EXPORT PROCESSING ZONES AUTHORITY

ORDINANCE IV OF 1980

CHAPTER – I : Preliminary

CHAPTER – II : Constitution of the Authority

CHAPTER – III : Power and Duties Of the Authority

CHAPTER – IV : Acquisition of Land

CHAPTER – V : Establishment

CHAPTER –VI : Finance

CHAPTER – VII : Miscellaneous

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 THE GAZETTE OF PAKISTAN

EXTRAORDINARY
PUBLISHED BY AUTHORITY
ISLAMABAD, WEDNESDAY, FEBRUARY 6, 1980
PART – I

Acts, Ordinance, President’s Orders and Regulations including Martial Law

Orders and Regulations.

GOVERNMENT OF PAKISTAN
MINISTRY OF LAW AND PARLIAMENTARY AFFAIRS
(Law Division)
(Islamabad, the 6th February, 1980)

No.F.17(1)/80.Pub.- The following Ordinance made by the President is

hereby published for general information:-

ORDINANCE NO. IV OF 1980

AN
ORDINANCE

to establish an Export Processing Zones Authority

WHEREAS it is expedient to establish an Export Processing Zones Authority

for making all arrangements for the planning, development and management
of the Zones and to provide for matters connected therewith or ancillary
thereto;

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 the fifth day of July

1977, read with the Laws (Continuance in Force) order, 1977 (C.M.L.A.Order
No. 1 of 1977), and in exercise of all powers enabling him in that behalf, the
President is pleased to make and promulgate the following Ordinance:-

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 CHAPTER – I
PRELIMINARY

1. Short title, application and commencement..- (1) This Ordinance

may be called the Export Processing Zones Authority Ordinance, 1980.
(2) It shall apply to all industrial undertakings set up or operating in the
Export Processing Zone.
1[(3) It shall come into force on such date as the Federal Government may,
by notification in the official Gazette, specify.

2. Definitions.- In this Ordinance, unless there is anything repugnant in

the subject or context:-
(a) “Authority” means the Export Processing Zones Authority
established under section 4;
(b) “Board” means the Board constituted under section 5;
© “Bonded area” means an area declared as a public warehouse
under section 12 of the Customs Act, 1969 (IV of 1969);
(d) “Chairman” means the Chairman of the Authority;
(e) “Industrial undertaking” means an industry, undertaking or
establishment engaged in the production, distribution or
processing of such goods or the providing of such services as
may be specified in this behalf by the Federal Government;
(f) “Investor” means a person or company investing in an industrial
undertaking located in a Zone;
(g) “manufacture” with its grammatical variations and cognate
expressions, means the process of converting materials into a
new product or article, whether or not by power operated
machinery, whereby a change in tariff classification has been
effected;
(h) “prescribed” means prescribed by rules;
(i) “rules” means rules made under this Ordinance;
(j) “tariff area” means any area in Pakistan outside the limits of a
Zone; and
(k) “Zone” means such area as the Federal Government may, by
notification in the official Gazette, declare to be a Zone for the
purposes of this Ordinance.

3. Zone to be bonded area.- Every Zone shall be a bonded area.

1[(3) Specified by S.R.O. 208(1)/80, dated 02-02-1980 for the following;

In exercise of the power conferred by sub-section(3) of section-1 of the
Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the
Federal Government is pleased to specify the 20th day of February
1980, to be the date on which the said Ordinance shall come into force.
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 CHAPTER – II
CONSTITUTION OF THE AUTHORITY

4. Establishment of the Authority.-(1) There shall be established an

Authority to be known as the Export Processing Zones Authority for
carrying out the purposes of this Ordinance.
(2) The Authority shall be a body corporate, having perpetual succession
and common seal, with power, subject to the provisions of this
Ordinance, to acquire and hold property, both moveable and
immovable, and shall by the said name sue and be sued.

5. Management.- The general direction and administration of the

Authority and its affairs shall vest in a Board.

6. Constitution of the Board.- (1) The Board shall consist of not more
than nine members, including the Chairman to be appointed by the
Federal Government.
(2) The Chairman and other members of the Board shall hold office during
the pleasure of the Federal Government and unless sooner removed
shall hold office for a period of three years.
(3) No act or proceeding of the Board shall be invalid merely on the
ground of the existence of any vacancy in, or defect in the constitution
of, the Board.
(4) The Chairman and each member of the Board shall receive such
salaries and allowances or such fee as may be determined by the
Federal Government in each case.

