Public Investments (Financial Safeguards) Ordinance, 1960

Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: dae68c1d5335396f78a284185fbe8b75f20339797366df9f859fc7ba8f5120db.

Page 1 of 4 
 
 
THE PUBLIC INVESTMENTS (FINANCIAL SAFEGUARDS) 
ORDINANCE, 1960. 
 
 
 
 
 
 
CONTENTS 
           __________ 
1.  Short title and commencement 
2.  Definitions 
3.  Power to appropriate Government to prescribe procedures, etc., in certain cases 
4.  Power to appropriate Government to give directions in certain other cases 
5.  Power to call for documents, etc. 
6.  Penalties 
7.  Offences by Corporations etc. 
8.  False information etc. 
9.  Cognizance of offence 
9A.  Ordinance not to apply to certain bodies corporate, etc. 
10.  Power to make rules. 
 
 
 

 
Page 2 of 4 
 
THE PUBLIC INVESTMENTS (FINANCIAL SAFEGUARDS) ORDINANCE, 
1960. 
ORDINANCE No. XLVI OF 1960 
[2nd November, 1960] 
An Ordinance to provide for financial safeguards in respect of certain investments made out of 
public revenues. 
WHEREAS it is expedient to provide for financial safeguards in respect of certain 
investments made out of public revenues; 
NOW, THEREFORE, in pursuance of the Proclamation of the seventh day of October, 1958, 
and in exercise of all powers enabling him in that behalf, the President is pleased to make and pro-
mulgate the following Ordinance:—  
1. Short title and commencement .—(1) This Ordinance may be called the Public 
Investments (Financial Safeguards) Ordinance, 1960. 
(2) It shall come into force at once. 
2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or context, 
“appropriate Government” means— 
(a)  in relation to a corporation, institution or undertaking established with the aid 
of the revenues of the 1[Federation] but not with the aid of the revenues of a 
Province, the 2[Federal Government] ; 
(b)  in relation to a corporation, institution or undertaking established with the aid 
of the revenues of a Province but not with the aid of the revenues of the 
1[Federation] or of 2[any other Province], the Provincial Government 
concerned; and 
(c)  in relation to a corporation, institution or undertaking established with the aid 
of the revenues of the 1[Federation] and those of one 2[more of] the Provinces, 
or with the aid of the revenues of 2[two or more of] Provinces but not with the 
aid of the revenues of the 1[Federation], the 3[Federal] or one of the 4* 
Provincial Governments as may be agreed between the Governments 
concerned, and in default of such agreement,— 
(i)  the 5[Federal Government], where the revenues of the 1[Federation], 
are contributed, or where the revenues of the Provinces are contributed 
in equal shares, and 
(ii)  the Provincial Government holding the larger share, where the 
revenues of the 4* Provinces are contributed in unequal shares without 
there being any contribution from the revenues of the 1[Federation]. 
 
1Subs. by F.A.O., 1975 Art.2 and Table, for “Centre” which was previously subs. by A.O. 1964, Art.2 and Sch., for “Federation”. 
2Subs. ibid., for “Central Government”. 
3Subs. ibid. Art.2 and Table, for “Central”. 
4Omitted ibid. Art.2 and Sch. 
5Subs. ibid. Art.2 and Table, for “Central Government”. 
 
Page 3 of 4 
 
3. Power to appropriate Government to prescribe procedures, etc., in certain cases.— 
(1) Where any corporation, institution or undertaking, whether incorporated in pursuance of 
a1[Federal] or Provincial law or not so incorporated, has been established by Government with the 
aid of public revenues, the appropriate Government shall, notwithstanding anything in any law, or in 
any instrument, deed or other document relating to such corporation, institution or undertaking, have 
power— 
(a)  to prescribe financial procedures, including procedures for internal financial, 
control in respect of matters relating to the receipt and expenditure of moneys 
and sanctions thereto; 
 
