OUR LEGAL SERVICES IN PAKISTAN

Asghar & Sons Jurists offers an exhaustive range of legal services ranging from Tax, Corporate Matters, Financial Affairs, Intellectual Property, Commercial Litigation, Arbitration and Mediation, precisely detailed below. Its partners are rated as the leading experts in their particular fields. We have a strong presence in Karachi, Lahore and with network of offices at Islamabad, Rawalpindi, Gujrat, Gujranwala, Sialkot, Sheikhupura, Faisalabad, Multan and Peshawar and this expansion has been made to render legal services as closer to our clients as possible.

In addition we have developed overseas links in USA, Canada, UK and other emerging markets of Europe, Australia, Middle East and Asian theatre. As a firm, we are set out to provide a total commitment to our clients needs and to do so in a way that is efficient, cost effective and most importantly relevant to the issues that they face. This is Asghar & Sons Jurists motive with the emphasis on professionalism in the following fields:

BUSSINESS

ASSETS MANAGEMENT COMPANY INCORPORATION LAW, LAWYERS & LITIGATION IN PAKISTAN

An ‘Asset Management Company’ is a company that invests the pooled funds of retail investors in securities in line with the stated investment objectives. For a fee, the investment company provides more diversification, liquidity and professional management service than is normally available to individual investors. The diversification of portfolio is done by investing in such securities which are inversely correlated to each other. They collect money from investors by way of floating various mutual fund schemes. Mutual funds, hedge funds and pension plans are all run by asset management companies. These companies earn income by charging service fees to their clients. AMCs offer their clients more diversification because they have a larger pool of resources than the individual investor. Pooling assets together and paying out proportional returns allows investors to avoid minimum investment requirements often required when purchasing securities on their own, as well as the ability to invest in a larger set of securities with a smaller investment.

Asghar & Sons Jurists and our dedicated attorneys are well acquainted withy the laws, regulations, statutes for the incorporation of assets management company, as a symbol of esteem we have rendered a valuable assistance to our prestigious clientele for the incorporation of Assets Management Companies since 1990 under the patronage of Honorable Sir Asghar Malik.

Regulation of Business of Asset Management Companies

The business of Asset Management Companies shall be regulated in such manner and on payment of such fees and charges as may be prescribed in the rules. Section 32 and 33 of the Securities and Exchange Ordinance 1969 deals with the Asset management Companies.

Asset Management Companies Rules 1995

The Federal Government is empowered to make the following rules to regulate the business of Asset Management Companies.

Commencement of Business

According to Rule 3 of Asset Management Companies Rules 1995, no company shall commence business as Asset Management Company unless it is registered with the Authority under these rules. The authority is Securities and Exchange Commission of Pakistan.

Eligibility for Registration

A company proposing to commence business as an asset management company shall be eligible for registration under these rules if:

It is registered as a public limited company under the Companies Ordinance, 1984 (XLVII of 1984);
It has a paid up capital of not less than two hundred million rupees;
No director, officer or employee of such company has been convicted of fraud or breach of trust;
No director, officer or employee of such company has been adjudicated as insolvent or has suspended payment or has compounded with his creditors; and
The promoters and directors of such company are, in the opinion of the Authority, persons of means and integrity and have special knowledge and experience of matters which the company may have to deal with as an Asset Management Company.

Registration

Under rule 5, a company eligible for registration may make an application to the Authority for registration under these rules.

Application processing fee of fifty thousand rupees in the form of bank draft payable to the Commission shall accompany the application.
The Authority may, after satisfying itself that the applicant is eligible for registration and that it would be in the interest of the capital market so to do, grant a certificate of registration to such company.

Cancellation of Registration

Where the Authority is of opinion that an asset management company has contravened any provision of the Ordinance, or has otherwise neglected or failed to comply with any requirement of these rules or has failed or neglected to carry out its duties to the satisfaction of the trustee, and the Authority or the trustee, as the case may be, considers that it would be in the interest of the unit holders so to do, the Authority may, on its own motion or on the report of the trustee, by order in writing, cancel the registration of the Asset Management Company.

No such orders shall be made except after giving the Asset Management Company an opportunity of being heard.

Restrictions on Asset Management Companies

There are certain restrictions on asset management companies, they are as follows – It cannot:

Merge with, acquire or take over any other asset management company or a scheme, unless it has obtained the prior approval of the Authority in writing to the scheme of such merger, acquisition or takeover;
Pledge any of the securities held or beneficially owned by a scheme except for the benefit of the scheme;
Accept deposits from a scheme;
Make a loan or advance money to any person;
Participate in a joint account with others in any transaction;
Apply any part of its assets to real estate except property for its own use;
Make any investment with the purpose of having the effect of vesting the management, or control, in the scheme; and
Employ as a broker, directly or indirectly, any of its director, officer or employee or a member of a family of such person which shall include spouse, parents, children, brothers and sisters.

Obligations of Asset Management Companies

An asset management company shall:

