PUNJAB SMALL INDUSTRIES CORPORATION ACT, 1973

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THE PUNJAB SMALL INDUSTRIES CORPORATION ACT, 
1973 
(XV of 1973) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER II 
CONSTITUTION OF THE CORPORATION 
3. Constitution of the Corporation 
4. Management 
5. Board 
6. Managing Director 
7. Term of office of nominated members 
8. Disqualifications of Managing Director and nominated members 
9. Removal of Managing Director or nominated members 
10. Resignation by or removal of the Managing Director or a nominated 
Member 
11. Appointment of officers, etc 
12. Declaration of fidelity and secrecy 
13. Financial, technical and advisory committees 
14. Immunity of the Corporation and its employees 
15. Delegation of powers 
16. Meetings of the Board 
17. Power of Board to associate other persons 
CHAPTER III 
POWERS, DUTIES AND FUNCTIONS OF THE CORPORATION 
18. Functions of the Corporation 
19. Security for loans 
20. Interest on loans, etc 
21. Limit on loans, etc 
22. Relaxation 
23. Power to impose conditions 
24. Power to demand payment of entire sum 
25. Certification of sums recoverable 
26. Loans in Foreign Currency  
27. Other functions of the Corporation 
28. Corporation to be deemed a Bank 
CHAPTER IV 
FINANCES 
29. Corporation funds 
30. Corporation to be deemed a Local Body 
31. Custody and investment of Corporation Fund 
32. Maintenance of accounts 
33. Auditors 
34. Reports to be furnished by Government 
CHAPTER V 
TRANSFER OF ASSETS, PROJECTS, UNDERTAKINGS, LIABILITIES, 
EMPLOYEES, ETC., OF THE DEFUNCT WEST PAKISTAN SMALL INDUSTRIES 
CORPORATION 
35. Transfer of assets, etc., of the defunct West Pakistan Small Industries 
Corporation 
36. Officers and employees of the defunct West Pakistan Small Industries 
Corporation 
CHAPTER VI 
MISCELLANEOUS 
37. Winding up 
38. Supplemental powers 
39. Quarterly report by Managing Director 
40. Power to make rules 
41. Power to make regulations 
42. Savings 
43. Repeal and validation 
 
 
TEXT 
1
THE PUNJAB SMALL INDUSTRIES CORPORATION ACT, 1973 
(XV of 1973) 
[13th August, 1973] 
An 
Act 
to provide for the establishment of a Small Industries Corporation in the Province of 
the Punjab. 
Preamble.– WHEREAS it is expedient to make provisions for the establishment of a 
Corporation to succeed to the busi ness, projects, undertakings and properties of the 
defunct West Pakistan Small Industries Corporation to the extent such business, 
projects, undertakings and properties stand transferred to the Punjab Province on 
the dissolution of the West Pakistan Small Industries Corporation by the West 
Pakistan Small Industries Corporation (Dissolution) Ordinance, 1972, and for 
promoting the development of Industries in the Province of the Punjab with particular 
reference to small and cottage industries, and matters inc idental and supplemental 
thereto; 
It is hereby enacted as follows:– 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be called the 
Punjab Small Industries Corporation Act, 1973. 
(2) It extends to the whole of the Province of the Punjab. 
(3) It shall come into force at once and shall be deemed to have taken 
effect on and from the day the Punjab Small Industries Corporation Ordinance, 1972 
(Punjab Ordinance No. XVIII of 1972) , ceased to operate in accordance with the 
provision of clause (2) of Article 135 of the Interim Constitution of the Islamic 
Republic of Pakistan. 
2. Definitions.– In this Act, unless there is anything repugnant in the subject or 
context– 
(a) “Board” means the Board of Members of the Corporation; 
(b) “borrower” means any person or persons or body of persons whether 
incorporated or not, to whom a loan is given by the Corporation or by a 
scheduled Bank on the guarantee of the Corporation under this Act and 
includes the successors and assignees of such person or  persons or 
body of persons; 
                                                           
1This Act was passed by the Punjab Assembly on 13th July, 1973; assented to by the Governor of the Punjab on 12th August, 
1973; and, published in the Punjab Gazette (Extraordinary), dated 13th August, 1973, pages 1216-A to 1216-Q. 
