PUNJAB PREVENTION OF CONFLICT OF INTEREST ACT 2019

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THE PUNJAB PREVENTION OF CONFLICT OF 
INTEREST ACT 2019 
(V OF 2019) 
CONTENTS 
CHAPTER-I 
PRELIMINIARY 
1. Short title, extent and commencement  
2. Definitions 
 
CHAPTER-II 
PREVENTION OF CONFLICT OF INTEREST AND ETHICS COMMISSION 
3. Establishment of the Punjab Prevention of Conflict of Interest and Ethics 
 Commission 
4. Meetings 
5. Validity of proceedings 
 
CHAPTER-III 
DUTIES OF A PUBLIC OFFICE HOLDER  
6. Duty to recuse 
7. Summary statement 
 
CHAPTER-IV 
FUNCTIONS AND DUTIES OF THE COMMISSION  
8. Annual review 
9. Compliance order 
10. Confidential advice and opinion 
11. Requests from citizen 
12. Report 
13. Powers in respect of reports 
14. Waiver or reduction of applicable period 
 
CHAPTER-V 
PUBLIC REGISTRY 
15. Publication through public registry 
CHAPTER-VI 
VIOLATIONS AND PENALTIES 
16. Violation 
17. Payment of penalty 
18. Representation to the Commission 
19. Failure to act 
20. Activities on behalf of the constituents 
21. Order and decision 
CHAPTER-VII 
MISCELLANEOUS 
22. Annual report 
23. Power to make rules 
24. Power to frame regulations 
25. Removal of difficulties 
 
 
 
 
 
TEXT 
1
THE PUNJAB PREVENTION OF CONFLICT OF INTEREST ACT 2019  
(V OF 2019) 
[March 1st, 2019] 
 
An 
Act  
to establish the Punjab Prevention of Conflict of Interest and Ethics Commission.  
It is necessary to establish principles of conflict of interest for public office 
holders and the related post -employment matters; to prevent and minimize the 
possibility of conflicts arising between the private interests and public duties of public 
office holders; to provide for the resolution of those conflicts in the public interest 
should they arise; to establish an independent Commission with the mandate to 
determine the measures necessary to avoid conflict of interest; to determine whether 
a contravention of the Act has occurred; to encourage experienced and competent 
persons to seek and accept public office; to facilitate interchange between the 
private and public sector; and, not to deny equal opportunities to relatives of public 
office holder, as the relatives cannot be barred from legal business activities, and, for 
matters connected therewith and ancillary thereto; 
Be it enacted by Provincial Assembly of the Punjab as follows: 
CHAPTER-I 
PRELIMINIARY 
1. Short title, extent and commencement.− (1) This Act may  be cited as 
the Punjab Prevention of Conflict of Interest Act 2019. 
 (2) It shall extend to whole of the Punjab. 
(3) It shall come into force on such date as Government may, by 
notification in the official Gazette specify and different d ates may be specified for 
coming into force of different provisions of the Act.  
2. Definitions.− In the Act:  
(a) “Act” means the Punjab Prevention of Conflict of Interest Act 2019;  
(b) “Assembly” means Provincial Assembly of the Punjab; 
(c) “asset” means and includes any movable and immovable property, 
money, securities, actionable claims, rights, interests, and any trusts in 
respect of which a public office holder or a member of his family is a 
beneficiary; 
(d) “Commission” means the Prevention of Confli ct of Interest and Ethics 
Commission, established under section 3 of the Act; 
(e) “conflict of interest” means any interest of a personal nature of a public 
officer holder in a decision pertaining to an official matter which leads 
                                                 
1This Act was passed by the Provincial Assembly of the Punjab on 20 February 2018; assented to by the Governor of the 
Punjab on 28 February 2019; and, was published in the Punjab Gazette (Extraordinary), dated: 01 March 2019, pp. 2037 – 
2043. 
to an unlawful financial benefit or an avoidance of liability to the public 
office holder or his family; 
(f) “family” means the spouse, dependent children and dependent parents 
of the public office holder; 
(g) “Government” means Government of the Punjab; 
(h) “local government” means a local government as defined in the Punjab 
Local Government Act 2013 (XVIII of 2013); 
(i) “notice of violation” means the notice of hearing served to a public 
office holder under subsection (2) of section 19 of the Act; 
(j) “order or decision” includes  a report under section 12 and/or a 
declaration under section 19 of the Act;  
(k) “prescribed” means prescribed by rules and/or regulations; 
(l) “prohibition” means a compliance measure to not to do a certain act in 
order to avoid conflict of interest; 
(m) “public office holder” includes: 
(i) Chief Minister Punjab, a Provincial Minister, an Advisor to the 
Chief Minister, a Special Assistant to the Chief Minister, 
Advocate-General Punjab including an Additional Advocate 
General and Assistant Advocate General , a Political Secretary, 
a Consultant to the Chief Minister and one who holds or has 
held a post or office with the rank or status of a Provincial 
Minister; and 
(ii) Chief Secretary, an Additional Chief Secretary, an 
Administrative Secretary and a Special Secretary to the 
Government; Head of an Authority, Agency, Commission or 
Board constituted by law;  
(n) “regulations” means the regulations framed under the Act; 
(o) “rules” means the rules made under the Act; and 
(p) “Selection Committee” means a Selection Committee constituted under 
the Act for selection and recommendation of persons to be appointed 
as Chairperson and members of the Commission. 
CHAPTER-II 
PREVENTION OF CONFLICT OF INTEREST AND ETHICS COMMISSION 
 
