INDUSTRIAL DEVELOPMENT BOARD ACT, 1973
(Pb. Act XXIII of 1973)
1. Short title, extent
CONSTITUTION OF THE BOARD
3. Constitution of the
5. Board of Directors.
6. Managing Director.
7. Disqualification of
Managing Director and Directors.
8. Removal of Managing
Director and Directors.
9. Resignation by or
removal of Managing Director or Directors.
10. Appointment of
11. Declaration of
fidelity and secrecy.
12. Financial and
technical advisory committees.
13. Immunity of the
Board and its employees.
14. Delegation of
15. Meetings of the
16. Power of Board to
associate other persons.
POWERS, DUTIES AND
FUNCTIONS OF THE BOARD
17. Powers, duties and
functions of the Board.
19. Functions of the
20. Board Fund.
21. Board to be deemed a
22. Custody and
investment of Industrial Development Fund.
23. Maintenance of
24. Audit of accounts.
25. Reports to be
furnished to Government.
26. Winding up.
27. Power to make rules.
28. Power to make
INDUSTRIAL DEVELOPMENT BOARD ACT, 1973
(Pb Act XXIII of 1973)
An Act to provide for the establishment of an
Industrial Development Board in the Punjab
Preamble.— WHEREAS it is expedient to
make provisions for the establishment of an Industrial Development Board in
Punjab to establish, manage, control and run industries
in the public sector;
It is hereby enacted as follows:-
1. Short title, extent and commencement.—
(1) This Act may be called the Punjab Industrial Development Board Act,
(2) It extends to the whole of the
Province of the
Punjab and shall come into force at once.
(3) It shall apply to the industries
mentioned in the Schedule.
(4) Government may, at any time, by
notification in the official Gazette, add to or delete from the industries
mentioned in the Schedule and such notifications shall be laid before the
2. Definitions.— In this Act, unless
there is anything repugnant in the subject or context,—
(a) “Board” means the Punjab
Industrial Development Board;
(b) “Board of Directors” means the Board of Directors of the
(c) “Chairman” means the Chairman of
(d) “company” means a company
as defined in the Companies Act, 1913,
and promoted and established by the Board for managing and running one or
more of the industries;
(e) “Director” means Director of the
(f) “Government” means Government of
(g) “industries” means the industries
mentioned in the Schedule;
(h) “Managing Director” means the Managing
Director of the [Board];
(i) “prescribed” means prescribed by
(j) “regulations” means regulations
made under this Act;
(k) “rules” means rules made under
(l) “Schedule” means Schedule to
(m) “Scheduled Bank” means a bank for
the time being included in the list of banks maintained under sub-section
(1) of section 37 of the State Bank of Pakistan Act, 1956; and
(n) “specified” means specified by
CONSTITUTION OF THE BOARD
3. Constitution of the Board.— (1) As
soon as may be after the commencement of this Act, there shall be
established a Board to be known as the Punjab Industrial Development Board.
(2) The Board shall be a body corporate
and shall have the power to acquire and hold property, both movable and
immovable, subject to the provisions of this Act and shall have perpetual
succession and a common seal and shall by the said name sue and be sued.
(3) The Head Office of the Board shall
be at Lahore.
4. Management.— (1) The
administration and management of the Board and its affairs shall vest in a
Board of Directors which may exercise all powers and do all such acts and
things as may be exercised or done by the Board in accordance with the
provisions of this Act.
(2) The Board shall, in discharging its
functions, act on commercial and national considerations and shall be guided
by such directions as Government may give to it from time to time.
(3) Government may suspend the
execution of any such resolution or order of the Board as in the opinion of
Government contravenes the provisions of this Act, the rules, the
regulations framed under this Act, or, the directions mentioned in
sub-section (2), or prohibit the doing of any act which is to be done or is
being done in pursuance of the said resolution or order, or, if the act has
been accomplished, order its rectification in such manner as may be
5. Board of Directors.—
(1) Subject to the provisions of sub-section (2), the Board shall consist of
a Chairman [,
a Vice Chairman] and the following Directors:-
(i) Secretary to Government of the
Punjab, Finance Department, or his nominee not below the rank of a Deputy
(ii) Secretary to the Government of the Punjab, Industries
Department, or his nominee not below the rank of a Deputy Secretary;
[the Managing Director
of the Board]; and
(iv) the Chairman, Planning and
Development Board, Government of the Punjab;
(2) The Chairman
[and the Vice Chairman]
shall be appointed by Government.
(3) Government may, by notification in the official Gazette, alter
the membership of the Board or increase or decrease the number of Directors.