Be obliged to manage the assets of the scheme in the interest of the unit holders in good faith and to the best of its ability and without gaining any undue advantage for itself or any of its related parties or its officers;
Account to the trustee for any loss in value of the assets of the scheme where such loss has been caused by its negligence, reckless or willful act or omission;
Be responsible for the acts and omissions of all persons to whom it may delegate any of its functions as manager as if they were its own acts and omission;
Maintain at its principal office, proper accounts and records to enable a complete and accurate view to be formed of the assets and liabilities and the income and expenditure of the scheme, all transactions for the account of the scheme and amounts received by the scheme in respect of issues of units and paid out by the scheme on redemption of units and by way of distributions;
Prepare and transmit the annual report, together with a copy of the balance sheet and income and expenditure account and the auditors report of a scheme within four months of closing of the accounting period to the unit holders, and the balance sheet and income and expenditure account shall comply with requirements set out in Schedule II;
Within two months of the close of the first half of its year of account, prepare and transmit to the unit holders and the Authority a profit and loss account for, and balance sheet as at the end of that half year, whether audited or otherwise;
Maintain a register of unit holders of a scheme and inform the Authority of the address where the register is kept;
Appoint, at the establishment of a scheme and upon any vacancy, an auditor who shall be a Chartered Accountant and independent of the auditor of the management company and the trustees.
Furnish a copy of the annual report together with copies of the balance sheet, income and expenditure account and the auditors report of a scheme to the Authority within four months of the close of the accounting period together with a statement containing the following information, namely: (1) Total number of unit holders; and (2) Particulars of the personnel (executive, research and other) of the asset management company; and
Furnish a copy of annual report of the company together with copies of the balance sheet, income and expenditure account and the auditors report within four months of the close of the accounting period.

Remuneration payable to Asset Management Companies

An asset management company shall be entitled to remuneration:

During the first five years of the scheme, of an amount not exceeding three per cent of the net assets of the scheme as at the end of its year of accounts and thereafter of an amount equal to two per cent of such assets; and
Of an amount not exceeding one-half of the amount by which the dividend distributed by the scheme exceeds twenty per cent.

Short sale not allowed

According to rule 14 no scheme shall affect a short sale in a security whether listed or unlisted.

Appointment of Trustees

Every investment scheme for which authorization is requested shall appoint a trustee with the approval of the Authority.

Conditions applicable to trustees. – A trustee shall be

A scheduled bank licensed under the Banking Companies Ordinance, 1962 (LVII of 1962), and have been in business for at least five years; or
A trust company which is a subsidiary of a scheduled bank; or
A foreign bank operating as a scheduled bank in Pakistan and operating as trustee internationally; or
A central depository company approved by the Authority.

Trustee and the asset management company to be independent

The trustee shall not in any way be related to the asset management company.
A director or employee of the trustee shall not be involved in the management company.

Remuneration payable to the trustee

A trustee shall be entitled to such fee or remuneration as may be allowed by the management company.

2. BANKING LAW, BANKING LAWYERS & LITIGATION IN PAKISTAN

Banking law that governs how banks and other financial institutions conduct business. Banks must comply with a myriad of federal, provincial and domestic regulations. Lawyers perform a wide array of functions that relate to creating, following and enforcing the banking regulations. Bank regulation, on the other hand, is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and companies with whom they conduct business, among others.

Our dedicated team of professional lawyers may best assists their clients in resolving banking law issues in Pakistan. We deal in establishment, incorporation and share capital in Banking Companies, Cooperative Banks and Financial Institutions, Transactions of Banking Business, Suspension of Business and Winding up of Banking Business, Recovery of Loans, Mortgage Matters, Landlord & Tenant, Debtor & Creditor, Contracts, Bankruptcy, Bank Secrecy Matters and Negotiable Instruments etc.

Our Attorneys at Asghar & Sons Jurists also deal with the matters relating to borrowing, raising or taking up of money, the lending or advancing of money either upon or without security, all kinds regarding bills of exchange, hundis, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates including participation term certificates, modaraba certificates and musharika certificates etc. and dealing in bullion and species, buying and selling of foreign exchange including foreign bank notes, the acquiring, holding, issuing on commission, underwriting and dealing in stock, funds, shares, debentures, bonds, obligations and securities, all kinds of investments, the receiving of all kinds of bonds, scripts or valuable on deposits.

Scope of Banking Law Practice

The Banking Law Firm concentrates all of its resources and professional efforts in the specialized field of Federal bank regulatory law. The firm places particular emphasis upon and specializes in the defense of Federally insured financial institution and their officers and directors in all matters pertaining to supervisory bank examinations conducted by all of the Federal bank regulatory agencies to assess compliance with all applicable Federal banking laws, rules and regulations governing the operations of such institutions.

The caliber of the firms’ defensive assistance services has been highly regarded by banking institutions throughout Pakistan, including in-house counsel and regularly retained attorneys for such institutions. The firm also provides assistance in all types of regulatory applications to the Federal banking agencies, as well as defensive assistance in personal civil liability actions instituted against officers and directors of financial institutions for alleged breaches of their legal duties and responsibilities as officers or directors of such institutions. Asghar & Sons Jurists provides services around the world to money-center banks, savings and loans, insurance companies, finance companies, institutional investors, investment banks, private banking and trust operations, credit unions, mortgage banking and brokerage companies, and international and foreign banks institutions.

The Banking Law and Financial Services Group represents banks, mortgage companies, other institutional lenders, businesses and individuals in connection with all aspects of banking law and financial services. Attorneys in this Group handle real estate, commercial lending, and consumer transactions, both secured and unsecured. They assist clients on issues relating to the consumer lending laws, servicing agreements, brokerage agreements, wholesale agreements and funding agreements, and negotiate and prepare loan documentation.

The Group also represents banks, mortgage companies and other lenders on issues involving federal and provincial regulations, new bank charters, holding company formations, conversions, new or acquired branch applications, mergers, acquisitions and licensing / qualification in jurisdictions throughout the country. It also handles all aspects of secondary market transactions, including portfolio purchases, servicing agreements, securitized financing acquisitions and all of the many business and real estate issues which arise in such transactions.

3. BITCOIN, CRYPTOCURRENCIES, LAWYERS & LITIGATION IN PAKISTAN

Bitcoin is a digital currency that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.¹ The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.

Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as “BTC.”

