The Pakistan
ACT XVII OF 1996
17th October, 1996
An Act to
provide for
Re-organization of telecommunication system
Pakistan
(5) No Court shall take
cognizance of any offence punishable under this Act except on a complaint in
writing by an officer authorized by the Authority or the Board.
Whereas,
it is expedient to provide for reorganization of telecommunication system in Pakistan
It
is hereby enacted as follows:---
CHAPTER I
Preliminary
Preliminary
1.
Short title, extent and commencement. : -- - (1) This
Act may be called the Pakistan Telecommunication (Re-organization) Act, 1996.
(2)
It extend 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)
“Authority” means the Pakistan Telecommunication Authority established under
section 3;
(b)
“basic telephone services” means the provisions of any telecommunication
service which consists of:---
(i)
two-way live voice telephone service in digital form or otherwise, over any
public fixed switched network or between base stations or switches or modes of
any public mobile switched network;
(ii)
real-time transmission or reception of facsimile images over a public fixed
switched network;
(iii)
international telephony service; and
(iv)
the lease of circuits for the provisions of the services specified in
sub-clauses (i), (ii) and (iii);
(c)
“Board” means Frequency Allocation Board established under section 42;
(d)
“Company” means the Pakistan Telecommunication Company Limited established and
incorporated in accordance with section 34;
(e)
“Corporation” means the Pakistan Telecommunication Corporation established
under the Pakistan Telecommunication Corporation Act, 1991 (XVIII of 1991);
(f)
“effective date” for the Authority, Board Company, National Telecommunication
Corporation, or the Trust means the date on which property right and
liabilities of the Corporation are vested under section 35 in the Authority or
as the case may be, Board, Company, National Telecommunication Corporation or
the Trust;
(g)
“intelligence” means any speech sound, data, signal, writing image or video;
(h)
“licence” means an authorization granted by the Authority for the
establishment, operation or maintenance of any telecommunication system or
provision of any telecommunication services;
(i)
“international telephonic services” means any direct or indirect
telecommunication service, whether or not in digital form, conveyed by any
means between a point in Pakistan and a point in another country, other than
radio/broadcasting or television broadcasting;
(j)
“licensee” means the grantee or holder of a licence;
(k)
“network termination point” means any point of termination on a
telecommunication system at which terminal equipment may be connected;
(l)
“National Telecommunication Corporation” means the corporation to be
established under section 41;
(m)
“prescribed” means prescribed by rules made under this Act;
(n)
“public switched network” means a telecommunication system which allows
intelligence to be switched between members of the public;
(o)
“public fixed switched network” means any public switched network other than a
public mobile switched network;
(p)
“public mobile switched network” means a public switched network using wireless
telegraphy where the terminal equipment used for the omission or reception of
intelligence may be connected to the network and used while in motion;
(q)
“regulations” means the regulations made under this Act;
(r)
“telecommunication equipment” means switches, equipment, wires, cables,
apparatus poles, structures, ducts, manholes and other tangible property,
software and data, other than terminal equipment, comprising any
telecommunication system or used in connection with any telecommunication
service;
(s)
“terminal equipment” means any apparatus directly or indirectly connected to
any network termination point and used for sending, processing or receiving
intelligence;
(t)
“telecommunication employees” means the employees of the Corporation who are
transferred to the employment of the Company under this Act, other than those
to whom sub-section (3) of section 36 applies, and all persons who, on the
effective date for the Company were employees of the Corporation the former
Telegraph and Telephone Department of the Federal Government and are receiving
or are entitled to receive pensionary benefits from the Corporation;
(u)
“telecommunication system” means any electrical, electromagnetic, electronic,
optical or option-electronic system for the emission, conveyance, switching or
reception of any intelligence within, or into, or from Pakistan, whether or not
that intelligence is subjected to rearrangement computation or any other
process in the course of operation of the system and includes a cable
trans-mission system, a cable television transmission system and terminal equipment;
(v)
“telecommunication service” means a service consisting in the emission,
conveyance, switching or reception of any intelligence within or into, or from Pakistan
(w)
“Trust” means the Pakistan Telecommunication Employees Trust established
under-section 44;
(x)
“trustee” means the board of trustees of the Trust;
(v)
“video” means any visual images which are such that sequences of them may be
seen as moving images;
(z)
“wireless telegraphy apparatus” shall have the same meaning as assigned to it
in The Wireless Telegraphy Act, 1933 (XVII of 1933).
CHAPTER II
3.
Establishment of Pakistan
(2)
The Authority shall consist of three members one of whom shall be a
professional Telecommunication engineer and other shall be a financial expert,
to be appointed by the Federal Government for a term of four years and shall be
eligible for appointment for a similar term or terms.
(3)
The Federal Government shall from amongst the members appointed under
sub-section (20) appoint a member to be the Chairman of the Authority;
(4)
A member of the Authority shall not have any direct or indirect financial
interest in, or have business connection with, any person, any establishment or
firm which renders telecommunication services in Pakistan
or abroad or supplies telecommunication equipments to any telecommunication
sector in Pakistan
Explanation.:
-- For the purposes of this subsection, any involvement of the
spouse or any blood relation of any member of the Authority with any
telecommunication establishment or firm shall be considered as a direct
financial interest or connection of the member with such establishment or firm.
(5)
A member of the Authority may resign from his office by writing in his hand
addressed to the Federal Government, or may be removed from his office if, on
any inquiry by the Federal Public Service Commission, he is found unable to
perform the functions of his office because of mental or physical disability or
misconduct including corruption and dishonesty.
(6)
In case of death, resignation or removal of a member, of the Authority another
person may be appointed as such member for the term specified in subsection
(2).
(7)
The member of the Authority shall be entitled to the same salary and privileges
as are available from time to time to an officer in basic pay scale 21 and the
Chairman shall be entitled to the salary and privileges as are admissible to an
officer in basic pay scale 22 or such higher emoluments as the Federal
Government may determine.
(8)
The power of the Authority in the matters relating to its administration and
the staff of the Authority shall be exercised by the Chairman.
(9)
The decision of the Authority shall, subject to sub-section (8), be taken with
the concurrence of the majority of its members.
(10)
No act or proceeding of the Authority shall be invalid by reason only of the existence
of a vacancy in, or a defect in, the constitution of the Authority.
4.
Functions of the Authority. : -- The Authority shall-
(a) regulate the establishment, operation and maintenance of telecommunication systems and the provision of telecommunication services inPakistan
(a) regulate the establishment, operation and maintenance of telecommunication systems and the provision of telecommunication services in
(b)
receive and expeditiously dispose of applications for the use of
radio-frequency spectrum;
(c)
promote and protect the interests of users of telecommunication services in Pakistan
(d)
promote the availability of a wide range of high quality, efficient, cost
effective and competitive telecommunication services throughout Pakistan
(e)
promote rapid modernization of telecommunication systems and telecommunication
services;
(f)
investigate and adjudicate on complaints and other claims made against
licensees arising out of alleged contraventions of the provisions of this Act,
the rules made and licences issued thereunder and take action accordingly;
(g)
make recommendations to the Federal Government on policies with respect to international
telecommunications, provision of support for participation in international
meetings and agreements to be executed in relation to the routing of
international traffic and accounting settlements; and
(h)
perform such other functions as the Federal Government may, from time to time,
assign to it.