6. Managing Director.— (1) The
Managing Director shall be appointed by Government.
(2) The Managing Director shall
be the chief executive of the [Board]
under his control and shall—
(a) be a whole-time officer of
(b) perform such duties as may be
specified or as may be assigned to him;
(c) hold office as Managing
Director for a term of three years
[or for such lesser
term as is specified in the order of his appointment] and shall remain in
office as Managing Director thereafter for three months or until a successor
in that office is appointed, whichever is earlier;
(d) receive such salary and
allowances as Government may determine;
(e) divest himself of any directorship of, or other interest
held by him in, any other corporation, company or concern; and
(f) not become a Director of, or
acquire any share or other interest in, any other corporation, company or
concern during his term of office:
Provided that nothing in this clause shall prevent
the Managing Director from holding shares in any public company acquired by
him before his appointment as such but he shall declare such shares to
Government at the time of his appointment:
Provided further that Government may, in exceptional
circumstances, where it considers necessary to do so in the public interest,
exempt by a special order any person who has been appointed or is about to
be appointed as Managing Director from the application of this clause.
(3) Nothing in this section shall
preclude Government from extending the term of office of any Managing
Director for such period as Government may determine.
Disqualification of Managing Director and Directors.—
No person shall be appointed as Managing Director or Director, or, as the
case may be, shall continue to be a Managing Director or Director who—
(a) is, or at any time has been,
convicted of any offence involving moral turpitude;
(b) is, or at any time has been,
disqualified for appointment in or dismissed from Government service;
(c) is, or at any time has been,
(d) is found a lunatic or becomes of
(e) is not a citizen of Pakistan; or
(f) is less than twenty-five years of
Removal of Managing Director and Directors.—
Government may, by order in writing, remove the Managing Director or a
Director, as the case may be, after giving him an opportunity of being heard
(a) refuses or fails to discharge or
becomes, in the opinion of Government, incapable of discharging his
responsibilities under this Act;
(b) has, in the opinion of Government
abused his position as Managing Director or Director; or
(c) has knowingly acquired or continued
to hold, without the permission in writing of Government, directly or
indirectly, or through a partner, any share or interest in any contract or
employment with, or on behalf of the Board, or in any property, which, in
his knowledge, is likely to benefit or has benefitted him as a result of the
operations of the Board.
Resignation by or removal of Managing Director or Directors.—
Notwithstanding anything contained in this Act, the Managing Director or a
Director may, at any time before the expiry of his term and upon three
months’ notice, resign his office, or upon similar notice, be removed from
office by Government without assigning any reason:
Provided that Government may, in case of the Managing Director or a
Director, upon payment of three months’ salary and allowances in lieu of the
notice, remove him immediately without assigning any reason.
Appointment of officers, etc.—
The Board may appoint such officers, advisers, experts, consultants, and
employees, as it considers necessary for the efficient performance of its
functions on such terms and conditions as it may deem fit, subject to such
general or special directions as Government may give to it from time to time
in this behalf.
11. Declaration of fidelity and
secrecy.— (1) Every Director, Adviser, Officer, Expert, Consultant, and
employee of the Board shall, before entering upon his office, make such
declaration of fidelity and secrecy as may be specified.
(2) Any Director, Adviser, Officer,
Expert, Consultant or other employee of the Board who, in the opinion of the
Government, has violated the declaration of fidelity and secrecy made by him
under sub-section (1) shall be liable, after being given a reasonable
opportunity of showing cause against the action proposed to be taken with
respect to him, be forthwith removed from his office or post.
12. Financial and technical advisory
committees.— The Board may constitute such financial, technical and
advisory committees as may be deemed necessary for carrying out the purposes
of this Act.
13. Immunity of the Board and its
employees.— (1) Every Director, Adviser, Officer, Expert, Consultant and
employee of the Board shall be indemnified by the Board against all losses
and expenses sustained or incurred by him in the discharge of the duties of
his office, save such losses and expenses as are sustained and incurred as a
result of his own wilful act or default.
(2) The Managing Director shall not be personally responsible for
the acts of any other Director, Adviser, Officer, Expert, Consultant or
employee of the Board which he could not have reasonably prevented by the
due exercise of his powers and functions under this Act and the rules and
regulations made thereunder or for any loss or expense resulting to the
Board by reason of the insufficiency or deficiency in value of or title to
any property or security acquired or taken on behalf of the Board, by
wrongful act of any person under a liability to the Board, or anything done
by him in good faith in execution of the duties of his office.
