International Finance Corporation Act, 1956

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THE INTERNATIONAL FINANCE CORPORATION ACT, 1956
 
 
CONTENTS
 
1. 
 
Short title
,
 
extent and commencement
 
2.
 
Definitions
 
3. 
 
Financial provisions
 
4. 
 
State Bank to be depository for the Corporation. 
 
5. 
 
Certain provisions
 
of Agreement
s
 
to have force of L
aw
.
 
T
HE SCHEDULE
 
 
 
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THE INTERNATIONA
L FINANCE CORPORATION ACT, 1956
 
ACT NO. XXVIII OF 1956
 
[18
th
 
April, 1956]
 
An Act to give effect to an international agreement for the establish
ment and operation of an 
International Finance Corporation and for purposes conne
c
ted therewith.
 
 
WHEREAS Articles of Agreement of the International Finance Corporation have, on the 
eleventh day of April 1955, been approv
ed by the Executive Directors of the International Bank for 
Reconstruction and Development, hereinafter referred to
 
as the Bank, and deposited in the archives 
of the Bank for signature and acceptance on behalf of Governments ;
 
 
AND WHEREAS it is expedient to provide for the participation of Pakistan in the said 
Corporation in pursu
ance of the aforesaid agreement
;
 
 
It i
s
 
hereby enacted as follows :
___
 
 
1. Short title
,
 
extent and commencement.
___
(1) This Act may be called the International 
Finance Corporation Act, 1956.
 
 
(2) It extends to the whole of Pakistan.
 
 
(3) It shall come into force on such date
1
 
as the 
2
[Federal 
G
overnment] may, by notification 
in the official Gazette, appoint.
 
 
2. Definitions.
___
 
In this Act, unless there is anything repugnant in the sub
ject or context,
___
 
 
(a)
 
“
agreement
”
 
means any Agreement which may be signed and accepted on 
behalf of the Gov
e
rnment of Pakistan in pursuance of the Articles of 
Agreement approved by the Executive Directors of the Bank on
 
the eleventh 
day of April 1955 
providing for the establishment and operation of an 
international body to be called the International Finance Co
r
poration ;
 
(b) 
 
“
Corporation
”
 
means the International Finance Corporation ;
 
(c) 
 
“
member
”
 
means a member of the Corporation.
 
 
 
1
i.
e.,
 
the 8th May, 1956, see Gaz. of P.,
 
1956,
 
Ext., P. 1033.
 
2
Subs. by 
The Federal Adaptation of Laws Order 1975 (President’s 
O
rder No. 4 of 1975
, Art
. 2 and Table.
 
 
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3. Financial provisions.
___
(1) There shall be paid out of the 
1
[Federal Consolidated Fund] 
and until the 
1
[Federal Consolidated Fund] is constituted, out of the Revenues of the 
2
[Federal 
Government], all such sums a
s
 
may be required for the purpose of making pay
ments on behalf of the 
Government of Pakistan under paragraph (a) of section 3 of Article II of the Agreement.
 
 
(2) Any sums received by the Government of Pakistan from the Corporation in pursuance of 
the Agr
e
ement shall be paid into the 
1
[Federal Consolidated Fund] and until the 
1
[Federal Consoli
-
dated Fund] is constituted into the Revenues of the 
2
[Federal Government].
 
 
4. State Bank to be depository for the Corporation.
___
 
The State Bank of Pakistan shall b
e
 
the depository of the Pakistan currency holdings or other assets of the Corporation.
 
 
5. Certain provisions of Agreement
s
 
to have force of L
aw.
___
 
Notwithstanding anything to 
the contrary contained in any other law, the provisions of Article VI of the Ag
r
eement set out in the 
Schedule shall have the force of law in Pakistan :
 
 
Provided that nothing in section 9 thereof shall be construed as
___
 
 
(a) 
 
entitling the Corporation to import into Pakistan goods free of any duty of 
customs without any restric
tio
n
 
on their subsequent sale therein, or
 
(b) 
 
conferring on the Corporation 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.
 
