Foreign Exchange Regulation Act, 1947

Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 0e3bc5ea77490a25fd116715a7a451b30ace68cbc2ef7630049dc82ad65f35b1.

THE FOREIGN EXCHANGE REGULATION ACT, 1947 
 
CONTENTS 
SECTIONS: 
1.  Short title, extent and commencement.  
2. Interpretation. 
3.  Authorised dealers in foreign exchange.  
3A.  Authorized money changers in foreign exchange.  
3AA.  Exchange companies. 
3B.  Cancellation of authorization. 
4.  Restrictions on dealing in foreign exchange.  
5.  Restrictions on payments. 
6.  Blocked accounts. 
7.  Special accounts. 
8.  Restrictions on import and export of certain currency and bullion.  
9.  Acquisition by Federal Government of foreign exchange.  
10.  Duty of persons entitled to receive foreign exchange etc.  
11.  Power to regulate the uses, etc., of imported gold and silver. 
12.  Payment for exported goods. 
13.  Regulation of export and transfer of securities.  
14.  Custody of securities. 
15.  Restrictions on issue of bearer securities.  
16.  Acquisition by Federal Government of foreign securities.  
17.  Restriction on settlement. 
18.  Certain provisions as to companies.  
19.  Power to call for information. 
19A.  Power to enter and inspect. 
Updated till 14.10.2021 
 
 
20.  Supplemental provisions. 
21.  Contracts inevasion of this Act. 
22.  False statements. 
23.  Penalty and procedure. 
23A.  Tribunal, its powers, etc. 
23B.  Authorization of Adjudicating officers and their powers, etc.  
23C.  Appeal to Appellate Board. 
23D.  Assistance to the Adjudicating Officers.  
23E.  Powers of Adjudicating Officer and the Appellate Board to summon witnesses,  etc. 
23F.  Proceedings before Adjudicating Officer to be deemed to be judicial  proceedings. 
23G.  Continuance of proceedings in the event of death or insolvency.  
23H.  Confiscation of currency, security, etc.  
23I.  Correction of clerical errors, etc.  
23J. Recovery of sums due to Government.  
23K.  Powers to impose penalty, etc. 
24.  Burden of proof in certain cases.  
25.  Power to Federal Government to give direction.  
26.  Bar of legal proceedings. 
27.  Power to make rules.  
 
 
THE FOREIGN EXCHANGE  REGULATION ACT, 1947.  
1ACT No. VII OF 1947 
[11th March, 1947] 
An Act to regulate certain payments, dealings in  foreign exchange and securities and the 
import and export of currency and bullion.  
WHEREAS it is expedient in the economic and financial interests  2[of Pakistan] t o provide 
for the regulation of certain payments, dealings in  foreign exchange and securities and the import and 
export of currency and bullion;  
It is hereby enacted as follows:― 
 
 
1. Short title, extent and commencement. ― (1) This Act may be called the foreign 
exchange Regulation Act, 1947.  
 
 
 
 
 
 
 
 
1For Statement of Objects and Reasons, see Gazette of India, 1946 Pt. V, p.303; and for Report of Select Committee, see ibid., 1947, Pt. V 
pp.55‒72. 
The Act has been applied to Baluchistan with certain modification s. see Gazette of India, 1947, Pt. I, p.536. 
 
It has been extended to– 
(a) the Leased Areas of Baluchistan by the Leased Areas (Laws) Order, 1950 (G.G.O.3 of 1950);  
(b) The State of Bahawalpur, see the Bahawalpur (Federal laws) (Extension) Order, 1952 (G.G.O.11 of 1952);  
(c) The Baluchistan States Union, see t he Baluchistan States Union (Federal Laws) (Extension) Order, 1953 (G.G.O.4 of 1953); and  
(d) The Khairpur State, see the Khairpur (Federal Laws) (Extension) Order, 1953 (G.G.O.5 of 1953).  
The Act has been applied to Gwadur with effect on and from the 8th day of September, 1958, by the Gwadur (Government Administration) 
(Application of Laws) Order, 1958 (P.O.No.9 of 1958), Art.2 and Sch.  and also by the Gwadur (Application of Central Laws) Ordinance, 1960 (37 of 
1960), s.2. 
 
The Act and the rules, notification and orders made thereunder, as inforce in N.W.F.P. before the 15th July, 1975, have been applied to all 
the Provincially Administered Tribal Areas of N.W.F.P. by Regulation No.  III of 1975, s.2 and Sch., 
 
The Act and the  rules, notification and orders made thereunder, have been applied to the whole of the Federally Administered Tribal Areas 
or to the Parts of those areas to which they do not already apply, by Regulation No.  I of 1975, s.2 and Sch., 
2Subs. by A.O., 1949, for “of India”. 
 
1[(2) It extends to the whole of Pakistan and applies to all citizens of Pakistan and persons in 
the service of Government wherever they may be.]  
(3) it shall come into force on such date 2 as the 3[Federal Government] may, by notification 
in the official Gazette, appoint in this behalf.   
4[*  *  *  *  *  *         *] 
2. Interpretation. In this Act, unless there is anything repugnant in the subject or context, __  
5[(a)  “Appellate Board” means a Foreign Exchange  Regulation Appellate Board 
constituted under sub-section (1) of section 23C;  
(aa)  “authorised dealer” means a person for the time being authorised  under section 3 to 
deal in Foreign Exchange;] 
6[(ab)  “authorized money changer” means a person for the time being authorized under 
section 3A to deal in foreign currency notes 7[and coins].  
 
 
 
 
 
 
1Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960 ), s.3 and 2nd Sch. (with effect from the 14th October, 1955), for 
the original sub-section (2), as amended by A.O., 1949.  
 
2The 25th March, 1947, see Gazette of India, 1947, Pt.  I, p.382. 
 
3Subs. by the foreign exchange Regulation (Amendment) Act, 1973 (8 of 1973), s.10, for   “Central Government”. 
 
4Sub-section (4) omitted by the Foreign Exchange Regulation (Amdt..) Act, 1952 (1 of 1952), s.2.  
 
5Subs. by the Finance Act, 1987 (6 of 1987), s.4, for clause (a).   
 
6 Added by Act (4 of 1999), s.4. 
 
7Subs. by Ord. xxx of 2002, s. 2. 
 
 
 
 
(b)  “currency” includes all coins, currency notes, bank notes, postal notes, money orders, 
cheques, drafts, traveler’s cheques, letters of credit, bills of exchange and promissory 
notes;  
 1[(ba) “exchange company” means a company authorized under section 3AA to deal in 
foreign currency notes, coins, postal notes , money orders, bank drafts, travel lers 
cheques and transfers;] 
(c)  “foreign currency” means any currency other than 2[Pakistan] currency;  
(d)  “foreign exchange” means foreign currency and includes 3[any instrument drawn, 
accepted, made or issued under   4[clause (8) of section 17 of the State Bank of 
Pakistan Act, 1956],] all deposits, credits and balances payable in any f oreign 
currency, and any drafts, traveler’s cheques, letters of credit and bill s of exchange, 
expressed or drawn 5[in Pakistan] currency but payable in any foreign currency;   
(e)  “foreign security” means any security issued elsewhere than 5[in Pakistan] a nd any 
security the principal of or interest on which is payable in any foreign currency or 
elsewhere than 5[in Pakistan];  
(f)  “gold” includes gold in the form of coin, whether legal tender or not, or in the form of 
bullion or ingot, whether refined or n ot;  
(g)  “2[Pakistan] currency” means currency which is expressed or drawn 5[in Pakistan] 
rupees;  
(h)  “owner” in relation to any security, includes any person who has power to sell or 
transfer the security, or who has the custody thereof or who receives, whether on his 
own behalf or on behalf of any other person, dividends or interest thereon, and who 
has any interest therein, and in a case where any security is held on any trust or 
dividends or interest thereon are paid into a trust fund, also includes any trustee or any 
person entitled to enforce the performance of the trust or to revoke or vary, with or 
without the consent of any other person, the trust or any terms thereof, or to control 
the investment of the trust moneys;  
 
 
 
1Ins. by Ord (xxx of 2002), s.2. 
2Subs. by A.O., 1949, for “Indian”. 
3Ins. by the Foreign Exchange Regulation (Second Amdt.) Act, 1952 (50 of 1952 ), s.2. 
4Subs. by the Foreign Exchange Regulation (Amdt.) Act,1957 (40 of 1957 ), s. 2, for “sub -clause (6a) of clause 13 of the State Bank of 
Pakistan Order, 1948”. 
5Subs. by A.O., 1949, for “in India”.  
 
(i)  “prescribed” means prescribed by rules made under this Act;   
(j)  “1[State Bank]” means 2[the State Bank of Pakistan];   
(k)  “security” means shares, stocks, bonds, debentures, debe nture stock and Government 
securities, as defined in the 3[*] securities Act, 1920 , (X of 1920), deposit receipts in 
respect of deposits of securities, and units or sub -units of unit trusts, but does not 
include bills of exchange or promissory notes other than Government promissory 
notes;  
(l)  “silver” means silver bullion or ingot, silver sheets and plates which have undergone 
no process of manufacture subsequent to rolling and uncurrent silver coin which is not 
legal tender 4[in Pakistan] or elsewhere;  
(m)  “transfer” includes, in relation to any security, transfer by way of loan or security.  
3. Authorised dealers in foreign exchange .―(1)  5[The State Bank] may, on application 
made to it in this behalf, authorise any person to deal in foreign exchange.   
(2)  An authorisation under this section __ 
(i)  may authorise dealings in all foreign currencies or may be restricted to 
authorising dealings in specified foreign currencies only;  
 
 
 
 
 
1Subs. by the Pakistan (Aadaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O. 18 of 1948), Art . 4, for 
"Reserve Bank". 
2Subs.ibid., for “the Reserve Bank of India.” 
3The word “Pakistan” which was subs. by A.O., 1949, for “Indian" omitted by the Foreign Exchange Regulation (Amdt.) Act, 1950 (62 of 
1950), s.2. 
4 Subs. by A.O., 1949, for “in India”.  
5Subs. by G.G.O.18 of 1948, Art.4, for “The Reserve Bank”.  
 