14. Delegation of powers.—
The Board may, by general or special order, delegate to the Chairman
[,the Vice Chairman], Managing
Director, Directors, Advisers, Officers, Experts, Consultants or employees
of the Board any of its powers, duties or functions under this Act and the
rules and regulations made thereunder subject to such conditions as it may
deem fit to impose.
15. Meetings of the Board.— (1) The
meetings of the Board shall be held at such time and place as may be
Provided that sixty days shall not
intervene between the two meetings:
Provided further that until regulations
are made in this behalf, such meetings shall be held at such time and place
as may be determined by the Chairman.
(2) The quorum required for transacting
business at a meeting of the Board shall be three.
[(3) Each Director
including the Chairman and the Vice Chairman shall have one vote but in the
event of equality of votes the Chairman or if the Vice Chairman is presiding
over the meeting in the absence of the Chairman, the Vice Chairman shall
have a casting vote.
(4) The meetings of the Board of
Directors shall be presided over by the Chairman and in his absence by the
Vice Chairman and in the absence of both by a Director elected for the
purpose by the Directors present from amongst themselves.]
(5) No act or proceedings of the Board
of Directors shall be invalid merely on the ground of existence of any
vacancy in the Board.
(6) The minutes of every meeting, stating among other things, the
names of the Directors present, shall be drawn up and recorded in a book to
be kept for the purpose and shall be signed by the person presiding over the
meeting and such book shall, at all reasonable times and without payment of
any fee, be open to inspection by the Directors.
Government may require a Managing Director to furnish to it—
(a) any return, statement,
estimate, statistics or other information regarding any matter under the
control of the Board;
(b) a report on any such matter ;
(c) a copy of any document in his
and the Managing Director shall comply with
any such requisition without any undue delay.
(8) A Managing Director shall prepare
and submit a quarterly report to the Board.
16. Power of Board to associate other
persons.— (1) The Board of Directors may associate with itself, in such
manner, on such terms and for such period as it may deem fit, any person
whose assistance or advice it may desire in carrying out any of the
provisions of this Act.
(2) A person associated under
sub-section (1) for any purpose shall have right to take part in the
discussion relating to such purpose in the meetings of the Board but shall
not have right to vote, and shall not be deemed to be a Director for that or
any other purpose.
POWERS, DUTIES AND FUNCTIONS OF THE BOARD
17. Powers, duties and functions of the
Board.— (1) In accordance with the provisions of this Act, and subject
to such general or special order as Government may give from time to time,
the Board shall take measures to prepare schemes to establish, manage and
run the industries on commercial and national considerations.
(2) In particular the Board may, in
order to carry out the purposes of this Act—
(a) form and establish companies to manage and run the
industries as are established in the manner aforesaid;
(b) manage on behalf of
Government the shares purchased by Government in the issued capital of
companies established by the Board;
(c) subscribe to the capital of these companies to such extent
as may be necessary;
(d) act as Managing Agents of the
companies established by the Board;
(e) give short and medium term
loans or furnish guarantees to the scheduled banks for loans to the
companies established by the Board in the manner aforesaid; and
(f) establish, manage and run
industries under its direct control.
[(3) The Board may,
with the approval of Government and in such manner as Government may direct,
sell or transfer its shares in or otherwise dispose off the assets of, the
companies and projects established by it.]
18. Loans.— The Board may negotiate
and obtain for its industries established under section 17 of this Act loans
in local and foreign currency from the local or international financial
Provided that in the case of loans from
international financial institutions the Board shall act with the prior
approval of Government.
19. Functions of the Board.— The
Board shall also be responsible for—
(a) preparing plans in respect of
industries to be established in the public sector;
(b) undertaking or causing to be
undertaken studies to determine economic and technical feasibility of the
industries to be established by the Board;
(c) presenting to Government schemes
for establishment of industries for obtaining its approval;
(d) implementing and executing the
schemes approved by Government;
(e) taking over, managing and
running such industries as Govern-ment may from time to time decide to hand
over to the Board;
(f) participating in national and
international fairs and exhibitions; and
(g) undertaking such other functions as are necessary for the
successful execution and management of the industries.
20. Board Fund.—
(1) There shall be a fund to be known as the Punjab Industrial Development
Board Fund which shall vest in the Board, and which shall be utilised by the
Board to meet charges in connection with its functions under this Act
including salaries and other remunerations of the Chairman
Managing Director, Directors, Advisers, Experts, Consultants, Officers and
other employees of the Board.
