Hydrocarbon Development Institute of Pakistan Act,2006

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THE HYDROCARBON DEVELOPMENT INSTITUTE OF 
PAKISTAN ACT, 2006 
 
 
       
CONTENTS 
CHAPTER I 
 
PRELIMINARY 
1.  Short title, extent and commencement 
2.  Definitions 
CHAPTER II 
 
CONSTITUTION OF HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN 
3.  Establishment of the Institute 
4.  Objectives and functions of the Institute 
5.  Board of Governors 
6.  Powers and functions of the Board of Governors 
7.  Meetings of the Board of Governors 
8.  Appointment, functions and powers of the Director-General 
CHAPTER III 
 
FINANCES OF THE INSTITUTE 
9.  Funds of the Institute 
10.  Audit and accounts 
CHAPTER IV  
 
MISCELLANEOUS 
11.  Directive from the Federal Government 
12.  International cooperation 

 
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13.  Discoveries and inventions 
14.  Declaration of fidelity 
15.  Submission of reports; etc 
16.  Continuance of certain rules, etc 
17.  Ordinance XCI of 2002 not to apply to Institute 
18.  Winding up of the Institute 
19. Dissolution of the former Institute and repeal, etc 
20.  Transfer of employees of the former Institute to the Institute 
21.  Employees of the Institute to be civil servants 
22.  Power to make rules 
23.  Power to make regulations 
24.  Removal of difficulties 
 
  
 
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THE HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN ACT, 
2006 
ACT NO I OF  2006 
[16th January, 2006] 
An Act to provide for the establishment of the Hydrocarbon Development Institute of Pakistan 
WHEREAS it is expedient to provide for the establishment of the Hydrocarbon Development 
Institute of Pakistan for the purpose of undertaking, promoting and guiding scientific and technological 
research and development in the field of hydrocarbons, and for matters connected therewith or 
ancillary thereto; 
It is hereby enacted as follows:___ 
CHAPTER I  
 
PRELIMINARY 
1. Short title, extent and commencement :___(1) This Act may be called the Hydrocarbon 
Development Institute of Pakistan Act, 2006. 
(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)  “Board of Governors ” means an independent Board of Governors of the 
Institute;  
(b)  “Chairman” means Chairman of the Board of Governors;  
(c)  “Director-General” means the Director-General of the Institute;  
(d)  “former Institute” means the Hydrocarbon Development Institute of Pakistan 
established under the Ministry of Petroleum and Natural Resources Resolution 
No. DP 20(11)/82, dated the 26th July, 1984;  
(e)  “Institute” means the Hydrocarbon Development Institute of Pakistan 
established under section 3;  
(f)  “prescribed” means prescribed by rules;  
(g)  “regulations” means regulations made under this Act; and  
(h)  “rules” means rules made under this Act. 
_______________ 
 
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CHAPTER II 
 
CONSTITUTION OF HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN 
3. Establishment of the Institute :___ (1) As soon as may be after the commencement of this 
Act, the Federal Government shall, establish, in accordance with the provisions of this Act, an Institute 
to be called the Hydrocarbon Development Institute of Pakistan. 
(2) The Institute shall be a body corporate having perpetual succession and a common seal with 
power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and 
immovable, and shall by the name specified in sub-section (1) sue and be sued.  
(3) The headquarters of the Institute shall be at Islamabad.  
(4) Until the Institute is established under sub -section (1), the former Institute, functioning 
immediately before the commencement of this Act shall, notwithstanding its dissolution under section 
20, continue to function, and while so functioning be deemed to be the Institute established under this 
Act. 
4. Objectives and functions of the Institute :___ The objectives and functions of the Institute 
shall be___ 
(a)  to assist the Government in the formulat ion of national policies for the 
development of hydrocarbon industry according to the national needs;  
(b)  to undertake basic studies, research and development to facilitate exploration of 
hydrocarbons;  
(c)  to promote optimum exploitation and utilizatio n of existing hydrocarbon 
resources;  
(d)  to investigate new energy methods and related technologies for oil and gas 
sector;  
(e)  to study and recommend measures for controlling environmental pollution 
relating to hydrocarbon operations;  
(f)  to carry out quality control and standardization of hydrocarbons, as per Pakistan 
Standards and to review the specifications of petroleum products and their 
blends;  
(g)  to establish and operate a: comprehensive computer managed data base relevant 
to its activities, linked to indigenous and foreign data-bases;  
(h)  to develop and promote use of clean, economic and alternative fuels;  
(i)  to provide consultancy, advisory and laboratory services, expertise and facilities 
to the public and private sector organizations and companies;  
 