(ii)  may authorise transactions of all descriptions in foreign currencies or may be 
restricted to authorising specified transactions only;   
(iii)  may be granted to be effective for a specified period, or within specified 
amounts     1[*   *   *]. 
(3) An Authorised dealer shall in all his dealings, in foreign exchange comply with such 
general or special directions or instructions as 2[the State  Bank] may from time to time think fit to 
give, and, except with the previous permission of 2[the State Bank], an Authorised dealer shall not 
engage in any transaction involving any foreign exchange which is not in conformity with the terms 
of his authorisation under this section. 
 (4) An authorised dealer shall, before undertaking any transaction in foreign exchange on 
behalf of any person, require that person to make such declarations and to give such information as 
will reasonably satisfy him that the tr ansaction will not involve, and is not designed for the purpose 
of, any contravention or evasion of the provisions of this Act or of any rules, directions or orders 
made there under, and where the said person refuses to comply with any such requirement or makes 
only unsatisfactory compliance therewith, the authorised dealer shall refuse to undertake the 
transaction and shall, if he has reason to believe that any such contravention or evasion as aforesaid 
is contemplated by the person, report the matter to 2[the State bank].  
3[(5) *         *         *         *         *          *          *] 
 4[3A. Authorized money changers in foreign exchange.―(1) The State Bank may, on 
application made to it in this behalf, and on payment of a fee prescribed by it, form  time to time, 
authorize any person to deal in foreign currency notes  5[and coins]. 
(2) The power conferred under sub -section (1) shall be exercised on the basis of criteria 
prescribed, and recommendation s made, by a committee consisting of such official a nd non-official 
representatives as may be nominated by the State Bank.  
(3) An authorization made under this section may be for a specific period of time, which may 
be renewed thereafter. 
(4) An authorized money changer shall, in all his dealings under the authorization, comply 
with such general or special directions or instructions as the State Bank may , from time to time, think 
fit to give including those for supply of data, the rate and code of conduct  in doing business. Failure 
to comply with the instructions may lead to suspension of the license or other actions as necessary.”  
 
 
1Certain words omitted by the Finance Act, 1987 (6 of 1987)  s.4, which were previously amended by the Pakistan (Adaptation of Existing 
Pakistan Laws) (State Bank) of Pakistan Ord er, 1948 (G.G.O.18 of 1948), Art.4. 
2 Subs. by (G.G. O. 18 of 1948), Art. 4, for “the Reserve Bank”.  
3 Omitted by Act (IV of 1999), s. 4. 
4Ins. by Act (IV of 1999), s.4. 
5Subs. by Ord. No.XXX of 2002, by s.3 . 
 
 
 1[3AA. Exchange companies .__(1) The State Bank may , on application made to it in this 
behalf, and on payment of such fee as it may, from time to time prescribe, authorize nay company to 
deal in foreign currency notes, coins, postal notes, money orders, bank drafts, travelers cheques and 
transfers. 
(2) For the purposes of sub -section (1), the expression “company” means a company having 
been formed and registered under the Companies Ordinance, 1984 (XLVII of 1984), pursuant to no 
objection certificate issued by the State Bank in respect thereof to th e Securities and exchange 
Commission of Pakistan upon receiving an intimation  from the said Commission that it has received 
an application for the formation of the company.  
(3) The power conferred under sub -section (1) shall be exercised on the basis of th e eligibility 
criteria prescribed for exchange companies by the State Bank.  
(4) Exchange companies shall, in all their dealing s, comply with__ 
 
(i) the terms and conditions of the authorizations issued to them under sub -
section (1); and 
(ii) such general o r special directions or instructions as the State Bank may, from 
time to time, issue including those set out in the circulars and Foreign 
Exchange manual of the State Bank.  
(5) Failure to comply with any such terms and condition s, direction or instructions  imposed, 
given or issued may lead to suspension of authorization or any other action as deemed necessary by 
the State Bank.] 
3B. Cancellation of authorization . 2[*****] 2[If] an authorized dealer  1[Exchange 
Company] or money changer commits a contraventi on of any term of authorization or uses it for any 
purpose other than the purpose, or after the expiry of the period, for which it was given or 
contravenes or attempts to contravene or abets the contravention of the provisions of or the general 
or special directions or instructions or permissions issued by the State Bank   from time to time under 
any provisions of, this Act or any rules made thereunder or engages in transactions not in conformity 
with the terms of authorization or fails to comply with any of  the provisions of this Act or any rules, 
directions, instructions, or permissions made, issued or given thereunder or in the public interest it is   
necessary  so to do or there otherwise exist reasons appearing sufficient to the State Bank, after 
giving a  reasonable opportunity of being heard to the authorized dealer 1[Exchange Company] or 
money changer cancel the authorization:  
Provided that, if, in the opinion of the State Bank, any delay would be prejudicial to the 
public interest, the State Bank may, a t the time of giving an opportunity as aforesaid or at any time 
thereafter and pending the hearing as aforesaid, if any, by order suspend, for a period specified in the 
order, the authorization either wholly or to such extent as may be so specified.]  
  
 
 
1Ins.and subs. by ord (xxx of 2002), s. 4-5. 
 
2Omitted & subs. by Act (XXXIII of 2016), s.2. 
 
 
  
 
 4. Restrictions on dealing in foreign exchange. __1[(1) Except with the previous general or 
special permission of 2[the State Bank], no person other than an authorised dealer shall in 3[Pakistan] 
and no person resident in 3[Pakistan], other than an authorised dealer all outside 3[Pakistan], buy or 
borrow from, or sell or lend to, or exchange with, any person not being an au thorised dealer, any 
foreign exchange.  
4[(2) Except as may otherwise be directed by the State Bank, authorized dealers, authorized 
money changers and exchange companies shall be free to determine exchange rates for the 
conversion of Pakistan currency into  any foreign currency or any foreign currency into Pakistan 
currency.] 
(3) Where any foreign exchange is acquired by any person other than an authorised dealer for 
any particular purpose, or where any person has been permitted conditionally to acquire fore ign 
exchange, the said person shall not use the foreign exchange so acquired otherwise than for that 
purpose or, as the case may be, fail to comply with any condition to which the permission granted to 
him is subject, and where any foreign exchanges so acq uired cannot be so used or, as the case may 
be, the condition cannot be complied with, the said person shall without delay sell the foreign 
exchange to an authorised dealer.  
(4) Nothing in this section shall be deemed to prevent a person from buying from  any post 
office, in accordance with any law or rules made thereunder for the time being in force, any foreign 
exchange in the form of postal orders or money orders.  
 
 
 
 
 
 
 
 
 
 
 
1For an instance of notifn, issued under this sub -section, see Gaz. Of P.,1959, Pt.V, p.98. 
2 Subs. by G.G.O, 18 of 1948, Art. 4 for "The Reserve Bank".  
3 Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960),s.3 and 2nd Sch. (with effect from the 14th October, 1955) , for 
“the provinces and the “Capital of the Federation” which had been subs. by A.O., 1949, for “British India”.  
4Subs. by Ord (XXX of 2002), s.6. 
 
 
 
5. Restrictions on payments .__(1) Save as may be provided in and in accordance with any 
general or special exemption from the provisions of this sub -section which may be granted 
conditionally or unconditionally be   1[the State Ba nk], no person in, or resident in,   2[Pakistan] 
shall___ 
(a) make any payment to or for the credit of any person resident 3[outside Pakistan];  
(b) draw, issue or negotiate any bill of exchange or promissory note or acknowledge any 
debt, so that a right (w hether actual or contingent) to receive a payment is created or 
transferred in favour of any person resident 3[outside Pakistan]; 
(c) make any payment to or for the credit of any person by order or on behalf of any 
person resident 3[outside Pakistan];  
(d) place any sum to the credit of any person resident 3[outside Pakistan];  
(e) make any payment to or for the credit of any person as consideration for or in 
association with__ 
(i) the receipt by any person of a payment or the acquis ition by any person of 
property 3[outside Pakistan];  
(ii) the creation or transfer in favour of any person of a right whether actual or 
contingent to receive a payment or acquire property 3[outside Pakistan]; 
 
 
 
 
 
 
  
1Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
2Subs. by the Central Laws (Statute Reforms) Ordinance, 1960 (21 of 1960),s.3 and 2nd Sch. ( with effect from the 14th October,1955 ),for 
“the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, for “British India”.   
3Subs. by A.O.,1949, for “outside Indian”.  
 
(f) draw, issue or negotiate any bill of exchange or promissory note, transfer any 
security or acknowledge any debt, so that a right (w hether actual or 
contingent) to receive a payment is created or transferred in favour of any 
person as consideration for or in association with any matter referred to in 
clause (e).  
(2) Nothing in sub-section (1) shall render unlawful __  
(a) the making of  any payment already authorised, either with foreign exchange 
obtained from an authorised dealer under section 4 or with foreign exchange 
retained by a person in pursuance of an authorisation granted by 1[the State 
bank];  
(b) the making of any payment wit h foreign exchange received by way of salary 
or payment for services not arising from business in, or anything done while 
2[in Pakistan].  
(3) Nothing in this section shall restrict the doing by any person of anything within the scope 
of any authorisation or exemption granted under this Act.  
(4) For the purposes of this section, “security” also includes coupons or warrants representing 
dividends or interest and life or endowment insurance policies.   
6. Blocked accounts. __(1) Where an exemption from the provisions of section 5 is granted by 
1[the State Bank] in respect of payment of any sum to any person resident 3[outside Pakistan] and the 
exemption is made subject to the condition that the payment is made to a blocked acc ount__ 
(a) the payment shall be made to a blocked account in the name of the person in 
such manner as 1[the State Bank] may by general or special order direct; and   
 
(b) the crediting of that sum to that account shall, to the extent of the sum credited, be  a 
good discharge to the person making the payment.  
(2) No sum standing at the credit of a blocked account shall be drawn on except in 
accordance with any general or special permission which may be granted conditionally or otherwise 
by 1[the State Bank]. 
(3) In this section “blocked account” means an account opened as a blocked account at any 
office or branch in 4[Pakistan] of a bank authorised in this behalf by 1[the State Bank], or an account 
blocked, whether before or after the commencement of this Act, by order of 1[the State Bank]. 
 