5.
Powers of the Authority. : -- -(l) The Authority shall exercise
all powers as shall enable it to effectively perform its functions specified in
section 4.
(2)
In particular, and without prejudice to the generality of the foregoing power,
the Authority shall,---
(a)
grant and renew licences for any telecommunication system and any
telecommunication service on payment of such fees as it may, from time to time,
specify;
(b)
monitor and enforce licences;
(c)
receive applications for the use of radio frequency spectrum and, Subject,
where applicable, to grant of licences under clause (a), refer such
applications to the Board of assignment of spectrum within a period of thirty
days;
(d)
modify licences or conditions thereof in accordance with section 21 or section
22;
(e)
establish or modify accounting procedure for licences and regulate tariffs for
telecommunication service in accordance with sections 25 and 26;
(f)
regulate the transfer of licences;
(g)
prescribe standards for telecommunication equipment and terminal equipment,
certify compliance of such equipment with prescribed standards, and issue
approvals of terminal equipment and of approved installers under section 29;
(h)
provide guidelines for, and determine, the terms of inter-connection
arrangements between licensees where the parties to those arrangements are
unable to agree upon such terms;
(i)
carry out inspections of telecommunication equipment and any premises owned or
occupied by the licensees and summon any person for investigation and an
enquiry;
(j)
appoint an Administrator in circumstances provided in section 23;
(k)
develop national telecommunication numbering plans;
(l)
collect information with respect to telecommunication within and outside Pakistan
(m)
enter into contracts;
(n)
acquire,lease, encumber, dispose of, exchange, vest or otherwise deal with any
movable or immovable property or any interest therein; and
(o)
issue regulations for exercising its powers and performance of its functions.
6.
Responsibilities of the Authority.: -- In
exercising its functions and powers under this Act, the authority shall ensure
that,---
(a)
rights of licensees are duly protected;
(b)
all of its decisions and determinations are made promptly, in an open
equitable, non-discriminatory, consistent and transparent manner;
(c)
all- applications made to it are disposed of expeditiously;
(d)
the persons affected Ay its decisions or determinations are given a due notice
thereof and provided with an opportunity of being heard;
(e)
it encourages; except subject to the exclusive right of the Company in basic
telephone service, fair competition in the telecommunication sector; and
(f)
the interests of users of telecommunication services are duly safeguarded and
protected.
7.
Appeal and revision.: -- (1) A person aggrieved by any
decision or order of the Authority on the ground that it is contrary to the
provisions of this Act may, within thirty days of the receipt of such decision
or order, appeal to the High Court in the manner prescribed by the High Court
for filing the first appeal before that Court and the Court shall decide such
appeal within ninety days.
(2)
A person aggrieved by any decision or order of any officer of the Authority
acting under the delegated powers of the Authority may, within thirty days of
the receipt of the decision or order, appeal to the Authority in prescribed
manner and the Authority shall decide such appeal within thirty days.
(3)
Notwithstanding anything contained in subsection (2), any person aggrieved by
any decision or order of the Authority may instead of filing an appeal under
that sub-section, within thirty days of such decision or order, make an
application for a revision of the decision or, as the case may be, order to the
Federal Government, through the Secretary, Ministry of Communications,
Government of Pakistan who will decide the appeal within sixty days.
8. Powers of the Federal Government to issue policy directives. : -- (l) The Federal Government may, as and when it considers necessary, issue policy directives to the Authority, not inconsistent with the provisions of the Act, on the matters relating to telecommunication policy referred to in sub-section (2), and the Authority shall comply with such directives.
8. Powers of the Federal Government to issue policy directives. : -- (l) The Federal Government may, as and when it considers necessary, issue policy directives to the Authority, not inconsistent with the provisions of the Act, on the matters relating to telecommunication policy referred to in sub-section (2), and the Authority shall comply with such directives.
(2)
The matters on which the Federal Government may issue policy directives shall
be,---
(a)
the number and term of the licences to be granted in respect of
telecommunication systems which are public switched networks, telecommunication
services over public switched networks and international telecommunication
services, and the conditions on which those licences should be granted; and
(b)
the nationality,residence and qualifications of persons to whom licences for
public switched networks may be issued or transferred or the persons by whom
licences may be controlled; and
(c)
requirements of national security and of relationships between Pakistan and the Government of any other country
or territory outside Pakistan
and other States or territories outside Pakistan
(3)
The Federal Government may from time to time, call for reports on the
activities of the Authority and Board and provide for representation in
meetings of international telecommunication organization.
9.
Delegation of powers. : -- The Authority may, by general or
special order, delegate any of its power under clauses (g), (i), (k) and (1) of
section 5 as any of its officer subject to such conditions as it may think fit
to impose.
10.
Appointment of employees. : -- (l) For performance of its
functions, the Authority may, from time to time, employ within the sanctioned
strength such persons on such terms and conditions as it may consider
necessary.
(2)
Without prejudice to the generality of the foregoing powers, the Authority
may,---
(a)
appoint and remove its employees and exercise discipline and control over them;
(b)
regulate and manage its internal organization, set up divisions within the
Authority and make appropriate appointments to those divisions; and
(c)
appoint advisory bodies, consultants and advisors on contract to advise the
Authority in relation to its functions or powers.
(3)
The Authority may make regulations for appointment, promotion, termination and
other terms and conditions of employment of its employees.
11.
Members and employees.: -- The members and employees of the
Authority shall be public servants within the meaning of section 21 of the
Pakistan Penal Code (Act XLV of 1860).
12.
Budget statement. : -- (1) The Authority shall, in respect
of each financial year, prepare its own budget and submit to the Federal
Government three months before the commencement of every financial year.
(2)
The budget statement shall specifically state the estimated receipts and
expenditure and the sums which are likely to be required by the Authority from
the Federal Government for the relevant financial year.
(3)
Any surplus of receipts over the actual expenditure in a year shall be remitted
to the Federal Consolidated Fund and any deficit from the actual expenditure
shall be made up by the Federal Government.
13.
Pakistan
(2)
The bank accounts of the Pakistan Telecommunication Authority Fund shall be
maintained with the National Bank of Pakistan
(3)
The Pakistan Telecommunication Authority Fund shall be financed from the
following sources namely:---
(a)
fees and other amounts received by the Authority;
(b)
grants from the Federal Government and the Provincial Governments, including an
initial grant of fifty million rupees by the Federal Government;
(c)
loans obtained from the Federal Government;
(d)
sale proceeds of bonds issued under the authority of the Federal Government;
and
(e)
any foreign aid obtained by the Authority with the approval of the Federal
Government;
14.
Maintenance of accounts. : -- The accounts of the Authority shall
be maintained in such form and “in such manner as the Federal Government may
determine in consultation with the Auditor-General of Pakistan
15.
Audit. : -- -(l) The accounts of the Authority
shall be audited at the close of each financial year by the Authority-General
of Pakistan
(2)
The Authority shall produce such accounts, books and documents and furnish such
explanation and information as the Auditor-General or any officer authorised by
him in this behalf may require for the purpose of audit.
(3)
Copies of the Auditor-General”s report on the accounts shall be provided to the
Authority and the Federal Government and shall also be available for public
inspection.
(4)
The Authority may, in addition to the audit under sub-section (1), cause its
accounts to be audited by any other external auditors.