(c) “Corporation” means the Punjab Small Industries Corporation 
established under this Act; 
(d) “cottage industry” means an industry which is carried on wholly or 
primarily with the help of the members of the family as a whole time or 
part time occupation; 
(e) “Managing Director” means the Managing Director of the Corporation; 
(f)  “Government” means the Government of the Punjab; 
(g)  “Member” means a Member of the Board and includes its Chairman; 
(h)  “other industry” means any  industry, other than cottage or small 
industry, approved by the Government and set up or established in a 
small industries estate; 
(i)  “prescribed” means prescribed by the rules; 
(j)  “regulations” means regulations made under this Act; 
(k)  “rules” means rules made under this Act; 
(l)  “Scheduled Bank” means a bank for the time being included in the list 
of banks maintained under sub -section (1) of section 37 of the State 
Bank of Pakistan Act, 1956; 
2
[(m)  “Small Industry” means an industry engaged in th e handicraft or 
manufacture of consumer or producer goods, the value of the total 
fixed assets whereof (excluding land & building) does not exceed 
rupees fifty lacs.]  
(n) “small industries estate” means an estate established and or managed 
by the Corporat ion to provide land and facilities for the establishment 
and development of small, cottage and other industries; 
(o) “specified” means specified by regulations; and 
(p)  “State Bank” means the State Bank of Pakistan. 
CHAPTER II 
CONSTITUTION OF THE CORPORATION 
3. Constitution of the Corporation .– (1) As soon as may be after the 
commencement of this Act, there shall be established a Corporation to be known as 
“The Punjab Small Industries Corporation.” 
(2)  The Corporation shall be a body corporate, shall have  the power to 
acquire and hold property, both movable and immovable, subject to the provisions of 
this Act and shall have perpetual succession and a common seal and shall by the 
said name sue and be sued. 
(3) The Head Office of the Corporation shall be in Lahore. 
                                                           
2Substituted by the Punjab Small Industries Corporation (Amendment)  Ordinance, 1983 (VIII of 1983); and published in the  
Punjab Gazette (Extraordinary) dated 13.4.1983, pages 205-A to 205-B, s.2. 
4.  Management.– (1) The administration and management of the Corporation 
and its affairs shall vest in the Board which may exercise powers and do all acts and 
things that may be exercised or done by the Corporation in accordance with the 
provisions of this Act. 
(2)  The Board in discharging its functions, shall act on commercial and 
national considerations and shall be guided by such directions as the Government 
may give to it from time to time. 
(3)  Government may suspend the execution of any such  resolution or 
order of the Board as, in the opinion of Government, contravenes the directions 
mentioned in sub-section (2), or prohibit the doing of any act which is to be done or 
is being done in pursuance of the said resolution or order, or if the act h as been 
accomplished, order its rectification in such manner as may be directed. 
5. Board.– (1) Subject to the provisions of sub -section (2), the Board shall 
consist of– 
(1) Minister for Industries, Government of the 
Punjab. 
Chairman. 
(2) Additional Chief  Secretary, Planning and 
Development Department, Government of the 
Punjab. 
Member. 
(3) Secretary, Industries Department, Government of 
the Punjab. 
Member. 
(4) Secretary, Finance Department, Government of 
the Punjab. 
Member. 
(5) Managing Director, Punjab Small Industries 
Corporation. 
Member. 
(6) Three non -official members 
3
[including at least 
one woman, if available]  to be nominated by the 
Government, one of whom at least shall be a 
Banker or a Chartered Accountant or a 
Management Consultant. 
Members. 
 (2)  Government shall have the power to alter the membership of the Board 
as and when considered necessary. 
6.  Managing Director .– (1) Government shall appoint a Managing Director of 
the Corporation who shall be its chief executive. 
(2)  The Managing Director shall– 
(a)  be a whole time officer of the Corporation; 
(b)  perform such duties as may be specified or as the Board may assign to 
him; 
                                                           
3Inserted by the Punjab Fair Representation of Women Act 2014 (IV of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 12.3.2014, pages 2733-2744, s.2 and Schedule, at serial No. 11. 
