The Pakistan
Telecommunication Corporation Act, 1991
XVIII OF 1991
27th November, 1991
An Act to establish a Pakistan Telecommunication Corporation
Whereas, it is expedient to
establish a Pakistan Telecommunication Corporation and to provide for matters connected
therewith or incidental thereto;
1. Short title, extent and commencement. - (1) This Act may be called the Pakistan Telecommunication
Corporation Act, 1991.
2) It extends to the whole of Pakistan
3) It shall come into force at once.
2. Definitions.-In this Act, unless
there is anything repugnant in the subject or context,---
(a) 'Auditor-General' means the Auditor-General of Pakistan
(b) 'Board' means the Board of Directors of the Corporation;
(c) 'Chairman' means the Chairman of the Corporation;
(d) 'Corporation' means the Pakistan Telecommunication
Corporation established under this Ordinance;
(e) 'Departmental employees' means employees belonging to the
Pakistan Telegraph and Telephone Department and includes employees of the said
Department who may, for the time being, be serving in other organizations, but
does not include members of the accounts group or secretariat group or other
employees of external organizations who may be serving in the said Department;
(f) 'Director' means a Director of the Corporation;
(g) 'Regulations' means Regulations made under this Act;
(h) 'telecommunication' means transmission, omission or
reception of signs, signals, writing, speech, image, sound or intelligence of
any nature by wire, radio, optical or other magnetic system;
(i) 'telecommunication installations and plant' includes
buildings, land, interests in land, exchanges, machinery, apparatus, equipment,
plant, cables, aerials, masts posts, lines, wires, stores, vehicles and any
other appliances or accessories used for, or in connection with, a
telecommunication service;
(j) 'Telegraph' has the same meaning as in the Telegraph Act,
1885 (XIII of 1885).
3. Establishment of the corporation.-(1) As from the commencement of this Act, there shall be
established for carrying out the purposes of this Act a Corporation to be known
as the Pakistan Telecommunication Corporation.
(2) The Corporation shall be a body corporate having perpetual
succession and a common seal with power to acquire, hold and dispose of property
and shall by the name specified in sub-section (1) sue and be used.
4. The Board.-(l) The general
direction and administration of the affairs of the Corporation shall vest in
the Board, which may exercise all powers and do all acts which may be exercised
or done by the Corporation.
(2) The Board shall consist of the following Directors appointed
by the Federal Government, namely:---
(i) the Chairman; and
(ii) not more than eleven other Directors, of whom not less than
two shall be professional telecommunication engineers.
(3) If and when any shares of the Corporation are to be issued
to the private sector, the Federal Government shall determine the number of
Directors to be elected to represent the private share-holders and prescribe
the procedure for their election:
Provided that the aggregate number of Directors appointed under sub-section (2) and those elected under this sub-section shall not exceed eleven.
Provided that the aggregate number of Directors appointed under sub-section (2) and those elected under this sub-section shall not exceed eleven.
(4) The Chairman shall be a whole-time officer and the Chief
Executive of the Corporation and shall normally hold office for a term of three
years and be subject to such terms and conditions of service, as the Federal
Government may determine.
(5) A Director shall hold office for a term of three years.
(6) Any person ceasing to be Chairman by reason of expiry of the
term of his office shall be eligible for re-appointment for another term or for
such shorter term as the Federal Government may decide.
(7) The Chairman may at any time resign his office, but his
resignation shall not take effect until it has been accepted by the Federal
Government.
(8) The meetings of the Board shall be held at such times and
places as may be provided for by regulations or, until regulations are made in
this behalf, as and when convened by the Chairman.
(9) To constitute a quorum at a meeting of the Board, the
Chairman or, in his absence, a Director elected by the Board for the purpose
and five other Directors shall be present.
(10) The Chairman or, in his absence a Director elected by the
Board for the purpose shall preside at the meetings of the Board.
(11) No Act or proceeding of the Board shall be invalid by
reason only of the existence of a vacancy in, or defect in the constitution of
the Board.
5. Delegation of powers.-The
Board may, from time to time, delegate any of its powers to the Chairman, any
Committee constituted by it, or any officer of the Corporation, subject to such
conditions as the Board may determine.
