CHINA PAKISTAN ECONOMIC CORRIDOR AUTHORITY ACT,

2021

 

The China Pakistan Economic Corridor Authority Act, 2021: Fostering Economic Transformation

 

The China Pakistan Economic Corridor Authority Act, 2021, stands as a pivotal piece of legislation in Pakistan’s recent history. Established to propel the ambitious China Pakistan Economic Corridor (CPEC) project forward, this Act marks a crucial step in the country’s quest for economic revitalization and regional connectivity.

 

Prior to this Act, CPEC implementation faced challenges due to its complex, multi-faceted nature. Inter-provincial and inter-ministerial coordination proved cumbersome, hindering project progress and impacting the initiative’s overall effectiveness. Recognizing these obstacles, the 2021 Act established the dedicated China Pakistan Economic Corridor Authority. This independent body empowered with comprehensive planning, facilitating, coordinating, monitoring, and evaluation responsibilities streamlined CPEC execution.

 

Within Pakistan, the Act’s impact is multifold. Improved inter-departmental collaboration has accelerated project timelines and enhanced transparency. The Authority’s research, policy formulation, and narrative building efforts have fostered widespread public understanding and support for CPEC. Furthermore, the Act prioritizes local investments and job creation, ensuring tangible benefits for Pakistani citizens. While challenges remain, the 2021 Act provides a robust framework for navigating them and maximizing CPEC’s potential to transform Pakistan’s economic landscape.

CONTENTS

1. Short title, extent and commencement.
2. Definitions.

CHAPTER II

ESTABLISHMENT OF THE AUTHORITY

3. Establishment of the Authority.
4. Powers and Functions of the Authority.

CHAPTER III

MANAGEMENT AND ADMINISTRATION OF THE AUTHORITY

5. Composition of the Authority.
6. Appointment of the Chairperson.
7. Appointment of the Members.
8. Executive Director Operations.
9. Executive Director Research.
10. Removal or Resignation of Chairperson, Executive Directors and Members.
11. Committees and sub-committees.
12. Meetings of the Authority.
13. Conflict of Interest.
14. China Pakistan Economic Corridor Business Council.

CHAPTER IV

BUDGET, FINANCE AND AUDIT

15. China Pakistan Economic Corridor Fund.
16. Budget, Finance and Accounts.
17. Audit.
18. Annual Report.

CHAPTER V

MISCELLANEOUS

19. Delegation of Powers.
20. Public servants.
21. Chairperson, etc. not to be civil servants.
22. Confidential Information.
23. Indemnity.
24. Power to make rules
25. Power to make regulations.
26. Overriding effect.
27. Savings.
28. Power to remove difficulties.

CHINA PAKISTAN ECONOMIC CORRIDOR AUTHORITY ACT, 2021

ACT NO. V OF 2021

[4

th June, 2021]

An Act to provide for the establishment of China Pakistan Economic Corridor

Authority

WHEREAS it is expedient to establish the China Pakistan Economic Corridor Authority for the

purposes hereinafter appearing and to provide for matters connected therewith and ancillary thereto;

It is hereby enacted as follows:—

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Act may be called the China Pakistan

Economic Corridor Authority Act, 2021.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.—In this Act, unless there is anything repugnant in the subject or context.—

(i) “Authority” means the China Pakistan Economic Corridor Authority established

under section 3;

(ii) “Budget Committee” means the committee as provided under sub-section (4) of

section 16;

(iii) “Chairperson” means the chairperson of the Authority appointed under section 6,

and includes any person performing for the time being the functions of the

Chairperson;

(iv) “Executive Director Operations” means the Executive Director Operations

appointed under section 8;

(v) “Executive Director Research” means the Executive Director Research appointed

under section 9;

(vi) “Government” means the Federal Government;

(vii) “Joint Cooperation Committee” means the Committee jointly headed by the

Minister for Planning Development and Special Initiatives of the Islamic Republic

of Pakistan and the Vice Chairperson of the National Development and Reform

Commission of the People’s Republic of China;

(viii) “Joint Working Group” means the working group constituted and working under

the Joint Cooperation Committee;

