Board of Investment Ordinance 2001
Acts, Ordinances, President's Orders and Regulations
GOVERMENT OF PAKISTAN
MINISTRY OF LAW, JUSTICE, HUMAN RIGHTS AND
PARLIAMENTARY AFFAIRS
(Law, Justice and Human Rights Division)
F. NO. 2 (1)/2001 - Pub Islamabad, the 22nd March, 2001
CHAPTER I. - PRELIMINARY
CHAPTER II. - ESTABLISHMENT OF THE BOARD OF INVESTMENT
CHAPTER III. - FINANCE AND ACCOUNTS
CHAPTER IV.- PROVINCIAL INVESTMENT COMMITTEES
CHAPTER V. - MISCELLANEOUS
To provide for the establishment of the Board of Investment as an apex agency
to promote, encourage and facilitate both local and foreign investment
WHEREAS it is expedient to provide for the establishment
of the Board of Investment to promote, encourage and facilitate local and
foreign investment, and for matters connected therewith and ancillary thereto;
AND WHEREAS the National Assembly and the Senate stand suspended in pursuance
of the Proclamation of Emergency of the fourteenth day of October 1999 and
the Provisional Constitution Order No. 1 of 1999;
AND WHEREAS the President is satisfied that circumstances exist which render
it necessary to take immediate action;
NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth
day of October, 1999, and the Provisional Constitution Order No. 1 of 1999,
read with the Provisional Constitution (Amendment) Order No. 9 of 1999, and
in exercise of all powers enabling him in that behalf, the President of the
Islamic Republic of Pakistan is pleased to make and promulgate the following
Ordinance:-
CHAPTER I.- PRELIMINARY
1. Short title, extent and commencement.-
(1) This Ordinance may be called the Board of Investment Ordinance, 2001.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.- In this Ordinance, unless there is anything repugnant in
the subject or context,-
(a) "Board" or "BOI" means the Board of Investment established
under section 3;
(b) "Chairman" means the Chairman of the Board;
(c) "CCOI" means the Cabinet Committee on Investment constituted
by Notification No. 38(Cab)/97, dated 13th September, 1997;
(d) "investment policy" means the investment policy, the CCOI may,
from time to time, approve;
(e) "member" means the member of the Board ;
(f) "National Industrial Zone" means an industrial estate, an export
processing zone, a free industrial zone and export oriented unit or a free
trade zone, notified as such by the Federal Government;
(g) "President" means President of the Board;
(h) "Provincial Investment Committee" means any Provincial Investment
Committee established under section 16;
(i) "regulations" means regulations made under this Ordinance;
(j) "rules" mean rules made under this Ordinance;
(k) "Secretary" means the Secretary of the BOI; and
(l) "Vice President" means the Vice President of the Board. [Back
to Top]
CHAPTER II.- ESTABLISHMENT OF THE BOARD OF INVESTMENT
3. Establishment of the Board of Investment.-
(1) There is hereby established a Board to be called the Board of Investment
(BOI) for carrying out the purposes of this Ordinance.
(2) The Board shall consist of -
(a) the Chief Executive of the Islamic Republic of Pakistan who shall be its
President;
(b) Federal Minister in Charge of the Division, to which the business relating
to the BOI is allocated, who shall be its Vice-President;
(c) Chairman of the BOI; and
(d) not less than seven and not more than twenty-five ex officio members and
non-official members, provided that not less than three non-official members
shall be appointed from private sector from amongst persons of renowned integrity,
expertise, experience and knowledge including, inter alia, academia, science,
agriculture, banking, Business, commerce, economic, engineering, finance,
industry, investment, law, marketing, mathematics, statistics and technology.
(3) The ex officio and the non-official members shall be appointed by the
Federal Government and the terms and conditions of non-official members shall
be such as the Federal Government may determine by notification in the official
gazette.
(4) An ex officio member shall hold office as member till such time he holds
the office by virtue of which he is a member and upon his transfer, retirement,
resignation, or removal from office, the person appointed in such person's
place shall be the member.
(5) The headquarters of the Board shall be at Islamabad and it may, with the
approval of the President, establish its regional offices or sub-offices within
Pakistan and abroad.
4. Chairman.- The Chairman shall -
(a) be appointed by the Federal Government on such terms and conditions as
it may determine by notification in the official gazette; and
(b) exercise such powers and perform such functions as may be assigned to
him by the Board.
5. Secretary.- (1) The Federal Government may, either from the Federal Government
or from the private sector, appoint a Secretary who shall attend meetings
of the Board and perform such functions as the Chairman may assign.
(2) The Secretary shall be the principal staff officer and principal accounting
officer of the BOI and shall have the status of a Secretary to the Federal
Government.