(c)  subject to the provisions of sections 8, 9 and 10, hold office as 
Managing Director for a term of three years and subject as aforesaid– 
(i)  shall remain in office as Managing Director thereafter until his 
successor in that office is appointed; and 
(ii)  may be appointed to hold that office for such further term as 
Government may, in appointing thereto, determine; 
(d) receive such salary and allowances as Government may determine; 
and 
(e)  divest himself of any directorship of, or other interest held by him in, 
any other corporation, company or concern: 
Provided that nothing in this clause shall prevent the Managin g Director from 
holding shares in any public company acquired by him before his appointment as 
Managing Director, or acquiring during his term of office as Managing Director 
shares in any public company which is not a borrower: 
Provided further that Government may, in exceptional circumstances, where it 
considers necessary to do so in the public interest, exempt by a special order, any 
person who has been appointed or is about to be appointed as Managing Director 
from the application of this clause. 
7.  Term of office of nominated members .– Subject to the provisions of 
sections 8, 9 and 10, a nominated Member shall hold office for such term, not 
exceeding three years, as may be determined by Government, and may be 
nominated thereafter for a further term or t erms of such duration as Government 
may, in nominating him thereto, determine. 
8.  Disqualifications of Managing Director and nominated members .– No 
person shall be appointed as Managing Director or nominated as Member, or as the 
case may be, shall continue to be a Managing Director or Member, who– 
(a) is, or at any time has been, convicted of any offence involving moral 
turpitude; 
(b) is, or at any time has been, adjudged insolvent; 
(c)  is found a lunatic or becomes of unsound mind; 
(d)  is, or at any time has been, disqualified for appointment in or dismissed 
from the service of Pakistan; 
(e)  is under the age of twenty-one years; or 
(f) is not a citizen of Pakistan. 
9.  Removal of Managing Director or nominated members .– Government 
may, by order in writi ng, remove the Managing Director or a nominated Mem ber, as 
the case may be, if he:– 
(a)  refuses or fails to discharge or becomes, in the opinion of Government 
incapable of discharging his responsibilities under this Act; 
(b)  has, in the opinion of Govern ment, abused his position as Managing 
Director or nominated Member; 
(c)  has knowingly acquired or continued to hold, without the permission in 
writing of Government, directly or indirectly, or through a partner, any 
share or interest in any contract or em ployment with, by or on behalf of 
the Corporation, or in any property, which, in his knowledge, is likely to 
benefit or has benefited as a result of the operations of the 
Corporation; 
(d)  has, in the opinion of Government, violated the declaration of fide lity 
and secrecy provided under section 12; or 
(e)  has, absented himself from three consecutive meetings of the Board 
without the leave of the Board. 
4
[Provided that no order under this section shall be passed unless an 
opportunity of being heard is provided to the persons to be affected thereby.] 
10.  Resignation by or removal of the Managing Director or a nominated 
Member.– Notwithstanding anything contained in this Act, the Managing Director or 
a nominated Member may, at any time before the expiry of hi s term, upon three 
months notice, resign his office, or upon similar notice, be removed from office by 
Government without assigning any reason: 
Provided that Government may, in case of Managing Director upon payment 
of three months salary and allowances in  lieu of the notice, remove him immediately 
without assigning any reason. 
11.  Appointment of officers, etc .– (1) The Corporation may, subject to such 
general or special orders, as Government may give to it from time to time, appoint 
such officers, adviser s and employees, as it considers necessary for the efficient 
performance of its functions, on such terms and conditions as it may deem fit. 
(2)  The Corporation shall appoint such officers, experts, advisers, 
consultants and other persons as may be transfe rred to it by Government on such 
terms and conditions as may be determined by Government. 
12.  Declaration of fidelity and secrecy.– (1) Every Member, adviser, officer and 
other employee of the Corporation shall, before entering upon his office, make such 
declaration of fidelity and secrecy as may be specified. 
(2)  Any adviser, officer or other employee of the Corporation who, in the 
opinion of Government or a person authorised by Government in this behalf, has 
violated the declaration of fidelity and secr ecy made by him under sub -section (1) 
shall be liable, after being given a reasonable opportunity of showing cause against 
the action proposed to be taken with respect to him be forthwith removed from his 
office or post. 
13.  Financial, technical and advis ory committees.– The Board may constitute 
such financial, technical and advisory committees as may be deemed necessary for 
carrying out the purposes of this Act. 
                                                           
4Added by the Punjab Small Industries Corporation (Amendment) Ordinance, 1985 (XXI of 1985); and published in the Gazette 
of Punjab (Extraordinary), dated 23.2.1985, s.2. 
14.  Immunity of the Corporation and its employees .– (1) Every Member, 
adviser, officer and em ployee of the Corporation shall be indemnified by the 
Corporation against all losses and expenses sustained or incurred by him in the 
discharge of his duties, save such losses and expenses as are sustained and 
incurred as a result of his own willful act or default. 