3. Establishment of the Punjab Prevention of Conflict of Interest and 
Ethics Commission.− (1) The Government shall, by notification in the official 
Gazette, establish an independent Commission to be known as Punjab Prevention of 
Conflict of Interest and Ethics Commission. 
(2) The Commission shall comprise a Chairperson and two members to 
be appointed by the Government on the recommendation of Selection Committee.   
(3) A person who shall be eligible to become a judge of the High Court 
shall be appointed as Chairperson of the Commission. 
(4) The members shall have the following qualification: 
(a) one member of the Commission shall be a retired civil servant in 
BPS-20 or above; and 
(b) the other member of the Commission shall be a person having 
expertise and experience of not less than ten years in financial 
management. 
(5) The Government shall constitute a Selection Committee comprising 
two members, one from the Treasury Benches to be nominated by the Speaker of 
the Assembly and one from Opposition Benches to be nominated by the Leader of 
Opposition in the Assembly to select and recommend a pane l of three persons, each 
for the post of Chairman and member of the Commission and member from the 
Treasury Benches shall be designated as Chairman of the Selection Committee, 
who shall have a casting vote. 
(6) The Chairperson and the members of the Commis sion shall hold 
office for a term of three years from the date on which they enter in office or until 
they attain the age of sixty five years, whichever is earlier. 
(7) Upon completion of their term, the Chairperson and the members of 
the Commission shall not be eligible for reappointment. 
(8) The Government may remove the Chairperson or members of the 
Commission before the expiry of their term on ground of misconduct or of being 
incapable of properly performing the duties of their office by reason of physi cal or 
mental incapacity: 
Provided that before removing the Chairperson or a member of the 
Commission, as the case may be, the Government shall give them an opportunity of 
being heard in person. 
(9) The Chairman and members of the Commission shall engage 
exclusively in the duties and functions of the Commission and shall not hold any 
other office of profit or engage in any other employment for reward. 
(10) On the terms and conditions as specified by the Commission so 
determined through regulations, the Comm ission may employ any officers and 
employees and may engage the services of any agents, advisers and consultants 
that the Commission considers necessary for the proper conduct of the work of the 
Commission. 
(11) Prior to each fiscal year, the Commission shall prepare an estimate of 
the sums that shall be required to pay the charges and expenses of the Commission 
during the coming fiscal year. 
 (12)  The remuneration payable to the Chairperson and members of the 
Commission and administrative expenses of the office, including the remuneration 
payable to the staff shall be expenditure charged upon the Provincial Consolidated 
Fund. 
4. Meetings.− (1) The Commission shall meet at least once in a month but the 
Chairperson may, at any time, call a special meeting of the Commission. 
 (2) The Commission shall conduct its meetings, take decisions and keep 
record of the proceedings of the meetings in such manner as may be prescribed, 
and until so prescribed, as may be determined by the Commission. 
 (3) The Commission shall take decisions through simple majority. 
 (4) The quorum for a meeting shall be two including the Chair person and 
in case of disagreement, the issue shall be placed before full Commission. 
5. Validity of proceedings.− No Act, proceeding, decision or order of the 
Commission shall be invalid only by reason of existence of a vacancy. 
 
CHAPTER-III 
DUTIES OF A PUBLIC OFFICE HOLDER  
 
6. Duty to recuse.− A public office holder shall inform, in advance, the higher 
authority in writing with reason along with the copy to the Commission and recu se 
himself from any discussion, decision, debate or vote on any matter in respect of 
which he may be in a conflict of interest. 
7. Summary statement.− A public office holder shall, within o ne hundred and 
twenty days after the date on which he is appointed, sign a summary statement, 
containing such information as may be prescribed by the Commission through 
regulation and provide it to the Commission. 
 