 
 
 
1Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
2Subs. by A.O., 1949, for "in India". 
3Subs. by A.O., 1949, for “outside Indian”.  4Subs. by the Central Laws (Statute Reform) ordinance, 1960 (21 of 1960), s. 3 and 2nd Sch. (with effect from the 14th  October, 1955), for 
"the provinces and the Capital of the Federation" which had been subs. by A.O., 1949, for "British India ." 
 
 
7. Special accounts. __(1) Where in the opinion of the 1[Federal Government] it is necessary 
or expedient to regulate payments due to persons resident in any territory, the 1[Federal Government] 
may, by notification in the official Gazette, direct that s uch payments or any class of such payments 
shall be made only into an account (hereinafter referred to as a special account) to be maintained for 
the purpose by 2[the State Bank] or an authorised dealer specially authorised by 2[the State Bank] in 
this behalf. 
(2) The credit of a sum to special account shall, to the extent of the sum credited, be a good 
discharge to the person making the payment:   
Provided that where the liability of the person making the payment is to make the payment in 
foreign currency, the extent of the discharge shall be ascertained by converting the amount paid into 
that currency at such rate of exchange as is for the time being fixed or authorised by 2[the State 
Bank].   
(3) The sum standing to the credit of any special account shall from time to time be applied__ 
(a) Where any agreement is entered into between the 1[Federal Government] and the 
Government of the territory to which the aforesaid notification relates for the 
regulation of payments between persons resident in 3[Pakistan], and in that territory, 
in such manner as 1[the State Bank], having regard to the provisions of such 
agreement, may direct, or 
(b) Where no such agreement is entered into, for the purpose of paying wholly or partly, 
and in such order of preference and at s uch times as the 1[Federal Government] may 
direct, debts due from the persons resident in the said territory to persons resident in 
3[Pakistan] or in such other territories as the 1[Federal Government] may by order 
specify in this behalf.  
 
 
1Subs. by the foreign exchange Regulation (Amendment) Act, 1973 (8 of 1973),s.10,for “Central Government”.  
2Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
3Subs. by the  Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2 nd Sch. (with effect from the 14 th October, 1955), for 
“the Provinces and the Capital of the Federation” which had been sub. by A.O., 1949, for “British India”.  
 
8. Restrictions on import  and export of certain currency and bullion. -(1) The 1[Federal 
Government] may, by notification in the official Gazette, order that, subject the such exemptions, if 
any, as may be contained in the notification, no person shall, except with the general or s pecial 
permission of 2[the State Bank] and on payment of the fee, if any, prescribed bring or send into 
3[Pakistan] any Gold or silver or any currency notes or bank notes or coin whether   4[Pakistan] or 
foreign. 
5[Explanation.―The bringing or sending into any part or place in the territories of Pakistan 
of any such article as foresaid, intended to be taken out of the territories of Pakistan without being 
removed from the ship or conveyance in which it is being carried, shall nonetheless be deemed to be 
bringing or as the case may be sending, into the territories of Pakistan of that article for the purposes 
of this section.] 
(2) No person shall, except with the general or special permission 6 of 2[the State Bank] or the 
written permission of a person authorise d in this behalf by 2[the State Bank], take or send out of 
3[Pakistan] any Gold,  jewellery or precious stones, or 4[Pakistan] currency notes, bank notes or coin 
or Foreign Exchange 7[*  *  *]. 
(3) The restrictions imposed by sub -section (1) and (2) shall b e deemed to have been imposed 
under section 8[16 of the Customs Act, 1969 (IV of 1969)] without prejudice to the provisions of 
section 23 of this Act, and all the provisions of that Act shall have effect accordingly.   
 
 
 
 
 
 
 
1 Subs.by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) s.10 for “Central Government”.  
2 Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
3Subs. by the Central Laws (S tatute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2nd Sch. (with effect from the 14th October, 1955), for 
“the Provinces and the Capital of the Federation” which had been sub. by A.O. 1949, for “British India .” 
4 Subs. by A.O., 1949, for “Indian”. 
5 Explanation added by the Foreign Exchange Regulation (Amdt.) Ordinance, 1948 (14 of 1948), s.2.  
6For instance of such permission, see Gaz. of P., 1959, Ext., p.99 ibid, 1961, Pt. V, p.28; and ibid. 1964, Ext., p.249 a.  
7Certain words omitted by the Foreign Exchange Regulation (Amdt.) Act, 1950 (62 of 1950 ), s.3. 
8Subs. by Act 8 of 1973, s. 2, for "19 of the Sea Customs Act, 1878".  
 
 
9. Acquisition by Federal Government of foreign exchange.  The 1[Federal Government] 
may, by notification2 in the official Gazette, order every person in, or resident in, 3[Pakistan]__ 
(a) who owns  4[or holds] such foreign exchange as may be specified in the notification, 
to offer it, or cause it to be offered for sale to 5[the State Bank] on behalf of the 
1[Federal Government] or to such person, as 5[the State Bank] may authorise for the 
purpose, 4[within such time as may be specified in the notification and] at such price 
as the 1[Federal Government] may fix, being a price which is in the opinion of the 
1[Federal Government] not less than the market rate of the foreign exchange when it is 
offered for sale;  
 
(b) who is entitled to assign any right to receive such foreign exchange as may 
be specified in the notification, to transfer that right to 5[the State Ba nk] on behalf of 
the 1[Federal Government] on payment of such consideration therefore as the 
1[Federal Government] may fix: 
 
Provided that the 1[Federal Government] may by the said notification or another order 
exempt any person or class of persons from th e operation of such order: 
 
Provided further that nothing in this section shall apply to any foreign exchange 
acquired by a person from an authorised dealer and retained by him with the permission of 
5[the State Bank] for any purpose.   
 
10. Duty of persons  entitled to receive foreign exchange etc. __(1) No person who has a 
right to receive any foreign exchange or to receive from a person resident 6[outside Pakistan] a 
payment in rupees shall, except with the general or special permission of 5[the State Bank], do or 
refrain from doing any act with intent to secure __ 
 
(a) that the receipt by him of the whole or part of that foreign exchange or 
payment is delayed, or  
 
(b) that the foreign exchange or payment ceases in whole or in part to be 
receivable by him.  
(2) Where a person has failed to comply with the requirements of sub -section (1) in relation 
to any foreign exchange or payment in rupees, 5[the State Bank] may give to him such 
directions as appear to be expedient for the purpose of securing the rec eipt of the foreign 
exchange or payment as the case may be.  
11. Power to regulate the uses, etc., of imported gold and silver . The 1[Federal 
Government] may, by notification in the official Gazette, impose such conditions as it thinks 
necessary or expedien t on the use or disposal of or dealings in  gold and silver prior to, or at the time 
of, import into 3[Pakistan].  
 
1Subs.by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) s.10 for “Central Government”.  
2For such notification, see Gaz. of  P., 1958, p.1334. 
3Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) , s.3 and 2 nd Sch. (with effect from the 14 th October, 1955 ), for 
“the Provinces and the Capital of the Federation” which had been sub. by A.O., 1949, for “British India”. 
4Ins. by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973),s.3.  
5Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
6Subs. by A.O.,1949, for “outside India”. 
 
12. Payment for exported goods. __(1) The 1[Federal Government] may, by notification in 
the official Gazette, prohibit the export of any goods or class of goods specified in the notification 
from 2[Pakistan] directly or indirectly to  any place so specified unless a declaration supported by 
such evidence as may be prescribed or so specified, is furnished by the exporter to the prescribed 
authority that the amount representing the full export value of the goods has been, or will within the 
prescribed period be, paid in the prescribed manner.   
 
(2) Where any export of goods has been made to which a notification under sub -section (1) 
applies, no person entitled to sell, or procure the sale of, the said goods shall, except with the 
permission of 3[the State Bank], do or refrain from doing any act with intent to secure that __ 
 
(a) the sale of the goods is delayed to an extent which is unreasonable having regard to 
the ordinary course of trade, or  
 
(b) payment for the goods is made otherwise than in the prescribed manner or does not 
represent the full amount payable by the foreign buyer in respect of the goods, subject 
to such deductions, if any, as may be allowed by 3[the State Bank], or is delayed to 
such extent as aforesaid:  
 
Provided that no proceedings in respect of any contravention of this sub -section shall be 
instituted unless the prescribed period has expired and payment for the goods representing the full 
amount as aforesaid has not been made in the prescribed manner. 
 
(3) Where in relation to any such goods the said period has expired and the goods have not 
been sold and payment therefore has not been made as aforesaid, 3[the State Bank] may give to any 
person entitled to sell the goods or to procure the sale thereof, such directions as appear to it to be 
expedient for the purpose of securing the sale of the goods and payment therefor as aforesaid, and 
without prejudice to the generality of the foregoing provisions, may direct that the goods sh all be 
assigned to the 1[Federal Government] or to a person specified in the directions.   
 
(4) Where any goods are assigned in accordance with sub -section (3), the 1[Federal 
Government] shall pay to the person assigning them such sum in consideration of th e net sum 
recovered by or on behalf of the 1[Federal Government] in respect of the goods as may be 
determined by the 1[Federal Government]. 
 
(5) Where in relation to any such goods the value as stated in the invoice is less than the 
amount which in the opi nion of 3[the State Bank] represents the full export value of those goods, 
3[the State Bank] may issue an order requiring the person holding the shipping documents to retain 
possession thereof until such time as the exporter of the goods has made arrangeme nts for 3[the State 
Bank] or a person authorised by 3[the State Bank] to receive on behalf of the exporters payment in 
the prescribed manner of an amount which represents in the opinion of 3[the State Bank] the full 
export value of the goods. 
 