6. Non-official members.- (1) The members of the Board who are not appointed
ex officio by the Federal Government, hereinafter referred to as non-official
members, shall hold office for a term of two years and shall be eligible for
reappointment.
(2) A non-official member may, by writing under his hand addressed to the
Federal Government, resign his office.
(3) A casual vacancy of any non-official member shall be filled in by appointment
of another member for the residue of the term of his predecessor.
(4) A non-official member shall hold office during the pleasure of the Federal
Government and may be removed from office if such member has, in the opinion
of the Federal Government, so abused the position as to render his continuance
in office detrimental to public interest:
Provided that no member shall be removed from office until he has been given
a reasonable opportunity of being heard.
7. Meetings of the Board.- (1) Except as hereinafter provided, the Board shall
regulate the procedure for its own meetings.
(2) The Board shall meet at least once every three months.
(3) Meetings of the Board shall be presided-
(a) by the President;
(b) in the absence of the President, by the Vice-President;
(c) in the absence of both the President and the Vice-President, by the Chairman;
or
(d) in the absence of the President, the Vice-President and the Chairman,
by a member nominated by the President.
(4) The quorum for meetings shall be one-third of the total membership of
the Board.
(5) All questions in the meetings of the Board shall be decided by a majority
of the members present and voting, and in case of equality of votes, the person
presiding over the meeting shall have a second or casting vote.
(6) Any urgent business of the Board may be transacted by circulation among
all its members and any proposal so circulated and approved by a majority
of the members shall be as effective and binding as if such proposal had been
passed at a regular meeting of the Board.
8. Validity of proceedings.- No act, proceedings, decision or order of the
Board or a committee thereof shall be invalid by reason only of existence
of any vacancy or defect in the constitution of the Board or, as the case
may be, a committee of the Board .
9. Functions of BOI. -
(1) Notwithstanding anything contained in any law the BOI shall -
(a) from time to time, review the national investment policy and laws, and
propose any amendments, modifications and relaxations therein it may deem
appropriate to the Cabinet for approval;
(b) initiate and consider sectoral investment proposals and categories of
investment which may require specific treatment and propose such sectoral
incentives or conditions or criteria requiring rationalization of existing
policies; and
(c) be associated by the Federal Government in the formulation of all policies
that may have an impact on investment in Pakistan, including inter alia, economic,
fiscal and trade policies;
(d) identify and promote the investment opportunities in different sectors
and their promotion in Pakistan and abroad;
(e) coordinate with concerned Ministries, Departments, agencies and Provincial
Governments with regard to policies and their implementation having impact
on investment;
(f) provide one window facilities for provision of all services and utilities
to investors by concerned Federal and Provincial agencies;
(g) deal with matters relating to National Industrial Zones as may be referred
to it by the Federal Government;
(h) monitor the progress of investment programmes and projects at all stages
and ensure, through inter-agency and inter-provincial coordination, prompt
implementation and operation;
(i) review investment promotion plans, formulate institutional arrangements,
make transparent and simplified procedures and guidelines for investment promotion;
(j) appraise, evaluate and process all investment proposals and projects received
from the investors for submission to the Cabinet or a Committee of the Cabinet
or the Board;
(k) appoint commissions, expert bodies and consultants to study various aspects
of attracting investment in all sectors and improving the investment climate,
procedures and other related matters;
(l) maintain a data-base of investment projects in the private sector that
involve local and foreign capital;
(m) negotiate and finalize agreements for protection and promotion of investment
with other countries and represent Pakistan on regional and international
organizations pertinent to investment promotion;
(n) liaise with private sector trade bodies and associations for their active
participation in promotion of investment;
(o) collect, compile, analyze, maintain and distribute investment-related
information and, from time to time publish periodical analytical reports in
investment trends;
(p) promote a congenial environment for investment by ensuring de-regulation
and other measures to remove obstacles to investment;
(q) develop a marketing, image-building and public relations strategy to generate
interest in the potential and opportunities of the Pakistani market, and publicize
its activities;
(r) communicate all major important administrative, financial and policy matters
to the management of business undertakings falling within the purview of the
investment policy approved by the Government;
(s) establish Overseas Commissions consisting of prominent overseas Pakistani
entrepreneurs and other individuals to act as investment promotion counsellors
purely in an honorary capacity;
(t) consider individual investment proposals and categories of investment
which require special treatment and recommend, where appropriate, additional
incentives or relaxation of conditions or criteria required under existing
policies.
(u) from time to time, determine and review the scale of fees and charges
for services provided to the investors by it; and
(v) any other function assigned by the Cabinet and the CCOI.