6. Purposes and functions of Corporation. (1) The purposes and functions of the Corporation shall be,---
(i) to establish, maintain and operate telecommunications;
(ii) to plan, promote, organize and implement programmes for the
provision of telecommunication services in all parts of Pakistan, including
cities, towns and villages, and the territorial waters of Pakistan, and on
board ships, aircraft and spacecraft;
(iii) to promote, establish, acquire, own, run, manage or
participate in running or management of any undertaking to manufacture of
telecommunication plant and equipment in Pakistan, to engage in Research and
Development in Telecommunication and to promote the transfer of technology to
Pakistan;
(iv) to make such provisions as appears to it to be appropriate
for advancing the skills of its employees by education, training and otherwise,
and to promote, within reasonable limits, the welfare of its employees;
(v) to conduct and assist research, experiments or trials for
the improvement of methods of telecommunication;
(vi) to advise Government on matters relating to
telecommunication services and on matters pertaining to the Corporation
generally, and to provide consultancy services- in the field of
telecommunications;
(vii) to maintain liaison with. foreign telecommunication
administrations, and international organizations pertaining to
telecommunications;
(viii) to acquire, hold or dispose of any property, whether
movable or immovable or any telecommunication undertaking;
(ix) to open, operate and maintain bank accounts;
(x) to borrow domestic or foreign funds on such terms and
conditions as may be approved by the Board;
(xi) to seek contracts and provide telecommunication services
and goods abroad; and
(xii) to perform any other function which is supplemental,
incidental or consequential to any of the purposes and functions aforesaid.
(2) Subject to such conditions as the Federal Government may
impose from time to time the Corporation shall be deemed to have been granted a
licence by the Federal Government to establish, maintain and operate telegraphs
throughout Pakistan and between Pakistan and other countries,' within the
meaning of section 4 of the Telegraph Act, 1885 (XIII of 1885).
(2A) Without prejudice to any provision of this Act, any power,
privileges or concession granted to the Pakistan Telegraph and Telephone
Department shall, mutatis mutandis, be deemed to have been granted to the
Corporation.
(3) In performing its functions, the Corporation shall have
regard,---
(i) to the desirability of improving and developing its
operating systems;
(ii) to technological developments in the field of telecommunication;
(iii) to efficiency and economy; and
(iv) to commercial viability and social benefits.
(4) In performing its functions, the Corporation shall be guided
on questions of policy by the instructions of the Federal Government in the
light of the letter and spirit of this Act and any other Act passed by the
Parliament.
(5) The Corporation may take such measures and exercise such
power as it considers necessary or expedient for currying out the purposes of
this Act and these may include establishing subsidiary companies for operating
and developing telecommunication faculties in a region for a specific field of
activity.
(6) Nothing in the preceding sections shall be taken to preclude
the Corporation for justificable reasons from interrupting, suspending or
restricting services provided by it, or be construed as imposing upon the
Corporation, either directly or indirectly, any form of duty or liability
enforceable by proceedings before any Court.
7. Plans and schemes.-(1) The Corporations
shall from time to time prepare for the approval of the Federal Government
five-years plan and, if necessary, perspective plans, for the development of
telecommunications and for the furtherance of its purposes and functions under
this Act, and matter incidental thereto.
(2) The Corporation may frame a scheme or schemes for all or any
of the following matters, namely:---
(i) expansion and development of the Corporation's
telecommunication system in urban and rural areas;
(ii) introduction of new telecommunication services in Pakistan
(iii) research and development in the field of
telecommunication;
(iv) replacement of assets;
(v) improvements in the quality and grade of telecommunication
services;
(vi) training of the Corporation's employees;
(vii) promotion or establishment of facilities in Pakistan
(viii) development and maintenance of software for
telecommunication;
(ix) welfare of the Corporation's employees; and
(x) any other matter pertaining to the purposes and functions of
the Corporation or incidental thereto.
(3) The Board may finally approve any scheme prepared under
sub-section (2), provided the scheme is covered by any overall plan approved by
the Federal Government.
8. Officers-and servants.-(1)
The Corporation may from time to time employ such officers and servants and
appoint such experts or consultants, as it may consider necessary for the
performance of its functions, on such terms and conditions as it may deem fit.
(2) The Corporation shall prescribe by regulations the procedure
for appointment of its officers, servants, experts and consultants, and the
terms and conditions of their service.
(3) Notwithstanding anything contained in subsections (1)&
(2) any rules or regulation made, or orders or instructions issued, by the
Corporation, or in the terms and conditions of service of any person employed
by or serving under the Corporation, the Corporation may at any time take
disciplinary action under the Rules to be prescribed:
Provided that disciplinary action or removal from service of the Corporation shall be taken or affected after giving the person affected an opportunity of being heard.