 (b)  to give general or special financial directions to such corporations, institutions 
and undertakings; and 
 
(c)  to depute such of its officer or officers to scrutinize their financial procedures 
and transactions as it may think necessary. 
(2) Where any procedure is prescribed under clause (a) of sub-section (1), or any financial 
direction is given, or officer deputed, under clause (b) or clause (c) thereof, it shall be the duty of the 
Corporation, institution or undertaking concerned to comply with the procedure or direction, or, as 
the case may be, to receive the officer and afford him every convenient means of fulfilling the 
purpose of his deputation. 
4. Power to appropriate Government to give directions in certain other cases. Where any 
corporation has been established otherwise than by Government, but Government, or any such- 
corporation, institution or undertaking as is referred to in section 3, has provided a portion of the 
capital or funds thereof, and is thereby entitled to appoint one or more Directors, the appropriate 
Government may, notwithstanding anything in the 2[Companies Ordinance, 1984(XLVII of 1984)] 
or in any other law, or in any instrument, deed or other document relating thereto, give the director or 
directors so appointed such general or special financial directions as it may think necessary, and it 
shall be the duty of every such director to comply with the directions so given. 
5. Power to call for documents, etc. The appropriate Government may, in order to ensure 
proper compliance with the provisions of this Ordinance, call for any information, including any 
book, account, record or other document, from any such corporation, institution or undertaking as is 
referred to in section 3, or from any such director as is referred to in section 4. 
6. Penalties.—Whoever fails to discharge any duty imposed by or under this Ordinance, or to 
comply with any direction given or any rule or order made or issued thereunder, shall be punishable 
with simple imprisonment for a term which may extend to three months, or with fine which may 
extend to ten thousand rupees, or with both. 
7. Offences by Corporations etc. If an offence punishable under this Ordinance is com-
mitted by a Corporation, institution or undertaking, every director, manager, secretary, agent or other 
officer or person concerned with the management thereof, shall, unless he proves that the offence 
was committed without his knowledge or consent, or that he exercised due diligence to prevent its 
commission, be deemed to be guilty of such offence. 
 
1Subs. by F.A.O., 1975 Art.2 and Table, for “Centre” which was previously sub. by A.O. 1964, Art.2 and Sch., for “Federation”. 
2Subs. by Act III of 06, s.5. 
 
 
Page 4 of 4 
 
8. False information etc. Any person who, 
(a)  when required under this Ordinance to furnish any information, furnishes any 
information which is false in any material particular and which he knows or 
has reasonable cause to believe to be false, or does not believe to be true, or 
(b)  knowingly makes any false statement in any book, account, record or other 
document which he is required under this Ordinance to furnish, 
shall be punishable with the same punishment as is provided in section 6. 
9. Cognizance of offence.—No Court inferior to that of a Magistrate of the First Class shall 
take cognizance of any offence punishable under this Ordinance, and cognizance shall not be so 
taken save on a complaint made in writing by or under the authority of the appropriate Government. 
2[9A. Ordinance not to apply to certain bodies corporate, etc.— Notwithstanding anything 
contained in this Ordinance a body corporate, company, institution, undertaking and establishment, 
specified in the Schedule to this Ordinance, upon privatization pursuant to the Privatization 
Commission Ordinance, 2000 (LII of 2000) shall not be deemed to be a body corporate, corporation, 
institution, undertaking or establishment established with the aid of public revenues of the Federation 
or the Federal Government for the purpose of this Ordinance.] 
10. Power to make rules.—The 1[appropriate Government] may, by notification in the 
official Gazette, make rules for carrying out the purposes of this Ordinance. 
 
2[“THE SCHEDULE 
[See section 9A] 
 
The Pakistan Telecommunication Company Limited. 
The Pakistan Steel Mills Corporation.”] 
_______ 
 
 
 
 
 
1Subs. A.O., 1964, Art. 2 and Sch., for “Central Government”. 
2Ins. & added by Act.III of 06,s.5.