(6) For the purpose of ensuring compliance with the provisions of this section and any orders 
or directions made thereunder, 3[the state Bank] may require any person making any export of goods 
to which a notification under sub -section (1) applies to exhibit contracts with his foreign buyer or 
other evidence to show that the full amount payable by the said buyer in respect of the goods has 
been, or will within the prescribed period be, paid in the prescribed manner.  
 
1Subs.by the Foreign Exchange Regulation (Amendment)  Act, 1973 (8 of 1973), s.10, for “Central Government”. 
2Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) , s.3, and 2 nd Sch. (with effect from the 14 th October, 1955), for 
“the Provinces and the Capital of the Federation” which had been subs., by A.O., 1949, for “British India .” 
3Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948),  Art. 4, for “the 
Reserve Bank”. 
 
13. Regulation of export and transfer of securities. __(1) No person shall, except with the 
general or special permission of 1[the State Bank],__ 
(a) take or send any security to any place 2[outside Pakistan];  
(b) transfer any security or create or transfer any interest in a security to or in favour of a 
person resident 2[outside Pakistan];  
(c) transfer any security from a register in 3[Pakistan] to a register 2[outside Pakistan] or 
do any act which is calculated to secure, or forms part of a series of acts which 
together are calculated to secure, the substituti on for any security which is either in, or 
registered in, 3[Pakistan] of any security which is either outside or registered 2[outside 
Pakistan]; 
(d) issue, whether in 3[Pakistan] or elsewhere, any security which is registered or to be 
registered in 3[Pakistan] to a person resident 2[outside Pakistan]. 
(2) Where the holder of a security is a nominee, neither he nor any person through whose 
agency the exercise of all or any of the holder’s rights in respect of the security is controlled shall, 
except with the general or special permission of 1[the State Bank], do any act whereby he recognizes 
or gives effect to the substitution of another person as the person from whom he directly receives 
instructions, unless both the persons previously instructing him and the person substituted for that 
person were, immediately before the substitution, resident 4[in Pakistan]. 
(3) 1[The State Bank] may, for the purpose of securing that the provisions of this section are 
not evaded, require that the person transferring any security and the person to whom such s ecurity is 
transferred shall subscribe to a declaration that the transferee is not resident 2[outside Pakistan].  
(4)  Notwithstanding anything contained in any other law, no person shall, except with the 
permission of 1[the State Bank],__ 
 
 
 
 
 
 
 
 
 
 
1Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 , (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
2Subs. by A.O., 1949, for “outside India .” 
3Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1 960), s.3 and 2 nd Sch. (with effect from the 14 th October, 1955 ), for 
“the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, for “British India”.  
4Subs. by A.O., 1949, for “in India”.  
 
(a) enter any transfer of securities in any register or book in which securities are 
registered or inscribed if he has any ground for suspecting that the transfer involves 
any contravention of the provisions of this section, or  
(b) enter in any such register or book, in respect of any security,  whether in connection 
with the issue or transfer of the security or otherwise, an address 1[outside Pakistan] 
except by way of substitution for any such address in the same country or for the 
purpose of any transaction for which permission has been grante d under this section 
with knowledge that it involves entry of the said address.  
(5) For the purposes of this section, __ 
(a)  “holder” in relation to a bearer security means the person having physical custody of 
the security; provided that, where a bearer security is deposited with any person in a 
locked or sealed receptacle from which the person with whom it is deposited is not 
entitled to remove it without the authority of some other person, that other person 
shall be deemed to be the holder of the securi ty;  
(b)  “nominee” means a holder of any security (including bearer security) or any coupon 
representing dividends or interest who, as respects the exercise of any rights in respect 
of the security or coupon, is not entitled to exercise those rights excep t in accordance 
with instructions given by some other person, and a person holding a security or 
coupon as nominee shall be deemed to act as nominee for the person who is entitled to 
give instructions either directly or through the agency of one or more pe rsons, as to 
the exercise by the holder of the security or coupon of any rights in respect thereof 
and is not, in so doing, himself under a duty to comply with instructions given by 
some other person. 
(c)  “security” also includes coupons or warrants repre senting dividends or interest, and 
life or endowment insurance policies 2[;]  
3[(d)  “a person resident outside Pakistan” includes a foreign national for the time being 
resident in Pakistan 4[and a company registered in Pakistan which is controlled, 
directly or indirectly, by a person resident outside Pakistan.]  
 
 
1Subs. by A.O. 1949, for “outside India.” 
2Subs. by the Foreign Exchange Regulation (Amdt.) Act, 1957, (40 of 1957), s.3, for full -stop. 
3Added ibid. 
4Added by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) , s.4. 
 
14. Custody of securities. __(1) The 1[Federal Government] may, by notification in the 
official Gazette, order every person by whom or on whose behalf a security or document of title to a 
security specified in the or der is held in 2[Pakistan] to cause the said security or document of title to 
be kept in the custody of an authorised depository named in the order:   
Provided that 3[the State Bank] may by order in writing permit any such security to be 
withdrawn from the custody of the authorised depository subject to such conditions as may be 
specified in the order. 
(2) No authorised depository may part with any security covered by an order under sub -
section (1) without the general or special permission of 3[the State Bank] except to, or to the order of 
another authorised depository.  
(3) Except with the general or special permission of 3[the State Bank], no authorised 
depository shall__ 
(a) accept or part with any security covered by an order under sub -section (1) whereby  
the security is transferred into the name of a person resident 4[outside Pakistan], or 
(b) do any act whereby he recognizes or gives effect to the substitution of another person 
as the person from whom he directly receives instructions relating to such se curity 
unless the person previously so instructing him and the person substituted for that 
person were immediately before the substitution resident 5[in Pakistan]. 
(4) Except with the general or special permission of 3[the State Bank], no person shall buy,  
sell or transfer any security, or document of title to a security, covered by an order under sub -section 
(1) unless such security or document of title has been deposited in accordance with the order.   
(5) Except with the general or special permission of 3[the State Bank], no capital moneys, 
interest or dividends in respect of any security cover ed by an order under sub -section (1) shall be 
paid in 2[Pakistan] except to or to the order of the authorised depository having the custody of the 
security.  
(6) For the purposes of this section,__ 
 
(a) “authorised depository” means a person notified by the 1[Federal Government] to be 
entitled to accept the custody of securities and document of title to securities, and   
(b) “security” shall include coupons.  
 
 
 
1Subs. by Foreign Exchange Regulation Act 1973(8 of 1973) s.10 for “Central Government”.  
2Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2 nd Sch. (with effect from the 14 th October, 1955) for “the 
Provinces and the Capital of the Federation” which had been subs. by A.O. 1949, for “British India”.  
3Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
4Subs. by A.O., 1949, for “outside In dia”. 
5Subs. by A.O., 1949, for “in India”.  
 
 
 
15. Restrictions on issue of bearer securities.  The 1[Federal Government] may, by 
notification in the official Gazette, order that except with the general or special permission of 2[the 
State Bank] no person shall in 3[Pakistan] issue any bearer security or coupon or so alter any 
document that it becomes a bearer security or coupon.  
 
16. Acquisition by Federal Government of foreign securities .__(1) Subject to any 
exemptions that may be contained in the notification, the 1[Federal Government] may, if it is of 
opinion that it is expedient so to do for the purpose of strengthening its foreign exchange position 
by notification in the official Gazette, __ 
(a)  order the transfer to itself o f any foreign securities specified in the notification at a 
price so specified, being a price which is, in the opinion of the 1[Federal Government] 
not less than the market value of the securities on the date of the notification, or   
(b)  direct the owner of any foreign securities specified, in the notification to sell or 
procure the sale of the securities and thereafter to offer or cause to be offered the net 
foreign exchange proceeds of the sale to 2[the State Bank] on behalf of the 1[Federal 
Government] or to such person as 2[the State Bank] may authorise for the purpose, at 
such price as the 1[Federal Government] may fix, being a price which is in the opinion 
of the 1[Federal Government] not less than the market rate of the foreign exchange 
when it is offered for sale. 
(2)  On the issue of a notification under clause (a) of sub -section (1),__ 
(a)  the securities to which the notification relates shall forthwith vest in the 1[Federal 
Government] free from any mortgage, pledge or charge, and the 1[Federal 
Government] may deal with them in such manner as it thinks fit ;  
(b)  the owner of any of the securities to which the notification relates and any person who 
is responsible for keeping any registers or books in which any of those securities are 
registered o r inscribed, or who is otherwise concerned with the registration or 
inscription of any of those securities, shall do all such things as are necessary or as the 
1[Federal Government] or 2[the State Bank] may order to be done, for the purpose of 
securing that__ 
(i)  the securities and any documents of title relating thereto are delivered to the 
1[Federal Government] and, in the case of registered or inscribed securities, 
that the securities are registered or inscribed in the name of the 1[Federal 
Government] or of such nominee of the 1[Federal Government] as it may 
specify, and 
 
 
1Subs. by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) s.10 for “Central Government”.  
2Subs. by the Pakistan (Adaptation of Existing Pakistan  Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), for “the Reserve 
Bank”. 
3Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2 nd Sch. (with effect from the 14 th October, 1955) for “the 
Provinces and the Capital of the Federation” which had been subs. by A.O. 1949, for “British India”.  
 
