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THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971

THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971

/ Laws of Pakistan - Library / By

THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971

 

The Asian Development Bank (ADB) Ordinance of 1971 is a significant piece of legislation in Pakistan that pertains to the country’s relationship with the Asian Development Bank. The ADB is a multilateral financial institution that provides development assistance and loans to its member countries in Asia and the Pacific region. This ordinance authorizes Pakistan’s participation in the ADB and outlines the legal framework for the country’s collaboration with the bank in various development projects and initiatives.

SECTIONS:

  1. Short title, extent and commencement.
  2. Definitions.
  3. Financial provisions.
  4. State Bank to be depository of the Bank.
  5. Certain provisions of the agreement to have force of law.
  6. Power to make rules.

THE SCHEDULE

Page 1 of 7

1THE ASIAN DEVELOPMENT BANK ORDINANCE, 1971

ORDINANCE NO. IX of 1971

[16th April, 1971]

An Ordinance to implement the international agreement for the establishment and operation of

the Asian Development Bank and for matters connected therewith.

WHEREAS  PAKISTAN  is  a  signatory  to  the  Agreement  establishing the  Asian  Development

Bank and thereby became a member of the said Bank;

AND WHEREAS it is expedient  to make provision for the  implementation of the  international

agreement  for  the  establish ment  and  operation  of  the  aforesaid  Bank  and  for  carrying  out  the

obligations of Pakistan as a member of the said Bank and for matters connected therewith;

NOW, THEREFORE, in pursuance  of the  Proclamation  of the  25th  day  of March,  1969, read

with the Provisional Constitution Order, and in exercise of all powers enabling him in that behalf, the

President is pleased to make and promulgate the following Ordinance :—

  1. Short title, extent  and  commencement.—(1)  This  Ordinance  may  be  called  the  Asian

Develop ment Bank Ordinance, 1971.

(2) It extends to the whole of Pakistan.

(3)  It shall  come  into force  at  once  and shall be  deemed  to  have  taken  effect  from  the  19th

December, 1966.

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

(a) “Agreement”  means  the  Agreement  for  the  estab lishment  and  operation  of  the

international body known as the Asian Development Bank;

(b) “Bank” means the Asian Development Bank estab lished under the Agreement.

  1. Financial provisions.—(1) There shall be paid  out  of  the  2

[Federal Consolidated Fund]  all

such sums as may, from time to time, be required for the purpose of paying—

(a) the subscriptions payable by the Federal Govern ment to the Bank under paragraphs 1, 2

and 3 of Article 5 of the Agreement; and

(b) any sums payable by the Federal Government to the Bank under paragraph 1 of Article 25

of the Agreement.

(2) The Federal Government may, if it thinks fit so to do, create  and issue to the Bank, in such

form as it thinks fit, any such non­interest Bearing and non­negotiable

1Validated by the Validation of Laws Act, 1975 (63 of 1975), s. 2 and Sch.,

2Subs’ by the F.A.O., 1975 (P.O. No. 4 of 1975) Art. 2 and Table, for “Central Consolidated Fund”.

Page 2 of 7

notes or other obliga tions as are provided for by paragraph 3 of Article 6 of the Agreement.

(3) Any sums received by or on behalf of the Federal Government from the Bank shall be paid

into the 1

[Federal Consolidated Fund.]

  1. State Bank to be depository of the Bank. The State Bank of Pakistan shall be the depository

of the Pakistan currency holdings and other assets of the Bank located in Pakistan.

  1. Certain provisions of the agreement to have force of law.—(1) Notwithstanding anything to

the contrary contained in any other law, the provisions of the Agreement set out in the Schedule shall

have the force of law in Pakistan:

Provided that nothing in Article 56 of the Agreement shall be construed as—

(a) entitling the Bank to import into Pakistan goods free of any duty of customs without any

restriction on their subsequent sale therein, or

(b) conferring on the Bank any exemption from duties or taxes which form part of the price

of goods sold or which are in fact no more than charges for services rendered.

(2) The Federal Government may, by notification in the official Gazette, amend the Schedule in

conformity with any amendments, which may hereafter be duly made and adopted, of the provisions

of the Agreement set out therein.

  1. Power to make rules. The Federal Government may, by notification in the official Gazette,

make rules for carrying out the purposes of this Ordinance.

THE SCHEDULE

(See section 5)

Provisions of the Agreement which shall have the force of law..

CHAPTER VIII

STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES

ARTICLE 48

Purpose of Chapter

To enable the Bank effectively to fulfil its purpose and carry out the functions entrusted to it, the

status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Bank

in the territory of each member.

1Subs, by the F.A.O., 1975 (P.O. No. 4 of .1975) Art. 2 and Table, for “Central Consolidated Fund”.,

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ARTICLE 49

Legal Status

The Bank shall possess full juridical personality and, in particular, full capacity :

(i) to contract;

(ii) to acquire, and dispose of, immovable and movable property; and

(iii) to institute legal proceedings.