CHAPTER-IV 
FUNCTIONS AND DUTIES OF THE CO MMISSION 
8. Annual review.− The Commission shall review annually in relation to each 
public office holder the information contained in his assets and interests, reports and 
the measures taken to satisfy his obligations under the Act . 
9. Compliance order.− (1) The Commission may order a public office holder, in 
respect of any matter, to take any compliance measure, including divestment or 
recusal that the Commission deems necessary to comply with the Act.  
(2) A compliance measure may be for a specific period of time to be called 
the applicable period. 
10. Confidential advice and opinion.− (1) In addition to carrying out other duties 
and functions under the Act, the Commission shall: 
(a) provide confidential advice to the Chief Minister, with respect to the 
application of the Act to individual public office holders; 
(b) provide confidenti al advice to individual public office holders with 
respect to their obligations under the Act; and 
(c) issue opinions regarding the requirements of the Act and means to be 
adopted for compliance with its provisions: 
Provided that the confidential advice an d opinions referred to in this section 
shall not be exempted from disclosure to the Assembly. 
(2) When a public office holder acts in accordance with the advice of the 
Commission he shall not be guilty of a contravention of th e Act with respect to that 
matter. 
11. Requests from citizen.− (1) Any citizen of Pakistan domiciled in Punjab who 
has reasonable grounds to believe that a public office holder has contravened any of 
the provisions of the Act, may, give an application to the Commission by providing 
his complete address with a copy of computerized national identity card, and the 
Commission shall examine and dispose of the application in such manner as may be 
prescribed: 
 Provided that anonymous applications shall not be entertained by the 
Commission. 
 Provided further that the applicant shall record the substance of the alleged 
contravention and the grounds for his application. 
 
 (2) The Commission shall provide the public office holder an opportunity to 
hear and cross examine a person who has made an app lication under subsection 
(1). 
(3) The Commission may impose a penalty which may extend to rupees 
five hundred thousand upon a person who makes a false, frivolous or vexatious 
application under subsection (1). 
12. Report.− (1) The Commission, after due del iberation, shall set out in a report 
whether a contravention of the Act has taken place or not.  
(2) A report under this section may not be altered by anyone except in 
accordance with the Act.  
(3)  A report under this section shall not be determinative of  the measures to 
be taken as a result of the report. 
13. Powers in respect of reports.− The Commission shall have the powers to 
summon witnesses and require them: 
(a) to give evidence orally or in writing on oath or, if they are persons 
entitled to affirm in civil matters, on affirmation; and 
(b) to produce any documents and things that th e Commission considers 
necessary. 
14. Waiver or reduction of applicable period.− (1) On application by a public 
office holder, the Commission may waive or reduce any applicable period under the 
Act. 
(2) In exercising discretion under subsection (1), the Co mmission shall 
consider whether granting the waiver or reduction outweighs the public interest in 
maintaining the prohibition. 
(3) In determining the public interest for the purposes of subsection (2), the 
Commission shall consider the following factors: 
(a) the circumstances under which the public office holder left his 
office; 
(b) the general employment prospects of the public office holder; 
(c) the nature, and significance to Government, of information 
possessed by the public office holder by virtue of t hat office 
holder’s public office; 
(d) the facilitation of interchange between the private and public 
sector; 
(e) the degree to which the new employer might gain unfair 
commercial advantage by hiring the public office holder; 
(f) the authority and influence possessed by the public office holder 
while in public office; and 
(g) the disposition of other cases. 
 (4) The decision made by the Commission shall be communicated in 
writing to the applicant referred to in subsection (1). 
 (5) If the Commission has granted a waiver or reduction of limitation under 
this section, the Commission shall publish the decision and its reasons in the public 
registry maintained under section 15 of the Act. 
 