THE SCHEDULE
 
(
S
ee section 5)
 
Provisions
 
of Agreement which shall have force of Law
 
THE AGREEMENT
 
Article VI
 
STATUS, IMMUNITIES AND PRIVILEGES
 
SECTION 1.
___
 
Purpose Article
 
of
 
 
To enable the Corporation to fulfil the functions with which it is entrusted, the status, 
immunities and privileges set
 
forth in this Article shall be accorded to the Corporation in the 
territories of each member.
 
 
1
Subs. by 
The Federal Adaptation of Laws Order 1975 (President’s Order No. 4 of 1975
, Art. 2 and Table.
 
2
Subs., ibid.
 
 
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SECTION 2.
 
___
Status of the Corporation
.
 
 
The Corporation 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 Corporation w
i
th regard to Judicial Process.
 
 
Actions may be brought against the Corporation only in a court of competent jurisdiction in 
the territories of a member in which the Corporation has an office, has appointed an agent for the 
purpose of accepting service or 
n
otice of process, or has issued or guaranteed securities. No action 
shall, however, be brought by members or persons acting for or deriving claims from members. The 
property and assets of the Corporation shall, wheresoever located and by whomsoever held, 
b
e 
immune from all forms of seizure, attachment or execution before the delivery of final judgment 
against the Corporation.
 
SECTION 4.
___
 
Immunity of Assets from Seizure
.
 
 
Property and assets of the Corporation, wherever located and by whomsoever held, sha
l
l be 
immune from search, requisition, confiscation, expropriation or any other form of seizure by execu
-
tive or legislative action.
 
SECTION 5.
 
___
Immunity of Archives.
 
 
The archives of the Corporation shall be inviolable.
 
SECTION 6.
___ 
Freedom for
 
Assets 
f
rom Restrictions
 
 
To the extent necessary to carry out the operations provided for in this Agreement and subject 
to the provisions of Article III, section 5, and the other provisions of this Agreement, all property and 
assets of the Corporation shall be f
r
ee from restrictions, regulations, controls and moratoria of any 
nature.
 
SECTION 7.
___
Privilege for Communications
 
 
The official communications of the Corporation shall be accorded by each member the same 
treatment that it accords to the official communic
a
tions of other members.
 
SECTION 8.
 
___
 
Immunities and Privileges of Officers and Employees
.
 
 
All Governors, Directors, Alternates, officers and employees of the Corporation:
 
(i) 
 
shall be immune from legal process with respect to acts performed by them in
 
their official capacity ;
 
(ii) 
 
not being local nationals, shall be accorded the same immunities from 
immigration restrictions, alien registration requirements and national service 
obliga
tions and the same facilities as regards exchange restrictions as a
r
e 
 
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accorded by members to the repre
sentatives, 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 employ
e
es of comp
-
arable rank of other members.
 
SECTION 9.
___
 
Immunities from Taxation
 
(a) 
 
The Corporation, its assets, property, income and its operations and 
transactions authorized by this Agreement, shall be immune from all taxation 
and from all customs dut
i
es. The Corporation 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 
Corporation to Directors, Alternates, officials or employees of t
h
e Corporation 
who are not local citizens, local subjects, or other local nationals.
 
(c) 
 
No taxation of any kind shall be levied on any obligation or security issued by 
the Corporation (including any dividend or interest thereon) by whomsoever 
held:
 
(i) 
 
w
hich discriminates against such obligation or secu
rity solely because 
it is issued by the Corporation ; 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 a
n
y 
office or place of business maintained by the Corporation.
 
(d) 
 
No taxation of any kind shall be levied on any obliga
tion or security 
guaranteed by the Corporation (including any dividend or interest thereon) by 
whomsoever held:
 
(i) 
 
which discriminate
s
 
against such obligation or secu
rity solely because 
it is guaranteed by the Corpora
tion ; or
 
(ii) 
 
if the sole jurisdictional basis for such taxation is the location of any 
office or place of business maintained by the Corporation.
 
SECTION 10.
___
 
Applic
a
tion of Article
 
 
Each member shall take such action as is necessary in its own territories for the purpose of 
making effective in terms of its own law the principles set forth in this Article and shall inform the 
Corporation of the detailed action which i
t
 
has taken.
 
_______
 
 
 
Date: 18
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12
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2024