Cryptocurrency Lawyers in Pakistan

The increasing use of cryptocurrencies and other digital assets has given rise to complex legal issues relating to regulatory status (including requirements to register as broker-dealers, commodity pool operators, commodity trading advisors, investment advisers, investment companies, securities exchanges and money service businesses), compliance (including valuation, custody and reporting), corporate law (such as maintain shareholder records), securities transactions (including initial coin offerings and M&A transactions), fund formation, the launch of ETFs and derivatives, venture capital, taxation, anti-money laundering, litigation and regulatory enforcement.

We at Asghar & Sons Jurists are very well conversant and up to date with the new technologies and new digital economy. Bitcoin and other cryptocurrencies are taking their position in the modern digital economy and e-commerce and the far reaching benefits of cryptocurrencies can not be denied in the modern digital future hence our senior attorney honorable Sir Asghar Malik is very serious about the legislation, regulations and statutes about the digital currencies are dire need of the time to tap this very new emerging opportunity. As a matter of fact our law firm is the First Law Firm in Pakistan which is providing legal advice and protecting our lawful clientele in Pakistan and beyond from the illegal harassment by the Authorities. By the vision and wisdom of Honorable Sir Asghar Malik our attorneys and Cryptocurrency Lawyers have First Mover Advantage and as a matter of fact we are in a position to even beat the International Level Crypto related Law firms.

Our areas of expertise include helping preeminent and emerging cryptocurrency projects gain and maintain compliance with out violating laws, representing investors and consumers in high-stakes individual and class action litigation, resolving disputes between customers and cryptocurrency exchanges, assisting peer-to-peer traders and exchanges in complying with the Bank Secrecy Act and state money transmitter laws, and guiding a variety of other businesses in compliance matters as they interact with the crypto-sphere.

Our Cryto Lawyers at Asghar & Sons Jurists have a simple preposition; We are a team of qualified lawyers dedicated to helping developers, Minors, Investors and organizations to navigate the legal intricacies of cryptocurrency and blockchain technology related legislation and regulations. We at Asghar & Sons Jurists commit ourselves to strategically and proactively to represent our dedicated clientele in Pakistan & Beyond in their transactional and litigations manners.

Peer-to-Peer Technology

Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the bitcoin network—bitcoin “miners”—are in charge of processing the transactions on the blockchain and are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin.

These miners can be thought of as the decentralized authority enforcing the credibility of the bitcoin network. New bitcoin is released to the miners at a fixed, but periodically declining rate. There are only 21 million bitcoin that can be mined in total. As of January 30, 2021, there are approximately 18,614,806 bitcoin in existence and 2,385,193 bitcoin left to be mined.³

In this way, bitcoin other cryptocurrencies operate differently from fiat currency; in centralized banking systems, currency is released at a rate matching the growth in goods; this system is intended to maintain price stability. A decentralized system, like bitcoin, sets the release rate ahead of time and according to an algorithm.

Bitcoin Mining

Bitcoin mining is the process by which bitcoins are released into circulation. Generally, mining requires the solving of computationally difficult puzzles in order to discover a new block, which is added to the blockchain.

Bitcoin mining adds and verifies transaction records across the network. For adding blocks to the blockchain, miners are rewarded with a few bitcoins; the reward is halved every 210,000 blocks. The block reward was 50 new bitcoins in 2009. On May 11th, 2020, the third halving occurred, bringing the reward for each block discovery down to 6.25 bitcoins.⁴

A variety of hardware can be used to mine bitcoin. However, some yield higher rewards than others. Certain computer chips, called Application-Specific Integrated Circuits (ASIC), and more advanced processing units, like Graphic Processing Units (GPUs), can achieve more rewards. These elaborate mining processors are known as “mining rigs.”

One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi.⁵ If necessary, and if the participating miners accept the change, bitcoin could eventually be made divisible to even more decimal places.

ALTCOINS

An altcoin is a cryptocurrency, or virtual currency, alternative to Bitcoin. Each altcoin operates according to its own rules. Altcoins are alternatives to Bitcoin. They are cryptocurrencies that use a technology called blockchain that allows secure peer-to-peer transactions.¹ Altcoins build on the success of Bitcoin by slightly changing the rules to appeal to different users.

Pros and Cons of Altcoins

Pros

Improve on Bitcoin’s flaws
Provide competition
Low transaction fees

Cons

Value is very volatile
High potential for scams and fraud

Pros explained

Improve on Bitcoin’s flaws: Altcoins are generally designed to address a perceived shortcoming with the Bitcoin framework, whether it’s speed, mining cost, or some other factor.
Provide competition: By tweaking the rules under which Bitcoin operates, altcoin creators make space for new competitors to the Bitcoin system.
Low transaction fees: One of the benefits of using altcoins as a payment method, in addition to secure blockchain technology, is the relatively low transaction fees charged for each transaction.

Cons explained

Value is very volatile: As an investment, altcoins are very new and their value can change drastically.
High potential for scams and fraud: Altcoins, as with Bitcoin, are frequently the subject of scams and other fraudulent schemes.⁷

Types of Altcoins

Altcoins are sometimes projects from enthusiasts, and sometimes the basis for whole new businesses. They can even be more than coins, developing into entire new frameworks for everything from messaging applications to online marketplaces.

An altcoin will often change Bitcoin’s rules sufficiently to do something uniquely productive and may have a particular application.

Some coins, such as solarcoin, have been designed as a unit of exchange for solar power production. Others, such as namecoin, have formed the basis for a new system of domain names on the Internet.

Consider these different types of altcoins.

Stablecoins

Stablecoins are altcoins that are designed to combat the volatility of cryptocurrency by tying their value to an underlying index, commodity, or security. Tether is one example of a stablecoin; Libra is a stablecoin under development by Facebook.⁸

Digital tokens

Altcoins that function as digital tokens are supported by an underlying blockchain platform. For example, Tether can also be considered a digital token, as it is built on Ethereum and other blockchains.⁹

Some investors seek to earn returns by exchanging altcoins with each other, too, but as an investment, it’s risky. Virtual currencies trade on unregulated exchange.