16.
Authority to be deemed to be a local authority. : -- For
the purpose of borrowing money, the Authority shall be a local authority within
the meaning of the Local Authorities Loans Act, 1914 (DC of 1914), and any work
undertaken in exercise of its powers under this Act shall be deemed to be a
“work” under that Act.
17.
Liability of the Federal Government to be limited.-
The liability of the Federal Government under this Act to the creditors of the
Authority shall be limited to the extent of any grants made by it and the loans
raised by the Authority with the approval of the Federal Government.
18.
Submission of yearly report, returns, etc. : -- (l)
As soon as possible after the end of every financial year but before the last
day of September next following, the Authority shall submit a report to the
Federal Government on the conduct of its affairs, including action taken for
protection of consumers interests, for that year.
(2)
A copy of the report specified in sub-section (1) together with a copy of the
audit report referred to in section 15 shall be placed before the National
Assembly within three months after the finalization of the audit report by the
Auditor-General.
(3)
The Public Accounts Committee of the National Assembly may scrutinize and
examine the reports referred to in sub-section (2) in the same manner as it
examines and scrutinizes the reports of various Ministries and Divisions of the
Federal Government.
(4)
For the purpose of carrying on its functions under this Act, the Federal
Government may require the Authority to supply any return, statement, estimate,
statistics or other information kin respect of any matter under the control of
the Authority or a copy of any document in the custody of the Authority.
19.
Exemption from taxes. : -- Notwithstanding anything contained
in any other law for the time being in force, the Authority shall not be liable
to pay, and shall be exempt from the payment of any taxes, duties, levies,
charges, and fees payable under, or in pursuant to any law, in respect of any
of its business, assets, income, or wealth [Omitted by Finance Act. XXII of
1997]
CHAPTER III
Licensing
20.
Licensing of telecommunication services. : -- (l)
No person shall establish, maintain or operate any telecommunication, system or
provide any telecommunication service unless he has obtained a licence under
this Act:---
Provided
that no licence shall be required for:---
(a)
provision of territorial wireless radio broadcasting and television
broadcasting within Pakistan
(b)
the establishment, maintenance or operation of a telecommunication system or
the provision of any telecommunication service which does not include or use
any wireless telegraphy apparatus and is not connected to any other
telecommunication system and where all the telecommunication equipment
comprised in the former system is established or provided by a person for his
own use and under his own control and is situated either in a single set of
premises in single occupation within a single unbroken boundary or in a
vehicle, vessel, aircraft or hovercraft;
(c)
the operation by an individual of a telecommunication system which is wholly
under his control and all information conveyed by it is solely for his own
domestic purposes;
(d)
the operation of a telecommunication system or provision of a telecommunication
service by the police, national security or armed forces; or
(e)
the connection by any person of terminal equipment to a telecommunication
system other than a public switched network or for its connection to a public
switched network of such equipment is approved for connection to that network;
or
(f)
national and international telecommunication system of the Ministry of Foreign
Affairs, Intelligence Bureau and Inter-Services Intelligence Directorate of the
Government of Pakistan.
(2)
No licensee shall establish, maintain or operate any telecommunication system
or provide any telecommunication service which is not authorized under the
licence.
Explanation.
: -- Any breach of this sub-section shall, for the purposes of
this Act, the rules or the licence, be treated as a contravention of the
conditions of the licence.
21.
Exclusive power of the Authority to grant licences. : -- (l)
All licences referred to in section 20 shall be granted by the Authority which,
in considering any application shall take into account the following factors,
namely:---
(a)
the technical and financial resources of the applicant;
(b)
the public interest and benefits to users of telecommunication services; and
(c)
policy directives of the Federal Government issued under section 8 above.
(2)
A licence granted by the Authority under this section may be granted either to
person, class of persons, company or corporation.
(3)
Except for the licence granted to the Company for basic telephone service, no
licence shall under confer exclusive rights.
(4)
Every licence granted o under this Act may, inter alia, contain:---
(a)
conditions requiring the licensee to adhere to the provisions of this Act and
the rules and regulations made thereunder;
(b)
conditions requiring the licensee to pay the fees for grant or renewal of the
licence;
(c)
conditions requiring the licensee to allow inspection by the Authority of any
premises or telecommunication equipment, wherever situated, and to furnish to
the Authority such information as may be required by the Authority;
(d)
restrictions as to the types of telecommunication system or telecommunication
service to be provided by the licensee, the area and period of operation and
the types of telecommunication equipment that may be included in its
telecommunication system;
(e)
obligation to ensure that only terminal equipment which is approved for
connection to the telecommunication system in question is so connected;
(f)
obligation to monitor use of the licensed telecommunication service or
telecommunication system and to disconnect telecommunication service from any
user who, after written notice, misuses it;
(g)
obligations to provide telecommunication services to particular persons or
areas to meet minimum standards for quality and grade of service requirements;
(h)
obligation not to interrupt service except for failure of the customer to
comply with his contractual obligations or out of genuine technical necessity
or by reason of circumstances to which section 54 applies;
(i)
restrictions on the licensee giving undue preference to, or unfairly
discriminating against, any person;
(j)
restrictions or limitation oh transfer or assignment of the licence;
(k)
conditions relating to the preservation or the transfer or disposition of
telecommunication equipment and other assets used in connection with any public
switched network; and
(l)
obligations for protections of consumers interest.
(5)
Subject to sub-section (7) and section 39 any person who, on commencement of
this Act, holds an authorization, licence or permit validly issued under any
law in force on that for the establishment, maintenance or operation of any
telecommunication system or the provision of any telecommunication service
shall, unless it is contrary to the provisions of the Act and the rules and
regulations made thereunder, be deemed to hold a licence in accordance with the
provisions of this Act for a period of twelve months from the commencing
date:---
(6)
Every person deemed to be a license under sub-section (5) shall, within three
months from the commencement of this Act, supply to the Authority full details
of his authorization, licence or permit, as the case may be, and apply for
continuance of the licence under this Act.
(7)
Where the Authority, on .reviewing the authorization, licence or permit
referred to in subsection (6), is satisfied that such authorization, licence or
permit, as the case may be, had been validly issued under the laws, rules or
regulations in force at the commencement of this Act the Authority shall,
within nine months of the date of the application made to it, issue an order
that the person authorized thereunder, licence or the permit-holder shall be a
licensee under this Act till the expiry of the term of the authorization,
licence or permit with such modification thereto as the Authority may consider
appropriate.
(8)
If the Authority is not satisfied that an authorization, licence or permit
referred to in subsection (5) was validly issued for any reason, it shall, by
an order, direct that the deemed licence shall expire from the date of such
order.
(9)
The Authority shall maintain a register of licences, showing applications for
licences, received, enforcement orders relating to licences issued and details
of licences issued and details of licences revoked.
(10)
The register referred to in sub-section (9) shall be open to public inspection
and a person may obtain a copy thereof subject to payment of such fee as may be
prescribed by regulations.
22.
Modification of licence conditions. : -- (1)
Subject to sub-section (2), the Authority shall have the right to modify a
licence or its conditions with the consent of the licensee:
Provided that the licence for basic telephone service of the Company shall not, except with its consent, be amended during the period of its exclusive rights.