(2)  The Managing Director shall not be personally responsible for the acts 
of any other Member, adviser, officer or employee of the Corporation which he could 
not have reasonably prevented by the due exercise of his powers and functions 
under th is Act and the rules and regulations made thereunder or for any loss or 
expense resulting to the Corporation by reason of the insufficiency or deficiency in 
value of or title to any property or security acquired or taken on behalf of the 
Corporation, by the wrongful act of any person under a liability to the Corporation or 
anything done by him in good faith in execution of the duties of his office. 
15.  Delegation of powers .– The Board may, by general or special order, 
delegate to the Managing Director, a Member, officer or employee of the Corporation 
any of its powers, duties or functions under this Act, the rules and regulations, 
subject to such conditions as it may deem fit to impose. 
16. Meetings of the Board.– (1) The meetings of the Board shall be held  at such 
times and places as may be specified: 
Provided that at least one meeting shall be held during each quarter of the 
year: 
Provided further that until regulations are made in this behalf, such meetings 
shall be held at such times and places as may be determined by the Chairman. 
(2)  The quorum required for transacting business at a meeting of the 
Board shall be four. 
(3) Each Member, including the Chairman, shall have one vote but in the 
event of equality of votes the Chairman shall have a casting vote. 
(4)  The meetings of the Board shall be presided over by the Chairman and 
in his absence by the 
5
[Vice Chairman and in the absence of both the] senior most 
ex-officio Member present at the meeting. 
(5)  No act or proceeding of the Board shall be invalid merely on the ground 
of the existence of any vacancy in, or any defect in the constitution of the Board. 
(6)  The minutes of every meeting, stating among other things, the names 
of the members present, shall be drawn up and recorded in a book to be kept f or the 
purpose and shall be signed by the person presiding over the meeting and such 
book shall, at all reasonable times and without payment of any fee, be open to 
inspection by any Member. 
(7) If Government so directs in any case, the Managing Director sh all 
forward to it copies of all papers laid before the Board for consideration at a meeting. 
(8)  Government may require the Managing Director to furnish to it– 
                                                           
5Inserted by the Punjab Small Industries Corporation (Amendment) Ordinance, 1999 (XXXVII of 1999); and published in the 
Punjab Gazette (Extraordinary), dated 27.7.1999, pages 893-894, s.2. 
(a)  any return, statement, estimate, statistics or other information 
regarding any matter under the control of the Corporation; 
(b)  a report on any such matter; or 
(c)  a copy of any document in his charge, and the Managing Director shall 
comply with any such requisition without any undue delay. 
17.  Power of Board to associate other persons .– (1) The Board may associate 
with itself, in such manner, on such terms and for such period as it may deem fit, any 
person whose assistance or advice it may desire in carrying out any of the provisions 
of this Act. 
(2)  A person associated under sub -section (1) for any purpose shall have 
a right to take part in the discussion relating to such purpose in the Board’s meeting 
but shall not have a right to vote, and shall not be deemed to be a Member for that or 
any other purpose. 
CHAPTER III 
POWERS, DUTIES AND FUNCTIONS OF THE CORPORATION 
18.  Functions of the Corporation.– (1) In accordance with the provisions of this 
Act, the Corporation shall take such measures as it deems fit to render assistance in 
the establishment and development of small, cottage and other industries. 
(2)  In particular and without prejudice to the generality of the foregoing 
function, the Corporation may, in order to promote and carry out the purposes of this 
Act– 
(a)  give loans in cash, or in kind or in the form of buildings, developed 
plots of lands in the small industries estates or machinery and 
equipment on lease or on hire -purchase basis, to borrowers for the 
purpose of small, cottage and other industries; and 
(b)  furnish guarantees to the Scheduled Banks for the repayment of loans 
to borrowers for the development of industries and to share losses on 
account of bad debts in accordance with the agreements executed or 
made in this behalf between the Corporation and such Banks. 
(3)  The loans given under clause (a) or guaranteed under cl ause (b) of 
sub-section (2) shall be repayable within a period not exceeding twenty years. 