Provided that disciplinary action or removal from service of the Corporation shall be taken or affected after giving the person affected an opportunity of being heard.
9. Transfer of departmental employees to the Corporation.-(1) Notwithstanding anything contained in any law, contract or
agreement, or in the conditions of services, all departmental employees shall,
on the establishment of the Corporation, stand transferred to, and become
employees of the Corporation, on the same terms and conditions to which they
were entitled immediately before such transfer, provided that the Corporation
shall be competent to take disciplinary action against any such employee.
(2) The terms and conditions of service of any such person as is
referred to in sub-section (1) shall not be varied by the Corporation to his
disadvantages.
(3) Notwithstanding anything contained in any law for the time
being in force, no person who stands transferred to the Corporation by virtue
of sub-section (1) shall be entitled to any compensation because of such
transfer.
10. Chairman, etc., to be public servants.-(l) The Chairman Directors, officers and servants of the
Corporation shall, when acting or purporting to act in pursuance of any of the
provisions of this Act, be deemed to be public servants within the meaning of
section 21 of the Pakistan Penal Code (Act XLV of 1860)
(2) No suit, prosecution or legal proceedings shall lie against
the Corporation, the Chairman, the Directors or officers and servants of the
Corporation, in respect of anything done or intended to be done in good faith
under this Act.
11. Reports and return.-(l) The Corporation
shall submit to the Federal Government, as soon as possible after the end of
every financial year, but before the last day of December, next falling, a
report on the conduct of its affairs for that year.
(2) The Federal Government shall cause to be laid before the
National Assembly and the Senate a copy of the report mentioned in sub-section
(1), together with a copy of the audit report referred to in section 18.
(3) The Corporation shall brief the Committees of the Senate and
the National Assembly about its activities and future plans as and when so
required by the said Committees.
(4) The Federal Government may require the Corporation to
furnish it with-
(i) any return, statement, estimate, statistics or other
information regarding any matter under the control of the Corporation; or
(ii) a report on any such matter; or
(iii) a copy of any document in the charge of the Corporation;
and the Corporation shall comply with every such requisition,
12. Transfer of assets and liabilities of Telegraph and
Telephone Department.-(l) As from the
commencement of this Act, all assets including telecommunication installations
and plant, vested in the Pakistan Telegraph and Telephone Department shall vest
in the Corporation, and all liabilities of the said Department in respect of
the said assets shall be the liability of the Corporation.
(2) All contracts made all liabilities incurred by the Pakistan
Telegraph and Telephone Department before the commencement of this Act shall be
deemed to be made or incurred by the Corporation and shall be enforceable
accordingly.
13. Share capital.-(l) The authorised
share capital of the Corporation shall, in the first instance, be thirty
billion rupees divided into three billion shares of ten rupees each, but it may
be increased by the Federal Government from time to time.
(2) The subscribed and paid-up capital of the Corporation shall,
in the first instance, be ten billion rupees divided into one billion, shares
often rupees each.
(3) The initial allotment of shares shall be made to the Federal
Government out of the networth of the Pakistan Telegraph and Telephone
Department determined by the Auditor-General, being the excess of historic cost
less depreciation of the fixed assets plus other assets over the liabilities
vested in the Corporation under section 12 in such sum as the Federal
Government may desire.
(4) The Federal Government may at any time authorise the
Corporation to increase the subscribed and paid-up capital to be allotted to
the Federal Government or the general public.
(5) The dividend on the shares capital by the Federal Government
shall not exceed seven per cent per annum. [Sub-section omitted by Act VII of
1996, (PLD 1996 Central St. p. 1948]
14. PT&T Government Investment Fund Account.--The balance of the aforesaid ‘networth’ after initial
allotment of. shares will be transferred to a loan account to be named
'PT&T Federal Government Investment Fund Account' which will bear a mark-up
of seven per cent per annum payable to the Federal Government.
15. Liability of Federal Government to be limited.-The liability of the Federal Government to the creditors of the
Corporation shall be limited to the extent of grants made by the Federal
Government and the loan raised by the Corporation with the sanction of the
Federal Government.