Provided that the licence for basic telephone service of the Company shall not, except with its consent, be amended during the period of its exclusive rights.
(2)
If the Authority and a licensee cannot agree to any amendment proposed by the
Authority to a licence condition, either party may refer the issue o to the
Corporate Law Authority for resolution, in accordance with the regulations and
the decision of the Corporation Law Authority on the said issue shall be
final:---
Provided
that no such amendment shall vary the tenure or scope of a licence.
23.
Issue of enforcement orders and penalties. : -- (1)
Where a licensee contravenes any provision of this Act or the rules made
thereunder or any term or condition of the licence, the Authority may by a
written notice require the licensee to show cause within thirty days as to why
an enforcement order may not be issued.
(2)
The notice referred to in sub-section (1) shall specify the nature of the
contravention and the steps to be taken by the licensee to remedy the
contravention.
(3)
Where a licensee fails to,---
(a)
respond to the notice referred to in subsection (1); or
(b)
satisfy the Authority about the alleged contravention; or
(c)
remedy the contravention within the time allowed by the Authority, the
Authority may, by an order in writing and giving reasons,---
(i)
levy fine which may extend to three hundred and fifty million rupees; or
(ii)
suspend or terminate the licence, impose additional conditions or appoint” an
Administrator to manage the affairs of the licensee, but only if the
contravention is grave or persistent.
(4)
Without prejudice to the provisions of sub-section (l) and sub-section (3), the
Authority may, by an order in writing, suspend or terminate a licence or
appoint an Administrator, if the licensee,---
(a)
becomes insolvent or a receiver is appointed in respect of a substantial part
of the assets; and
(b)
being an individual, become insane or dies.
Explanation.
For the purpose of this section, the Administrator shall be appointed from
amongst the persons having professional knowledge and experience of
telecommunication.
24.
Powers of Administrator.: -- An Administrator appointed under
sub-section (3) or subsection (4) of section 23 shall have such powers relating
to the management of the licensee, the preservation of assets and for the
purpose of remedying any contravention of the conditions of any licence and for
ensuring compliance with any orders issued by the Authority as may be
prescribed.
(2)
Having satisfied that the contravention leading to the appointment of
Administrator has been remedied or the order of the Authority has been complied
with, the Authority shall withdraw the order appointing the Administrator and
the Administrator shall forthwith hand over the management of the licensee to
the person from whom such management was taken.
(3)
The Authority or the Administrator shall not be liable for any loss or damages
caused by any act or omission of the Administrator undertaken in good faith.
25.
Accounting procedures, investments and contracts. : -- (l)
The Authority may require any licensee to establish and maintain specified
accounting procedure in order to enable the Authority to obtain all relevant
information required for determining the tariff under section 26 for exercise
any other power of the Authority under section 5.
(2)
Accounting procedures once established may only be modified by the Authority
after providing reasons and an opportunity of being heard to the licensee.
(3)
No licensee shall enter into any agreement or arrangement which is inconsistent
with any obligation of the licensee under this Act, the rules or any condition
attaching to its licence; and any such agreement or arrangement shall to such
extent be void,
26.
Tariffs. : -- The level of tariffs for
telecommunication service including basic telephone services shall be regulated
by the Authority in accordance with the regulations and the following general
principles, namely;---
(a)
the regulations shall be made with a view to achieving the greatest possible
degree of pricing flexibility and stability compatible with safeguarding and
protecting the interests of consumers;
(b)
the regulations shall apply equally to comparable providers or users of any
regulated telecommunication service;
(c)
the criteria used for the establishment of tariff shall regularly be published
three months before the criteria is adopted;
(d)
tariffs shall be a level which provides a reasonable rate of return on
investments taking into account the cost of operation; and
(e)
there shall be no cross-subsidization of other telecommunication services by
basic telephone service.
27.
Privileges of licensee of public switched network. : -- (1)
Every licensee of public switched network shall subject to the conditions of
the licence, be entitled to such rights and privileges as were available to the
Federal Government and the Corporation on the commencing day in respect of
telecommunication services and telecommunication system under the Easements
Act, 1882 (V of 1882), Telegraph Act, 1885) (XIII of 1885), the Pakistan
Telecommunication Corporation Act, 1991 (XVIII of 1991), or any other law for
the time being in force.
(2)
For the purpose of the Land Acquisition Act, 1894 (1 of 1894), acquisition of
land or any interest in land by a licensee of a public switched network for the
purposes of the licence shall be deemed to be acquisition for a “public
purpose”.
28.
National standards. : -- (1) The Authority may, with
the approval of the Federal Government notify regulations for establishing
national standards for telecommunication equipment:---
Provided
that the Authority may specify different standards for different classes of
telecommunication equipment and. may establish procedure for testing thereof:
Provided further that subject to the national standards established under this sub-section and the conditions of the licence, the Authority shall not restrict the type of telecommunication equipment that may be used for the establishment, maintenance or operation of telecommunication systems or the provision of telecommunication services.
Provided further that subject to the national standards established under this sub-section and the conditions of the licence, the Authority shall not restrict the type of telecommunication equipment that may be used for the establishment, maintenance or operation of telecommunication systems or the provision of telecommunication services.
(2)
In determining the standards referred to in sub-section (1), the Authority
shall have regard to the need for as safe modern and efficient
telecommunication environment and interpretability of network.
29.
Terminal equipment and approved installers. : -- (l)
No terminal equipment shall directly or indirectly be connected to a public
switched network unless it has been approved by the Authority or an agency
appointed by the Authority in this behalf subject to such conditions as it may
impose, including conditions limiting its connection to specified types of
telecommunication systems.
(2)
The Authority may, by regulation, specify technical standards for o terminal
equipment and procedure for approving test equipment and for testing any
terminal equipment and to certify that it complies with the relevant technical
standards.
(3)
No person may install any telecommunication equipment as part of, or connect
terminal equipment (other than by a plug-into-socket connection) to any public
switched network except in accordance with regulations made by the Authority.
(4)
The Federal Government may make rules requiring manufacturers, importers and
dealers in terminal equipment to mark such equipment and indicate in
advertising therefore whether or not to terminal equipment is approved for
connection to a public switched network.
(5)
The Authority shall maintain a register of all terminal equipment and
installers thereof approved under this section and shall be open to public
inspection.
30.
Recovery of arrears, etc. : -- All fees, fines or other amounts due
or payable to the Authority may be recovered as arrears of land revenue.
31.