NOTE; We are not affiliated with any cryptocurrency or exchange and nor we are the promotors of any specific cryptocurrency. We believe in the technology behind the growth and exponential rise of Bitcoin and other Altcoins hence we believe that the technology must be promoted and admired.

Asghar & Sons Jurists and their Crypto Lawyers offers sophisticated and knowledgeable legal counsel to clients navigating this rapidly evolving space. At the heart of Asghar & Sons Jurists cryptocurrency and blockchain practice is a deep understanding of the technologies that drive blockchain and related developments in distributive computing networks. In addition, A & SJ is distinctive among leading law firms in this area by bridging the financial service regulation and new financial technology to find solutions for our clients.

Since the launch of bitcoin in 2009, cryptocurrencies and the encrypted, decentralized blockchain protocol that underpins them have grown from abstract theories to a transformational force that is disrupting the way many industries will operate for decades to come.

Decentralized ledger technology and smart contracts could ultimately reshape many industries, including financial services, intellectual property, logistics and supply chain, the internet of things, energy, health care, insurance and the sharing economy.

The landscape for financial products and services integrating blockchain technology is evolving rapidly. Whether launching funds to invest directly or indirectly in digital assets or creating new coins or tokens in connection with the launch of new distributive networks, clients operating in this area have specialized needs that Dechert is particularly well-placed to serve.

OUR EXPERIENCE

Advising and assisting private cryptocurrency fund sponsors on all aspects of the fundraising lifecycle, including fund formation, regulatory compliance and market terms; preparing offering documents for new private cryptocurrency funds, including private placement memoranda, limited partnership agreements and subscription agreements; global regulatory advice; tax efficient investment structuring; and carried interest, management equity arrangements and other incentive structuring.
Assisting registrants with proposals for Securities and Exchange Commission (SEC)-registered cryptocurrency funds (both funds registered under the Investment Company Act and those registered only under the Securities Act) including proposals for obtaining exposure through both physical cryptocurrency holdings and through use of futures contracts.
Preparing registration statements and other filings.
Advising clients regarding Investment Company Act and Investment Advisers Act issues raised by use of blockchain technology for conventional asset classes – e.g., custody.
Advising on the latest regulatory developments from the SEC, Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) regarding cryptocurrencies, cryptocurrency derivatives and other digital assets.
Working with companies considering initial coin offerings to navigate whether tokens are considered securities under relevant U.S. federal and state laws.
Advising on Anti-Money Laundering/Know Your Customer issues and related compliance issues.
Advising on money services businesses and money transmitters and their registration requirements.
Working with venture capital firms in Pakistan and Beyond on transactions involving blockchain-related companies.
Advising intermediaries in the cryptocurrency economy – including brokers and exchanges – on their compliance obligations.

NOTE; WE DO ACCEPT PAYMENTS IN BITCOIN & ALTCOINS.

4. BROKERAGE COMPANY, BROKERAGE LAWYERS & LITIGATION IN PAKISTAN

The prime role of a brokerage company’s is to act as a middleman that connects buyers and sellers for facilitating a business transaction. Brokerage companies typically receive compensation by means of commissions or fees that are charged once the transaction has been made successfully. In these days, the compensation might be paid by the exchange or by the customer, or in some cases both. Because many discount brokerages have instituted zero-commission trading, they make up for this loss of revenue in other areas, including getting paid by the exchanges for larger quantities of order flow. For example, when a trade order for a stock is executed, an investor pays a transaction fee for the brokerage company’s efforts for completion of the trade.

The real estate industry, for example, functions or follows a brokerage company format, as it is customary for real estate brokers to collaborate, with each company representing one party of the transaction to make a deal. In this case, both brokerage companies divide the commission between each. A brokerage company may also be called a brokerage firm, or simply a broker. Brokers may work for a brokerage company or operate as an independent agent.

Our attorneys at Asghar & Sons Jurists are well conversed with the prevailing laws, enactments, statutes as enshrined in the legislations for the formulation brokerage in Pakistan, hence we are in a strong position to assist any private entity or enterprise in this regard. Further our Attorneys have an enormous legal advisory experience in order to the management of the brokerage business. If you have any query regarding the formulation, registration and management of brokerage company, please feel free to contact us.

What are Securities?

As per Securities Act 2015, securities in the case of listed instruments includes:

Asset Management Companies Rules 1995

The Federal Government is empowered to make the following rules to regulate the business of Asset Management Companies.

Stocks and shares of a Company (shares);
any instrument creating indebtedness issued by a company including, in particular, debentures, debenture stock, loan stock, bonds, notes, commercial paper, sukuk or any other debt securities of a company;
bonds, loan stocks, sukuk and other instruments creating indebtedness by the government, central bank or public authority (Government and public debt securities);
modaraba certificates, participation term certificates and term finance certificates;
any right (whether conferred by warrant or otherwise) to subscribe for shares or debt securities (warrants);
any option to acquire or dispose of any other security (options); units in a collective investment scheme, including units in or securities of a trust fund (whether open-ended or closed end);
the rights under any depository receipt in respect of shares, debt securities and warrants (custodian receipts); and
any other instrument notified by the Commission to be securities for the purposes of this Act.

Who is a Securities Broker?

A securities broker is an essential link between a consumer and the world’s financial markets, they connect the buyer with the seller. Securities brokers sell or buy stocks, bonds, and other securities on the behalf of their customers. Securities brokers usually explains the available securities services to the potential clients and give advice on the purchase or sale of particular securities. They are responsible for Monitoring the financial markets and the performance of individual securities.

