PUNJAB INDUSTRIAL DEVELOPMENT BOARD ACT, 1973

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THE PUNJAB INDUSTRIAL DEVELOPMENT BOARD ACT, 
1973 
(XXIII of 1973) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER II 
CONSTITUTION OF THE BOARD 
3. Constitution of the Board 
4. Management 
5. Board of Directors 
6. Managing Director 
7. Disqualification of Managing Director and Directors 
8. Removal of Managing Director and Director 
9. Resignation by or removal of Managing Director or Director 
10. Appointment of officers, etc 
11. Declaration of fidelity and secrecy 
12. Financial and technical advisory Committees 
13. Immunity of the Board and its employees 
14. Delegation of powers 
15. Meetings of the Board 
16. Power of Board to associate other persons 
CHAPTER III 
POWERS, DUTIES AND FUNCTIONS OF THE BOARD 
17. Powers, duties and functions of the Board 
18. Loans 
19. Functions of the Board 
20. Board Fund 
21. Board to be deemed a local authority 
22. Custody and investment of Industrial Development Fund 
23. Maintenance of accounts 
24. Audit of accounts 
25. Reports to be furnished to Government 
CHAPTER IV 
MISCELLANEOUS 
26. Winding up 
27. Power to make rules 
28. Power to make regulations 
29. Repeal 
SCHEDULE 
TEXT 
1
THE PUNJAB INDUSTRIAL DEVELOPMENT BOARD ACT, 1973 
(XXIII of 1973) 
[15th December, 1973] 
An 
Act 
to provide for the establishment of an Industrial Development Board in the Punjab. 
Preamble.– WHEREAS it is expedient to make provisions for the establishment of 
an Industrial Development Board in the Punjab to establish, manage, control and run 
industries in the public sector; 
 It is hereby enacted as follows:– 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be called the 
Punjab Industrial Development Board Act, 1973. 
(2) It extends to the whole of the Province of the Punjab and shall come 
into force at once. 
 (3) It shall apply to the industries mentioned in the Schedule. 
 (4) Government may, at any time, by notification in the official Gazette, 
add to or delete from the industries mentioned in the Schedule and such notifications 
shall be laid before the Provincial Assembly. 
2. Definitions.– In this Act, unless there is anything repugnant in the subject or 
context,– 
(a) “Board” means the Punjab Industrial Development Board; 
(b) “Board of Directors” means the Board of Directors of the Board; 
(c) “Chairman” means the Chairman of the Board; 
(d) “company” means a company as defined in the Companies Act, 1913
2
, 
and promoted and established by the Board for managing and running 
one or more of the industries; 
(e) “Director” means Director of the Board; 
(f) “Government” means Government of the Punjab; 
(g) “industries” means the industries mentioned in the Schedule; 
                                                 
1This Act was passed by the Punjab Assembly on 5th December, 1973; assented to by the Governor of the Punjab on 14th 
December, 1973; and, published in the Punjab Gazette (Extraordinary), dated 15th December, 1973 , pages 1751-Q to 1751 -
BB. 
2Now Companies Ordinance 1984. 
(h) “Managing Director” means the Managing Director of the 
3
[Board]; 
(i) “prescribed” means prescribed by rules; 
(j) “regulations” means regulations made under this Act; 
(k) “rules” means rules made under this Act; 
(l) “Schedule” means Schedule to this Act; 
(m) “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; and 
(n) “specified” means specified by regulations. 
CHAPTER II 
CONSTITUTION OF THE BOARD 
3. Constitution of the Board.– (1) As soon as may be after the commencement 
of this Act, there shall be established a Board to be known as the Punjab Industrial 
Development Board. 
 (2) The Board shall be a body corporate and 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 Board shall be at Lahore. 
4. Management.– (1) The administration and management of the Board and its 
affairs shall vest in a Board of Directors which may exercise all powers and do all 
such acts and things as may be exercised or do ne by the Board in accordance with 
the provisions of this Act. 
 (2) The Board shall, in discharging its functions, act on commercial and 
national considerations and shall be guided by such directions as 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 provisions of 
this Act, the rules, the regulations framed under this Act, or, the directions mentioned 
in sub -section (2), or pro hibit 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 has been 
accomplished, order its rectification in such manner as may be directed. 
5. Board of Directors .– (1) Subject to the provis ions of sub -section (2), the 
Board shall consist of a Chairman 
4
[, a Vice Chairman] and the following Directors:– 
(i) Secretary to Government of the Punjab, Finance Department, or his 
nominee not below the rank of a Deputy Secretary; 
                                                 