Offences and penalties.”(l) Whoever,---
(a)
establishes, maintains or operates a telecommunication system or
telecommunication service or possesses any wireless telegraphy apparatus or
carries on any other activity in contravention of this Act or the rules or
regulations made thereunder, the Wireless Telegraphy Act, 1933 (XV of 1933), or
the conditions of a licence;
(b)
knowingly or having reason to believe that any telecommunication system or
telecommunication service has been established or is maintained or is being
operated in contravention of this Act, transmits or receives any intelligence
by means thereof or performs any service incidential thereto;
(c)
dishonestly obtains any telecommunication service, with the intention to avoid
payment of a charge applicable to the provision of that service;
(d)
unauthorisedly transmits through a telecommunication system or
telecommunication service any intelligence which he knows or has reason to
believe to be false, fabricated, indecent or obscene;
(e)
engaged in the operation of a public switched network otherwise than in the
course of his duty intentionally modifies or interferes with the contents of a
message sent by means of that network;
(f)
prevents or obstructs the transmission or delivery of any intelligence through
a telecommunication system or telecommunication service;
(g)
intercepts, acquaints himself with the contents of any intelligence or
unauthorisedly discloses to any person the contents of such intelligence;
(h)
commits mischief;
(i)
damages, removes, interferes or tampers with any telecommunication equipment;
(j)
unauthorisedly deciphers the contents of any message transmitted over a public
switched network;
(k)
assaults or intentionally obstructs a person engaged in the operation of a
public switched network or the establishment, maintenance . or operation of
telecommunication services over a public switched network or intentionally
obstructs the course of business of that person;
(l)
intentionally contravenes the rules made under sub-section (4) of section 29;
(m)
intentionally obstructs an officer of the Authority or the Board in the
exercise of his functions or powers under this Act in relation to the
inspection of any premises or telecommunication equipment or who, after ten
days written notice, fails or refuses without due cause to provide any
information which the Authority or the Board is entitled to obtain under this
Act or the rules or regulations made thereunder; shall be guilty of an offence
under this Act.
(2)
Every offence specified in sub-section (1) shall be punishable with
imprisonment which may extend to two years, or with fine which may extend to
ten million rupees, or with both.
(3)
Whosoever conspires to commit or attempts to commit or aids or abets the
commission of any offence punishable under this Act shall be liable to same
punishment as is provided in sub-section (2).
(4)
Where the Court imposes fine under subsection (2), it may direct that whole or
any part thereof shall be to the person who has suffered any mental or monetary
loss because of commission of any offence specified in sub-section (1).
(6)
Where the accused is a Company registered under the Companies Ordinance, 1984
(XLVII of 1984), every Executive Director, Chief Executive, Principal Officer
and Secretary of such Company shall be liable to the punishment specified in
sub-section (2) and the summons for the trial of the case shall be served on
the Chief Executive, Principal Officer or the Secretary of that Company in
accordance with the provisions of the Code of Criminal Procedure, 1898 (Act V
of 1898).
32.
Warrants of search. : -- (l) Where on information furnished
by the Authority or Board, the Court has reason to believe that any unlicensed
telecommunication system, wireless telegraphy apparatus or unapproved terminal
equipment is being kept or concealed or any unlicensed telecommunication
service is provided it may issue a search warrant; and the person to whom such
warrant is directed, may enter the premises, vessel, aircraft, or hovercraft
where such telecommunication system, wireless telegraphy apparatus or, terminal
equipment is allegedly kept or concealed or unlicensed telecommunication
service is provided therefrom carry out search and inspection thereof and seize
such telecommunication system, wireless telegraph apparatus or terminal
equipment.
(2)
Any telecommunication equipment, wireless telegraphy apparatus or terminal
equipment seized under sub-section (1) having no ostensible owner shall vest to
the Authority, or as the case may be, the Board.
33.
Indemnity. : -- -No suit, prosecution or other legal
proceedings shall lie against the Authority or any member or employee of the
Authority in respect of anything done or intended to be done by the Authority
in good faith under “this Act.
CHAPTER IV
Pakistan Telecommunication Company
Limited
34.
Establishment of the Company, etc. : -- (l) As soon
as may be after the commencement of this Act, the Federal Government shall
establish a Company to be known as the Pakistan Telecommunication Company,
limited by shares and cause it to be incorporated under the Companies
Ordinance, 1984 (XLVII of 1984), with the principal object of provision of
domestic and international telecommunication and related services consistent
with the provisions of this Act.
(2)
The Federal Government shall nominate seven persons to subscribe to the
Memorandum and Articles of Association of the Company.
(3)
Initially, all shares of the Company shall be issued to, or held in trust for,
the President of the Islamic Republic of Pakistan.
(4)
The Federal Government may, whenever it thinks appropriate, transfer its shares
in the Company to private investors or general public on such terms and
conditions and in such manner as it may determine.
(5)
No person shall, except and to the extent permitted by the Articles of
Association of the Company, control directly or indirectly, the right to cast
on a poll ten per cent or more of the votes at a general meeting of the
Company.
(6)
The Federal Government shall, immediately on incorporation of the Company, fix
a date by a notice in the official Gazette for election of the Board of
Directors of the Company consisting of seven directors in accordance with the
provisions of the Companies Ordinance, 1984 (XLVII of 1984):---
Provided
that, notwithstanding the election of the Board of Directors of the Company,
the Board of Directors appointed under section 4 of the Pakistan
Telecommunication Act, 1991 (XVIII of 1991), shall continue to function until
the effective date for the Company.
35.
Vesting of the rights, property and liabilities of the Corporation. : -- (1)
The Federal Government may, by orders, direct that all or any property, rights
and liabilities to which the Corporation was entitled or subject. to
immediately before such orders, and identified therein, shall, on such terms
and conditions as the Federal Government may determine, vest in,---
(a)
the Company;
(b)
the National Telecommunication;
(c)
the Authority;
(d)
the Trust; or
(e)
the Board through Federal Government, and become the property, rights and
liabilities of the respective entity.
(2)
An order issued under sub-section (1) shall specify the employees of the
Corporation who shall, as from the effective date of the order, be transferred
to and become employees of the entity referred to in the order:---
Provided
that such order shall not vary the terms and conditions of service of such
employees to their disadvantage.
(3)
An order issued under sub-section (1) in favour of the Company shall provide
for,---
(a)
the continuation by the Company of the operations and undertaking of the
Corporation on the same basis as were carried on immediately prior to the date
of the order save in respect of the operations and undertakings to be carried
on by the National Telecommunication Corporation pursuant to section 41; and
(b)
the dissolution of Corporation as from the effective date of the order,
(4)
In consideration of the vesting in the Company of the property of the
Corporation, the Company shall issue such securities in the name of the
President of the Islamic Republic of Pakistan as the Federal Government may
direct.
(5)
Unless an order so directs, the property vested under sub-section (1) shall be
free from any charge, burden, hypothecation or encumbrances to which it may be
subject at the effective date of the order.
(6)
If any property of the Corporation vests in the Company subject to any charge,
burden, hypothecation or encumbrances, the same shall be deemed to be on the
assets of the Company and the provisions of section 121 of the Companies
Ordinance, 1984 (XLVII of 1984), shall apply to such charges, burden,
hypothecation or encumbrances as if it had been created on the assets of the
Company on the effective date for the Company.
(7)
If any property of the Corporation vests in the National Telecommunication
Corporation, the Authority. or the Trust subject to any charge, burden,
hypothecation or incumbrance, the same shall be the first charge by way of
hypothecation in favour of the creditor.
(8)
In this section, “property” includes assets, rights and entitlements of every
description and nature wherever situated and “liabilities” includes duties,
obligations, loans encumbrance, claims and charges of every description and
nature (actual or contingent), whether or not they are capable, under any law
of Pakistan or of any other State or under any agreement or otherwise, or being
vested, transferred or assigned by the Corporation.
(9)
No stamp duty shall be payable under any law for the time being in force on or
in relation to the transfer or vesting of property of the Corporation under any
order issued under sub- section (1).
36.