Trading Rights Entitlement Certificate

Anybody who wishes to work as a securities broker, needs to apply for the Trading Rights Entitlement Certificate (TREC). The applicant(s) desiring to apply for (TREC) are required to submit a signed application in TRE Certificate Application Form to the Pakistan Stock Exchange. Upon approval of the application by the CEO of Pakistan Stock Exchange, a Certificate is issued to the respective applicant. According to Stock Exchanges (Corporatization, Demutualization and Integration) (Amendment) Act 2012, Pakistan Stock Exchange is required to issue fifteen (15) TRE Certificates each year until 2025.

Time Period

The applicant has sixty (60) days from the date of issuance of the application form to fill out and sign the form. The time period to approve or reject an application is 30 days from the date of submission of the Application to Pakistan Stock Exchange.

Fees

For issuance of new TRE Certificate = Rs. 2.5 Million along with a non-refundable application processing fee of Rs. 100,000/-

The fee has to be paid as a Pay Order in favour of Pakistan Stock Exchange along with the Application.

Eligibility Criteria

The applicant has to be a Public or a Private company (can’t be a single member company).
The minimum issued and paid-up capital of the Company must be Rs.50 million.
The Chief Executive of the applicant company must be a citizen of Pakistan and should not be on the board of any other company whose principal activity is investing/ trading in securities market.
The key managerial staff of the applicant have not held the office of the directors or have been sponsors/substantial shareholders in any company viz TRE Certificate Holder or a Member which had been declared defaulter or expelled by the Exchange or whose TRE Certificate has been cancelled/forfeited by the Exchange, prior to the date of demutualization. (Substantial shareholder is any shareholder having more than 10% shareholding);
Minimum two (2) Directors of the applicant company including its Chief Executive must have a minimum academic qualification of “Graduation” from a university duly recognized by the HEC or foreign qualification that is of equivalent level and have experience of at least five years in the business of buying, selling or dealing in securities;
The applicant company must not be engaged in any business other than that of a Broker;
An applicant company shall not be allowed to hold a TRE Certificate if any of their key managerial staff:
- Have been adjudged bankrupt or have been proved to be insolvent even though they may have obtained their final discharge;
- Have compounded with their creditors for less than full discharge of debts;
- Have been convicted of an offence involving a fraud or dishonesty;
- Have been at any time expelled or declared a defaulter by a Stock Exchange/PMEX or it have been debarred from trading in securities by any regulatory authorities including SECP or any court of law.

Application for Securities Brokerage License from SECP

Process

As soon as the applicant company has successfully received the Certificate, he can apply for a securities license from Securities & Exchange Commission of Pakistan (SECP) by submitting an application along with necessary documents to Pakistan Stock Exchange.

Information and Documents required along with the application:

General and business information: Brief background of the applicant company, containing at least name of the applicant, date and place of its incorporation, date of commencement of business, name and contact details of key management staff, the including group structure, if any, and length of experience as securities broker, if any.
Address of the registered office of the applicant (postal address, postal code and telephone, fax numbers.)
Contact details of the applicant Company (postal address, postal code, telephone number, fax numbers and e-mail address)
Percentage of capital that each sponsor has proposed to contribute in the company.
Name of the securities exchange of which the applicant is a TRE certificate holder, along-with the TRE Certificate number.
Details of outstanding legal proceedings, if any, initiated against the applicant, its directors or senior management officers by the Commission or any other regulatory authority.
Details in case the applicant, its sponsors, directors, major shareholders or senior management officers have been declared insolvent or bankrupt, or declared defaulter by any authority.
Details of penal actions, if any, taken against the applicant, its sponsors, directors, major shareholders or senior management officers during the last three years by the Commission or any other regulatory authority.
In case any associated company of the applicant is already licensed under the Securities Act, 2015, the following details shall be provided, namely:
- Name of such associated company;
- Details of warning notices, if any, issued to such associated company by the Commission;
- Details of legal proceedings, if any, initiated against such associated company by the Commission or any other regulatory authority; and
- Penal action, if any, taken against such associated company by the Commission during the last three years.
Details of infrastructural facilities (to be used for performing the functions of a securities broker):
Computer System Installed: (a) Hardware Configuration and (b) Software used.
Data Processing Capacity: (a) Available infrastructure (computers and other electronic equipment used for data processing and communication); (b) Available manpower; and (c) Office space (mention extent of area in square feet available)
Other Information
Details as per following format of all pending disputes in which the applicant is a party: (a) Name of the party; (b) Name and place of court / tribunal where dispute is pending; (c) Amount involved; (d) Pending since; (e) Date of last hearing; and (f) Decision at last hearing
List of civil and criminal offenses in which the applicant or any of its sponsors, directors or senior management officer has remained involved during the last three years.
Any other information considered relevant to the business of the securities brokers.
Any significant awards or recognition, collective grievances against the applicant.
List of documents to be provided along with application:
- Copy of memorandum and articles of association of the applicant company duly certified from the concerned company registration office (CRO) containing copy of the certificate of incorporation and that of the certificate of commencement of business.
- Copy of Forms 3, 27, 28 and 29 of the applicants duly certified from the CRO concerned.
- Audited accounts (last three years) and half yearly and quarterly accounts (if applicable).
- Copies of documents providing evidence of compliance with the financial resource requirements specified in the Securities Brokers (Licensing and Operations) Regulations, 2016.
- Profile / Fit and Proper related documents of the key managerial staff of the applicant Company.
- An undertaking from the sponsors of the applicant company that they will not sell or transfer their shares without prior written approval of the Securities & Exchange Commission.
- An undertaking from the directors of sponsoring company and the applicant that they will inform the Commission in case of any change in the sponsors / majority shareholders of the sponsoring company.
- An undertaking that the securities broker, its directors, sponsors, senior management officers are in compliance with all the requirements for grant of a license under the Securities Brokers (Licensing and Operations) Regulations, 2016.
- Names and addresses of and particular of any business carried on by each person holding an interest of 10% or more in the issued share capital of the securities broker.
- The identification of the shares held by each sponsor.
- Bank details of the securities broker.
- Details of the outsourcing contracts and affiliations (if any).
- Any other information / document if required by the Commission.