 
 
 (ii)   any dividends or interest on those securities becoming payable on or after the 
date of the issue of the notification are paid to the 1[Federal Government] or its 
nominee as aforesaid and where in the case of any security payable to bearer 
which is delivered in pursuance of the said notification, any coupons 
representing any such dividends or interest are not delivered with the security, 
such reduction in the price payable t herefore shall be made as the 1[Federal 
Government] thinks fit:  
Provided that where the price specified in the notification in relation to any security is ex -
dividend or ex -interest, this sub -clause shall not apply to that dividend or interest or to any c oupon 
representing it. 
(3) A certificate signed by any person authorized in this behalf by the 1[Federal Government] 
that any specified securities are securities transferred to the 1[Federal Government] under this section 
shall be treated by all persons co ncerned as conclusive evidence that the securities have been so 
transferred. 
17. Restriction on settlement. __(1) No person resident in 2[Pakistan] shall, except with the 
general or special permission of 3[the State Bank], settle any property, otherwise tha n by will, upon 
any trust under which a person who at the time of the settlement is resident 4[outside Pakistan], 
elsewhere than in territories notified in this behalf, by 3[the State Bank] will have an interest in the 
property, or exercise, other than by will, any power for payment in favour of a person who at the 
time of the exercise of the power is resident 4[outside Pakistan] elsewhere than in such notified 
territories. 
(2) A settlement or power as aforesaid shall not be invalid except in so far as it c onfers any 
right or benefit on any person who at the time of the settlement or the exercise of the powers resident 
4[outside Pakistan], elsewhere than in territories notified by 3[the State Bank]. 
 
 
 
 
 
 
1Subs. by the Foreign Exchange Regulation (Amendment)  Act, 1973, (8 of 1973) s.10, for “Central Government”. 
2Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) , s.3 and 2 nd Sch. (with effect from the 14 th October, 1955 ), for 
“the Provinces and the Capital of the Federation” which had be en subs. by A.O., 1949, for “British India”.  
3Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), Art.4, for “the 
Reserve Bank”. 
4Subs. by A.O. 1949, for “outside India”.  
 
        
 
 
 
18. Certain provisions as to companies. __ (1) Except with the general or special permission 
of 1[the State Bank], no person resident in  2[Pakistan] shall do any act whereby a company, which is 
controlled by persons resident  3[in Pakistan]   4[*  *  *] ceases to be so controlled. 
 5[(2) Except with the general or special permission of the State Bank, no person resident in 
6[Pakistan] shall lend any money or security to any company, not being a banking company, which is 
by any means controlled whether directly or indirectly, by persons resident outside Pakistan 
elsewhere than in the territories notified in this behalf by the State Bank.  
In this sub-section, “company” includes a firm, branch or office of a company or firm.]  
19. Power to call for information .―(1) The  7[Federal Government] 8[or the State Bank] 
may, at any time by notification 9 in the official Gazette, direct owners, subject to such 
exceptions, if any, as may be specified in the notification, of such foreign exchange or foreign 
securities as may be so s pecified, to make a return thereof to 4[the State Bank] with in such 
period, and giving such particulars, as may be so specified.  
 
 
 
 
 
 
 
1Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948) Art.4, for “the 
Reserve Bank”. 
2Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) , s.3 and 2nd Sch. ( with effect from the 14th October, 1955 ), for 
“the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, f or “British India.” 
3Subs. by A.O., 1949, for “in India”.  
4The words “or the United Kingdom” omitted by the Foreign Exchange Regulation (Amdt.) Act, 1950 (62 of 1952),s.4.  
5Subs. ibid., for the original sub-section (2). 
6Subs. by ordinance 21 of 1960,s.3 a nd 2nd Sch., for “the Provinces or the Capital of the Federation” ( with effect from the 14th October, 
1955). 
7Subs. by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973), s. 10, for "Central Government".  
8Ins. by Act 62 of 1950, s. 5. 
9 For such notification, see Gaz. of P., 1956 Ext., pp.1371 -1372. 
 
1[(1A) The Federal Government may, by notification in the official Gazette, direct citizens of 
Pakistan resident in Pakistan, or any class of such citizens, to make within such time, and giving s uch 
particulars, as may be specified in the notification, a return of any immoveable property or any 
industrial or commercial undertaking or company outside Pakistan, held, owned, established or 
controlled by them or in which they have any right, title or interest.] 
(2) The 2[Federal Government] may by order in writing require any person to furnish it or any 
person specified in the order with any information, book or other document in his possession, being 
information, book or document which the 2[Federal Government] considers it necessary or expedient 
to obtain and examine for the purposes of this Act 3[and may, at any time, by notification 4  in the 
official Gazette, direct that the power to make such order shall for such period as may be specified in 
the direction be exercised by the State Bank.]  
 5[(3) On a representation in writing made by a person authorized in this behalf by the 
2[Federal Government] or the State Bank and supported by a statement on oath or such person that he 
has reason to believe that  a contravention of any of the provisions of this Act has been or is being or 
is about to be committed in any place or that evidence of the contravention is to be found in such 
place, a district magistrate, a sub -divisional  magistrate or a magistrate of t he first class, may, by 
warrant, authorize any police officer not below the rank of sub -inspector__ 
(a)  to enter and search any place in the manner specified in the w arrant; and 
(b)  seize any books or other documents found in or on such place.  
 
 
 
 
 
 
 
 
1Sub-section (1A) ins. by the Foreign Exchange Regulation (Amdt.) Act, 1973, (8 of 1973),s.5.  
2 Subs. ibid., s. 10, for “Central Government”. 
3 Added by the Foreign Exchange Regulation (Amdt.) Act,1950 (62 of 1950),s.5.  
4 For such notfn., see Gaz., of P., 1950, Ext., p. 901, ibid., 1953, Pt. I, p. 257, ibid., Ext. 1956, p. 2101 ; and ibid., 1958, p. 2695.  
5Subs. By Act 62 of 1950, s.5. for the original sub -section (3). 
 
Explanation.__ In this sub -section, “place” includes a house, building, ten t, vehicle, vessel or 
aircraft.  
(3A) A police officer authorised under sub -section (3) may search any person who is found in 
or whom he has reasonable ground to believe to have recently left or to be about to enter such place 
and to seize any article foun d in the possession of or upon such person and believed by the police 
officer so authorised to be evidence of the commission of any offence under this Act.  
(3B) A police officer authorised under sub -section (3) shall conduct any search under that 
sub-section or under sub -section (3A) in accordance with the provisions relating to search in the 
Code of Criminal Procedure, 1898 (v of 1898).] 
(4) The Provisions of  1[section 122 and sub -sections (1), (2) and (3) of section 150 of the 
Income Tax Ordinance, 1979 (XXXI of 1979) ], shall apply in relation to information obtained under 
sub-section (2) of this section as they apply to the particulars referred to in that section, and for the 
purposes of such application __ 
(a)  the said sub -section (3) shall be construed  as if in clause (a) thereof there was 
included reference to a prosecution for an offence under section 23 of this Act, and   
(b)  persons to whom any information is required to be furnished under an order made 
under sub-section (2) of this section shall be  deemed to be public servants within the 
meaning of that section.  
 2[19A. Power to enter and inspect. __ (1) Without prejudice to the provisions of section 19, 
any person authorized in writing by the Federal Government or the State Bank 3[or any Adjudicati ng 
Officer] in this behalf may, for the purpose of making an inquiry 3[or adjudication proceeding which 
he considers necessary for the purposes of this Act, enter any place and call for and inspect any 
accounts, books or other documents kept in such place.  
(2) No person shall obstruct or hinder any person in the exercise of his powers under sub -
section (1).] 
 
 
 
 
 
 
 
1Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981 ), s.3 and Sch., II, for certain words. 
2Ins. by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973), s.6.  
3Ins. by the Finance Act, 1987 (6 of 1987 ), s.4. 
 
20. Supplemental provisions .―(1) For the purposes of this Act and of any rules, directions 
or orders made thereunder __ 
(a) until  1[the State Bank] by general or special order otherwise directs, any person who 
has at any time after the commencement of this Act been resident   2[in Pakistan] shall 
be treated as still being resident 2[in Pakistan] and if such direction is given i n relation 
to any such person 1[the State Bank] may by the same or a subsequent direction, 
declare the territory in which he shall be treated as being resident;   
(b) in the case of any person to whom clause (a) does not apply 1[the State Bank] may by 
general or special order declare the territory in which he shall be treated as being 
resident;  
(c) in the case of any person resident in   3[Pakistan] who leaves   4[Pakistan], 1[the State 
Bank] may give a direction to any bank that until the direction is revoke d, any sum 
from time to time standing to the credit of that person and any security held on his 
behalf at any office or branch of that bank in 3[Pakistan] specified in the direction, 
shall not be dealt with except with the permission of 1[the State Bank];  
(d) any transactions with a branch of any business, whether carried on by a body 
corporate or otherwise, shall be treated in all respects as if the branch were a body 
corporate resident where the branch is situated;   
(e) the making of any book entry or ot her statement recording a debit against a branch of 
any business in favour of the head office or any other branch of that business shall be 
treated as the acknowledgement of a debt whereby a right is created in favour of a 
person resident where the head of fice or other branch is situated.  
 
 
 
 
 
 
 
 
 
 
1Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), for “th e Reserve 
Bank”. 
2Subs. by A.O., 1949, for “in India”.  
3 Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2nd Sch. (with effect from the 14th October, 1955), 
for “the Provinces and the Capital of the Federation” , which had been subs. by A.O., 1949, for “British India .” 
4 Subs. by the Foreign Exchange Regulation (Amdt.) Act, 1950 (62 of 1950),s.6, for “India”.  
 
(2) Nothing in this Act relating to the payment of any price or sum by the  1[Federal 
Government] shall be construed as requiring the 1[Federal Government] to pay th at price or sum 
otherwise than in 2[Pakistan] currency or otherwise than  3[in Pakistan]. 
(3)  4[The State Bank] may give directions in regard to the making of payments and the doing 
of other acts by bankers, authorised dealers   5[travel agents, carriers, w hether common of private,] 
stoke brokers and other persons who are authorised by 4[the State Bank] to do anything in pursuance 
of this Act in the course of their business, as appear to it to be necessary or expedient for the purpose 
of securing compliance with the provisions of this Act and any rules, orders or directions made 
thereunder. 
21. Contracts in evasion of this Act .__(1) No person shall enter into any contract or 
agreement which would directly or indirectly evade or avoid in any way the operation of any 
provision of this Act or of any rule, direction or order made thereunder.   
(2) Any provision of, or having effect under, this Act that a thing shall not be done without 
the permission of the 1[Federal Government] or 4[the State Bank], shall not rend er invalid any 
agreement by any person to do that thing, if it is a term of the agreement that  the thing shall not be 
done unless permission is granted by the  1[Federal Government] or  4[the State Bank], as the case 
may be; and it shall be an implied term  of every contract governed by the law of any part of 
 2[Pakistan] that anything agreed to be done by any term of that contract which is prohibited to be 
done by or under any of the provisions of this Act except with the permission of the 1[Federal 
Government] or 4[the state Bank], shall not be done unless such permission is granted.   
 