(2) The Punjab Industrial Development
Board Fund shall consist of—
(a) investment made by
(b) grants made by Government;
(c) loans obtained from
(d) charges for the management of
industries under the direct control of the Board;
(e) Managing Agency commission in
respect of companies managed by the Board;
(f) loans obtained from the
(g) foreign loans obtained by the
(h) all other sums received by
21. Board to be deemed a local
authority.— The Board shall be deemed to be a local authority under the
Local Authorities Loans Act, 1914 for the purposes of borrowing money under
the said Act and the making and execution of any scheme under this Act shall
be deemed to be a work which such authority is legally authorised to carry
22. Custody and investment of Industrial
Development Fund.— (1) All moneys at the credit of the Board shall be
kept in such manner as may be prescribed.
(2) Nothing in sub-section (1) shall be
deemed to preclude the Board from investing any such moneys which are not
required for immediate expenditure in any of the securities described in
section 20 of the Trusts Act, 1889, in fixed deposits with a bank approved
by Government or in such other manner as Government may direct.
23. Maintenance of accounts.— The
Board shall maintain complete and accurate accounts in such manner as may be
24. Audit of accounts.— The accounts
of the Board shall be audited in such manner as may be directed by
25. Reports to be furnished to
Government.— (1) The Board shall furnish to Government, as soon as
possible, after the close of each financial year an audited statement in the
prescribed form in respect of the assets and liabilities of its industries
and in respect of its transactions as they stand at the close of that year,
together with a profit and loss account for that year and a full report on
the working of the Board during the year and copies of the said statements,
accounts and report shall be published in the official Gazette.
(2) The Board shall submit to
Government its proposals for the ensuing financial year at such time and in
such manner as may be prescribed.
26. Winding up.— (1) No provision of
law relating to winding up of companies shall apply to the Board.
(2) When, in the opinion of Government,
it is expedient that the Board shall cease to exist, Government may, by
notification in the official Gazette, declare that the Board shall be
dissolved from such date as may be specified in this behalf in such
notification and the Board shall be deemed to be dissolved accordingly, from
(a) all properties, funds and dues which are vested in or
realisable by the Board and the Chairman, respectively shall vest in and be
realisable by an Administrator or any other officer appointed by Government
in this behalf;
(b) all liabilities which are enforceable against the Board
shall be enforceable only against the Administrator or any other officer
appointed by Government in this behalf;
(c) for the purposes of completing the execution of any
scheme, sanctioned under this Act, which has not been fully executed by the
Board and of realising properties, funds and dues referred to in clause (a)
the functions of the Board and the Chairman under this Act shall be
discharged by the Administrator or any other officer appointed by Government
in this behalf;
(d) the Administrator or any other officer appointed by
Government shall keep separate accounts of all moneys respectively received
and expended by him under this Act, until all loans raised hereunder have
been repaid and until all liabilities referred to in clause (b) have been
duly met; and
(e) the Administrator or any
other officer appointed by Government in this behalf shall have power to
dispose of the properties, assets, rights, etc., of the Board in such manner
as Government may direct from time to time.
(3) Any properties and assets left over
after all the liabilities of the Board have been discharged shall vest in
Government and all liabilities left undischarged after all the properties
and assets of the Board have been disposed of, shall become the liabilities
(4) The Administrator or any other officer appointed by Government
in this behalf may delegate any of his powers under this section to any
officer of Government or to any officer of the Board to such extent and on
such terms and conditions as may be approved by Government.
27. Power to make rules.— (1)
Government may make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice
to the generality of the foregoing provisions, such rules may provide for—
(a) the manner and form of
keeping the accounts of the Board;
(b) recruitment of officers,
advisers, consultants, experts and other employees of the Board;
(c) terms and conditions of
service of the officers, advisers, consultants, experts and other employees
of the Board;
(d) functions of the Advisers;
(e) borrowing by the Board;
(f) the date on which and the
form in which the annual budget statement of the Board shall be submitted
(g) procedure for appropriation and re-appropriation of moneys
at the credit of the Board;
(h) manner and form in which and
the authorities to whom returns, reports or statements shall be submitted;
(i) investment of Board funds
and surplus moneys;
(j) sale or transfer of
industries and other immovable property of the Board ; and
(k) such other matters relating
to the administration and other affairs of the Board as the Government may
think fit to prescribed by rules.
Power to make regulations.—
The Board may, with the previous approval of Government make regulations for
all matters not provided for in the rules for which provision is necessary
or expedient for carrying out the purposes of this Act and the rules.
29. Repeal.— The Punjab Industrial
Development Board Ordinance, 1973 (Punjab Ordinance No. XI of 1973), is
1. Cotton Textiles.
2. Cotton Ginning and Pressing.
4. Rice Milling.
5. Flour Milling.
6. Vegetable Oil and Hydrogenated Vegetable