FOREIGN CURRENCY LOANS
(RATE OF EXCHANGE) ORDER , 1982
[27th February, 1982]
Preamble : Whereas, for the removal of doubts, it is necessary to declare the matters hereinafter appearing, including the rate of exchange applicable for the purpose of repayment of loans advanced in foreign currencies;
Now, therefore, in pursuance of the Proclamation of the fifty 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 the following Order :-
- Short title, extent, application and commencement : (1) This Order may be called the Foreign Currency Loans (Rate of Exchange) Order, 1982.
(2) It extends to the whole of Pakistan and also applies to the business of a financial institution transacted outside Pakistan.
(3) It shall come into force at once.
- Definitions : In this Order, unless there is anything repugnant in the subject or context,:-
(a) “financial institution” means the Pakistan Industrial Credit and Investment Corporation Limited, the Industrial Development Bank of Pakistan, the National Development Finance Corporation, the Bankers Equity Limited and the Small Business Finance Corporation and includes any other financial institution advancing loans in foreign currencies which the Federal Government may, by notification in the official Gazette, declare to be a financial institution within the meaning of this Order.
(b) “foreign currency” has the same meaning as in the Foreign Exchange Regulation Act, 1947 (VII of 1947); and
(c) “loan” has the same meaning as in the Banking Companies (Recovery of Loans) Ordinance, 1979 (XIX of 1979).
- Rate of exchange applicable to foreign currency loans : For the removal of doubts, it is hereby declared that, notwithstanding anything contained in any other law for the time being in force, the judgment, of any Court or any agreement, contract or other instrument, the rate of exchange, for the purpose of conversion into Pakistan currency for repayment in respect of an outstanding foreign currency loan or any part thereof or interest in respect is thereof payable to a financial institution on the day of commencement of this Order shall be, and shall be deemed at all material times to have been, the rate of exchange in force under Section 23 of the State Bank of Pakistan Act, 1956 (XXXIII of 1956), on the day on which the loan, part or interest is actually repaid or paid to the financial institution; and all parties by whom the loan, part or interest is repayable or payable shall make the repayment or payment accordingly.
- Bar of jurisdiction, etc : (1) The provisions of this Order, or any order made thereunder, shall not be called in question in any Court on any ground whatsoever.
(2) Any order, writ, judgment, decision or decree of any Court, made, given, issued or passed before or after the commencement of this Order, which is inconsistent with the provisions of this Order, shall be null and void and of no effect.
- Removal of difficulty : The Federal Government may, for the removal of any difficulty in the operation of the provisions of this Order, or on the application of any person or financial institution facing hardship by reason of the operation of those provisions, make such order or issue such direction as it may deem fit; and such order or direction of the Federal Government shall be final