(ix) “Member” means a Member of the Authority appointed under section 7 and shall

include the Chairperson, Executive Director Operations and Executive Director

Research;

(x) “misconduct” means misconduct as defined in the rules made pursuant to the Civil

Servants Act, 1973 (Act LXXI of 1973);

(xi) “Principal Accounting Officer” shall mean the person specified in sub-section (3)

of section 16;

(xii) “record” includes an account, book, return, statement, document, report, chart,

table, diagram, form, survey, image, invoice, letter, map, agreement, memorandum,

plan, voucher, financial and non- financial information, and anything containing

information, whether in writing, digital or in electronic form or represented or

reproduced by any other means, and recording of details of electronic data

processing systems and programs to illustrate what the systems and programs do

and how they operate;

(xiii) “regulations” means the regulations made under section 25 of this Act; and

(xiv) “rules” means the rules made under section 24 of this Act.

CHAPTER II

ESTABLISHMENT OF THE AUTHORITY

3. Establishment of the Authority.—(1) The Government shall, by notification in the official

Gazette, establish an authority to be known as the China Pakistan Economic Corridor Authority, for

carrying out the purposes of this Act.

(2) The Authority shall carry out its functions, in accordance with the provisions of this Act, and

shall report to the Prime Minister through its Division concerned.

(3) The Authority shall be a body corporate, having perpetual succession and a common seal, with

power to enter into contracts within its budgetary allocation following all the applicable rules and

regulations, acquire or dispose of property, both movable and immovable, and may, by its name, sue or

be sued.

(4) The head office of the Authority shall be at Islamabad.

4. Powers and Functions of the Authority.—(1) In addition to such other powers and functions

as may be assigned under this Act, the Authority shall be responsible for planning, facilitating,

coordinating, enforcing, monitoring, and evaluating the smooth implementation of all activities related to

the China Pakistan Economic Corridor, in accordance with the Memorandum of Understanding between

the National Development and Reform Commission of the People’s Republic of China and the Ministry

of Planning Development and Special Initiatives of Islamic Republic of Pakistan on Outline of the Long

Term Plan of China-Pakistan Economic Corridor signed in Beijing on the 8th day of November 2014, as

well as decisions taken, from time to time, at meetings of the Joint Cooperation Committee:

Provided that the function of planning shall follow the existing arrangement being adopted by the

Planning Commission:

Provided further that the Government may, from time to time, assign additional functions and

responsibilities in this regard, and issue further guidelines to the Authority:

Provided also that existing arrangement of China Pakistan Economic Corridor related activities

shall continue until the Authority becomes functional under this Act.

(2) The Authority may call for any pertinent information, required by it for carrying out the

purposes of this Act, from any person, institution or body that is or has been involved, directly or

indirectly, in any China Pakistan Economic Corridor related activity, or any matter incidental or

consequential thereto. Any person institution or body called upon by the Authority, or its authorized

officer, to provide such information shall do so within the period prescribed by the Authority or such

officer.

(3) The Authority may in the performance of its functions seek assistance or facilitation of any

office, authority or agency working under the Government, a Provincial government or a local government

or of a representative designated by the Provinces and Territories. In this regard, Provinces and Territories

may appoint a representative to provide input and assist the Authority in performance of its functions

under this Act.

(4) Without prejudice to generality of the foregoing, the Authority may:

(i) take-up issues involved for the smooth implementation of the CPEC Framework,

with the relevant ministries, offices and departments.

(ii) interface with National Development and Reform Commission of the Government

of the People’s Republic of China after due deliberations and consultations with

relevant ministries, departments, and other existing fora constituted by the

Government;

(iii) organize meetings of Joint Cooperation Committee and Joint Working Groups;

(iv) ensure inter-provincial and inter-ministerial coordination for China Pakistan

Economic Corridor related activities;

(v) ensure narrative building and communication of China Pakistan Economic Corridor

related activities;

(vi) conduct sectoral research for informed decision making, providing input for longterm planning and identifying potential areas and projects for intervention; and

(vii) perform any other function which is necessary for the discharge of its functions

under this Act, with the approval of the Prime Minister.

