Ordinance XV of 1978 · 6 pages
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THE ISLAMIC DEVELOPMENT BANK ORDINANCE, 1978
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CONTENTS
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
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THE ISLAMIC DEVELOPMENT BANK ORDINANCE, 1978.
ORDINANCE NO. VI OF 1978
[22nd February, 1978]
An Ordinance to implement the international agreement for the establishment and operation of the
Islamic Development Bank and for matters connected therewith.
WHEREAS Pakistan is a signatory to the Agreement establishing the Islamic 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;
And WHEREAS the President is satisfied that circumstances exist which render it necessary
to take immediate action;
Now, therefore, in pursuance of the Proclamation of the fifth day of July, 1977, read with the
Laws (Continuance in Force) Order, 1977, (C.M.L.A. Order No. 1 of 1977), 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 Islamic
Development Bank Ordinance, 1978.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once and shall be deemed to have taken effect on the twenty-third
day of April, 1975.
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 Islamic Development Bank;
(b) “Article” means Article of the Agreement; and .
(c) “Bank” means the Islamic Development Bank established under the Agreement.
3. Financial provisions.___(1) There shall be paid out of the Federal Consolidated Fund all
such sums as may, from time to time, be required for the purpose of paying—
(a) the subscription payable by the Federal Government to the Bank under
paragraphs 1, 2, 3, 4 and 5 of Article 5; and
(b) any other sums payable by the Federal Government to the Bank under the
Agreement.
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(2) Any sums received, by or on behalf of the Federal Government from the Bank shall be paid
into the 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 59 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 sub-sequent sale therein, or
(b) conferring on the Bank an exemption from duties or taxes which form part of
the prices of goods sold or which are in fact no more than charges for services
rendered.
(2) The 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 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 VII
STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES
ARTICLE 50
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.
ARTICLE 51
Legal Status
The Bank shall be an independent international institution possessing full juridical personality
and, in particular, full capacity—
(i) to contract;
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(ii) to acquire and dispose of immovable and movable property; and
(iii) to institute legal proceedings.
ARTICLE 52
Immunity from Judicial Proceedings
1. The Bank shall enjoy immunity from every legal process except in cases arising out of or in
connection with the exercise of its powers to raise money, or to buy and sell or under write 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 an entity or
person directly or indirectly acting for or deriving claims from 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, whosesoever located and by whomsoever held, be
immune from all forms of seizure, attachment or execution before the delivery of final judgment
against the Bank.
ARTICLE 53
Immunity of Assets
Property and assets of the Bank, whosesoever located and by whomsoever held, shall be
immune from search, requisition, confiscation, expropriation or any other form of taking or foreclosure
by administrative or legislative action.
ARTICLE 54
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.
ARTICLE 56
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
restriction, regulations, controls and moratoria of any nature.
ARTICLE 57
Privilege for Communications
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The official communications of the Bank shall be accorded by each member treatment which
is not less favourable than that accorded by it to any other international organisation.
ARTICLE 58
Immunities and Privileges of Bank Personnel
All Governors, Alternates, Executive Directors, the President, officers and employees of the
Bank—
(i) shall be immune from legal process with respect to acts performed by them in
their official capacity;
(ii) where they arc 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 accorded
by members to representatives, officials and employees of comparable rank of
other members.
ARTICLE 59
Exemption from Taxation
1. The Bank, its assets, properly, income and its operations and transactions shall be exempt
from all taxation and from all customs duties. The Bank shall be also 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 the
President, the Executive Directors, officers or employees of the Bank.
3. No tax shall be levied on any security issued by the Bank, including any dividend thereon,
by whomsoever held-
(i) which discriminates against such 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 security guaranteed by the Bank, including any
dividend thereon, by whomsoever held—
(i) which discriminates against such security solely because it is guaranteed by the
Bank; or
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(ii) if the sole jurisdictional basis for such taxation is the location and of any office
or place of business maintained by the Bank.
ARTICLE 61
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 its best interest.
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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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