of the Fund Agreement, the International Fund required the Central Govern*ment to furnish it with any information, the Central Government, or if generally or specially authorised by the Central Govern*ment in this behalf, the State Bank may by order in writing require any person to furnish to such officer or other person as may be specified in the order such detailed information as the Central Government or the State Bank, as the case may be, may determine to be essential for the purpose of complying with the request of the International Fund; and any person so required shall be bound to furnish such information.
(2) Every officer or person to whom any information is required to be furnished under this section shall be deemed to be a public servant within the meaning of section 21 of the Pakistan Penal Code XLV of 1860.
(3) No information obtained under this section shall be furnished to the International Fund in such detail as to disclose the affairs of any person, and the provisions of sub sections (1), (2) and (3) of section 54 of the Income tax Act, 1922, shall apply in relation to information obtained under this section as they apply to the particulars referred to in that section XI of 1922.
(4) A determination of the Central Government or the State Bank under sub section (1) as to the extent of detail in which information is to be furnished shall be final, and in any prosecu*tion under section 176 or section 177 of the Pakistan Penal Code in respect of any information required to be furnished under this section, it shall not be a defence to assert that the information was required to be furnished in greater detail than was essential for the purpose of complying with the request of the International Fund XLV of 1860.
(5) No prosecution for an offence in respect of any infor*mation required to be furnished under this section shall be instituted except with the previous sanction of the Central Government.

5. Certain provisions of Agreements to have force of law. Notwithstanding anything to the contrary contained in any other law, the provisions of the Fund and Bank Agreements set out in the Schedule shall have the force of law in Pakistan:
Provided that nothing in section 9 of Article IX of the Fund Agreement or in section 9 of Article VII of the Bank Agree*ment shall be construed as
(a) entitling the International Fund or International Bank to import into [Pakistan], goods free of any duty of customs without any restriction on their subsequent sale therein, or
(b) conferring on the International Fund or Inter*national Bank any exemption from duties or taxes which form part of the price of goods sold or which are in fact no more than charges for services rendered.

6. Amendment of clause 13, State Bank of Pakistan Order, 1948. In clause 13 of the State Bank of Pakistan Order, 1948, after the Explanation to sub clause (15), the following new sub-*clause shall be inserted, namely O. 11 of 1948:
“(15A) The performance of the functions of the Bank under the International Monetary Fund and Bank Act, 1950.”

7. Repeal of Ordinance of XLVII of 1945. The International Monetary Fund and Bank Ordin*ance, 1945, is hereby repealed.

THE SCHEDULE
(See section 5)
PROVISIONS OF AGREEMENTS WHICH SHALL HAVE FORCE OF LAW

Part I
Fund Agreement
Paragraph (b) of section 2 of Article VIII. Exchange con*tracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this Agreement shall be unenforceable in the territories of any member.

ARTICLE IX
STATUS, IMMUNITIES AND PRIVILEGES

Section 1. Purpose of Article. To enable the Fund to fulfil the functions with which it is entrusted, the status, immunities and privileges set forth in this Article shall be accorded to the Fund in the territories of each member.

Section 2. Status of the Fund. The Fund shall possess full juridical personality, and, in particular, the capacity
(i) to contract;
(ii) to acquire and dispose of immovable and mov*able property;
(iii) to institute legal proceedings.

Section 3. Immunity from judicial process. The Fund, its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract.

Section 4. Immunity from other action. Property and assets of the Fund, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expro*priation or any other form of seizure by executive or legislative action.

Section 5. Immunity of archives. The archives of the Fund shall be inviolable.

Section 6. Freedom of assets from restrictions. To the extent necessary to carry out the operations provided for in this Agreement, all property and assets of the Fund shall be free from restrictions, regulations, controls and moratoria of any nature.

Section 7. Privilege for communications. The official communications of the Fund shall be accorded by members the same treatment as the official communications of other members.

Section 8. Immunities and privileges of officers and emplo*yees. All governors, executive directors, alternates, officers and employees of the Fund

(i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Fund waives this immunity;
(ii) not being local nationals, shall be granted the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;
(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of com*parable rank of other members.

Section 9. Immunities from taxation. (a) The Fund, its assets, property, income and its operations and transactions authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Fund shall also be immune from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to executive directors, alternates, officers or employees of the Fund who are not local citizens, local subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any obliga*tion or security issued by the Fund, including any dividend or interest thereon, by whomsoever held
(i) which discriminates against such obligation or security solely because of its origin; or
(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Fund.

Part II
Bank Agreement
ARTICLE VII
STATUS, IMMUNITIES AND PRIVILEGES

Section 1. Purpose of Article. To enable the Bank to fulfil the functions with which it is entrusted the status, immunities and privileges set forth in this Article shall be accorded to the Bank in the territories o f each member.
Section 2. Status of the Bank. The Bank shall possess full juridical personality, and, in particular, the capacity
(i) to contract;
(ii) to acquire and dispose of immovable and movable property;
(iii) to institute legal proceedings.

Section 3. Position of the Bank with regard to judicial process. Actions may be brought against the Bank only in a court of competent jurisdiction in the territories of a member in which the Bank has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or deriving claims from mem*bers. The property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank.

Section 4. Immunity of assets from seizure. Property and assets of the Bank, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legis*lative action.

Section 5. Immunity of archives. The archives of the Bank shall be inviolable.

Section 6. Freedom of assets from restrictions. To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of this Agreement, all property and assets of the Bank shall be free from any restric*tions, regulations, controls and moratoria of any nature.

Section 7. Privilege for communications. The official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of other members.

Section 8. Immunities and privileges of officers and em*ployees. All governors, executive directors, alternates, officers and employees of the Bank

(i) shall be immune from legal process with respect to acts performed by them in the it official capacity except when the Bank waives this immunity;
(ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;
(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of com*parable rank of other members.

Section 9. Immunities from taxation. (a) The Bank; its assets, property income and its operations and transactions Pakistan (Army and Air Force) Reserves authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Bank shall also be immune from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to executive directors, alternates, officials or employees of the Bank who are not local citizens, local subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any obliga*tion or security issued by the Bank (including any dividend or interest thereon) by whomsoever held
(i) which discriminates against such obligation or security solely because it is issued by the Bank; or
(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank.
(d) No taxation of any kind shall be levied on any obliga*tion or security guaranteed by the Bank (including any dividend or interest thereon) by whomsoever held
(i) which discriminates against such obligation or security solely because it is guaranteed by the Bank; or
(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Bank.

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