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(j)  to assist educational establishments in the preparation and conduct of courses 
and training programmes in the field of hydrocarbons and to conduct such 
courses for national as well as international trainees;  
(k)  to coordinate research and development in the hydrocarbon sector nationally 
and with international organizations;  
(l)  to work as a forum of national or international professional bodies in related 
disciplines;  
(m)  to act as an organization for checking of quality, standards and specifications of 
hydrocarbons including crude petroleum, petroleum products, liquefied 
petroleum gas and natural gas;  
(n)  to perform such functions for the Government and the regulators in hydrocarbon 
sector as the Government or the regulators may assign to it from time to time;  
(o)  to conduct the functions of demonstration, training, testing, inspection, 
equipment approval, data processing, technical advice, transfer of technology, 
refueling and vehicle conversions for use of CNG in automobiles;  
(p)  to establish laboratories, facilities and infrastructure anywhere in Pakistan, and 
to take all steps and. measures which are necessary to promote, implement and 
undertake assignments and tasks to fulfil its objectives and functions;  
(q)  to conduct research and development and to coordinate and promote the 
development and commercial application of new energy resources and 
technologies for substitution of oil and gas;  
(r)  to establish bilateral and, multilateral institutional arrangemen ts with national 
and international universities and other entities of interest;  
(s)  to carry out any other related activity, projects or functions entrusted to the 
Institute by the Federal Government, any Provincial Government or local 
authority on appro priate terms and conditions including remuneration for 
services, etc.; and  
(t)  to carry out any other activity in relation to the above objectives and functions. 
5. Board of Governors :___ (1) The general direction and supervision of the affairs of the 
Institute shall vest in the Board of Governors which shall consist of the following members, namely:__ 
(a) Federal Minister for Petroleum and Natural Resources, 
Government of Pakistan. 
Chairman 
(b) Secretary, Ministry of Petroleum and Natural Resources, 
Government of Pakistan. 
Member  
 
 
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(c) Director-General, Hydrocarbon Development Institute of 
Pakistan. 
Member  
 
(d) A Director-General of the Policy Wing of the Ministry of 
Petroleum & Natural Resources to be nominated by the 
Ministry of Petroleum & Natural Resources. 
Member  
 
(e) Financial Adviser (Petroleum and Natural Resources), 
Financial Adviser's Organization, Finance Division, 
Government of Pakistan. 
Member  
 
(f) Chief (Fuels), Energy Wing, Planning & Development 
Division, Government of Pakistan. 
Member  
 
(g) Four eminent scientists or technologists to be nominated by 
the Federal Government. 
Member 
 
 (2) A member, other than an ex officio member, shall hold office for a period of three years at 
a time and shall hold office during the pleasure of the Federal Government. 
  (3) The Director-General shall act as the Secretary of the Board of Governors.  
(4) The Federal Government may, by notification in the official Gazette, increase or decrease 
the number of members of the Board of Governors and prescribe the qualifications and mode of 
appointment of such members in such manner as it may consider appropriate.  
6. Powers and functions of the Board of Governors :___ The Board of Governors shall have 
the power to supervise, control, direct and regulate the affairs of the Institute and shall have the 
following functions, namely:- 
(a)  to lay down the policies and guidelines to be followed by the Institute in the 
performance of its functions;  
(b)  to review the work of the Institute and to consider its periodical reports;  
(c)  to approve annual budget of the Institute;  
(d)  to consider and approve the proposals, schemes and projects submitted by the 
Institute;  
(e)  to assign such special studies, surveys, investigations and other specialized 
works to the Institute as it may consider necessary;  
(f)  to prescribe the terms and conditions of service of the employees of the Institute; 
provided that the pecuniary impact of the terms and conditions so prescribed 
shall not in any case be less beneficial than that of the civil servants of similar 
category and grade;  
 
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(g)  to delegate such administrative and financial powers to the Director-General or 
a committee of members of the Board of Governors as may be necessary. 
7. Meetings of the Board of Governors :___ (1) The Board of Governors shall meet at least 
once every half-calendar year. The Director-General shall convene its meetings with the approval of 
the Chairman. In case the Chairman is unable to preside a meeting for any reason, the Board of 
Governors shall hold such a meeting on the last working day of the half calendar year to be presid ed 
by Secretary, Ministry of Petroleum and Natural Resources or, in his absence, by any of its members 
elected by the member-s present in that meeting. 
(2) The quorum of a meeting of the Board of Governors shall be one half of the total 
membership. The decisions in the meeting shall be taken by a majority vote and in case of equality of 
votes the Chairman shall have a casting vote in addition to his own vote as a member. 
(3) No act or proceeding of the Board of Governors shall be invalid by reason only of existence 
of a vacancy in the Board of Governors. 
8. Appointment, functions and powers of the Director-General:___ (1) The Director General 
shall be a highly qualified scientist with experience in the related fields. He shall be appointed to work 
on full time basis by the Federal Government on such terms and conditions as it may deem appropriate. 
(2) The Director-General shall be the Chief Executive Officer of the Institute and shall, subject 
to such directions as the Board, of Governors may give from time t o time, exercise all such financial 
and administrative powers as are necessary to direct, manage and control the affairs of the Institute in 
accordance with the provisions of this Act.  
(3) The Director-General may, subject to rules and regulations made un der this Act, appoint, 
employ on contract o~ on part time basis or otherwise, such officers, consultants, advisers and other 
staff as are considered necessary for the efficient working of the Institute.  
(4) The Director-General may delegate any of his powers to any officer of the Institute. 
____________ 
CHAPTER III 
 