10. Directive of the Federal Government.- For furthering the functions of
the BOI the Federal Government may, as and when it considers necessary, issue
directives to the BOI on matters of policy, and such directives shall be binding
on the BOI. If a question arises whether any matter is a matter of policy
or not, the decision of the Federal Government shall be final. [Back to Top]
CHAPTER III.- FINANCE AND ACCOUNTS
11. Grants.- The Federal Government may, from time to time, place annual grants
at the disposal of the BOI for the smooth discharge of its affairs.
12. Fund.-
(1) There shall be constituted a fund to be called the BOI Fund to which shall
be credited all sums received by the BOI and out of which shall be defrayed
all its expenditure.
(2) The Fund shall consist of -
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(a) grants made by the Federal Government;
(b) foreign aid or loans obtained or raised by the BOI with the special or
general sanction of the Federal Government; and
(c) all other sums including fees and charges receivable by the BOI.
13. Budget and accounts.-
(1) In respect of each financial year, the BOI shall submit for approval of
the Federal Government, by such date and in such form as may be specified
by the Federal Government, a statement showing the estimated receipts and
expenditure and the sums which are likely to be required from the Federal
Government during the next financial year.
(2) The BOI may open accounts with the State Bank of Pakistan or with any
scheduled bank in Pakistan.
(3) The accounts of the BOI shall be maintained in such form and manner as
the Federal Government may, in consultation with the Auditor-General of Pakistan,
determine.
(4) The accounts of the BOI shall be audited every year by the office of the
Auditor-General of Pakistan.
(5) The accounts of the BOI shall be expended for the purposes of-
(a) paying any expenditure lawfully incurred by it including the remuneration
and allowances of the Chairman, the members, employees, advisers and consultants,
accountants, lawyers, valuers and other experts appointed and employed by
its provident fund contributions, superannuation allowances or gratuities,
legal fees and costs, and other fees and costs, if any;
(b) paying for expenditure incurred on-
(i) marketing and publicity; and
(ii) seminars and conferences;
(c) purchasing or hiring equipment, machinery and any other materials, acquiring
land, erecting buildings and conducting other work and undertakings in the
performance of its functions or the exercise of its powers under this Ordinance;
and
(d) paying any other expenses, costs or expenditure properly incurred or accepted
by the BOI in the performance of its functions or the exercise of its powers
under this Ordinance.
14. Annual Report.-
(1) The BOI shall prepare and submit to the Federal Government, as soon as
possible after the end of each financial year but not later than the last
day of December of the next year, a report on the conduct of its affairs for
that year.
(2) The report shall include -
(a) an audited statement of income and expenditure;
(b) an audited balance sheet;
(c) a short financial statement of the preceding financial year;
(d) activities of the BOI during the preceding financial year;
(e) an outline of the investment programme for the year ahead; and
(f) any other matter which the Federal Government may direct or the BOI may
consider appropriate. [Back to Top]
CHAPTER IV.- PROVINCIAL INVESTMENT COMMITTEES:
15. Provincial Investment Committees.-
(1) The Provincial Government shall, by notification in the Official Gazette,
establish a committee to be called the Provincial Investment Committee.
(2) The Provincial Investment Committee shall consist of such members as the
Provincial Government may appoint, by notification in the Official Gazette
and the Chairman and the Secretary shall be its ex officio members.
(3) Subject to any directions given by the BOI, the Provincial Investment
Committee shall perform the following functions, namely:-
(a) encourage and promote investment, including joint ventures in the Province,
in collaboration with the BOI;
(b) assist the BOI to discharge its functions;
(c) maintain a continuing working relationship and co-ordination with the
BOI to facilitate and promote local and foreign investment in the Province;
(d) help and facilitate effective implementation of investment policies of
the Federal Government, including the speedy development of National Industrial
Zones;
(e) identify investment opportunities and priority areas for investment in
the Province, and assist the BOI in marketing those opportunities to prospective
investors; and
(f) ensure infrastructure facilities such as roads, water and drainage in
the existing and future industrial estates and National Industrial Zones in
the Province. [Back to Top]
CHAPTER V.- MISCELLANEOUS:
16. Delegation of powers.- The BOI may by general or
special order, delegate to the Chairman, the Secretary or any officer of the
BOI, any of its powers or functions subject to such conditions as it may deem
fit to impose.
17. Recruitment etc.-
(1) The BOI may appoint such officers, advisers, consultants and employees
as it considers necessary for the efficient performance of its functions on
such terms and conditions as may be prescribed under the rules made with the
prior approval of the Federal Government:
Provided that all appointments shall be made in accordance with the prescribed
educational, technical or professional qualifications and experience.
(2) The age of superannuation shall be sixty years for the employees of the
BOI.