 
 
 
 
 
1Subs.by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) , s.10, for “Central Government”. 
2Subs. by A.O., 1949, for “Indian”. 
3 Subs. ibid., for “in India.” 
4 Subs. by the Pakistan (Adaptation of Existing Pakistan (Laws) (State Bank of Pakistan) Order, 1948 (G.G.O. 18 of 1948), for “ the Reserve 
Bank”. 
5Subs. by the Foreign Exchange Regulation (Amdt.) Act, 1957 (40 of 1957), s.4, for “travel agent or”.  
 
 (3) Neither the provisions of this Act nor any term (whether expressed or implied) contained 
in any contract that anything for which the permission of the 1[Federal Government] or 2[the Stat 
Bank] is required by the said provisions shall not be done with out that permission, shall prevent legal 
proceedings being brought in 3[Pakistan] to recover any sum which, apart from the said provisions 
and any such term, would be due, whether as a debt, damages or otherwise, but __ 
(a) the said provisions shall apply t o sums required to be paid by any judgment or order 
of any Court as they apply in relation to other sums; and   
(b) no steps shall be taken for the purpose of enforcing any judgment or order for the 
payment of any sum to which the said provisions apply exce pt as respects so much 
thereof as the 1[Federal Government] or 2[the State Bank], as the case may be, may 
permit to be paid; and 
(c) for the purpose of considering whether or not to grant such permission, the 1[Federal 
Government] or 2[the State Bank], as the case may be, may require the person entitled 
to be benefit of the judgment or order and the debtor under the judgment or order to 
produce such documents and to give such information as may be specified in the 
requirement.    
(4) Notwithstanding anythin g in the Negotiable Instruments Act, 1881 (XXVI of 1881), 
neither the provisions of this Act or of any rule, direction or order made thereunder, nor any 
condition, whether express or to be implied having regard to those provisions, that any payment shall 
not be made without permission under this Act, shall be deemed to prevent any instrument being a 
bill of exchange or promissory note.  
22. False statements.  No person shall , when complying with any order or direction under 
section 19 or when making any appl ication or declaration to any authority or person for any purpose 
under this Act, give any information or make any statement which he knows or has reasonable cause 
to believe to be false, or not true, in any material particular.   
 
 
 
1 Subs.by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973) , s.10 for “Central Government”.  
2 Subs. by the Pakistan (Adaptation of Existing Pakistan Laws) (State Bank of Pakistan) Order, 1948 (G.G.O.18 of 1948), for “th e Reserve 
Bank”. 
3 Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960) s.3 and 2nd Sch. (with effect from the 14th October, 1955), for 
“the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, for “British India .” 
 
 1[23. Pena lty and procedure. ―(1) Whoever contravenes, attempts to contravene or abets 
the contravention of any of the provisions of this Act or of any rule, direction or order made 
thereunder 2[other t hen the provisions of 3[section 3, section  3A, section 3AA, secti on 3B] , 4[sub-
section ( 2) and (3)  of section 4 ], section 10, sub -section (1) of section 12 and 5[clause(c) of sub -
section(1) sub-section (3) of section 20 ] or any rule, direction or order made thereunder]shall 
notwithstanding anything contained in the Code of Criminal Procedure, 1898 , (V of 1898), be tried 
by a Tribunal constituted by section 23A, and shall be punishable with 6[rigorous] imprisonment for 
a term which may extend to 7[five] years or with fine or with both, and any such tribunal trying any 
such contravention may, if it thinks fit, and in addition to any sentence which it may impose for such 
contravention, direct that any currency, security, Gold or silver, or goods or other property in respect 
of which the contravention has taken place shall be confiscated.   
*Declare the period ending 30 th June, 2006 to be the period for which offences punishable under the 
said section 23 shall be the cognizable and non -bailable vide S.R.O.  No. 634 (1)/05, dated 23 -6-
2005. 
 (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (V of 
1898), any offence punishable under this section shall be cognizable 8[and non-bailable] 9[*******.]  
(3) A Tribunal shall not take cognizance of any offence punishable under this section 
10[*******], or of an offence punishable under 11[section 122 and 150 of the Income Tax Ordinance, 
1979(XXXI 1979)], as applied by section 19, except upon complaint in writing made by a person 
authorized by 14[***] the State Bank in this behalf 10[:]  
Provided that where any such offence is the contravention of any of the provisions of this Act 
or any rule, direction or order made thereunder which prohibits the doing of an act without 
permission 9[*******] no such complaint shall be made unless the person accused of the offence has 
been given an opportunity of showing that he had such permissio n 12[:]  
12[Provided further that if a person not authorized under section 3, 3A or 3AA is found 
involved in illegal foreign exchange business the complaint as required in this sub -section shall not 
be required.;], and   
13[(3A) A person authorized under sub -section (3) to make a compliant in writing shall, if he 
is not already a public servant within the meaning of section 21 of the Pakistan Penal Code (Act 
XLV of 1860) be deemed to be a public servant within the meaning of that section.]  
 
1Subs. by the Foreign Exchange Regulation (Amdt.) Act, 1957 (40 of 1957),s.5, for the original section 23, as amended by the  Foreign     
Exchange Regulation (Amdt.) Act, 1950 (62 of 1950).  
2Ins. by the Finance Act, 1987 (6 of 1987),s.4. 
3Subs. by Act XXXIII of 2016, s.3(a). 
4Subs. by Act XXXIII of 2016, s.3(a). 
5Subs. by Act XXXIII of 2016, s.3(a). 
 6Ins. by Act X of 2020, s.2 
7Substituted by Act X of 2020, s.2(a)  
8Ins. by the Foreign Exchange Regulation (Amendment) Act, 1973 (8 of 1973),s.7.  
9Omitted by Act X of 2020, s.2(b) & (c) 
10Omitted and subs. by Act X of 2020, s.2(c) 
11Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s.3 and Sch..II, for certain words  
12Subs. & Added by Act X of 2020, s.2(c) 
13Ins. by Act.8 of 1973, s. 7 
14 Omitted by Act No. XXXIII of 2016 s.3(b).  
 
1[(3B) A Tribunal taking cognizance under sub -section (1) shall conclude the proceedings 
within six months. The Tribunal may, by giving cogent reason in writing, extend the said period by 
six months further.] 
(4) Where the person guilty of an offence under this Act is a company or other body 
corporate every director, manager, secretary and other officer thereof who is knowingly a party to the 
offence shall also be guilty of the same offence and liable to the same punishment. ] 
23A. Tribunal, its powers, etc. __(1) Every Sessions judge shall, for the areas within the 
territorial limits of his jurisdiction, be a Tribunal for trial of an offence punishable under section 23.  
(2) A tribunal may transfer any case for trial to an additional Sessions judge within its 
jurisdiction who shall, for trying a case so transferred, be deemed to be a tribunal constituted for the 
purpose.  
(3) A Tribunal shall have all the powers of a Magistrate of the First Class in relation to 
criminal trials, and shall follow as nearly as may be the procedure provided in the Code of Criminal 
Procedure, 1898 (V of 1898), for trials before such Magistrate, and shall also have powers as 
provided in the said Code in respect of the following matters, namely: __  
(a)  directing the arrest of the accused;  
(b)  issuing search warrants; 
(c)  ordering the police to investigate any offence and report;  
(d)  authorizing detention of a person during police investiga tion; 
(e)  ordering the release of the accused on bail.  
2[(3A) For the purposes of sub -section (3) the Code of Criminal Procedure, 1898 (Act V of 
1898) shall have effect as if an offence under this Act were one of the offences referred to in sub -
section (1) of section 337 of the Code].  
(4) All proceedings before a Tribunal shall be deemed to be judicial proceeding within the 
meaning of sections 193 and 228 of the Pakistan Penal Code . (XLV of 1860), and for the purposes of 
section 196 thereof, and the provis ions relating to the execution of orders and sentences in the Code 
of Criminal Procedure, 1898 (V of 1898), shall, so far as may be, apply to orders and sentences 
passed by a Tribunal.  
(5) As regards sentences of fine, the powers of a Tribunal shall be as  extensive as those of a 
Court of Session. 
(6) The State Bank of Pakistan or any other person aggrieved by a judgment of a Tribunal 
may, within three months from the date of judgment, appeal to the High Court.   
 
 
1Ins. by Act X of 2020, s.2(d) 
2 Ins. by foreign exchange regulation (Amendment) Act 1973(VIII of 1973). S.8.  
 