3Substituted for the word “industries” by the Punjab Industrial Development Board (Amendment) Ordinance, 1980 (III of 1980) ; 
and published in the Punjab Gazette (Extraordinary), dated 23.2.1980, s.2. 
4Added by the Punjab Industrial Development Board (Amendment) Act, 1986 (VII of 1986); and published in the Punjab Gazette 
(Extraordinary), dated 22.10.1986, pages 2301-A-2301-B, s.2. 
(ii) Secretary to the Government of the Punjab, Industries Department, or 
his nominee not below the rank of a Deputy Secretary; 
(iii) 
5
[the Managing Director of the Board]; and 
(iv) the Chairman, Planning and Development Board, Government of the 
Punjab. 
 (2) The Chairman 
6
[and the Vice Chairman] shall be appointed by 
Government. 
 (3) Government may, by notification in the official Gazette, alter the 
membership of the Board or increase or decrease the number of Directors. 
6. Managing Director .– (1) The Managing Director shall be appointed by 
Government. 
 (2) The Managing Director shall be the chief executive of the 
7
[Board] 
under his control and shall– 
(a) be a whole-time officer of the Board; 
(b) perform such duties as may be specified or as may be assigned to him; 
(c) hold office as Managing Director for a term of three years 
8
[or for such 
lesser term as is specified in the order of his appointment] and shall 
remain in office as Managing Director thereafter for three months or 
until a successor in that office is appointed, whichever is earlier; 
(d) receive such salary and allowances as Government may determine; 
(e) divest himself of any directorship of, or other interest held by him in, 
any other corporation, company or concern; and 
(f) not become a Director of, or acquire any sha re or other interest in, any 
other corporation, company or concern during his term of office: 
Provided that nothing in this clause shall prevent the Managing Director 
from holding shares in any public company acquired by him before his 
appointment as such but he shall declare such shares to Government 
at the time of his appointment: 
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 be en appointed or is about to be 
appointed as Managing Director from the application of this clause. 
 (3) Nothing in this section shall preclude Government from extending the 
term of office of any Managing Director for such period as Government may 
determine. 
                                                 