Terms and conditions of service of employees. : -- (l)
No person transferred to the Company pursuant to sub-section (2) of section 35,
hereinafter referred to as “Transferred Employee”, shall be entitled to any
compensation as a consequence of transfer to the Company:---
Provided
that the Federal Government shall guarantee the existing terms and conditions
of service and rights, including pensionary benefits of the Transferred
Employees.
(2)
Subject to sub-section (3), the terms and conditions of service of any
Transferred Employee shall not be altered adversely by the Company except in
accordance with the laws of Pakistan
(3)
At any time within one year from the effective date of the order vesting
property of the Corporation in the Company, the Federal Government may, with
the prior written agreement of a Transferred Employee, require him to be
transferred to or revert him back and be employed by the Authority, National
Telecommunication Corporation, Trust or the Federal Government on the same
terms and conditions to which he was entitled immediately before such transfer.
(4)
Subject to proviso to sub-section (1) of section 45 on transfer of a
Transferred Employee under subsection (3), the Federal Government shall assume
responsibility for his pensionary benefits without recourse to the Pension Fund
referred to in that section.
(5)
Under the order vesting property of the Corporation in the Company, the Federal
Government shall require the Company to assume the responsibility of pensionary
benefits of the telecommunication employees and the Company shall not alter
such pensionary benefits without the consent of the individuals concerned and
the award of appropriate compensation.
37.
Special provisions. : -- For the purpose of this Act, the
Company shall be exempt from the provision of sections 62, 77, 90, 178, 187,
206 and 235 of the Companies Ordinance, 1984 (XLVII of 1984) and further,
notwithstanding anything contained in the Companies Ordinance, 1984, the
Federal Government may, by notification in the official Gazette, exempt the
Company from the application of such other provisions of that Ordinance, as may
be specified in this regard.
38.
Exemption from taxes, audit, etc. : -- -(l) The
Company shall not, till the 30th June, 1999, be liable to pay any income-tax,
super tax, super tax or wealth tax on its income, profits or gains.
(2)
The value ascribed to the property vested in the Company by the Federal
Government under the order made under section 35 shall represent the actual
acquisition cost of the property for the purposes of taxation and depreciation.
(3)
Notwithstanding anything contained in the Pakistan (Audit and Account) Order,
1973 (21 of 1973), the accounts of the Company shall not be audited by the
Auditor-General of Pakistan, but shall be subject to audit in accordance with
the provisions of the Companies Ordinance, 1984 (XLVII of 1984).
39.
Licence to the Company. : -- (1) With effect from the
effective date for the Company, the Company shall be entitled, until issue of
any licence under subsection (2), to the same authorization as the Corporation
enjoyed immediately prior to that date.
(2)
Within six months of the commencing date of this Act, the Authority shall grant
a licence to the Company in Pakistan ,
excluding the Northern Areas, Azad Jammu and Kashmir ,
for a period of twenty-five years on payment of licence fee determined by the
Authority.
(3)
No licences to provide basic telephone service shall be issued by the Authority
for a period of seven years from the effective date referred to in section 35
vesting property in the Company other than to the National Telecommunication
Corporation and the Company.
40.
Special Communication Organization. : -- -Notwithstanding
anything contained in section 39, the telecommunication services within the
Northern Areas and Azad Jammu and Kashmir shall be operated by the Special
Communication Organization and the Authority shall issue a licence to the
Organization accordingly.
CHAPTER V
National Telecommunication
Corporation
41.
National Telecommunication Corporation. : -- (1) As soon
as may be but not later than thirty days from the commencing day of this
Ordinance, the Federal Government shall establish a corporation to be known as
the National Telecommunication Corporation which shall be a body corporate,
having perpetual succession and a common seal with power, subject to the
provisions of this Act, to acquire and hold property, both movable and
immovable and shall sue and be sued by its name.
(2)
The National Telecommunication Corporation shall be managed by a Management Board
consisting of a Chairman and two other members, to be appointed by the Federal
Government.
(3)
The Authority shall grant a licence to the National Telecommunication
Corporation for provision of telecommunication services within Pakistan on a
nonexclusive basis only to the armed forces, defence projects, Federal
Government, Provincial Governments or such other Governmental agencies or
Governmental institutions as the Federal Government, may determine; and during
the exclusivity period of the Company specified in section 39, the National
Telecommunication Corporation shall not sell its capacity on the
telecommunication system to any person other than such Government agencies or
the Company.
(4)
The National Telecommunication Corporation shall have the power to,---
(a)
appoint, promote, remove and exercise discipline and control over its staff;
(b)
set up its internal organizations, including bureaus, divisions or offices and
make appointments thereto;
(c)
enter into contracts;
(d)
acquire, lease, encumber, dispose of, exchange, invest or otherwise deal with
any moveable or immovable property or any interest therein or thereto; and
(e)
levy and collect fee and other charges for the service provided by it at such
rates as may be determined by the Federal Government.
(5)
For the purpose of its functions, the National Telecommunication Corporation
may, subject to regulations made by it providing for procedure of appointment,
termination and terms and conditions of service, employ such persons, as it may
consider necessary.
(6)
The officers and employees of the National Telecommunication Corporation shall,
for the purpose of this Act, be public servants within the meaning of section
21 of the Pakistan Penal Code (Act XLV of 1860), and the Industrial Relations
Ordinance, 1969 (XXIII of 1969), shall not apply.
(7)
The National Telecommunication Corporation shall, in respect of each financial
year, prepare its own budget and submit it for the approval of the Federal
Government before the 1st June every year.
(8)
The budget statement, referred to in subsection (8), shall specifically state
the estimated receipts, current and development expenditure and the sums which
are likely to be required by the National Telecommunication Corporation, if
any, from the Federal Government for the relevant financial year.
(9)
Any surplus of receipts over the actual expenditure in a year shall be remitted
to the Federal Consolidated Fund and any deficit from actual expenditure shall
be made up by the Federal Government.
(10)
There shall be a fund to be known as the “National Telecommunication
Corporation Fund” which shall vest in the National Telecommunication
Corporation and shall be used by the National Telecommunication Corporation to
meet all its expenses and charges in connection with its functions under this
Act, including the payment of salaries and other remuneration to its employees.
(11)
The National Telecommunication Corporation Fond shall consist of,---
(i)
grants made by the Federal Government and the Provincial Governments and
Corporation;
(ii)
loans obtained from the Federal Government;
(iii)
sale proceeds of bonds issued under the authority of the Federal Government;
(iv)
loans obtained with the special or general sanction of the Federal Government;
and
(v)
all other sums received and charges collected by the National Telecommunication
Corporation.
(12)
The accounts of the National Telecommunication Corporation shall be maintained
in such form and manner as the Federal Government may determine in consultation
with the Auditor-General of Pakistan
(13)
For the purpose of audit, the National Telecommunication 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.
(14)
Copies of the audit report shall be sent to the National Telecommunication
Corporation and to the Federal Government and shall also be available for
public inspection.
(15)
The National Telecommunication 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.
(16)
The National Telecommunication Corporation may, in addition to the audit by the
Auditor-General, cause its accounts to be audited by internal or other external
auditors.
(17)
The National Telecommunication Corporation may, with the approval of the
Federal Government, by notification in the official Gazette, make regulations
for the management and operation of its business and activities.