After scrutinizing the application, the Pakistan Stock Exchange will send the application to SECP for further scrutiny and approval. If the application is approved by Securities and Exchange Commission of Pakistan, a license is provided by the SECP to Pakistan Stock Exchange which is forwarded to the respective TREC holder.

Along with these documents there are Undertakings, Fit and proper Criteria and Checklist of Brokers that need to be attached as well.

Fee Schedule

[See regulation 5(1) and 9(1)]

For renewal of securities broker licence = Rs.50,000
For the grant of new licence to act as a securities broker Rs.100,000

The fee can be deposited into the bank account of the Commission.

The license of securities broker is valid for a period of one year.

5. BUSINESS LAW & BUSINESS LAWYERS IN PAKISTAN

The info encompasses on business law services measures the number of procedures, time, cost and paid-in minimum capital requirement for a small to medium-sized business / company to start up and formally operate in country’s large business cities. A conducive investment climate is instrumental in attracting both domestic and foreign investment by providing a more facilitative institutional, policy and regulatory environment for businesses to operate. Pakistan made starting a business easier by expanding procedures available through the online platform. This reform applies to both Karachi and Lahore. Furthermore, Pakistan’s Lahore abolished the Labour Department Registration Fee.

Having the right attorney can make the difference when it comes to commencement of a new business, acquiring an existing one, or when dealing with issues that arise in connection with the operation and ownership of a business. The attorneys of Asghar & Sons Jurists, have extensive experience in business, commercial, and corporate affairs in in all over Pakistan, ranging from formation and incorporation for new business start-ups as limited liability companies or partnerships, preparation of shareholder or operating agreements, and in providing corporate counsel services to guide business owners and operators in their day to day ongoing business operations. The firm also represent clients in the purchases and sales of businesses of ongoing businesses of all types and sizes, as well as in connection with shareholder buy / sell agreements, leases, commercial evictions, and shareholder disputes. Having represented business and corporate clients of various types and sizes, our attorneys at Asghar & Sons Jurists can be an invaluable asset to your business and regularly help clients be able to focus on productivity.

Deciding how to organize your company — a Sole Proprietership, a Partnership, a Public Limited Company, a Private Limited Company, a Foreign Company, a Liaison / Branch Office or some other form of entity, can be confusing. The business and tax aspects of your decision vary greatly. We can help you establish the operating structure most beneficial for you.

The Mission of the Business Law Section is to serve the public, the profession and the Section by furthering the development and improvement of business law, educating Section members in business law and related professional responsibilities, and helping Section members to serve their clients competently, efficiently and professionally. Setting a sound strategy is the most important aspect of being successful in business.

The Asghar & Sons Jurists Business Group is experienced in working closely with our clients to understand their strategic goals. Whether the matter relates to corporate governance, financing, securities law, or the intricacies of deal taxation, our approach begins with strategic listening. As a result, our experience enables us to develop effective plans. With those plans, our attorneys work together with our clients to implement their long-term goals.

Business Legal Services

Asghar & Sons Jurists represents a wide array of business and corporate clients, ranging from sole proprietorships to entrepreneurial small companies to large business organisations. Our attorneys counsel clients through all phases of business and corporate law, including corporate formation and governance, mergers and acquisitions, general contract formation and administrative work. Our goal in this practice area is to help our clients to understand and work through their business issues so as to enable them to operate successfully regardless of the economic climate.

Whether your business is small or large, at Asghar & Sons Jurists, we view our role as facilitators to your company’s continuing growth and expansion. Our goal is to anticipate and prevent problems before they happen. Having a practice that dates back to 1973, we represent clients in most all industry groups. We don’t pigeonhole our attorneys to single industries. Our professionals bring to the table broader experiences from several industries. This broad based experience provides our clients with more cost effective, higher quality services.

With respect to business formation and corporate governance, our attorneys work with clients to help them focus and facilitate important decisions related to the foundation of their organisations. To that end, we assist our clients in selecting the correct type of business entity, handling all aspects of incorporating the entity and qualifying it to do business in any states necessary, as well as to provide ongoing support and maintenance of the entity after the incorporation.

Business Finance

Whether representing a lending institution or a publicly or privately held business, we understand that time is money. Loan documentation is not all the same. The negotiation of such documents poses special considerations affecting your company’s future flexibility and rights. We are accustomed to providing this work quickly.

Business Paper and Business Transactions

Another significant aspect of our business law practice relates to the purchase or sale of businesses. It is critical to plan and structure these transactions in such a manner as to achieve the expected results and avoid unexpected or unwanted consequences. Based on our extensive experience, our attorneys counsel clients, negotiate terms and conditions and draft documents in such a manner as to best achieve our clients’ business goals.

We assist our clients in the sensitive work of forming documents for maintaining relationships with their customers, suppliers and employees. These include employment agreements, confidentiality agreements, manufacturing and supply agreements, manufacturers’ representative agreements, joint ventures and other agreements necessary in today’s competitive business environment. Sadly, we know much of the ever common litigation that we read about in this area could have been prevented. We take pride in keeping our clients out of this expensive litigation process.

We also routinely assist clients with leasing, selling and / or purchasing real property. From negotiation and drafting of letters of intent and binding agreements, through performing due diligence and obtaining financing until closing of the transaction, we focus our energies on ensuring that our clients understand the business considerations associated with each transaction. As in all our practice areas, our attorneys offer diligent representation during every stage of a real estate transaction.