7. Duties and functions of Chairman and members.-(1) The Chairman

and members shall discharge such duties and perform such functions
as are assigned to them under this Ordinance or by the Federal
Government.
(2) Until the Board is duly constituted, the Chairman shall, subject to such
directions as the Federal Government may, from time to time, give,
exercise the powers, discharge the duties and perform the functions of
the Board.

8. Headquarters of the Authority.- The headquarters of the Authority

shall be situated at Karachi.

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 CHAPTER – III
POWERS AND DUTIES OF THE AUTHORITY

9. Master Plan and master programme.- The Authority shall prepare a

master plan and a phased master programme for the development of
the Zones.
10. Preparation of scheme for infrastructure.- The Authority may,
pursuant to the master plan, prepare schemes in respect of:-
(a) land use, zoning and land reservation;
(b) public buildings;
© industrial warehousing and buildings;
(d) transportation and communications; roads, streets, railways, jetties,
walls, workshops, sheds, godowns, navigation channels;
(e) telecommunication, including wireless, telex and telephones;
(f) community facilities, including water supply, sewerage disposal,
electricity supply, gas supply and other public utilities; and
(g) environmental control and prevention of pollution.

11. Sanctioning of industries, etc.- (1) The Authority may, with the
approval of the Federal Government, frame schemes and lay down
procedure in respect of sanctioning the establishment and operation of
industries in the Zones.
(2) An industry sanctioned under sub-section(1) shall operate subject to
such terms and conditions as may be enunciated in the letter of
sanction issued by the Authority.
(3) The materials and manufactured goods shall not be exported from the
Zones into the tariff area except to the extent and in the manner to be
specified by the Authority in each case with the prior approval of the
Federal Government.

12. Power of the Authority.- (1) Subject to the other provisions of this
Ordinance and the rules, the Authority may take such measures and
exercise such powers as may be necessary for carrying out the
purposes of this Ordinance.
(2) In particular, and without prejudice to the generality of the powers
conferred by sub-section(1), the Authority may:-
(i) incur any expenditure;
(ii) undertake any work in the Zones in pursuance of any scheme;
(iii) procure plants, machinery, instruments and material required for its
use;
(iv) enter into and perform all such contracts as it may consider necessary;
(v) cause studies, surveys, experiments and technical research to be made
or contribute towards the cost of any such studies, surveys,
experiments or technical research;
(vi) restrict or prohibit by general or special order any change in the use of
land and alteration in buildings and installations; and
(vii) cause removal of any work obstructing the execution of any of its
schemes.
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 CHAPTER – IV
ACQUISITIION OF LAND

13. Liability to acquisition.- All land within the Zones shall be liable to
acquisition at any time in accordance with the provisions of this
Chapter.

14. Acquisition of Land.- (1) Where any land or interest in any land within
any Zone is required by the Authority for any of its purposes, that land
or interest shall be acquired under the Land Acquisition Act, 1894 (I of
1894), by the Provincial Government concerned at the request of the
Authority.
(2) The acquisition of land or interest therein shall, for the purposes of the
Land Acquisition Act. 1894(I of 1894), be deemed to be required for a
public purpose.

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 CHAPTER – V
ESTABLISHMENT

15. Establishment.- (1) The Authority may, from time to time, appoint
such officers, servants, experts or consultants as it may consider
necessary for the performance of its functions, on such terms and
conditions as it may deem fit;

Provided that the Chairman may, in cases of urgency, appoint such

officers, servants, experts or consultants and on such terms and
conditions as he deems fit, subject to subsequent approval by the
Board.
(2) The Authority shall be competent to take disciplinary action against
its officers and servants.

16. Chairman, members, officers, etc., to be public servants.- The

Chairman, members, officers, servants, experts and consultants of
the Authority shall, when acting or purporting to act in pursuance of
any of the provisions of this Ordinance, be deemed to be public
servants within the meaning of section 21 of the Pakistan Penal
Code (Act XLV of 1860).