CHAPTER III

MANAGEMENT AND ADMINISTRATION OF THE AUTHORITY

5. Composition of the Authority.—(1) The Authority shall comprise a Chairperson, an Executive

Director Operations, an Executive Director Research and six other Members.

(2) The Chairperson shall be the convener and head of the Authority.

(3) The Authority may, with the prior approval of the Prime Minister, co-opt any other person, as

a Member, from time to time.

(4) An officer of the Authority, so nominated by it, shall act as Secretary to the Authority. The

Secretary shall be the custodian of the common seal of the Authority.

(5) The Authority may, whenever deemed appropriate, employ officers, staff, experts, consultants,

advisors, public and civil servants, or other employees, on such terms and conditions as may be determined

by the Authority, from time to time.

6. Appointment of the Chairperson.—(1) The Chairperson of the Authority shall be appointed

by the Government for a term of four years, on such terms and conditions as may be determined by the

Government.

(2) The Chairperson shall be eligible for re-appointment for one additional term of four years:

Provided that no person shall be appointed as Chairperson for more than two consecutive

terms.

(3) The Government may, by rules, prescribe the qualifications and experience required for

appointment of the Chairperson.

(4) The Prime Minister, if necessary, may designate any Member of the Authority, as provided in

sub-section (1) of section 5 to act as Chairperson.

7. Appointment of the Members.—(1) Members of the Authority shall be appointed by the Prime

Minister for a term of four years, on such terms and conditions as may be determined by the Prime

Minister.

(2) Upon completion of the first term, each Member shall be eligible for re-appointment for one

additional term of four years:

Provided that no person shall be appointed as Member for more than two consecutive terms.

(3) The qualifications and experience required for appointment as a Member shall be such as may

be prescribed by the Rules.

8. Executive Director Operations.—(1) The Prime Minister shall, upon the recommendation of

the Authority, appoint Executive Director Operations, for a term of four years, on such terms and

conditions as may be prescribed by the Authority.

(2) The Executive Director Operations shall be eligible for reappointment for one additional term

of four years:

Provided that no person shall be appointed as Executive Director Operations for more than two

consecutive terms.

(3) The Authority may, by regulations, prescribe the qualifications and experience required for

appointment of the Executive Director Operations.

9. Executive Director Research.—(1) The Prime Minister shall, upon the recommendation of the

Authority, appoint Executive Director Research, for a term of four years, on such terms and conditions,

as may be prescribed by the Authority.

(2) The Executive Director Research shall be eligible for re- appointment for one additional term

of four years:

Provided that no person shall be appointed as Executive Director Operations for more than two

consecutive terms.

(3) The Government may, by regulations, prescribe the qualifications and experience required for

appointment of the Executive Director Research.

10. Removal or Resignation of Chairperson, Executive Directors and Members.—(1) The

Chairperson, Executive Director Operations, Executive Director Research or any other Member may, prior

to expiry of their respective terms, resign from office by writing under his hand addressed to the Prime

Minister.

(2) The Prime Minister or any person so designated by him may, after conducting an inquiry,

remove the Chairperson from office on grounds of inefficiency, incapacity or misconduct. The procedure

for conducting such an inquiry shall be such as may be prescribed by rules.

(3) The Prime Minister may, upon recommendation of the Authority, remove the Executive

Director Operations, Executive Director Research or any Member from office on grounds of inefficiency,

incapacity or misconduct. For the purposes of such recommendation, the Authority shall conduct an

inquiry in such manner as may be prescribed by regulations.

(4) In case of a vacancy occurring due to death, resignation, retirement or removal of the

Chairperson, Executive Director Operations. Executive Director Research or a Member, the appointment

of another qualified person to the said post shall be made within a period not exceeding ninety days from

the date of such vacancy.

11. Committees and sub-committees.—The Chairperson may constitute committees and subcommittees and assign specific tasks to the said committees or sub-committees for efficient performance

of the functions of the Authority. The committees or sub-committees, so constituted, shall perform their

mandated tasks in the manner to be specified by the Chairperson.

12. Meetings of the Authority.—(1) On the direction of the Chairperson, the Executive Director

Operations, or any other officer designated in this regard by the Authority, shall call a meeting of the

Authority.