ARTICLE 50

Immunity from Judicial Proceedings

  1. The Bank shall enjoy immunity from every form of legal process, except in cases arising out of

or in connection with the exercise of its powers to borrow money, to guarantee obligations, or to buy

and sell or underwrite the sale of securities, in which cases actions may be brought against the Bank

in a court of competent jurisdiction in the territory of a country in which the Bank has its principal or

a branch office, or has appointed an agent for the purpose of accepting service or notice of process,

or has issued or guaranteed securities.

  1. Notwithstanding the provisions of paragraph 1 of this Article, no action shall be brought against

the  Bank  by  any  member, or  by  any  agency  or  instrumentality of  a  member,  or  by  any  entity  or

person  directly  or  indirectly  acting for  or  deriving claims from  a  member  or  from  any  agency  or

instrumentality  of  a  member.  Members  shall  have  recourse  to  such  special  procedures  for  the

settlement  of  controversies  between  the  Bank  and  its  members  as  may  be  prescribed  in  this

Agreement, in the bye­laws and regulations of the Bank, or in contracts entered into with the Bank.

  1. Property and  assets  of  the  Bank,  shall, wheresoever  located  and  by  whomsoever  held,  be

immune from all forms of seizure, attachment  or  execution,  before  the  delivery of final judgement

against the Bank.

ARTICLE 51

Immunity of assets

Property and assets of the Bank, wheresoever located and by whomsoever held, shall be immune

from search,  requisition, confiscation,  expropriation  or  any  other  form of  taking or fore closure  by

executive or legislative action.

ARTICLE 52

Immunity of Archives

The archives of the Bank,  and, in general, all documents belonging to it, or held by it, shall be

inviolable, wherever located.

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ARTICLE 53

Freedom of Assets from Restrictions

To  the  extent  necessary  to  carry  out  the  purpose  and  functions  of  the  Bank  effectively,  and

subject to the  provisions of this Agreement, all property  and  assets of the Bank shall be free from

restrictions, regulations, controls and moratoria of any nature.

ARTICLE 54

Privilege for Communications

Official  communications  of  the  Bank  shall  be  accorded  by  each  member  treatment  not  less

favourable than that it accords to the official communications of any other member.

Article 55

Immunities and Privileges of Bank Personnel

All  Governors,  Directors,  alternates,  officers  and  employees  of  the  Bank,  including  experts

performing missions for the Bank:

(i) shall be immune from legal process with respect to acts performed by them in their official

capacity, except when the Bank waives the immunity;

(ii) where they are not local citizens or nationals, shall be accorded the same immunities from

immigration restrictions, alien registration requirements and national service obligations,

and the same facilities as regards exchange regulations, as are  accorded  by members to

the representatives, officials and employees of comparable rank of other members; and

(iii) shall be  granted the same treatment  in respect  of travelling facilities as is accorded  by

members  to  representatives,  officials  and  employees  of  comparable  rank  of  other

members.

ARTICLE 56

Exemption from Taxation

  1. The Bank, its assets, property, income and its operations and transactions, shall be exempt from

all taxation and from all customs duties. The Bank shall also be exempt from any obliga tion for the

payment, withholding or collection of any tax or duty.

  1. No tax  shall  be  levied on  or  in  respect  of  salaries  and  emoluments  paid  by  the  Bank  to

Directors, alternates, officers or employees of the Bank, including experts performing missions for the

Bank, except where a member deposits with its instrument of ratification or acceptance  a declaration

that  such  member  retains for  itself  and  its  political  sub­divisions  the  right  to  tax  salaries  and

emoluments paid by the Bank to citizens or nationals of such member.

Page 5 of 7

  1. No tax of any kind shall be levied on any obligation or security issued by the Bank, including

any dividend or interest thereon, by whomsoever held :

(i) which discriminates against such obligation or security solely because  it is issued by the

Bank; or

(ii) if the sole jurisdictional basis for such  taxation  is the  place  or  currency  in which it  is

issued, made payable or paid, or the location of any office or place of business maintained

by the Bank.

  1. No tax  of  any  kind shall  be  levied  on  any  obligation or security  guaranteed  by  the  Bank,

including any dividend or interest thereon, by whomsoever held :

(i) which discriminates against such obligation or security solely because it is guaranteed by

the Bank; or

(ii)  if the sole jurisdictional basis fox such taxation is the location of any office or place of

business maintained by the Bank.

1

*                    *                      *                      *          *          *          *

ARTICLE 57

Waiver of Immunities, Exemptions and Privileges

The Bank at its discretion may waive any of the privileges, immunities and exemptions conferred

under  this Chapter  in  any  case  or  instance,  in such manner  and  upon such  conditions  as  it  may

determine to be appropriate in the best interests of the Bank.

 

 

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