5Substituted by the Punjab Industrial Development Board (Amendment) Or dinance, 1980 (III of 1980) ; and published in the 
Punjab Gazette (Extraordinary), dated 23.2.1980, s.2. 
6Added by the Punjab Industrial Development Board (Amendment) Act, 1986 (VII of 1986); and published in the Punjab Gazette 
(Extraordinary), dated 22.10.1986, pages 2301-A-2301-B, s.2. 
7Substituted for the words “industry or industries  under his control” by the Punjab Industrial Development Board (Amendment) 
Ordinance, 1980 (III of 1980); and published in the Punjab Gazette (Extraordinary), dated 23.2.1980, s.2. 
8Inserted by the Punjab Industrial Development Board (Am endment) Act, 1993 (IV of 1993); and published in the Punjab 
Gazette (Extraordinary), dated 26.9.1993, s.2. 
7. Disqualification of Managing Director and Directors .– No person shall be 
appointed as Managing Director or Director, or, as the case may be, shall continue to 
be a Managing Director or Director who– 
(a) is, or at any time has been, convicted of any of fence involving moral 
turpitude; 
(b) is, or at any time has been, disqualified for appointment in or dismissed 
from Government service; 
(c) is, or at any time has been, adjudged insolvent; 
(d) is found a lunatic or becomes of unsound mind; 
(e) is not a citizen of Pakistan; or 
(f) is less than twenty-five years of age. 
8. Removal of Managing Director and Director .– Government may, by order 
in writing, remove the Managing Director or a Director, as the case may be, after 
giving him an opportunity of being heard 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 Government , abused his position as Managing 
Director or Director; or 
(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 employment with, or on behalf of the 
Board, or in any property, which, in his knowl edge, is likely to benefit or 
has benefited him as a result of the operations of the Board. 
9. Resignation by or removal of Managing Director or Director .– 
Notwithstanding anything contained in this Act, the Managing Director or a Director 
may, at any time before the expiry of his term and 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 the Managing Director or a 
Director, upon payment of three months’ salary and allowances in lieu of the notice, 
remove him immediately without assigning any reason. 
10. Appointment of officers, etc .– The Board may appoint such Officers, 
advisers, experts, consultants, and employees, as it considers  necessary for the 
efficient performance of its functions on such terms and conditions as it may deem 
fit, subject to such general or special directions as Government may give to it from 
time to time in this behalf. 
11. Declaration of fidelity and secrecy .– (1) Every Director, Adviser, Officer, 
Expert, Consultant, and employee of the Board shall, before entering upon his office, 
make such declaration of fidelity and secrecy as may be specified. 
(2) Any Director, Adviser, Officer, Expert, Consultant or other  employee of 
the Board who, in the opinion of the Government, has violated the declaration of 
fidelity and secrecy 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. 
12. Financial and technical advisory Committees.– The Board may constitute 
such financial, technical and advisory committees as may be deemed necessary for 
carrying out the purposes of this Act. 
13. Immunity of the Board and its employees .– (1) Every Director, Adviser, 
Officer, Expert, Consultant and employee of the Board shall be indemnified by the 
Board against all losses and expenses sustained or incurred by him in the discharge  
of the duties of his office, 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 Director, Adviser, Officer, Exp ert, Consultant or employee of the Board 
which he could not have reasonably prevented by the due exercise of his powers 
and functions under this Act and the rules and regulations made thereunder or for 
any loss or expense resulting to the Board by reason o f the insufficiency or 
deficiency in value of or title to any property or security acquired or taken on behalf 
of the Board, by wrongful act of any person under a liability to the Board, or anything 
done by him in good faith in execution of the duties of his office. 
14. Delegation of powers .– The Board may, by general or special order, 
delegate to the Chairman 
9
[,the Vice Chairman], Managing Director, Directors, 
Advisers, Officers, Experts, Consultants or employees of the Board any of its 
powers, duties or functions under this Act and the rules and regulations made 
thereunder subject to such conditions as it may deem fit to impose. 
15. Meetings of the Board.– (1) The meetings of the Board shall be held at such 
time and place as may be specified: 
 Provided that sixty days shall not intervene between the two meetings: 
Provided further that until regulations are made in this behalf, such meetings 
shall be held at such time and place as may be determined by the Chairman. 
 (2) The quorum required for transacting b usiness at a meeting of the 
Board shall be three. 
 
10
[(3) Each Director including the Chairman and the Vice Chairman shall 
have one vote but in the event of equality of votes the Chairman or if the Vice 
Chairman is presiding over the meeting in the absence of the Chairman, the Vice 
Chairman shall have a casting vote.] 
 
11
[(4) The meetings of the Board of Directors shall be presided over by the 
Chairman and in his absence by the Vice Chairman and in the absence of both by a 
Director elected for the purpose by the Directors present from amongst themselves.] 
                                                 