(2) The Chairperson shall also call a meeting of the Authority, within five working days, on being

requested in writing to do so by at least three Members of the Authority.

(3) The Members of the Authority shall have reasonable notice of the date, time, and place of a

meeting of the Authority and each matter on which a decision has to be made:

Provided that in case of an urgent issue, the requirement of prior notice may be waived by the

Chairperson.

(4) The Authority may, by the regulations, prescribe the manner in which Authority meetings are

to be held.

(5) The Authority shall meet at least once in every quarter of the financial year.

(6) The Chairperson, or in his absence, any other Member so nominated by the Chairperson, shall

preside the meeting of the Authority.

(7) The decision of the Authority shall be taken by the majority of total Members.

(8) The quorum for a meeting shall be two-third of the total Members with a fraction being counted

as one.

(9) No act or proceedings of the Authority shall be questioned or invalidated merely on the ground

of existence of any vacancy or defect in the constitution of the Authority.

13. Conflict of Interest.—(1) No person shall be appointed as Chairperson, Member, Executive

Director Operations or Executive Director Rescarch if he or his dependents have any direct or indirect

financial interest in, or have any connection which might reasonably be viewed as giving rise to a conflict

of interest with any person institution or body involved in any China Pakistan Economic Corridor project

or initiative. No person appointed as Chairperson, Member, Executive Director Operations or Executive

Director Research shall, during his or her term in office, have or maintain any direct or indirect financial

interest with any person involved in any China Pakistan Economic Corridor project or initiative. The

Chairperson, Member, Executive Director Operations or Executive Director Research shall not, at any

time during their respective terms of office, engage themselves in any other service, business, vocation or

employment.

(2) If at any time, the Chairperson, Member, Executive Director Operations or Executive Director

Research of the Authority, in any, way, develops a conflict of interest as described in sub-section (1), he

or she shall promptly disclose the said interest to the Authority, which shall promptly inform the Prime

Minister, who shall decide on the continuation in office of such person.

(3) Every person who knowingly contravenes any of the provisions of sub-section (1) or subsection (2) shall be guilty of misconduct.

14. China Pakistan Economic Corridor Business Council.—(1) There shall be a China Pakistan

Economic Corridor Business Council, to be constituted and notified by the Board of Investment, as

prescribed by the regulations.

(2) The China Pakistan Economic Corridor Business Council shall advise the Authority on how

best to achieve the objectives of this Act, in accordance with the Memorandum of Understanding between

the National Development and Reform Commission of the People’s Republic of China and the Ministry

of Planning Development and Special Initiatives of the Islamic Republic of Pakistan specified in subsection (1) of section 4 of this Act.

(3) The Board of Investment shall act as secretariat of Business Council which shall meet

periodically.

(4) A Secretary to the Business Council shall be nominated by the Board of Investment.

CHAPTER IV

BUDGET, FINANCE AND AUDIT

15. China Pakistan Economic Corridor Fund.—The Authority may establish a CPEC Fund to

further its objectives in such manner and on such terms and conditions as approved by the Finance

Division.

16. Budget, Finance and Accounts.—(1) A single line budget shall be provided to the Authority.

(2) The Authority shall, in respect of each financial year, prepare its own budget, and shall maintain

complete and accurate books of accounts and other records relating to its financial affairs.

(3) The Chairperson shall be the Principal Accounting Officer of the Authority.

(4) The budget prepared by the Authority shall be reviewed by the Budget Committee consisting

of three members of which two shall be nominated by the Authority and one member by the Division

concerned. The Budget Committee shall ensure that the Authority complies with all requirements of this

Act and the rules and regulations.

(5) All investments by the Authority shall be made with the approval of the Budget Committee.

17. Audit.—(1) The Auditor General of Pakistan shall annually audit the accounts of the

Authority.

(2) The Authority, in addition to the audit under sub-section (1), shall cause its accounts to be

annually audited by a Chartered Accountant or a firm of Chartered Accountants.

(3) The auditor appointed under sub-section (2) shall be provided such access to the books,

accounts and other documents as may be considered necessary for the audit of accounts by the auditor.

(4) The auditor appointed under sub-section (2) shall submit the annual or any special audit report

to the Authority, and the Authority, under intimation to the Government, shall take appropriate remedial

or other action in the light of the audit report.