16. Tariffs for provisions of telecommunication services.-(l) The tariffs at which the Corporation may provide
telecommunication services to users in Pakistan shall be determined by the
Board with the prior approval of the Federal Government:
Provided that the Corporation may reduce any of the said tariffs with the prior approval of the Board:---
Provided that the Corporation may reduce any of the said tariffs with the prior approval of the Board:---
Provided further that the tariffs being charged by the Pakistan
Telegraph and Telephone Department immediately before the commencement of this
Ordinance shall be deemed to have been approved by the Federal Government.
(2) In fixing the tariffs as aforesaid, the Board shall take
into account the cost of providing services and the need to mobilize funds for
the development of telecommunications and to earn a reasonable return on the
investment.
(3) The Board may, from time to time, settle with foreign
telecommunication administrations rates at which accounts are to be settled
with the said administrations in respect of telecommunication traffic between
Pakistan and other countries:
Provided that, where revision of such rates results in an increase in collection charges from users in Pakistan, the approval of the Federal Government to such revision shall be obtained.
Provided that, where revision of such rates results in an increase in collection charges from users in Pakistan, the approval of the Federal Government to such revision shall be obtained.
(4) In the case of any conflict between tariffs determined under
sub-section (1), from time to time, and the rules framed under the Telegraph
Act, 1885 (XIII of 1885), the said rules shall, on and from the date of
determination of the said tariffs, stand amended to the extent necessary to
remove such conflict.
17. Exemption from taxes.-(l)
Notwithstanding anything contained in the Income Tax Ordinance, 1979 (XXXI of
1979), the Wealth-tax Act, 1963 (XV of 1963), or any other law for the time
being in force relating to income-tax, super tax, or wealth-tax, the
Corporation shall not be liable to pay any such tax on its income, profits or
gains for a period of five years.
(2) All goods imported by, or on behalf, of, the Corporation
shall be exempt from customs duty and sales tax for a period of five years.
18. Audit and accounts.-(l) The Corporation
shall maintain proper accounts and other records to reflect true and fair view
of its state of affairs and prepare annual statements of accounts, including
the profit and loss account and balance-sheet.
(2) The accounts of the Corporation shall be audited by an
auditor or auditors who shall be Chartered Accountants within the meaning of
the Chartered Accountants Ordinance, 1961 (XII of 1961), to be appointed by the
Board, within the prior approval of the Federal Government.
(3) Notwithstanding the audit provided for in the sub-section
(2), the Auditor-General shall have the power to audit or cause to be audited
the accounts of the Corporation.
(4) The Corporation shall produce such accounts and books and
connected documents, and furnish such explanations and information, as the
Auditor-General, or any officer authorised by him in this behalf, may require
for the purpose of the audit.
(5) Copies of the auditor report shall be sent to the
Corporation and to the Federal Government, and shall also be available for
public inspection.
(6) The Corporation shall comply with any directive issued by
the Federal Government or the Public Accounts Committee of the National
Assembly for the rectification of an audit objection.
19. Internal audit.-The Corporation
shall, in addition to the audit under section 18, cause to be carried out
internal audit of its accounts and the internal audit reports shall be
submitted to the Board through the Chairman.
20. Power to make regulations.-For
the purpose of carrying into effect the provisions of this Act, the Board may,
with the approval of the Federal Government, frame such regulations as it may
consider necessary or expedient.
21. Sale of assets and
services.-The Corporation may enter into joint ventures
for operation or expansion of its services or functions and may sell assets and
services.
22. Acquisition of land.--The
acquisition of any land, or any interest in land, for the Corporation, for any
scheme under this Act, for the establishment, maintenance and working of
telecommunications, or for matters directly connected therewith, shall be
deemed to be an acquisition for a public purpose within the meaning of the Land
Acquisition Act, 1894 (1 of 1894), and the provisions of the said Act shall
have effect accordingly.
23. Recovery of sums due to the Corporation.-Any sum payable to the Corporation in respect of any
telecommunication service rendered by the Corporation shall, in addition to any
other mode prescribed by law, be recoverable as an arrear of land revenue.
24. Winding up of Corporation.-No
provision of law relating to winding up of companies shall apply to the
Corporation and the Corporation shall not be wound up. Save by order of the
Federal Government and in such manner as the Federal Government may direct.
25. Removal of difficulties.-If
any difficulty arises in giving effect to any of the provisions of this Act,
the Federal Government may make such order, not inconsistent with the
provisions of this Act, as may appear to it to be necessary for the purpose of
removing the difficulty:---
Provided that no such order shall be made after the expiry of
one year from the commencement of this Act.
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