19.  Security for loans.– No loan shall be given by Corporation until it is secured 
by pledge, mortgage, hypothecation or assignment of such property, movable or 
immovable, and of such value in proportion to the loan, as the Corporation may 
deem fit: 
Provided that when the loan is given to an individual and does not exceed two 
thousand rupees in the aggregate, it may be secured by bond with at least two 
solvent sureties. 
20.  Interest on loans, etc.– The rate of interest chargeable on loans given by the 
Corporation shall be determined and notified by Government from time to time. 
21.  Limit on loans, etc .– (1) The Corporation shall not give loan, make 
subscription or f urnish guarantee to small or cottage industries located outside the 
small industries estates in excess of the following aggregate limits, namely:– 
(a) when made to an individual, rupees one lac; and 
(b)  when made to any borrower other than individual, rupees ten lacs. 
(2) The Corporation shall not give loans or furnish guarantees in case of 
industries located in the small industries estates in excess of such limits as may be 
notified by Government, from time to time. 
22.  Relaxation.– Government may, from time to time, on the recommendations of 
the Corporation, relax the aggregate limits of loans, subscriptions, or guarantees, 
provided under section 21. 
23.  Power to impose conditions .– At the time of settlement of any transaction, 
the Corporation may attac h such conditions as it may deem necessary or expedient 
for protecting its own interest and for securing that the loan, under -writing or other 
aid shall be put to the best use. 
24.  Power to demand payment of entire sum .– (1) Notwithstanding anything to 
the contrary contained in any agreement or law for the time being in force, if– 
(a)  it is found that the loan was obtained by information supplied by the 
borrower which was false or misleading in any material particular; 
(b)  the borrower is found to have c ommitted the breach of any term of his 
agreement with the Corporation relating to the loan; 
(c)  the loan or any part of  it is found to have been utiliz ed for a purpose 
other than for which it was given; 
(d)  there is reasonable apprehension that the borro wer will be unable to 
pay his debt or may go into liquidation; 
(e)  the property pledged, mortgaged, hypothecated or assigned to the 
Corporation as security for the loan is not maintained in proper 
condition by the borrower or the property has depreciated in value by 
more than the prescribed percentage and the borrower is unable to 
furnish additional security to the satisfaction of the Corporation; 
(f)  without the permission of the Corporation, machinery or other 
equipment is removed from the premises of t he borrower’s industrial 
establishment without being adequately replaced; 
(g)  without the permission of the Corporation, the building, land or other 
property mortgaged as security for the loan is in any way disposed of 
or charged by the borrower, or for a ny other reason, it is necessary, in 
the opinion of the Board, to do so in order to protect the interest of the 
Corporation; 
any officer authorised generally or specially in this behalf by the Board 
may, by notice, call upon the borrower to pay up the enti re sum then 
remaining unpaid by the borrower, in respect of the loan and the 
interest payable thereon or any lesser sum as the case may be, or 
require the borrower to surrender the building, machinery and 
equipment and other material given to him by way of  loan or require 
him to comply with such directions as the Board may consider 
necessary to give in order to safeguard the interest of the Corporation. 
(2)  The notice referred to in sub -section (1) shall indicate the time within 
which the borrower is requi red to make the payment or to surrender the factory 
building, machinery and equipment and other material or to carry out the directions 
given and shall also contain a warning that if the borrower fails to pay the amount 
demanded or to surrender factory bui lding, machinery and equipment and other 
material or carry out the directions given, as the case may be, within the time 
indicated, the Board may issue a certificate declaring the borrower to be a defaulter 
and certifying the sum due from the borrower to b e recoverable as arrears of land 
revenue. 
25.  Certification of sums recoverable .– (1) If the borrower fails to pay the 
amount demanded or to carry out the directions given in the notice within the time 
indicated therein, the Board may issue a certificate in the prescribed form and 
manner declaring the borrower to be a defaulter and certifying the aggregate sum, 
including interest, due to the Corporation from the borrower up to  the date of 
issuance of the certificate and mentioning the rate at which future interest shall be 
paid thereon. 
(2)  Subject to the provisions of sub -section (3), a certificate issued under 
sub-section (1) shall be conclusive evidence that the sums certified in the certificate, 
together with future interest to be determined at the rat e mentioned therein, are 
recoverable by the Corporation from the borrower. 
(3)  The borrower may, within fifteen days of the issuance of a certificate 
under sub -section (1), appeal to Government and thereupon Government may 
cancel or modify the certificate. 
