ACT NO. XVIII OF 2015
STATE BANK OF PAKISTAN (AMENDMENT)
An Act further to amend the State Bank of Pakistan Act, 1956
[Gazette of Pakistan, Extraordinary, 21st November, 2015]
No. F. 22(6)/2014-Legis.–The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 17th November, 2015 and is hereby published for general information:–
WHEREAS it is expedient further to amend the State Bank of Pakistan Act, 1956 (XXXIII of 1956) for the purposes hereinafter appearing;
It is hereby enacted as follows:–
1. Short title and commencement.–(1) This Act may be called the State Bank of Pakistan (Amendment) Act, 2015.
(2) It shall come into force at once.
2. Amendment of Section 2, Act XXXIII of 1956.–In the State Bank of Pakistan Act, 1956 (XXXIII of 1956), hereinafter referred to as the said Act, in Section 2,–
(a) Clause (a) shall be omitted;
(b) in Clause (e) and in subsequent provisions of the said Act, for the words “Central Board”, wherever occurring, the word “Board” shall be substituted;
(c) clauses (h) and (j) shall be omitted;
(d) in Clause (k), for the words “a Local Board”, the words “the Monitory Policy Committee” shall be substituted;
(e) in Clause (1),–
(i) the words “and one-rupee notes” shall be omitted; and (ii) for the word “are” the word “is” shall be substituted;
(f) in Clause (O), for full stop a semicolon and the word “; and” shall be substituted; and
(g) after Clause (O), amended as aforesaid, the following new clause shall be added, namely:–
“(p) “Monetary Policy Committee” means the Monetary Policy Committee established under Section 9D.”.
3. Substitution of Section 4, Act XXXIII of 1956.–In the said Act, for Section 4, the following shall be substituted, namely:–
“4. Share capital.–(1) The capital of the Bank shall be one hundred million Rupees, which shall be fully subscribed, paid-up and held exclusively by the Federal Government and shall not be transferable or subject to encumbrance.
(2) The capital may be increased by a resolution of the Board subject to the approval of the Federal Government and no reduction of the capital shall be permitted at any time.
(3) The nominal value, issue price, the manner in which the new shares may be issued and allotted and their assignment to the register of shareholders shall be determined by the Board.”
4. Omission of Sections 5, 6 and 7, Act XXXIII of 1956.–In the said Act, Sections 5, 6 and 7 shall be omitted.
5. Amendment of Section 8, Act XXXIII of 1956.–In the said Act, in Section 8, in sub-section (2) for the word “Federal Government” the word “Board” shall be substituted.
6. Amendment of Section 8A, Act XXXIII of 1956.–In the said Act, in Section 8A.–
(a) in Clause (c), the word “and”, occurring at the end, shall be omitted;
(b) the existing Clause (d) shall be re-numbered as Clause (e); and
(c) after Clause (c), amended as aforesaid, the following new clause shall be inserted, namely:–
“(d) for protection of depositors or establishment of a deposit protection fund; and”;
7. Amendment of Section 9, Act XXXIII of 1956.–In the said Act, in Section 9, in sub-section (1), after the brackets and the figure “(1), the expression “Subject to Section 9D,” shall be inserted.
8. Substitution of Section 9A, Act XXXIII of 1956.–In the said Act, for Section 9A, the following shall be substituted, namely:–
“9A. Functions and responsibilities of the Board.–(1) The Board, with the exception of the powers entrusted to the Monetary Policy Committee, shall perform the following functions, namely:–
(a) to define and determine policies of the Bank regarding the execution of its functions, and approve internal rules for their implementation; and
(b) oversee foreign exchange reserve management and approve strategic investment and risk policy.
(2) The Board shall submit a quarterly report to the Majlis-e-Shoora (Parliament) on the state of economy with special reference to economic growth, money supply, credit, balance of payment and price development.”
9. Amendment of Section 9B, Act XXXIII of 1956.–In the said Act, in Section 9B, in sub-section (6), for the word “constituency” the word “consistency” shall be substituted.
10. Amendment of Section 9C, Act XXXIII of 1956.–In the said Act, in Section 9C, in sub-section (2), for the word “eight” the word “twelve” shall be substituted.
11. Insertion of new sections, Act XXXIII of 1956.–In the said Act, after Section 9C, amended as aforesaid, the following new Sections shall be inserted, namely:–
“9D. Establishment of Monetary Policy Committee.–(1) There shall be a Monetary Policy Committee consisting of–
(a) Governor, or in his absence, a Deputy
Governor nominated by him Chairperson
(b) three senior executives of the Bank
to be nominated by the Governor Members
(c) three members of the Board, to be
nominated by the Board Members
(d) three external members, who shall
be economist, to be appointed by
the Federal Government on
recommendation of the Board. Members
(2) The external members of the Monetary Policy Committee shall be appointed for a period of three years and shall be eligible for re-appointment for another term of three years.
(3) The provisions of Sections 13 and 15 shall, mutatis mutandis, apply to external members of the Monetary Policy Committee.
(4) The services of a member of the Monetary Policy Committee shall be terminated or a member shall be removed from the Monetary Policy Committee in accordance with the procedure laid down in Section 15 for removal of a member on the following grounds, namely:–
(a) when that member becomes ineligible to serve on the Monetary Policy Committee pursuant to application of sub-section (3); or
(b) to whom grounds for removal of the members of the Board or termination of their appointments apply; or
(c) when that member contravenes the regulations of procedure of the Monetary Policy Committee.