9Added by the Punjab Industrial Development Board (Amendment) Act, 1986 (VII of 1986); and published in the Punjab Gazette 
(Extraordinary), dated 22.10.1986, pages 2301-A-2301-B, s.2. 
10Substituted by the Punjab Industrial Development Board (Amendment) Act, 1986 (VII of 1986); and published in the Punjab 
Gazette (Extraordinary), dated 22.10.1986, pages 2301-A-2301-B, s.3. 
11Substituted ibid. 
 (5) No act or proceedings of the Board of Directors shall be invalid merely 
on the ground of existence of any vacancy in the Board. 
 (6) The minutes of every meeting, stating among other things, the names 
of the Directors present, shall be drawn up and recorded in a book to be kept for 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 the Directors. 
 (7) Government may require a Managing Director to furnish to it– 
(a) any return, statement, estimate, statistics or other information 
regarding any matter under the control of the Board; 
(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. 
 (8) A Managing Director shall prepare and submit a quarterly report to the 
Board. 
16. Power of Board to associate other persons .– (1) The Boa rd of Directors 
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 
right to take part in the discussion relating to such purpose in the meetings of the 
Board but shall not have right to vote, and shall not be deemed to be a Director for 
that or any other purpose. 
CHAPTER III 
POWERS, DUTIES AND FUNCTIONS OF THE BOARD 
17. Powers, duties and functions of the Board .– (1) In accordance with the 
provisions of this Act, and subject to such general or special order as Government 
may give from time to time, the Board shall take measures to prepare schemes to 
establish, manage and run the industries on commercial and national considerations. 
 (2) In particular the Board may, in order to carry out the purposes of this 
Act– 
(a) form and establish companies to manage and run the industries as are 
established in the manner aforesaid; 
(b) manage on behalf of Government the shares purchased by 
Government in the issued capital of companies established by the 
Board; 
(c) subscribe to the capital of these companies to such extent as may be 
necessary; 
(d) act as Managing Agents of the companies established by the Board; 
(e) give short and medium term loans or furnish guarantees to the 
scheduled banks for loans to the companies established by the Board 
in the manner aforesaid; and 
(f) establish, manage and run industries under its direct control. 
 
12
[(3) The Board may, with the approval of Government and in such manner 
as Government may direct, sell or transfer its shares in or otherwise dispose off the 
assets of, the companies and projects established by it.] 
18. Loans.– The Board may negotiate and obtain for its industries established 
under section 17 of this Act loans in local and foreign currency from the local or 
international financial institutions: 
 Provided that in the case of loans from international financi al institutions, the 
Board shall act with the prior approval of Government. 
19. Functions of the Board.– The Board shall also be responsible for– 
(a) preparing plans in respect of industries to be established in the public 
sector; 
(b) undertaking or causin g to be undertaken studies to determine 
economic and technical feasibility of the industries to be established by 
the Board; 
(c) presenting to Government schemes for establishment of industries for 
obtaining its approval; 
(d) implementing and executing the schemes approved by Government; 
(e) taking over, managing and ru nning such industries as Govern ment 
may from time to time decide to hand over to the Board; 
(f) participating in national and international fairs and exhibitions; and 
(g) undertaking such oth er functions as are necessary for the successful 
execution and management of the industries. 
20. Board Fund.– (1) There shall be a fund to be known as the Punjab Industrial 
Development Board Fund which shall vest in the Board, and which shall be utilised 
by the Board to meet charges in connection with its functions under this Act including 
salaries and other remunerations of the Chairman 
13
[,Vice Chairman], Managing 
Director, Directors, Advisers, Experts, Consultants, Officers and other employees of 
the Board. 
 (2) The Punjab Industrial Development Board Fund shall consist of– 
(a) investment made by Government; 
(b) grants made by Government; 
(c) loans obtained from Government; 
                                                 
12Added by the Punjab Industrial Development Board (Amendment ) Ordinance, 1979 (III of 1979); and published in the Punjab 
Gazette (Extraordinary), dated 12.4.1979, pages513-A to 513-B. s.2. 
13Added by the P unjab Industrial Development Board (Ame ndment) Act, 1986 (VII of 1986); and published in the Punjab 
Gazette (Extraordinary), dated 22.10.1986, pages 2301-A-2301-B, s.2. 
(d) charges for the management of industries under the direct control of 
the Board; 
(e) Managing Agency commission in respect of companies managed by 
the Board; 
(f) loans obtained from the scheduled banks; 
(g) foreign loans obtained by the Board; and 
(h) all other sums received by the Board. 
21. Board to be deemed a local authority.– The Board shall be deemed to be a 
local authority under the Local Authorities Loans Act, 1914 for the purposes of 
borrowing money under the said Act and the making and execution of any scheme 
under this Act shall be deemed to be a work which such authority is  legally 
authorised to carry out. 
22. Custody and investment of Industrial Development Fund .– (1) All moneys 
at the credit of the Board shall be kept in such manner as may be prescribed. 
 (2) Nothing in sub-section (1) shall be deemed to preclude the Board  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, 1889, in fixed deposits 
with a bank approved by Government or in such other manner as Government may 
direct. 
23. Maintenance of accounts.– The Board shall maintain complete and accurate 
accounts in such manner as may be prescribed. 
24. Audit of accounts .– The accounts of the Board shall be audited in such 
manner as may be directed by Government. 
25. Reports to  be furnished to Government .– (1) The Board shall furnish to 
Government, as soon as possible, after the close of each financial year an audited 
statement in the prescribed form in respect of the assets and liabilities of its 
industries and in respect of it s transactions as they stand at the close of that year, 
together with a profit and loss account for that year and a full report on the working of 
the Board during th at year and copies of the said -statements, accounts and report 
shall be published in the official Gazette. 
 (2) The Board shall submit to Government its proposals for the ensuing 
financial year at such time and in such manner as may be prescribed. 
CHAPTER 
14
[IV] 
MISCELLANEOUS 
26. Winding up .– (1) No provision of law relating to winding up of comp anies 
shall apply to the Board. 
 (2) When, in the opinion of Government, it is expedient that the Board shall 
cease to exist, Government may, by notification in the official Gazette, declare that 
the Board shall be dissolved from such date as may be specif ied in this behalf in 
                                                 