(7) Save as provided in the preceding sub -section, all judgments and orders passed by a 
Tribunal shall be final.  
 1[23B. Authorization of Adjudicati ng officers and their powers, etc. __(1) The Federa l 
Government may, by notification in the official Gazette, authorize in relation to any area specified in 
the notification any officer of the State Bank to act as the Director of Adjudication, an Additional 
Director of Adjudication, a  Senior De puty Director of Adjudication, a  Deputy Director of 
Adjudication and an Assistant Director of Adjudication (in this Act referred to as the Adjudicating 
Officer). 
(2) Subject to such conditions and limitations as the Federal Government may impose, an 
Adjudicating Officer may exercise the powers and discharge the duties conferred or imposed on him 
by this Act and shall also be competent to exercise the powers and discharge the duties conferred 
upon any Adjudicating Officer subordinate to him:  
Provided t hat, notwithstanding anything contained in this Act or the rules made thereunder, 
the State Bank may, by general or special order, impose such conditions or limitations on the 
exercise of such powers or discharge of such duties as it thinks fit.  
(3)  The S tate Bank may, by notification in the official Gazette, and subject to such 
limitations or conditions, if any, as may be specified therein, empower __ 
(a)  any 2[Senior Joint Director] of Adjudication or 2[Joint Director] of Adjudication or 
2[Junior Joint D irector] of Adjudication or Assistant Director of adjudication to 
exercise the powers of the Director of Adjudication under this Act;  
(b)  any 2[Joint Director] of Adjudication or 2[Junior Joint Director] of Adjudication or 
Assistant Director of Adjudicati on to exercise any of the powers of an 2[Senior Joint 
Director] of Adjudication under this Act;  
(c)  any 2[Junior Joint Director] of Adjudicating or Assistant Director of Adjudication to 
exercise any of the powers of a 2[Joint Director] of Adjudication und er this Act; and 
(d)  any Assistant Director of Adjudication to exercise the powers of a 2[Junior Joint 
Director] of Adjudication under this Act.  
(4) 3[***If] any person contravenes or attempts to contravene or abets the contravention of 
the provisions of 4*** sub-section (3) of section 4 , Section 10, sub -section (1) of section 12 or 
sub-section (3) of section 20 or any rule, direction or order made thereunder, he shall be liable to 
such penalty not exceeding five times the amount or value involved in such contravention or five 
thousand rupees, whichever is more, as may be adjudged by the Director or 2[Senior Joint Director] 
of Adjudication or any other Adjudicating Officer having jurisdiction under sub -section (8) to take 
cognizance of such contravention, a nd, if he persists in such contravention, or where the 
contravention or default is continuing one, to a further penalty which may extend to two thousand 
rupees for every day during which the offence or, as the case may be, the contravention or default 
continues. 
 
4[(5) * * * * * ] 
 
 
1Ins. by the Finance Act, 1987 (6 of 1987), s.4.  
2Omitted and subs. by Ord. 30 of 2002, s. 7  
3 Omitted and subs. by Act XXXIII of 2016, s.4. 
4Omitted by Act XXXIII of 2016, s.4 
 
1[(6)*     *     *      *     *      *      *] 
(7)  For the purpose of this section, amount or value shall mean __ 
(a)  in the case of foreign exchange, the Pakistan rupee equivalent of the same 
calculated at the rate of exchange authorised by the State Bank as on the date 
on which an opportunity of m aking a representation is given under sub -section 
(9) or where no such rate has been authorised, the rate determined by the State 
Bank on the said date ; 
(b)  in the case of goods, their value in rupees if declared in Pakistan currency or 
where it is expre ssed in foreign exchange Pakistan rupee equivalent of the 
same calculated in accordance with clause (a) ; and  
(c)  in case of any right to receive foreign exchange or to receive from any person 
resident outside Pakistan a payment in rupees or gold or silve r or security or 
other property of any description, the sale proceeds which, taking all 
circumstances into consideration, such right, gold, silver, security or other 
property can, in the opinion of the Adjudicating Officer, fetch on the date 
referred to in clause (a). 
(8) For imposing a penalty under sub -sections (4), 1[***] the jurisdiction and powers of the 
Adjudicating Officers shall be as follows : __ 
(a)  the Director of Adjudication and an 2[Senior Joint Director] of Adjudication may deal 
with all cases without any limit on the amount or value involved in any contravention;  
(b)  a 2[Joint Director] of Adjudication and a 2[Junior Joint Director] of Adjudication may 
deal with a case where the amount or value involved in any contravention on the date 
referred to in clause (a) of sub -section (7) does not exceed twenty thousand rupees ; 
and 
(c)  an Assistant Director of Adjudication may deal with a case where the amount or value 
involved in any contravention on the date referred to  in clause (a) of sub -section (7) 
does not exceed ten thousand rupees;  
Provided that the State Bank may, by notification in the official Gazette, reduce or extend the 
jurisdiction and powers of any particular Adjudicating Officer or class of Adjudicating Officers.  
(9) For the purpose  of determining whether a person has contravened any of the provisions of 
sub-sections (4), 1[***] the Adjudicating Officer shall hold an enquiry in the manner prescribed , if 
any, after giving such person a reasonable opportunity for making a representation  in the matter and 
if, on such inquiry, he is satisfied that the person has committed any contravention, he may impose 
the penalty provided for in this section.  
 
1Omitted by Act (XXXIII of 2016), sec.4 
2Subs by Ord. 30 of 2002, s.7  
 
(10) All doubts with regard to the jurisdiction of an Adjudicating Officer shall be referred to 
the Director of Adjudication and his decision thereon shall be final.  
 (11) The Director of Adjudication, on his own motion or on the application of any party to 
the adjudication pr oceedings and after notice to the State Bank and other parties, if any and after 
hearing such of them as desire to be heard, may at any stage withdraw any adjudication proceedings 
pending before any Adjudicating Officer and adjudicate it either himself or transfer it to any other 
Adjudicating Officer subordinate to him and competent to dispose of the same or re -transfer the 
same for adjudication to the Adjudication Officer from whom it was withdrawn; and the Director of 
Adjudicating or, as the case may be, any other Adjudicating Officer or the Adjudicating Officer, or if 
the Adjudicating Officer who is seized of the matter as aforesaid vacates office for any reason and 
another person is authorised to act in his stead such person, shall not, by reason of the said 
withdrawal or transfer or re -transfer or vacation of, office, as the case may be, be bound to recall and 
re-hear any witness who has given evidence before the withdrawal or transfer or re -transfer or 
vacation of office and may act on the evidence alre ady recorded by or produced before the 
Adjudicating Officer from whom the proceedings are so transferred or re -transferred or in whose 
stead he has been so authorised to act as Adjudicating Officer.  
 
(12) Subject to provisions of appeal under section 23C,  no Curt or other authority shall call, 
or permit to be called, in question any proceeding or order of the Adjudicating Officer or the legality 
or propriety of anything done or intended to be done by the Adjudicating Officer under this Act.  
 
23C. Appeal to  Appellate Board. __(1) The Federal Government may, by notification in 
official Gazette, constitute as many appellate boards, each to be called the Foreign Exchange 
Regulation Appellate Board, as it may consider necessary, and where it establishes more than  one 
Appellate Board, shall specify in the notification the territorial limits within which each one of them 
shall exercise jurisdiction. 
(2) An Appellate Board shall consist of a person who is , or has been, or is qualified for 
appointment as a Judge of a High Court or a District Judge or an Additional District Judge.  
(3) Any person aggrieved by an y order of the Adjudicating Officer made under sub -section 
(4) or sub -section (5) or sub -section (6) of section 23B may, within thirty days of such order, prefer 
an appeal to the Appellate Board within whose jurisdiction the order is passed : 
Provided that no appeal shall lie from an interlocutory order which does not dispose of the 
entire case before the Adjudicating Officer:  
Provided further that the Appellate Board may entertain an appeal after the expiry of the said 
period of thirty days but not later than sixty days from the date of the aforesaid order if it is satisfied 
that the appellant was prevented by sufficient cause from filing the appeal in time.  
Explanation.__ For the purposes of this sub -section, the expression “any person aggrieved” shall 
include the Federal Government and the State Bank.   
(4) No appeal shall be admitted for hearing unless the appellant deposits in cash with the 
Appellate Board the amount of penalty or, at the discretion of the Appellate Board, furnishes security 
equal in value to such amount of penalty.  
 
(5) The Appellate Board may make such inquiry as it may consider necessary, and after 
giving the appellant an opportunity of being heard if he so desires, pass such order as it thinks fit, 
confirming, altering or annulling the order appealed against:  
Provided that no order enhancing any penalty shall be passed unless the person affected 
thereby has been given an opportunity of showing  cause against it and of being heard in person or 
through a counsel: 
Provided further, that if the sum deposited by way of penalty under sub -section (3) exceeds 
the amount directed to be paid by the Appellate Board, the excess amount shall be refunded to the 
appellant. 
  
(6) The decision  of the Appellate Board shall be final and no Court, tribunal or other 
authority shall call, or permit to be called, in question any proceedings or order of the Appellate 
Board or the legality or propriety of anything done or intended to be done by the Appellate Board 
under this Act. 
   
23D. Assistance to the Adjudicating Officers. All officers of the Federal Government or a 
Provincial Government , including those of the Customs, Federal Investigation Agency, Police, 
Pakistan International Airlines, Local Authorities, Port Trust, and all officers engaged in the 
collection of land revenue or taxes of any description or employed by a corporation owned or 
controlled by the Federal Government or a Provincial Government, either dir ectly or indirectly, are 
hereby empowered and required to assist the Adjudicating Officers in the discharge of their functions 
under this Act. 
23E. Powers of Adjudicating Officer and the Appellate Board to summon witnesses, 
etc.__(1) Without prejudice to a ny other provisions contained in this Act, the Adjudicating Officer 
and the Appellate Board shall have all the powers of a civil court under the Code of Civil Procedure, 
1908 (Act V of 1908) while trying a suit, in respect of the following matters, namely: __ 
(a)  summoning and enforcing the attendance of any person and examining him on oath;  
(b)  requiring the discovery and production of any document;  
(c)  requisitioning any public record or copy thereof from any court or office;  
(d)  receiving evidence on affidavits; 
(e)  issuing commissions for the examination of witnesses or documents;  
(f)  appointing guardians or next friends of persons who are minors or of unsound mind;  
(g)  adding legal representatives of the accused person s; 
(h)  consolidation of cases; and 
(i)  enforcing any order made by him or it under this Act or the rules made thereunder.  
 