(4)  Notwithstanding anything to the contrary contained in the agreement or 
in any law for the time being in force– 
(a) the Corporation shall have the option to recover the amount due from a 
borrower either from him or from his security and a certificate  issued 
under sub-section (1) shall also be executable against the surety as if 
he himself were the borrower; 
(b)  any transfer of property pledged, mortgaged, hypothecated or assigned 
by the borrower as security for the repayment of the loan, so long as 
the loan or the interest thereon or any part thereof remains unpaid to 
the Corporation, shall be void as against the Corporation and such 
property shall be liable to attachment and sale as if no such transfer 
has taken place; 
(c)  where a loan has been adva nced in the form of building or machinery 
and equipment on hire purchase basis and the borrower has committed 
a breach of the terms and conditions of the agreement or otherwise 
violated any provision of this Act or failed to comply with a notice 
issued under sub-section (1), the Corporation shall be entitled to take 
possession of the building, machinery and equipment, as the case may 
be; and 
(d)  all sums due to the Corporation from the borrower or any other person 
shall be recoverable as arrears of land revenue. 
26.  Loans in foreign currency .– (1) The Corporation may, with the previous 
approval of Government and the Government of Pakistan, and on such terms and 
conditions as may be approved by Government, borrow in foreign currency from the 
International Bank for Reconstruction and Development or other agencies, moneys 
required for the development of small, cottage and other industries. In the case of 
loan secured for the purpose of section 18, the Corporation may pledge, mortgage, 
hypothecate or assign to the said International Bank or other agency, as the case 
may be, all or any part of security taken by the Corporation for the loan obtained in 
foreign currency. 
(2)  All loans obtained in foreign currency shall be repayable– 
(a)  in the currency in which they are obtained; 
(b)  in any other currency which is agreed upon by the loan -giving agency, 
Government and Government of Pakistan; or 
(c)  in Pakistan currency at the rate of exchange prevailing at the date of 
repayment. 
27.  Other functions of the Corpor ation.– The Corporation shall also be 
responsible for– 
(a)  preparing and submitting schemes to Government for the development 
of cottage, small and other industries including schemes for research 
and mechanization of such industries; 
(b)  giving effect to approved schemes; 
(c)  sponsoring industries to be set up in the small industries estates and 
outside the estates; 
(d)  taking over, implementing and running schemes, projects and training 
institutions, as may be transferred to the Corporation by Government; 
(e)  organizing co-operative societies in furtherance of the purposes of this 
Act; 
(f)  taking appropriate measures for integration of small industries with 
medium and large industries; 
(g)  undertaking, census and survey of cottage, small and other industries; 
(h)  organizing trade associations and taking other appropriate measures 
for promoting and marketing the products of cottage and small 
industries; 
(i)  organizing fairs, pavilions, sales and display of products of cottage and 
small industries; 
(j)  establishing service centers and common facility centers for specific 
industries or group of industries; 
(k)  establishing, in special cases and with the prior approval of 
Government, small and cottage industries in less developed areas; 
(l)  establishing small industries estates; 
(m)  establishing artisan colonies, design centers, workshops and institutes 
for promotion and development of handicrafts; 
(n)  procuring and distributing raw material, machinery and spare parts to 
cottage and small industries; 
(o)  establishing institutes for promotion and development of cottage, small 
and other industries; 
(p)  maintaining and running depots for the supply of raw material and for 
the purchase and sale of finished goods from cottage and small 
industries and projects run by it; 
(q) introducing better means of production and new designs including 
proto-types; 
(r) formulating and implementing schemes for training to artisans and 
small industrialists; 
(s) arranging for gradation and standardization of products of sm all and 
cottage industries; 
(t)  working out entitlement to raw material of cottage, small and other 
industries; 
(u)  sanctioning, balancing, modernizing, etc., of cottage, small and other 
industrial units in accordance with the instructions of Government or in 
exercise of powers that may be delegated in this behalf by 
Government; and 
(v)  undertaking such other functions, measures or steps as may be 
directed by Government. 
28.  Corporation to be deemed a Bank.– The Corporation shall be deemed to be 
a Bank for the purposes of the Banker’s Books Evidence Act, 1891. 
CHAPTER IV 
FINANCES 
29.  Corporation funds .– (1) There shall be a fund to be known as the 
“Corporation Fund” vested in the Corporation, which shall be utilised by the 
Corporation to meet charges in  connection with its functions under this Act including 
salaries and other remunerations of the Managing Director, officers and other 
employees of the Corporation. 