(18)
Notwithstanding anything contained in any other law for the time being in
force, the National Telecommunication Corporation shall not, for a period of
three years from the date of its establishment, be liable to pay any tax on its
income, assets, turnover and sales under the Income Tax Ordinance, 1979 (XXXI
of 1979), the Wealth Tax Act, 1963 (XV of 1963) and the Sales Tax Act, 1990,
and shall, for similar period be entitled to such exemptions from custom-duties
as the Corporation was entitled immediately before the establishment of
National Telecommunication Corporation.
CHAPTER VI
Frequency Allocation Board
Frequency Allocation Board
42.
Frequency Allocation Board. : -- (1) The Federal Government shall, by
a Notification in the official Gazette, establish a Frequency Allocation Board
to take over the function performed by the Pakistan Wireless Board which shall,
from the date of such notification, stand dissolved.
(2)
The Board shall be funded by funds provided by the Authority in the prescribed
manner.
(3)
The Board shall make regulations, with the approval of the Federal Government,
governing the manner in which the Board may function and exercise its powers.
43.
Powers and functions of the Board. : -- (1) The Board
shall have exclusive authority to allocate and assign portions of the radio
frequency spectrum to the Government, providers of telecommunication services
and telecommunication system, radio and television broadcasting operations,
public and private wireless operators and others.
(2)
The Board shall consist of,---
(i)
Secretary, Ministry of Communication, who shall be its Chairman;
(ii)
One Executive Director appointed by the Federal Government, who shall be its
Vice-Chairman;
(iii)
the Chairman of the Authority; and
(iv)
a nominee each of the Ministry of Defence (Corps of Signals), Ministry of
Information and Broadcasting and Ministry of Interior.
(3)
The Vice-Chairman shall be an employee of the Board who shall devote his full
time to the business of the Board and shall not hold any other office or
position during his tenure as such Vice-Chairman.
(4)
In exercise of its powers under sub-section (1), the Board shall be guided by
the applicable recommendations of the International Telecommunication Union or
any of its standing committees or organizations including the International
Consultative Committee on Telecommunication, International Consultative
Committee on Radio, the International Frequency Registration Board and other
similar organizations.
(5)
Every application for allocation and assignment of radio frequency spectrum
shall, in the first instance, be made to the Authority which shall, after such
inquiry as it may deem appropriate, refer the application to the Board within
thirty days from receipt of such application.
(6)
On receipt of application under sub- section (5) the Board shall classify the
telecommunication services and may allocate or assign specific frequencies to
the applicant:---
Provided
that the Board shall intimate the applicant status of the application within
three months.
(7)
The Board may, with the approval of the Federal Government, make regulations
for exercising its powers and performance of its business.
CHAPTER VII
Pakistan
44.
Establishment of the Pakistan
(2)
The Trust shall be a body corporate, having perpetual succession and a common
seal with power, subject to the provisions of this Act, to acquire and hold
property, both moveable and immovable, and shall sue and be used by its name.
(3)
The Trust shall be managed by a Board of Trustees consisting of six trustees,
three to be appointed by the Federal Government and three by the Company, for a
period of three years, unless earlier removed by the appointing authority.
(4)
The trustees shall be eligible for re-appointment for a similar term or terms
specified in subsection (3).
(5)
The trustees may appoint,---
(a)
a Chairman of the Board of Trustees from amongst themselves;
(b)
the Manager of the Trust;
(c)
an Actuary:---
Provided
that the first Chairman of the Board of Trustees shall be selected from amongst
the trustees appointed by the Federal Government and shall, unless removed on
the charges of physical or mental infirmity or misconduct, including corruption
and dishonesty remain in the office of Chairman for the first twelve months of
his tenure as a Trustee.
(6)
A Trustee may resign from his office by writing in his hand addressed to the
Board of Trustees.
(7)
In case of a vacancy being created due to the death, resignation or removal of
a Trustee, the appointing authority referred to in sub-section (3) may appoint
another person in his place as Trustee-for the unexpired term.
(8)
The Manager and Actuary of the Trust shall be entitled to such remuneration and
perquisites as the Board of Trustees may determine.
(9)
The Board of Trustees may. with the approval of the Federal Government and by
notification in the official Gazette, make rules for the management and conduct
of business of the Trust.
45.
Pension Fund. : -- (1) The Federal Government shall, by
notification in the official Gazette, order that from the effective date, all
assets of the Pakistan Telecommunication Corporation Employees Pension Fund as
created by a Trust Deed dated the 2nd April, 1994, hereinafter referred to as
the “Pension Fund” and such liabilities as are specified in the notification,
shall vest in and shall become the assets and liabilities of the Trust:
Provided that five per cent of the accrued liability determined on the 30th June, 1995, specified in the notification shall be paid to the Federal Government in twelve equal monthly instalments in respect of telecommunication employees or Transferred Employees transferred to the Pakistan Telecommunication Authority, Frequency Allocation Board, National Telecommunication Corporation and Federal Government.
(2) The Company shall contribute to the Pension Fund the amount determined by the Actuary representing the unfunded proportion of the accrued pension liabilities which shall be assumed by the Company from the effective date specified in the order made under section 35.
Provided that five per cent of the accrued liability determined on the 30th June, 1995, specified in the notification shall be paid to the Federal Government in twelve equal monthly instalments in respect of telecommunication employees or Transferred Employees transferred to the Pakistan Telecommunication Authority, Frequency Allocation Board, National Telecommunication Corporation and Federal Government.
(2) The Company shall contribute to the Pension Fund the amount determined by the Actuary representing the unfunded proportion of the accrued pension liabilities which shall be assumed by the Company from the effective date specified in the order made under section 35.
(3)
The Pension Fund shall consist of,---
(a)
amounts received from the Pakistan Telecommunication Corporation Employees
Pension Fund referred to in sub-section (1);
(b)
contribution to be paid by the Company under sub-section (2);
(c)
annual contribution to be paid by the Company at the commencement of each
financial year;
(d)
investments and the profits, gains and other returns accrued on such
investments; and
(e)
donations and other contributions by individuals or any aid-giving agencies.
46.
Functions and powers of the Trust. : -- -For carrying
out the purposes of the Trust, the Board of Trustees shall,---
(a)
take over and assume the liability of the Pension Fund, including contributions
of the Company to the Pension Fund;
(b)
obtain payment from the Company of the amount determined by Actuary as
representing the unfunded proportion of the accrued pension liabilities to be
discharged by the Company;
(c)
determine, at the commencement of each financial year, the amount to be
contributed to the Pension Fund by the Company; and
(d)
make provision for the payment of pensions to telecommunication employees to
the extent of their entitlement.
(2)
In performance of its functions, the Board of Trustees shall,---
(a)
have the exclusive right to determine the amounts, if any, payable in respect
of pension benefits to the telecommunication employees;
(b)
administer and operate the Pension Fund;
(c)
specify and certify the requirements to be fulfilled for payments of the
pensions to be made from the Pension Fund;
(d)
appoint, promote, remove and exercise discipline and control over its
employees;
(e)
enter into contracts;
(f)
acquire, lease, encumber, dispose of, exchange, invest or otherwise deal with
any moveable or immovable property or any interest therein; and
(g)
exercise all such powers as may be necessary or incidental to the performance
of any of its functions or the exercise of any of its powers.
(3)
The Manager of the Board of Trustees shall be responsible for administrative
control of the employees of the Trust and day to day working of the Trust as
may be assigned to him by the Board of Trustees.