FINANCES OF THE INSTITUTE 
9. Funds of the Institute:___ The funds of the Institute shall consist of___ 
(a)  grants by the Government;  
(b)  income from investment and royalties;  
(c)  research and development cess;  
(d)  contributions from public and institutions;  
(e)  foreign aid and technical assistance with the prior permission of the Federal 
Government;  
 
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(f)  fees and charges for the services rendered;  
(g)  income from sale of movable or immovable property; and  
(h)  loans obtained by the Institute with the approval of Federal Government. 
10. Audit and accounts:___ (1) The accounts of the Institute shall be maintained in such form 
and manner as the Federal Government may, in consultation with the Controller-General of Accounts, 
determine. 
(2) The Institute may open its accounts with any scheduled bank authorized by the Federal 
Government.  
(3) The surplus funds, if any, shall be invested in the Government approved schemes, securities 
or bonds.  
(4) The accounts of the Institute comprising funds derived from sources specified in clauses (a) 
to (e), (g) and (h) of section 9 shall be audited by the Auditor General of Pakistan, while the accounts 
of the funds derived from source specified in Clause (f) of section 9 shall be audited annually by such 
chartered accountants as may be approved by the Board of Governors and the Auditor -General of 
Pakistan. 
_______________ 
 
CHAPTER IV  
 
MISCELLANEOUS 
11. Directive from the Federal Government:___ The Federal Government may from time to 
time issue to the Institute directives and instructions as it may consider necessary for carrying out t he 
purposes of this Act and the Institute shall be bound to comply with and carry out such directives and 
instructions.  
12. International cooperation :___ The Institute may, subject to such restrictions as may be 
imposed by the Federal Government, cooperate with any international organization for furthering its 
objectives and for the promotion of the hydrocarbon sciences and technologies.  
13. Discoveries and inventions :___ All rights relating to discoveries and inventions and any 
improvement in materials, methods, processes, apparatus or equipment made by any officer or 
employee of the institute in the course of his employment shall vest in the Institute.  
14. Declaration of fidelity,___ Every member, adviser, officer or other employee of the Institute 
shall make such declaration of fidelity and secrecy as may be prescribed.  
15. Submission of reports; etc:___ The Institute shall submit to the Federal Government at such 
intervals as the Federal Government may specify, 
(a)  such periodical reports and summaries as may be required by the Federal 
Government; and  
 
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(b)  such information and comments as may be asked for by the Federal Government 
on any specific point. 
16. Continuance of certain rules, etc :___All rules, regulations, by -laws, orders and 
instructions of the former Institute in force immediately before the commencement of this Act shall, 
mutatis mutandis and so far as they are not inconsistent with any of the provisions of this Act, continue 
to be in force until repealed or altered by rules or regulations made under this Act.  
17. Ordinance XCI of 2002 not to apply to Institute :___ Nothing contained in the Industrial 
Relations Ordinance, 2002 (XCI of 2002), shall apply to, or in relation to, the Institute, or to any of the 
officers and employees of the Institute.  
18. Winding up of the Institute:___ No provision of law relating to the winding up of bodies 
corporate shall apply to the Institute and the Institute shall not be wound up except by order of the 
Federal Government and in such manner as the Federal Government may direct.  
19. Dissolution of the former Institute and repeal, etc :___ (1) Upon the commencement  of 
this Act, the former Institute shall stand dissolved and upon such dissolution___ 
(a)  all assets, rights, powers, authorities and privileges and all property, movable 
and immovable, cash and bank balances, reserve funds, investments and all 
other inte rest and rights in, or arising out of, such property, and all debts, 
liabilities and obligations of whatever kind of the former Institute subsisting 
immediately before its dissolution, shall be transferred to and vest in the 
Institute;  
(b)  all contracts entered into and all matters and things engaged to be done by, with, 
or for the former Institute before such dissolution shall be deemed to have been 
entered into, or engaged to be done by, with, or for the Institute; and  
(c)  all suits and other legal proceedings instituted by, or against, the former Institute 
before such dissolution shall be deemed to be suits and proceedings by, or 
against, the Institute, and shall be proceeded or otherwise dealt with 
accordingly. 
(2) The Government of Pakistan, Ministry of Petroleum and Natural Resources Resolution No. 
DP(1l)/82, dated the 26th July, 1984, shall stand cancelled. 
20. Transfer of employees of the former Institute to the Institute:___ All employees, officers, 
consultants, advisers and other staff employed in any capacity in the former. Institute immediately 
before the commencement of this Act shall stand transferred to the Institute on the same terms and 
conditions of service on which they were employed immediately before such transfer and shall be 
deemed to be the employees of the Institute under this Act.  
21. Employees of the Institute to be civil servants:___ The employees of the Institute shall be 
deemed to be civil servants for the purpose of the Service Tribunals Act, 1973 (LXX of 1973).  
22. Power to  make rules :___ The Federal Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of this Act.  
 
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23. Power to make regulations :___ The Institute may, with the approval of the Board of 
Governors, make such regulations, not inconsistent with the provisions of this Act and the rules made 
there under, as it may consider necessary or expedient for the administration and management of the 
affairs of the Institute.  
24. 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, as may appear to it to be necessary for the purpose of removing the difficulty.