Corporate Governance

We advise clients on rights and responsibilities with respect to members, directors, and shareholders. Whether it’s an indemnity clause in one’s by-laws, an insurance contract or both, the issues concerning member / director liability can have substantial impact on one’s wealth. Advance attention to these concerns can prevent many of these problems.

The Law Offices of Asghar & Sons Jurists provide a one-stop legal shop for manufacturing, construction and service businesses throughout Afghanistan and Pakistan. We provide business and commercial law services to entrepreneurs, startups, small businesses and established companies in Afghanistan, Pakistan, including Kabul, Peshawar, Islamabad, Lahore, Karachi, Quetta, and everywhere in between. Here are some examples of the business law services we provide:

Formation of corporations, limited liability companies, business trusts and partnerships;
Licensing actions before regulatory institutions and advising individuals and entities regarding professional regulatory issues;
Business financing;
Business contract preparation;
Shareholder rights;
Corporate meetings and minutes;
Buy-sell agreements;
Employment contracts;
Employee relations;
Business liability;
Real estate services in connection with the purchase or sale of commercial buildings, commercial property, as well as property-related services such as zoning changes and commercial leases;
Franchising;
Business planning;
Protection of trade secrets;
Tax preparation services and tax planning;
Business succession and estate planning services; and
Business dissolutions.

One of our key strengths is our ability to provide a full range of legal services for our business clients. We have become the “legal department” for many businesses in Pakistan that do not have their own in-house legal counsel.

At Asghar & Sons Jurists, we believe in a team approach with clients. We enjoy long lasting relationships with our clients, and we take great pride in working with our clients towards achieving continued success. We have worked hard over the past 35 years to earn confidence and respect from our business clients. Whether you are starting a new business from scratch or you want to make your existing business stronger, Asghar & Sons Jurists will provide a seasoned legal perspective and practical advice to help your business grow. For more information, please refer to our Business Law Practice Center.

5. BUSINESS TAX PLANNING LEGAL SERVICES IN PAKISTAN

Tax planning is the analysis of a financial situation or strategy from a taxation standpoint. The persistence of tax planning is to ensure the tax efficiency. Through tax planning, all foundations of the financial strategy work together in the most tax-friendly manner possible. Our dedicated team of professional tax experts best assists their clients as to business tax planning in Pakistan. Asghar & Sons Jurists tax practice brings with it over four decades of experience in dealing with the complexities of Pakistan’s Taxation system. Our tax experts are adept at finding answers to business problems across varied sectors, as well as objectively analysing solutions proposed by others.

Our team of experienced professionals offers sound, dependable, and cost-effective tax planning and compliance services to both Pakistani and International clients that are controlled and co-ordinated from our Lahore headquarters and delivered from our offices throughout Pakistan including capital cities i.e. Peshawar, Islamabad, Quetta and Karachi. In keeping with Asghar & Sons Jurists value proposition, our team of experts go that extra mile – establishing credibility with tax authorities, while keeping a tab on the frequent changes and amendments made to tax laws. We also ensure that our clients are not left in the dark, making it our business to keep them abreast with important changes made to Pakistan’s tax laws and reminding them about impending deadlines, through frequent tax alerts, reminders, a tax calendar etc.

Tax Planning Process

Tax planning is a process of looking at various tax options in order to determine when, whether, and how to conduct business and personal transactions so that taxes are eliminated or reduced.

There are countless tax planning strategies available, particularly if you own a small business. Some are aimed at your individual tax situation, some at the business itself. But regardless of how simple or how complex a tax strategy is, it will be based on structuring the transaction to accomplish one or more of these often overlapping goals:

Provide last years’s tax return;	Gather additional information;
Analyse situation and project tax savings;	Research and analysis; and
Deliver contract outlining fees;	Implement tax saving strategies.

Table: Tax Planning Goals

An Essential Component for Your Overall Financial Plan

Careful planning throughout the year can assist you in reducing the taxes you pay – as well as help you achieve your financial goals. The following guide provides an overview of tax rates, credits, deductions and related considerations that may apply to you.

Tax planning should not be done in isolation, but instead should be driven by your overall financial goals and integrated with your total financial plan. By developing and implementing appropriate strategies to lessen or shift current and future tax liabilities, you can improve your prospects of meeting long- and short-term objectives. For example, accurately projecting your income taxes can help you determine the cash flow available to you in the coming year.

Keep in mind that tax laws are often complex and frequently change. As a consequence, you should consult your tax advisor before making investment and tax decisions.

TAX PLANNING SERVICES

While managing slightly, tax can be one of the most nerve-wracking and possibly precarious aspects of working. With expert knowledge and careful planning, however, you can achieve both full compliance and good retention.

As a widely-recognised industry leader in the field of tax planning, we will make the most of your individual situation. Our services include:

Financial Planning for Consultants

Making the most of your personal financial situation and leveraging any benefits provided for by the local authorities.

Tax Compliance

Surely the most important of any contract overseas is to ensure that you remain fully compliant in the eyes of your host country. A key aspect of our service is to ensure that this is always the case by means of accurate planning before the fact, and by taking care of your local tax return for you.

Expatriate Taxation

Contracting abroad presents a number of advantages from a tax perspective, but care must be taken to remain compliant both in your host country and at home.

Offshore Taxation Issues

There are many misconceptions and inaccuracies that are often repeated with regard to offshore tax. Depending on your circumstances, widely divergent laws may apply and varying advantages may be enjoyed, but detailed local knowledge and stringent attention to detail is required: There is no “one-size-fits-all” answer to questions such these.

With our help, you can make the most of advantageous situations, and avoid the common pitfalls of international tax. We will guide you at every stage of your contract, and take into account every detail of your personal situation in order to maximise your retention and compliance.