17. Indemnity.- No suit, prosecution or other legal proceeding shall lie

against the Authority, the Chairman, any member, officer, servant,
expert, or consultant of the Authority in respect of anything done or
intended to be done in good faith under this Ordinance.

18. Delegation of powers.- The Authority may, by general or special

orders, delegate to the Chairman or a member or officer of the
Authority any of its powers, duties or functions under this Ordinance,
subject to such conditions as it may think fit to impose.

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 CHAPTER – VI
FINANCE

19. Authority’s Fund.- (1) There shall be established a fund to be

known as the Export Processing Zones Authority Fund which shall
vest in the Authority and shall be utilized by the Authority, in
accordance with the general or specific directions of the Federal
Government to meet charges in connection with its functions under
this Ordinance, including the payment of salaries and other
remuneration to the Chairman, members, officers, servants, experts
and consultants of the Authority.

2) The Export Processing Zones Authority Fund shall consist of:-

(a) grants made by the Federal Government;

(b) loans obtained from Government;
© grants made by the local bodies;
(d) sale proceeds of moveable and immoveable property and
receipts for services rendered;
(e) Loans obtained by the Authority with the special or general
sanction of the Federal Government;
(f) foreign aid and loans obtained from any source outside
Pakistan with the sanction of, and on such terms as may be
approved by, the Federal Government;
(g) all rates, taxes, fees, charges levied and fines imposed by the
Authority under the regulations made under this Ordinance;
(h) all revenues derived by the Authority from any property
administered by the Authority; and
(i) all other sums receivable by the Authority.

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 CHAPTER – VI
FINANCE

20. Authority to be deemed to be a local Authority.- The Authority shall

be deemed to be a local authority within the meaning of the Local
Authorities Loans Act. 1914 (IX of 1914), for the purpose of borrowing
money in accordance with the said Act and the execution of any
scheme under this Ordinance shall be deemed to be a work which
such authority is legally authorized to carry out.

21. Borrowing, etc., by the Authority.- The Authority may, with the prior
approval in writing of the Federal Government, raise funds for the
purpose of its working capital by issuing bonds and debentures
carrying interest at such rates as may be approved by the Federal
Government.

22. Budget.- In the month of January each year, the Authority shall submit
to the Federal Government for approval a statement of the estimated
receipts and expenditure in respect of the next financial year in such
manner and form as may be prescribed.

23. Audit and accounts.- (1) The Accounts of the Authority shall be
audited every year by the Auditor-General of Pakistan in such manner
as may be prescribed.
(2) Copies of the audit report shall be sent to the Authority and the
Authority shall send the report along with its comments to the Federal
Government.
(3) The audit report shall be available for public inspection.
(4) The Federal Government may issue directions to the Authority for the
rectification of matters objected to by the Auditor-General and the
Authority shall comply with every such direction.

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 CHAPTER – VII
MISCELLANEOUS

24. Disputes to be referred to arbitration.-(1) Any dispute relating to the

interpretation of the provisions of any agreement made under any
scheme prepared under section 10 between the Authority and an
investor or the rights of the parties to such agreement or any rights
conferred or any liability imposed by this Ordinance shall be referred
for arbitration to an arbitrator appointed by the parties.
2) Any award made upon such reference shall be final and binding on
the parties and shall not be subject to any appeal or any other
remedy.
(3) The provisions of the Arbitration Act, 1940, (X of 1940) shall, so far as
they can be made applicable, apply to arbitrations under sub - section
(1).

25. Power to exempt.- The Federal Government may, by notification in

the official Gazette, exempt any Zone from the operation of all or any
of the provisions of any law for the time being in force which relates to
any matter within the legislative competence of Parliament.

26. Power to make rules.- The Federal Government may, by notification

in the official Gazette, make rules for carrying out the purposes of this
Ordinance.

27. Power to make regulations.- (1) The Authority may, with the
approval of the Federal Government, make regulations, not
inconsistent with the provisions of this Ordinance or the rules, for
carrying out the purposes of this Ordinance.
2) In particular and without prejudice to the generality of the foregoing
power, such regulations may provide for the levy of fees, rates and
charges for services rendered by the Authority.

GENERAL M. ZIA-UL-HAQ
PRESIDENT

K. M. A. SAMDANI
SECRETARY
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