47.
Decision of the Trust, etc. : -- -(1) The decision of the Board of
Trustees shall be taken by majority of the votes of the Trustees present in a
meeting to be called by the Chairman of the Trust:---
Provided
that such majority votes shall include at least one Trustee appointed by the
Federal Government and one Trustee appointed by the Company.
(2)
All meetings of the Board of Trustees shall presided over by its Chairman or,
in his absence, by another Trustee selected by the Trustees amongst themselves.
The quorum of the meeting of the Board of Trustees shall be four Trustees out
of which two shall represent the Federal Government and the other two by the
Company:---
Provided
that the Chairman of the Board of Trustees shall have no casting vote.
(3)
No act or proceeding of the Trust shall be invalid by reason only of the
existence of a vacancy in, or a defect in, the constitution of the Board of
Trustees.
(4)
The Board of Trustees shall, by resolution, determine the procedure for
appointment, promotion and termination and other terms of employment of the
employees of the Trust.
48.
Delegation of Powers. : -- The Board of Trustees may, by a
resolution delegate to any officer of the Trust any of its powers of functions
under this Act, subject to such conditions as it may deem fit to impose.
49.
Budget. : -- -(l) The Board of Trustees shall, in
respect of each financial year, prepare its own budget specifying the estimated
receipts and the sums which are likely to be required by the trust for payments
to be made in the relevant financial year.
(2)
Any surplus of receipts over the amount specified in the budget in a financial
year shall be credited to the Pension Fund and any deficit from the estimated
amount specified in the annual budget shall be made up from the Pension Fund.
50.
Audit. : -- -(l) The accounts of the Trust shall
be audited at the close of each financial year- by independent auditors.
(2)
The Trust shall produce such accounts, books and documents and furnish
explanations and information as the auditors may require .for the purpose of
audit.
(3)
Copies of the Auditor”s report on the accounts shall be furnished to the
Federal Government, Company and the Trust.
51.
Exemption from Taxes. : -- Notwithstanding anything contained
in any other law for the time being in force, the Trust shall not be liable to
pay, and shall be exempt from the payment of, all kinds of taxes, duties,
levies, charges, and fees payable under or pursuant to any Federal or
Provincial law, on its investments, income, assets or wealth.
52.
Application of Trusts Act, 1882. : -- (1) The provisions of Chapters III,
IV, V, VI (other than section 60 thereof, insofar as it provides that a person
domiciled abroad is not a proper person for the purposes of that section) and
VII -of the Trusts Act, 1882 (II of 1882), to the extent not inconsistent with
the provisions of this Act, shall apply to the Trust and the Board of Trustees
to the same extent that they apply to a trust and “Trustees” as defined in
section 3 of the said Act.
(2)
For the purposes of the Trusts Act, 1882, the “author of the Trust” shall be
the Federal Government and Company, the “Trustees” shall be the Trustees
appointed under section 45, “beneficiaries” shall be the telecommunication
employees, the “trust property” or “trust money” shall be the Pension Fund,
“beneficial interest” in the rules made under this Chapter and the “instrument
of trust” shall be this Act and such rules.
(3)
The accounts of the Trust shall be kept and maintained with the National Bank
of Pakistan
53.
Winding-up of the Trust.”(l) The Trust shall be wound up by
the Federal Government on the recommendation of the Board of Trustees and the
certification by the Actuary that no pension payment is required to be made
from the Pension Fund.
(2) The balance of the Pension Fund shall, on the winding up of the Trust, be paid to the Federal Government and the Company prorata of the assets of the Pakistan Telecommunication Corporation Employees Fund and contributions made from time to time by the Company.
(2) The balance of the Pension Fund shall, on the winding up of the Trust, be paid to the Federal Government and the Company prorata of the assets of the Pakistan Telecommunication Corporation Employees Fund and contributions made from time to time by the Company.
CHAPTER VIII
Miscellaneous
Miscellaneous
54.
National Security. : -- -(1) Notwithstanding anything
contained in any law for the time being in force, in the interest of national
security or in the apprehension of any offence, the Federal Government may
authorise any person or persons to intercept calls” and messages or to trace
calls through any telecommunication system.
(2)
During a war or hostilities against Pakistan
by any foreign power or internal aggression or for the defence or security of Pakistan
(3)
Upon proclamation of emergency by the President, the Federal Government may
suspend or modify all or any order or licences made or issued under this Act or
cause suspension of operation, functions or services of any licensee for such
time as it may deem necessary:---
Provided
that the Federal Government may compensate any licensee whose facilities or
services are affected by any action under this sub-section.
55.
Liability of the Federal Government. The Federal Government shall not be
responsible for any loss or damage which may occur as a consequence of any act
or omission of a licensee.
56.
Tax exemption of the Corporation. - Notwithstanding any other law for
the time being in force, from the date of its establishment and until it is
dissolved under this Act, the Corporation shall enjoy total exemption from the
payment of any tax under the Income Tax Ordinance, 1979, the Wealth Tax Act,
1963, and the Sales Tax Act, 1990.
57.
Power to make rules. : -- For carrying out the purposes of
this Act and where provided for hereinbefore, the Federal Government may, from
time to time, by notification in the official Gazette, make rules not
inconsistent with this Act.
(2)
Without prejudice to the foregoing powers the Federal Government may make
rule,---
(a)
extending the categories of telecommunication systems or telecommunication
services for which a licence is not required under section 20;
(b)
regulating the use of encryption apparatus or software by requiring use of
approved apparatus or software or such appropriate apparatus or software be
lodged with the Authority free of costs; and
(c)
restricting or prohibiting the use of any public switched network for signaling
purposes in circumstances in which charges otherwise payable may be avoided or
reduced, or the advertising of means or services for such use.
58.
Ordinance to override other laws. : -- The
provisions of .this Act shall have effect notwithstanding anything contained in
the Telegraph Act, 1885 (XIII of 1885), the Wireless Telegraphy Act, 1933 (XVII
of 1933), or any other law containing any provision inconsistent to this act.
59.
Repeal and savings. : -- -(l) The Pakistan Telecommunication
Corporation Act, 1991 (XVIII of 1991), the Pakistan Telecommunication
(Re-organization) Ordinance, 1996 (LXXVII of 1996), and the Ministry of
Communications, Government of Pakistan, Notifications numbering 5(4)/95 PTC,
dated the 7th August, 1995 are hereby repealed.
(2)
Notwithstanding anything contained hereinbefore, all orders made, actions
taken, vesting orders or Notifications issued, property, assets and liabilities
of the Corporation vested or transferred and the employees of the Corporation
transferred to the Pakistan Telecommunication Authority, Frequency Allocation
Board, Pakistan Telecommunication Company Limited, National Telecommunication
Corporation or Pakistan Telecommunication Employees Trust, under any of the
powers conferred or vested under the Pakistan Telecommunication
(Re-organization) Ordinance, 1995 (CXV of 1995), the Pakistan Telecommunication
(Re-organization) Ordinance, 1996 (LXXVII of 1996) shall be deemed always to
have been lawfully and validly made, taken, issued, vested or transferred under
the provisions of this Act and shall continue to be in force unless amended,
varied, withdrawn, rescinded or annulled by a person or authority competent to
do so under this Act.
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