18. Members, officers, staff, etc. deemed to be public servants.- Subject
to other provisions of this Ordinance, every officer and employee of the BOI
shall be deemed to be a public servant within the meaning of section 21 of
the Pakistan Penal Code (Act XLV of 1860).
19. Assistance from other agencies.-
(1) The BOI may require any information from all sources including private
sector organizations and agencies, any Ministry, Division, Department, statutory
body, corporation, agency of the Federal Government or a Provincial Government
which, in its opinion, concerns any matter relating to the BOI, and the requisite
information shall be provided to the BOI within a fortnight of the receipt
of such request.
(2) The BOI may request any Ministry, Division, Department, statutory body,
corporation, agency of the Federal Government or a Provincial Government,
to review such proposals, policies, directions, guidelines, notifications,
circulars, orders, regulations and rules, which, in its opinion, concern any
matter relating to the BOI, and the concerned Ministry, Division, Department,
statutory body, corporation, agency of the Federal Government or a Provincial
Government shall give its decision in writing based on sound reasons within
a fortnight of such request.
(3) Subject to sub-section (4), if, upon receiving the decision under sub-section
(2), the BOI is of opinion that the decision adversely affects any policy
relating to its working, it may request the concerned Ministry, Division,
Department, statutory body, corporation, agency of the Federal Government
or a Provincial Government to review such decision in consultation with it
or its authorized officer.
(4) In case the BOI is not satisfied with the revised decision of the Ministry,
Division, Department, statutory body, corporation, agency of the Federal Government
or a Provincial Government under sub-sections (2) and (3), the unresolved
issue shall be placed before the CCOI or the BOI wherein the representative
from the concerned Ministry, Division, Department, statutory body, corporation
etc., would be invited by special invitation to assist the CCOI or the BOI
to arrive at a final decision.
20. Indemnity.- No suit, prosecution, or other legal proceeding shall lie
against the BOI, the Chairman, the Secretary, the members, the employees and
consultants of the BOI for anything done in good faith or intended to be done
under this Ordinance or any rule or regulation made thereunder.
21. Transfer of employees and assets.-
(1) Notwithstanding anything contained in any law, contract or agreement or
in the terms and conditions of service, every person, other than employees
of other Departments and members of regularly constituted Service Groups posted
on deputation or employed in the Board of Investment and serving in or under
it immediately before the commencement of this Ordinance including employees
of the BOI on deputation to other organizations, shall cease to be civil servants
and stand transferred to and become employees of the BOI on such terms and
conditions as may be prescribed by rules to be made under section 23.
Provided the terms or conditions of the persons so transferred shall not be
less favourable than those applicable to them before the commencement of this
Ordinance
(2) Notwithstanding anything contained in any other law for the time being
in force, no person who has been transferred to the BOI under sub-section
(1) shall be entitled to any compensation on account of such transfer.
(3) All funds, properties, rights and interests of whatsoever kind issued,
used, enjoyed, possessed, owned or vested in the BOI, in existence before
the commencement of this Ordinance, and all liabilities legally subsisting
against the said Board shall vest in and become the liabilities of the BOI
established under this Ordinance.
(4) All suits, other legal proceedings instituted by or against the BOI in
existence immediately before the commencement of this Ordinance and all orders
issued, instructions executed, measures taken, etc., in relation thereto,
shall be deemed to pertain to the BOI established under this Ordinance, and
may proceed and be dealt with accordingly.
(5) All debts and liabilities incurred, contracts entered into or rights acquired
and all matters and all things, engaged to be done by, with or for the BOI,
in existence before the commencement of this Ordinance, shall be deemed to
have been incurred, entered into, acquired or engaged to be done by, with
or for the BOI established under this Ordinance.
22. Committees.- To assist it in the performance of its functions, the BOI
may constitute such committees consisting of such persons as it may deem fit.
23. Power to make rules.-
(1) The BOI may, with the prior approval of the Federal Government, make rules
for carrying out the purposes of this Ordinance and to regulate appointments
and conditions of service of officers and employees in the service of the
BOI; and
(2) Until the rules referred to in sub-section (1) are made, the officers
and employees of the BOI shall continue to be governed, in respect of the
matters terms and conditions of service by rules applicable to them immediately
before the commencement of this Ordinance.
24. Power to make regulations.- The BOI may, by notification in the Official
Gazette, make regulations, not inconsistent with the provisions of this Ordinance
or the rules, for carrying out the purposes under this Ordinance.
25. Removal of difficulties.- If any difficulty arises in giving effect to
the provisions of this Ordinance, the Federal Government may, within two years
of the commencement of this Ordinance, make such order, not inconsistent with
the express provisions of this Ordinance, as may appear to it to be necessary
or expedient for the purpose of removing such difficulty.
Mr. Pervaz Mushraf
President.