Ordinance II of 1971 · 6 pages
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THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971
CONTENTS
Sections
1. Short title, extent and commencement
2. Definitions
3. Financial provisions
4. State Bank to be depository of the Bank
5. Certain provisions of the agreement to have force of law
6. Power to make rules
THE SCHEDULE
Page 1 of 6
1THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971
ORDINANCE NO. IX of 1971
[16th April, 1971]
An Ordinance to implement the international agreement for the establishment and operation of the
Asian Development Bank and for matters connected therewith.
WHEREAS PAKISTAN is a signatory to the Agreement establishing the Asian Development
Bank and thereby became a member of the said Bank;
AND WHEREAS it is expedient to make provision for the implementation of the
international agreement for the establishment and operation of the aforesaid Bank and for carrying
out the obligations of Pakistan as a member of the said Bank and for matters connected therewith;
NOW, THEREFORE, in pursuance of the Proclamation of the 25th day of March, 1969, read
with the Provisional Constitution Order, and in exercise of all powers enabling him in that behalf, the
President is pleased to make and promulgate the following Ordinance :—
1. Short title, extent and commencement.— (1) This Ordinance may be called the Asian
Development Bank Ordinance, 1971.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once and shall be deemed to have taken effect from the 19th
December, 1966.
2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or
context,—
(a) “Agreement” means the Agreement for the establishment and operation of the
international body known as the Asian Development Bank;
(b) “Bank” means the Asian Development Bank established under the Agreement.
3. Financial provisions.—(1) There shall be paid out of the 2[Federal Consolidated Fund] all
such sums as may, from time to time, be required for the purpose of paying—
(a) the subscriptions payable by the 3[Federal Government] to the Bank under
paragraphs 1, 2 and 3 of Article 5 of the Agreement; and
(b) any sums payable by the 3[Federal Government] to the Bank under paragraph
1 of Article 25 of the Agreement.
(2) The 3[Federal Government] may, if it thinks fit so to do, create and issue to the 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 paragraph 3 of Article 6 of the Agreement.,
1
Validated by the Validation of Laws Act, 1975 (63 of 1975), s. 2 and Sch.,
2
Subs' by the F.A.O., 1975 (P.O. No. 4 of 1975) Art. 2 and Table, for “Central Consolidated Fund”.
3
See foot-note 1, on page 558, supra.
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(3) Any sums received by or on behalf of the 1[Federal Government] from the Bank shall be
paid into the 2[Federal Consolidated Fund.]
4. State Bank to be depository of the Bank. The State Bank of Pakistan shall be the
depository of the Pakistan currency holdings and other assets of the Bank located in Pakistan.
5. Certain provisions of the agreement to have force of law.— (1) Notwithstanding
anything to the contrary contained in any other law, the provisions of the Agreement set out in the
Schedule shall have the force of law in Pakistan;
Provided that nothing in Article 56 of the Agreement shall be construed as—
(a) entitling the 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 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.
(2) The 1[Federal Government] may, by notification in the official Gazette, amend the
Schedule in conformity with any amendments, which may hereafter be duly made and adopted, of
the provisions of the Agreement-set out therein.
6. Power to make rules. The 1[Federal Government] may, by notification in the official
Gazette, make rules for carrying out the purposes of this Ordinance.
THE SCHEDULE
(See section 5)
Provisions of the Agreement which shall have the force of law.
___________
CHAPTER VIII
STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES
ARTICLE 48
Purpose of Chapter
To enable the Bank effectively to fulfil its purpose and carry out the functions entrusted to it,
the status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the
Bank in the territory of each member.
1
See foot-note 1, on page 558, supra.
2
Subs, by the F.A.O., 1975 (P.O. No. 4 of .1975) Art. 2 and Table, for “Central Consolidated Fund”.,
Page 3 of 6
ARTICLE 49
Legal Status
The Bank shall possess full juridical personality and, in particular, full capacity :
(i) to contract;
(ii) to acquire, and dispose of, immovable and movable property; and
(iii) to institute legal proceedings.
ARTICLE 50
Immunity from Judicial Proceedings
1. The Bank shall enjoy immunity from every form of legal process, except in cases arising,
out of or in connection with the exercise of its powers to borrow money, to guarantee obligations, or
to buy and sell or underwrite the sale of securities, in which cases actions may be brought against the
Bank in a court of competent jurisdiction in the territory of a country in which the Bank has its
principal or a branch office, or has appointed an agent for the purpose of accepting service, or notice
of process, or has issued or guaranteed securities.
2. Notwithstanding the provisions of paragraph 1 of this Article, no action shall be brought
against the Bank by any member, or by any agency or instrumentality of a member, or by any entity
or person directly or indirectly acting for or deriving claims from a member or from any agency or
instrumentality of a member. Members shall have recourse to such special procedures for the
settlement of controversies between the Bank and its members as may be prescribed in this
Agreement, in the bye-laws and regulations of the Bank, or in contracts entered into with the Bank.
3. 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 judgement
against the Bank.
ARTICLE 51
Immunity of assets
Property and assets of the Bank, wheresoever located and by whomsoever held, shall be
immune from search, requisition, confiscation, expropriation or any other form of taking or
foreclosure by executive or legislative action.
ARTICLE 52
Immunity of Archives
The archives of the Bank, and, in general, all documents belonging to it, or held by it, shall be
inviolable, wherever located.
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ARTICLE 53
Freedom of Assets from Restrictions
To the extent necessary to carry out the purpose and functions of the Bank effectively, and
subject to the provisions of this Agreement, all property and assets of the Bank shall be free from
restrictions, regulations, controls and moratoria of any nature.
ARTICLE 54
Privilege for Communications
Official communications of the Bank shall be accorded by each member treatment not less
favourable than that it accords to the official communications of any other member.
ARTICLE 55
Immunities and Privileges of Bank Personnel
All Governors, Directors, alternates, officers and employees of the Bank, including experts
performing missions for the Bank:
(i) shall be immune from legal process with respect to acts performed by them in
their official capacity, except when the Bank waives the immunity;
(ii) where they are not local citizens or nationals, shall be accorded the same
immunities from immigration restrictions, alien registration requirements and
national service obligations, and the same facilities as regards exchange,
.regulations, as are accorded by members to the representatives, officials and
employees of comparable rank of other members; and
(iii) shall be granted the same treatment in respect of travelling facilities as is
accorded by members to representatives, officials and employees of
comparable rank of other members.
ARTICLE 56
Exemption from Taxation
1. The Bank, its assets, property, income and its operations and transactions, shall be exempt
from all taxation and from all customs duties. The Bank shall also be exempt from any obligation for
the payment, withholding or collection of any tax or duty.
2. No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to
Directors, alternates, officers or employees of the Bank, including experts performing missions for
the Bank, except where a member deposits with its instrument of ratification or acceptance a
declaration, that such member retains for itself and its political sub-divisions the right to tax salaries
and emoluments paid by the Bank to citizens or nationals of such member.
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3. No tax of any kind shall be levied on any obligation 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.
4. No tax of any kind shall be levied on any obligation 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.
1
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ARTICLE 57
Waiver of Immunities, Exemptions and Privileges
The Bank at its discretion may waive any of the privileges, immunities and exemptions
conferred under this Chapter in any case or instance, in such manner and upon such conditions as it
may determine to be appropriate in the best interests of the Bank.
________
Date: 11-11-2024
1
Validated by the validation of laws Act, 1975 (63 of 1975), s. 2 and Sch.,
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Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.
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