 
23F. Proceedings before Adjudicating Officer to be deemed to be judicial proceedings. 
All proceedings before an Adjudicating Officer or Appellate Board shall be deemed to be judicial 
proceedings within the meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 
1860), and an Adjudicating Officer and Appellate Board shall be d eemed to be a Court for the 
purposes of sections 480 and 482 of the Code of Criminal Procedure, 1898 (Act V of 1898).  
23G. Continuance of proceedings in the event of death or insolvency. __(1) 
Notwithstanding anything contained in any other law for the time  being in force, where a penalty has 
been imposed under section 23B on any person and no appeal against the order imposing such 
penalty has been preferred, or where any such appeal has been preferred and where in either case, 
such person dies or is adjudic ated an insolvent during the pendency of a proceedings before the 
Adjudicating Officer or the Appellate Board or before preferring an appeal, it shall be lawful for the 
legal representative of such person or the official assignee or the official receive r, as the case may be, 
to prefer an appeal to the Appellate Board, or as the case may be, to continue the proceeding or 
appeal before the Adjudicating Officer or the Appellate Board and in either case any such 
proceedings before the Adjudicating Officer or Ap pellate Board shall not abate but be continued as if 
such person were not dead or adjudged as insolvent.  
(2) The power of the official assignee or the official receiver under sub -section (1) shall 
exercised by him subject to the provisions of the Insolven cy (Karachi Division) Act, 1909 (III of 
1909), or the Provincial Insolvency Act, 1920 (V of 1920), as the case may be.  
23H. Confiscation of currency, security, etc.  Any Adjudicating Officer adjudging any 
contravention under section 23B may, if he thinks fi t, and in addition to any penalty which he may 
impose for such contravention , direct that any currency, security, or any other money or property in 
respect of which the contravention has taken place shall be confiscated to the Federal Government 
and furthe r direct that the foreign exchange, if any, of the person committing the contravention or 
any part thereof shall be brought into Pakistan or shall be retained outside Pakistan in accordance 
with the directions made by the State Bank in this behalf.  
Explanation.__For the purposes of this section, property in respect of which contravention 
has taken place shall include__  
(a)  deposits in a bank, where the said property is converted into such deposits;  
(b)  Pakistan currency, where the said property is conver ted into that currency; and 
(c)  an other property which has resulted out of conversion of that property.  
23I. Correction of clerical errors, etc. Clerical mistakes in any decision or order passed by 
the Appellate Board or Adjudicating Officer under this A ct, or any errors arising therein from any 
accidental slip or omission may, at any time, be corrected by the Appellate Board or the Adjudicating 
Officer or his successor-in-office, as the case may be: 
Provided that, where any correction proposed to be made  under this section will have the 
result of prejudicially affecting any person, no such correction shall be made __ 
(i)  after the expiry of two years from the date of such decision or order; and  
 
(ii)  unless the person affected thereby is given a reasonabl e opportunity of making a 
representation in the matter. 
23J. Recovery of sums due to Government. ―(1) Where any penalty imposed on any 
person under this Act is not paid __  
(i)  the Adjudicating Officer may deduct, or direct the deduction of, the amount so 
payable from any money which is owed to such person and which may be under the 
custody, power or control of an Adjudicating Officer or any other person ; or  
(ii)  the Adjudicating Officer may recover the amount so payable by detaining or selling, 
or ordering the detention and sale of, any goods belonging to such person which are 
under the custody , power or control of any Adjudicating Officer or any other person ; 
or 
(iii)  in case the penalty is payable by an authorised dealer, the State Bank may, without 
further reference to him, recover the amount of penalty from him by debiting the 
account or accounts then held or held at any time thereafter with the State Bank by the 
authroised dealer ; or 
(iv)  if the amount cannot be recovered from such person in the m anner provided in clause 
(i) or clause (ii) or clause (iii), the Adjudicating Officer may prepare and sign a 
certificate specifying the amount due from such person and send it to the Collector of 
the District in which such person owns any property or resid es or carries on business; 
and the Collector on receipt of such certificate shall proceed to recover from the said 
person the amount specified in the certificate as it is were an arrear of land revenue.  
(2) When any bond or other instrument or security is executed pursuant to section 23C, the 
amount due thereunder may, without prejudice to any other mode of recovery, be recovered in 
accordance with the provisions of sub -section (1). 
(3) The several modes of recovery specified in sub -section (1) shall not affect in any way__  
(i)  any other law for the time being in force relating to the recovery of debts due to the 
Government; or 
(ii)  the right of the Government to institute a suit for the recovery of the penalty due to 
the Government; and it shall be lawfu l for the Government to have recourse to any 
such law or suit notwithstanding that the amount is being or is to be recovered by any 
mode specified in the said sub -section. 
(4) For the purposes of this section the expression “any other person” appearing in clauses (i) 
and (ii) of sub-section (1) shall include the State Bank, a banking company as defined in clause (c) of 
section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962) , a bank established by or under 
any Federal or Provincial Law and any finan cial institution as defined in clause (15A) of section 2 of 
the Companies Ordinance 1984 (XLVII of 1984) , and such other person as the Federal Government 
may, by notification in the official Gazette, specify in this behalf.].  
 
 
  
 1[23K Powers to impose penalty, etc.―(l) Whoever contravenes, attempts to contravene or 
abets the contravention of any of the provisions of section 3, section 3A, section 3AA, section 3 B, 
sub-section (2) of section 4 and clause ( C) of sub -section (l) of section  20, or any order, rule, 
regulation or direction issued thereunder shall be liable to a penalty to be imposed by an officer of 
the State Bank not below the rank of Senior Join t Director authori zed by the  State Bank in this 
behalf, upto five hundred thousand  rupees for each contravention, and where the contravention is a 
continuing one with a further penalty which may ext end to ten thousand rupees for each day during 
which such contravention continues : 
Provided tha t before taking action under this sub -section a notice to show cause shall be 
issued by an of ficer of the State Bank not below the rank of Assistant Director a nd an opportunity of 
being heard shall be afforded. 
(2) Where the person guilty of such con travention is a company or body corporate, every 
director, manager, secr etary or other officer or agent  thereof shall be deemed guilty of such 
contravention, if the cont ravention was  committed wi th his knowledge or consent or if  he did not 
exercise due diligence to prevent the commission of the offence. 
(3) If any p erson fails to pay the penalty imposed, under su b-section(l) within the time 
stipulated in the order imposing the penalty, the State Bank  may, without any notice to such person, 
recover the amount of  such penalty from  the money owned to such p erson and which may be under 
the custody of State Bank or any other person. 
(4) If any other person to whom notice has been sent under sub -section (3) fails to deduc t the 
amount of pena lty under the said su b-section, such pe rson shall be liable to pay the a mount of 
penalty to the State Bank as if such person had committed the contravention. 
(5) Any person aggrieved by an order pass ed and penalty imposed  under this sec tion may, 
within thirty days of the order, pref er appeal to the Deputy Governor, State Bank to be designated by 
the Governor, State Bank who  shall decide the appea l within ninety days. Any order passed by the 
Deputy Governor shall be final.] 
 
 
 
 
1Ins. by Act XXXIII of 2016, s.5 
 
 
1[24. Burden of proof in certain cases. __(1) Where any person is tried for contravening any 
provision of this Act or of any rule, direction or order made thereunder which prohibits him from 
doing an act without permission, the burden of proving that he had the requisite permission shall be 
on him. 
(2) If in a case in which the proof of complicity of a person resident in Pakistan with a person 
outside Pakistan is essential to prove an offence under this Act, then after proof of the circumstances 
otherwise sufficient to establish the commission of the offence, it shall be presumed that there was 
such complicity, and the burden of proving that there was no such complicity shall be on the person 
accused of the offence.] 
2[(3) Where the person accused of having made any payment in contravention of clause (c) of 
sub-section (1) of section 5 is proved to have received form any person outside Pakistan a message 
which raises a reasonable suspicion that it relates to certain payment to be made, the Tribunal may in 
the absence of proof to the contrary by the accused person presume th at he had made such payment 
in pursuance of such message. 
(4) If, after the issue of a notification under clause (a) of section 9, any person is found to be 
in possession of , or to have under his control, any Foreign Exchange specified in the notification , in 
circumstances which tend to raise a reasonable suspicion that he has contravened the notification, he 
shall presumed to have contravened the notification unless he can, by proving the time when and the 
manner in which the Foreign Exchange came into hi s possession or under his control, show that he 
had not in fact contravened the notification.]  
25. Power to Federal Government to give direction . For the purposes of this Act 
the 3[Federal Government] may from time to time give to 4[the State Bank] such ge neral or special 
directions as it thinks fit, and 2[the State Bank] shall, in the exercise of its functions under this Act, 
comply with any such direction.  
5[26. Bar of legal proceedings . No suit, prosecution or other proceedings shall lie against the 
Federal Government or the State Bank or any officer of the Federal Government or of the State Bank 
or any other person exercising any power or discharging any functions or performing any duties 
under this Act, for anything in good faith done or intended to be  done or purported to be done under 
this Act or any rule, direction or order made thereunder.]   
27. Power to make rules.  6[*] The 3[Federal Government] may, by notification in the 
official gazette, make rules 7 for carrying into effect the provisions of this Act 
 
8[*  *  *  *  *  *        *] 
 
 
 
 
1Subs. by the Foreign Exchange Regulation (Amdt.) Act, 1957 (40 of 1957),s.6,for the original section 24.  
2Added by the Foreign Exchange Regulation (Amdt.) Act, 1973 (8 of 1973),s.9.  
3Subs. ibid. s.10,for “Central Government”. 
4Subs. by the Pakistan (Adaptation of Pakistan Existing Laws) (State Bank of Pakistan) Order, 1948 ( G.G.O.18 of 1948), for “the Reserve 
Bank”. 
5Subs. by the Finance Act, 1987 (6 of 1987),s.4, for section 26.  
6The figure and brackets “(1)” omitted by the Foreign Exchange Regulation (Amdt.) Act, 1957 (40 of 1957),s.7.  
7For the Foreign Exchange Rules, 1952, see Gaz. of P., 1952, Ext., PP.871 -872. 
8The original sub-section (2) omitted by Act 40 of 1957,s.7.