(5) The Authority shall prescribe, by regulations, procedures for financial management and

internal audit.

18. Annual Report.—(1) The Authority shall, within three months of the end of a financial year,

submit to the Prime Minister, its annual report, which shall consist of the accounts and audit reports of the

Authority, a comprehensive statement of the work and activities carried out by the Authority during the

preceding financial year, and its proposed activities as well as such other matters as may be deemed

necessary by the Authority.

(2) The Prime Minister, at any time, may seek any details or clarification from the Authority about

its financial affairs.

(3) Quarterly progress reports of the Authority shall be published on the official website of the

Authority.

CHAPTER V

MISCELLANEOUS

19. Delegation of Powers.—(1) The Authority may by general or special order, subject to such

conditions and restrictions as may be specified in the order, delegate to any officer of the Authority, any

of the powers, duties or functions of another officer of the Authority:

Provided that, the delegation of financial powers shall be in accordance with the provisions of

system of financial control and budgeting and instructions issued by Finance Division from time to time.

20. Public servants.—The Chairperson, Members, Executive Director Operations, Executive

Director Research, officers, or other employees of the Authority, or experts, consultants, advisors

employed, hired or engaged by the Authority from time to time shall, when acting or purporting to act in

pursuance of any of the provisions of this Act, rules or regulations, be deemed to be public servants within

the meaning of section 21 of the Pakistan Penal Code, 1860 (XLV of 1860).

21. Chairperson, etc. not to be civil servants.—The Chairperson, Members, Executive Director

Operations, Executive Director Research, officers, or other employees of the Authority, or experts,

consultants, advisors employed, hired or engaged by the Authority from time to time, shall be governed

by the terms and conditions of their appointment, and shall not be deemed to be civil servants within the

meaning of the Civil Servants Act, 1973 (Act LXXI of 1973):

Provided that if a Civil Servant is appointed to a post in the Authority, on deputation, he shall

continue to be governed by the Civil Servants Act, 1973 (Act LXXI of 1973) and the rules made

thereunder.

22. Confidential Information.—(1) Except as provided under the regulations, no person shall

communicate or allow to be communicated, any record or information obtained pursuant to this Act, to a

person not legally entitled to that record or information or allow any person not legally entitled to that

record or information to have access to any record obtained under this Act.

(2) A person who knowingly receives any record or information obtained under this Act shall hold

such record or information subject to the same restrictions under sub-section (1) as apply to the person

from whom such record or information were received.

23. Indemnity.—No suit, prosecution or other legal proceeding shall lie against the Authority, the

Chairperson, Member, Executive Director Operations, Executive Director Research, employees, officers,

experts, consultants or advisors of the Authority, in respect of anything done or purported to be done in

good faith, under the provisions of this Act or the rules and regulations.

24. Power to make rules.—The Government may, by notification in the Official Gazette, make

rules not inconsistent with the provisions of this Act, for carrying out the purposes of this Act.

25. Power to make regulations.—The Authority may make regulations, not inconsistent with the

provisions of this Act or the rules, for carrying out the purposes of this Act.

26. Overriding effect.—The provisions of this Act shall have effect notwithstanding anything to

the contrary contained in any other law, rule or regulation, for the time being in force, and any such law,

rule or regulation shall, to the extent of any inconsistency, cease to have effect on the commencement of

this Act.

27. Savings.—(1) All actions duly taken under the China Pakistan Economic Corridor Authority

Ordinance, 2019 (XII of 2019) shall be deemed to have been validly taken and done under this Act and

shall always be deemed to have been so taken and done.

(2) Subject to this Act, any license, order, agreement, directive, instruction or other instrument,

issued or executed under the China Pakistan Economic Corridor Authority Ordinance, 2019 (XII of 2019),

shall be deemed to have been issued under this Act and shall continue to be in force until it expires or is

cancelled or withdrawn by the competent authority.

28. Power to remove difficulties.—If any difficulty arises in giving effect to any provision of this

Act, the Prime Minister may make such order not inconsistent with the provisions of this Act, as may be

necessary to remove the difficulty.

 

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