(2)  The Corporation Fund shall consist of– 
(a) investment made by Government; 
(b) grants made by Government; 
(c)  revolving funds placed by the Government at the disposal of the 
Corporation for preparing feasibility studies for the scheme; 
(d) loans obtained from Government; 
(e) grants made by the Local Bodies; 
(f)   sale proceeds of raw material and finished goods; 
(g) loans obtained from the Scheduled Banks; 
(h)  foreign loans obtained by the Corporation; 
(i)  charges for the plots of land and other facilities provided in the small 
industries estates; 
(j)  funds of the defunct West Pakistan Sma ll Industries Corporation to the 
extent such funds have been transferred to the Punjab Province in 
accordance with the provisions of the West Pakistan Small Industries 
Corporation (Dissolution) Ordinance, 1972; and 
(k)  all other sums received by the Corporation. 
30.  Corporation to be deemed a Local Body .– The Corporation shall be 
deemed to be a Local Body under the Local Authorities Loans Act, 1914
6
 for the 
purposes of borrowing money under the said Act and the making and execution of 
any scheme under thi s Act shall be deemed to be a work which such authority is 
legally authorised to carry out. 
31.  Custody and investment of Corporation Fund.– (1) All moneys at the credit 
of the Corporation shall be kept in such manner as may be prescribed. 
(2)  Nothing in sub-section (1) shall be deemed to preclude the Corporation 
from investing any such moneys which are not required for immediate expenditure, 
in any of the securities described in section 20 of the Trusts Act, 1882
7
, in fixed 
deposit with a bank approved b y Government or in such other manner as may be 
approved by Government. 
32.  Maintenance of accounts .– The Corporation shall maintain complete and 
accurate accounts in such manner as may be prescribed. 
33.  Auditors.– The accounts of the Corporation shall b e audited in such manner 
as may be directed by Government from time to time. 
34.  Reports to be furnished by Government .– (1) The Corporation shall furnish 
to Government, as far as possible, within four months of the close of each financial 
year an audited  statement in the prescribed form of its assets and liabilities of 
commercial undertakings and transactions as they stand at the close of that year, 
together with a profit and loss account for the year and a full report on the working of 
the Corporation du ring the year, and copies of the said statements, account and 
report shall be published in the official Gazette. 
(2)  The Corporation shall submit to Government its proposals for the 
ensuing financial year at such time and in such manner as may be prescribed. 
 
 
                                                           
6IX of 1914 
7II of 1882 
CHAPTER V 
TRANSFER OF ASSETS, PROJECTS, UNDERTAKINGS, LIABILITIES, 
EMPLOYEES, ETC., OF THE DEFUNCT WEST PAKISTAN SMALL INDUSTRIES 
CORPORATION. 
35.  Transfer of assets, etc., of the defunct West Pakistan Small Industries 
Corporation.–Notwithstanding any arrangement made by Government to administer 
the business, projects, undertakings and properties of the defunct West Pakistan 
Small Industries Corporation necessitated by the enforcement of the West Pakistan 
Small Industries Corporation (Dissolution) Or dinance, 1972, as from the coming into 
force of this Act– 
(a)  all business, projects, undertakings and properties of the defunct West 
Pakistan Small Industries Corporation transferred to and vesting in the 
Punjab Province in accordance with the order made by the President in 
pursuance of section 4 of the West Pakistan Small Industries 
Corporation (Dissolution) Ordinance, 1972, shall stand transferred to 
the Corporation; 
(b)  all debts, liabilities and obligations incurred, contracts entered into, and 
matters and things engaged to be done by, with or for, and all suits and 
other proceedings by or against the West Pakistan Small Industries 
Corporation to the extent such debts, liabilities, and obligations, stand 
transferred to the Punjab Province in accordanc e with the President’s 
Order referred to in clause (a) and in so far as the contracts, matters 
and things, suits and other proceedings arise out of the business, 
projects, undertakings and properties so transferred to the Punjab 
Province shall be deemed to  be debts, liabilities and obligations 
incurred, contracts entered into, or, as the case may be, matters and 
things engaged to be done by, with or for, and suits and other 
proceedings by or against the Corporation.  
Explanation.– The expressions “projects” , “under-takings” and “properties” as used 
in this section shall have the same meanings as assigned to them in the West 
Pakistan Small Industries Corporation (Dissolution) Ordinance, 1972. 