CHAPTER-V 
PUBLIC REGISTRY 
15. Publication through public registry.− (1) The Commission shall maintain a 
registry consisting of the following documents for examination by the public: 
(a) summary statements made under section 7 of the Act; and 
(b) any other documents that the Commission considers appropriate. 
 (2) If a public off ice holder has recused himself in respect of a matter and 
a public declaration is made in respect of that recusal under section 6 of the Act, no 
publication of the declaration shall be made if the very fact of the recusal could 
reveal, directly or indirectly, any of the following: 
(i) any privileged information, so defined or provided under the 
Qanun-e-Shahadat Order, 1984 (PO No. 10 of 1984);  
(ii) special operational information within the meaning of secret, as 
defined under the Official Secrets Act, 1923 (XIX of 1923);  
(iii) information that is subject to any restriction on disclosure 
created by or under any other Act of the Assembly or the 
Parliament; 
(iv) information that could reasonably be expected to cause injury to 
international relations, national  defense or national security, or 
to the detection, prevention or suppression of criminal, 
subversive or hostile activities; 
(v) information that could reasonably be expected to cause injury to 
the privacy rights of an individual;  
(vi) information that could reasonably be expected to cause injury to 
commercial interests of the Government. 
CHAPTER-VI 
VIOLATIONS AND PENALTIES 
16. Violation.− (1) A public office holder who contravenes or violates any 
provision of th e Act, shall be liable to be publically declared to have committed a 
Conflict of Interest. 
 (2) A declaration by the Commission under subsection (1) shall be 
communicated to relev ant Authority for initiation of necessary disciplinary or penal 
action or both, as the case may be. 
 (3) Notwithstanding proceedings under subsection (1) of this section or 
otherwise, in case of non -compliance with respect to any obligatory declarations, o r 
omission to file statement, document or report where -ever required under the Act or 
otherwise instructed by the Commission, the public office holder concerned shall 
also be liable to monetary penalty which may extend to rupees five hundred 
thousand : 
 Provided that imposition of penalty shall not be considered and shall not entail 
disqualification of a public office holder. 
 (4) Any contract made in violation of the provisions of the Act may be 
declared void and may be rescinded by the contracting governm ental agency within 
one year of signing and execution of such contract, upon the recommendation of the 
Commission, and the Commission may, subject to reasonable justification, extend 
such time period for six months: 
Provided that the recommendations of the  Commission shall be binding and 
shall be given effect within thirty days of receipt of such recommendations: 
Provided further that in cases where a contract is invalidated, the contractor 
shall retain or receive only the reasonable value, with no incremen t for profit or 
commission, of the property or service furnished prior to the date of receiving notice 
that the contract has been rescinded: 
Provided further that in case the Commission finds that loss occasioned to the 
Government on account of Conflict of  Interest is of minimum nature, whereas the 
benefit accruing to the Government from such transaction is of substantial value, the 
Commission may recommend that such contract may not be rescinded. 
17. Payment of penalty.− (1) Payment of a penalty imposed by  the Commission 
shall not absolve the public office holder from making such obligatory declaration or 
submitting such statement, document or report as required under th e Act or by the 
Commission. 
(2) Notwithstanding the payment of monetary penalty, the Com mission 
may also proceed to issue public office holder a notice of violation in case of 
persistent non-compliance. 
(3) If the Commission imposes a penalty, it shall notify the public office 
holder of the penalty so imposed and such penalty shall thereafter  be deductible 
from any salary or remuneration, if any, payable to the public office holder upon the 
order made by the Commission to the public office holder’s employer or Assembly or 
local government, as the case may be, and where no salary is payable, th e penalty 
shall be recoverable as arrears of land revenue. 
18. Representation to the Commission.− (1) If the public office holder makes a 
representation to the Commission in response to the notice of violation, the 
Commission shall decide, on a balance of probabilities, whether the public office 
holder committed the violation and if so, may impose t he penalty proposed, a lesser 
penalty or no penalty. 
 (2) The Commission shall cause notice of any decision made under 
subsection (1) to be served on the public office holder. 
19. Failure to act.− (1) The Commission may declare a public office holder to 
have committed a violation if he does not make a representation in response to a 
notice of violation. 
 (2) In case the Commission finds any public office holder guilty of violation, 
it shall bring this fact to the notice of his employer, or to the notice of the Speaker or 
Secretariat of the local government in the case of members of the Assembly or local 
government, respectively, who may initiate disciplinary, penal or other proceedings 
against such violator. 
20. Activities on behalf of the constituents.− (1)  Nothing in the Act prohibits a 
member of the Assembly, who is a public office holder or, former public office holder 
from engaging in the activities that he normally carries out as a member of the 
Assembly.  
(2) Nothing in the Act abrogates or dero gates from any of the privileges, 
immunities and powers available otherwise to a member of the Assembly. 
21. Order and decision.− (1) An order or decision of the Commission shall be 
subject to appeal in accordance with subsection (2). 
 (2) Any person aggri eved by an order or decision under subsection (1), 
may file an appeal, within thirty days of the communication of the order or decision 
before a Tribunal to be constituted by the Government through notification in the 
official Gazette.   
 (3) Composition o f the Tribunal and its procedure shall b e prescribed by 
the Government. 
CHAPTER-VII 
MISCELLANEOUS 
22. Annual report.− The Commission shall, by 31 st December each year, 
prepare an annual report which shall include details of all of the functions it has 
carried out and progress it has achieved in the relevant year under the Act and such 
Report shall be placed before the Assembly after approval of the Government. 
23. Power to make rules.− The Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of the Act. 
24. Power to frame regulations.− The Commission may frame regulations, no t 
inconsistent with the rules, for carrying out the purposes of the Act. 
25. Removal of difficulties.− If any difficulty arises in implementation of the Act, 
the Government may pass such orders, not inconsistent with the Act to remove such 
difficulty.