Foreign Currency Accounts (Protection) Ordinance, 2001

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THE FOREIGN CURRENCY ACCOUNTS (PROTECTION) 
ORDINANCE, 2001 
 
 
 
 
CONTENTS 
1. Short title, extent and commencement 
2. Definitions 
3. Protection of foreign currency accounts 
4. Indemnity  
5. Ordinance to override other laws 
6. Power to make rules, etc. 
  
 

 
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THE FOREIGN CURRENCY ACCOUNTS (PROTECTION) 
ORDINANCE, 2001 
ORDINANCE No. L OF 2001 
[28th September, 2001] 
An Ordinance to provide for protection to foreign currency accounts 
WHEREAS it is expedient to provide for protection to foreign currency accounts and for 
matters connected therewith or ancillary thereto: 
AND WHEREAS the President is satisfied that circumstances exist which render it necessary 
to take immediate action; 
NOW, THEREFORE, in pursuance of the proclamation of Emergency of the Fourteenth day 
of October, 1999, and the Pro visional Constitution Order No. 1 of 1999, read with the Provisional 
Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers en abling him in that 
behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the 
following Ordinance. 
1. Short title, extent and commencement. ___ (1) This Ordinance may be called the  Foreign 
Currency Accounts (Protection) Ordinance, 2001.  
(2) It extends to the whole of Pakistan. 
(3) It shall come into force at once. 
2. Definitions.___ In this Ordinance unless there is anything repugnant in the subject or context. 
(a) “authorised dealer” means a person authorized, under sec tion 3 of the Foreign 
Exchange Regulation Act, 1947 (VII of 1947), by the State Bank to deal in 
foreign exchange; 
(b) “foreign currency” means the foreign currency other than the Pakistan currency; 
(c) “foreign currency accounts” means a foreign currency account opened with an 
authorized dealer after the 28th May, 1998; and 
(d) “State Bank” means the State Bank of Pakistan established under the State Bank 
of Pakistan Act, 1956 (XXXIII of 1956). 
3. Protection of foreign currency accounts.___ No person holding a foreign currency account 
shall be deprived of his right to hold or operate such account or in any manner be restricted  temporarily  
or  permanently to lawfully sell, withdraw, remit, transfer, use as security or take out foreign currency 
there form within or outside Pakistan. 
4. Indemnity.___No suit or other legal proceedings shall lie against the Federal Government or 
any person  for anything in  good  faith  done or intended to be done in pursuance of this Ordinance or 
any rule; direction or order made thereunder. 
 
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5. Ordinance to override other laws. ___(1) Subject to subsection (2), the provisions  of this 
Ordinance shall have effect notwithstanding anything contained in the Foreign Exchange Regulation 
Act, 1947 (VII of 1947) the Customs Act, 1969 (IV of 1969), the Income Tax Ordinance, 1979 (XXXI 
of 1979) or any other law for the time being in force. 
(2) The protection provided to a foreign currency account holder under this Ordinance shall be 
in addition to, and not in derog ation of, the protection provided under the Protection of Economic 
Reforms Act, 1992 (XII of 1992). 
6. Power to make rules, etc. ___ (1) The Federal Government may, in consultation with  the 
State Bank, by notification in the official Gazette, make rules for  carrying out the purposes of this 
Ordinance. 
(2) The State Bank may make regulations consistent with the provisions of this Ordinance and 
the rules made thereunder to provide for all matters for which provision is necessary for the purpose 
of giving effect to the provisions of this Ordinance. 
(3) All rules, regulations, under or instructions in respect of foreign currency accounts made or 
issued by the Federal Government or, as the case may be, the State Bank, before the commencement 
of this Ordinance, sha ll in so far as they are not inconsistent with the provisions of this Ordinance, 
shall have effect and shall be deemed to have been made or issued under this Ordinance.