36.  Officers and employees of the defunct West Pakistan Small Indu stries 
Corporation.– Officers and other employees of the defunct West Pakistan Small 
Industries Corporation to be transferred to the Punjab Province in pursuance of the 
provisions of S ection 5 of the West Pakistan Small Industries Corporation 
(Dissolution) Ordinance, 1972 may be appointed for service under the Corporation 
on such terms and conditions as may be determined by Government. 
CHAPTER VI 
MISCELLANEOUS 
37. Winding up.– No provision of law relating to the winding up of companies and 
corporations shall apply to the Corporation and the Corporation shall not be wound 
up except by an order of Government and in such manner as it may direct. 
38. Supplemental powers .– For the purposes of carrying into effect the 
provisions of this Act  Government may, in such  manner as it may consider 
necessary or expedient, provide for– 
(a)  the removal of difficulties arising out of, or in connection with the 
transfer of assets and liabilities vesting in it, of the defunct West 
Pakistan Small Industries Corporation; and 
(b)  other matters supplemental or incidental to or consequential upon the 
transfer of such assets and liabilities. 
39.  Quarterly report by Managing Director .– The Managing Director shall 
regularly submit a quarterly report to the Board on the working of the Corporation. 
40.  Power to make rules .– (1) Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of this Act. 
(2) In particular and without prejudice to the generality of the foregoing 
provision, such rules may provide for– 
(a) the manner and form of keeping the accounts of the Corporation; 
(b) recruitment of officers, advisers and other employees of the 
Corporation; 
(c)  terms and conditions of service of the officers, advisers and other 
employees of the Corporation; 
(d) functions of the advisers; 
(e)  borrowings by the Corporation; 
(f)  the date on which and the form in which the annual budget statement 
of the Corporation is to be submitted each year; 
(g)  Procedure for appropriation and reappropriation of moneys at the credit 
of the Corporation; 
(h)  manner and form in which and the authorities to whom returns, reports 
or statements shall be submitted; 
(i)  investment of Corporation funds and surplus moneys; 
(j)  sale or transfer of industrial units and other im movable property of the 
Corporation; and 
(k)  such other matters relating to the administration and other affairs of the 
Corporation as Government may think fit to regulate by rules. 
41.  Power to make regulations.– (1) The Board may, with the previous app roval 
of Government, make regulations for all matters not provided for in the rules for 
which provision is necessary or expedient for carrying out the purposes of this Act 
and the rules. 
(2) In particular and without prejudice to the generality of the fore going 
provisions, such regulations may specify for– 
(a)  meetings of the Board; 
(b)  constitution, power and terms and conditions of the committees; 
(c)  building bye -laws, agreements and lease deeds pertaining to small 
industries estates; 
(d)  conditions subject to which the Corporation may grant loans; and 
(e)  manner and form of determining the sufficiency of security taken for 
loans or for granting loans. 
42.  Savings.– Notwithstanding the repeal of the West Pakistan Small Industries 
Corporation Ordinance, 1965 (W.P. Ordinance XXX of 1965), by the West Pakistan 
Small Industries Corporation (Dissolution) Ordinance, 1972, any form, rule, 
regulation, or scheme made or issued under the repealed Ordinance, shall, so far as 
it is not inconsistent with the prov isions of this Act, continue in force and be deemed 
to have been made or issued under the provisions of this Act unless or until it is 
superseded by any form, rule, regulation or scheme made or issued under the 
provisions of this Act. 
43.  Repeal and valid ation.– (1) The Punjab Ordinances Temporary Enactment 
Act, 1973, in so far as it enacts the provisions of the Punjab Small Industries 
Corporation Ordinance, 1972 (Punjab Ordinance No. XVIII of 1972), is hereby 
repealed. 
(2)  Everything done, action taken or order made by the Government or the 
Corporation or the Chairman or the Managing Director or any officer of the 
Corporation in exercise of the powers vested in Government or the Corporation or 
the Chairman or the Managing Director or any officer of the Co rporation, as the case 
may be, under the Punjab Small Industries Corporation Ordinance, 1972 (Punjab 
Ordinance No. XVIII of 1972) and its provisions as enacted by the Punjab 
Ordinances Temporary Enactment Act, 1973, on or after the 9th October, 1972, and 
before the commencement of this Act, shall be deemed to have been validly done, 
taken or made.