14Misprinted in the Original Gazette as “V”. 
such notification and the Board shall be deemed to be dissolved accordingly, from 
such date– 
(a) all properties, funds and dues which are vested in or realizable by the 
Board and the Chairman, respectively shall vest in and be realizable by 
an Administrator or any other officer appointed by Government in this 
behalf; 
(b) all liabilities which are enforceable against the Board shall be 
enforceable only against the Administrator or any other officer 
appointed by Government in this behalf; 
(c) for the purposes of completing the execution of any scheme, 
sanctioned under this Act, which has not been fully executed by the 
Board and of realizing properties, funds and dues referred to in clause 
(a) the functions of the Board and the Chairman un der this Act shall be 
discharged by the Administrator or any other officer appointed by 
Government in this behalf; 
(d) the Administrator or any other officer appointed by Government shall 
keep separate accounts of all moneys respectively received and 
expended by him under this Act, until all loans raised hereunder have 
been repaid and until all liabilities referred to in clause (b) have been 
duly met
15
[;] and 
(e) the Administrator or any other officer appointed by Government in this 
behalf shall have power t o dispose of the properties, assets, rights, 
etc., of the Board in such manner as Government may direct from time 
to time. 
 (3) Any properties and assets left over after all the liabilities of the Board 
have been discharged shall vest in Government and all  liabilities left undischarged 
after all the properties and assets of the Board have been disposed of, shall become 
the liabilities of Government. 
 (4) The Administrator or any other officer appointed by Government in this 
behalf may delegate any of his po wers under this section to any officer of 
Government or to any officer of the Board to such extent and on such terms and 
conditions as may be approved by Government. 
27. Power to make rules .– (1) Government may make rules for carrying out the 
purposes of this Act. 
(2) In particular and without prejudice to the generality of the foregoing 
provisions, such rules may provide for– 
(a) the manner and form of keeping the accounts of the Board; 
(b) recruitment of officers, advisers, consultants, experts and other 
employees of the Board; 
(c) terms and conditions of service of the officers, advisers, consultants, 
experts and other employees of the Board; 
(d) functions of the Advisers; 
                                                 
15Misprinted in the Original Gazette after the word “and”. 
(e) borrowing by the Board; 
(f) the date on which and the form in which the annual budget statement 
of the Board shall be submitted each year; 
(g) procedure for appropriation and re -appropriation of moneys at the 
credit of the Board; 
(h) manner and form in which and the authorities to whom returns, reports 
or statements shall be submitted; 
(i) investment of Board funds and surplus moneys; 
(j) sale or transfer of industries and other immovable property of the 
Board ; and 
(k) such other matters relating to the administration and other affairs of the 
Board as the Government may think fit to prescribed by rules. 
28. Power to make regulations .– The Board may, with the previous approval 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. 
29. Repeal.– The Punjab Industrial Development Board Ordinance, 1973 (Punjab 
Ordinance No. XI of 1973), is hereby repealed. 
SCHEDULE 
1. Cotton Textiles. 
2. Cotton Ginning and Pressing. 
3. Sugar. 
4. Rice Milling. 
5. Flour Milling. 
6. Vegetable Oil and Hydrogenated Vegetable Oil.