In essence, if there is anything you are unsure about, we can help: from the most basic question to the largest project. In case of doubt, contact us, and we will help you make the most of your opportunity.

Offshore Taxation Issues and Advice

A great deal has been written over the years about offshore taxation, offshore bank accounts, offshore trusts, offshore payments and offshore tax havens. It is certainly worth thinking very carefully before entering into any form of offshore tax planning arrangement that deals with any of these issues.

To begin with, it is important to clarify that there are very few individuals who are actually working offshore – and most of them tend to be in the Oil and Gas industry, working on oil platforms or in similar locations. There are specific regulations within tax law covering these issues, and it is worthwhile speaking to a specialist if you fit within this category.

In the majority of cases, offshore facilities are used to reduce taxes which on the face of it are a good thing but the methods used often do not meet the requirements of the relevant local or international tax compliance rules. For example:

Offshore trusts have been legally used in the past from the UK, for an individual working in the UK and adhering to all of the relevant UK tax rules for Trusts. If, however, the individual then moves to a contract in Afghanistan, India, Pakistan, EU Member Country or Middle East and is working in (and therefore under the jurisdiction of) that country, the same tax rules for trusts will not apply, and therefore income going into the trust may be viewed as fully taxable. This will result in an additional tax bill, on top of the cost for the trust.

The lesson here is that ensuring tax compliance when working abroad (or indeed at home) is very important – but many offshoring opportunities can work against that compliance when considered in a wider context.

There are things that you can legally do to ensure that your tax compliance is managed effectively and that your tax liability is minimised.

We recommend that you contact our international tax planning specialists for appropriate advice, and allow us to structure a solution that is relevant for your circumstances.

INTERNATIONAL TAXATION COMPLIANCE

Whether you are working on a contract assignment overseas or in your home country, some things never change. Tax will be due where money is earned. However, ensuring your compliance with the relevant tax legislation is a complex process – especially when multiple countries and tax authorities are involved.

For example, you need to therefore be aware of the issues of tax compliance, including:

Tax residency and the 180 days rule;
Local tax legislation in the working country;
Offshore expat regulations and restrictions;
Issues of interactions between domicile rules and the length of contract / assignment; and
Opportunities to ensure that your international earnings are managed in a tax efficient way.

… to name just a few.

When moving to a new country of work, it is not enough to continue operating as you do at home. The same regulations rarely apply and unfortunately ignorance of local tax issues is not a defence when dealing with tax authorities. It is therefore essential that you and your agency understand the issues involved and that you speak to an expert about your position to confirm your international tax compliance.

At Asghar & Sons Jurists, we fully understand the issues of international tax compliance. We simplify the international taxation compliance planning process for our clients, and we provide local expertise and international tax experience to ensure that you have peace of mind by ensuring tax compliance when you are working abroad. We recommend that you contact our international tax planning specialists for appropriate advice.

INCOME TAX EFFICIENCY STRATEGIES

When working internationally, income tax rules can be very different from what you might expect in your home country.

Many countries make allowances for foreign contractors, which could mean significant tax savings during your contract abroad.

As well as the actual income tax rules when you are working abroad, you should also consider the commercial structure that you use, whether you are working internationally as a subcontractor, an employee or a freelancer. All consultants and independent professionals need to have the situation fully reviewed to ensure tax efficiency, and to check that tax allowances are managed, claimed and tracked in the relevant countries, regardless of whether they related to standard income tax allowances, or the management of tax deductible expenses.

6. COMMERCIAL LAW, COMMERCIAL LAWYERS & RELATED LITIGATION IN PAKISTAN

Commercial law or Mercantile law, also known as trade law, is the body of law that regulates the conduct of persons, merchants, and businesses who are engaged in trade, sales, commerce and merchandising. It is often considered to be the branch of business as well as of civil law and deals with issues of both public and private law.

Asghar & Sons Jurists has a strong and broadly based international commercial law practice. We have a team of lawyers who specialise in drafting, reviewing and negotiating commercial agreements. These range from strategic alliances to substantial one-off contracts (e.g. outsourcing, systems management and project development agreements) to repeat contracts and umbrella contracts with sub contractors and suppliers. The commercial law team has a particular focus on the way in which products and services are brought to market and promoted and has considerable expertise in the fields of marketing, advertising and sponsorship.

Our expertise in commercial law also gives our clients a significant advantage in more complex corporate transactions and de-mergers as, increasingly, there is a need for advice on strategic business contracts in the context of a corporate deal, for example to deal with transitional services issues or on-going supply arrangements. Specialist commercial law expertise combined with sectoral experience results in an in-depth understanding of the key business issues which need to be managed from a legal perspective which can be particularly helpful to private equity houses and investment banks.

Our aim is to always to add value to our clients’ businesses by assisting them to achieve their commercial objectives in the most practical way using our expertise and commercial awareness. We are particularly conscious of the need to protect and promote clients’ legal interests effectively in the context of urgent and sensitive commercial situations. Our team is familiar with the range of specialist issues which can arise in day-to-day commercial dealings, such as competition law issues and the need to protect intellectual property rights. We work closely with other experts in the firm and are used to drawing together a number of specialist issues to provide the effective overall legal solutions which deliver the commercial objectives.

The Commercial Law Counseling Group provides a complete range of commercial law services to ZA-LLPs’ local, national and international clients. The Group handles a variety of complex transactions, including mergers, asset acquisitions and sales, joint ventures, leasing transactions and financing, bankruptcy related transactions, and business startups, as well as the preparation of contracts of all types. In addition, because companies law is often selected as the governing law for major national and international transactions, the Group works with both in-house and regular outside counsel in the structuring and documenting of such transactions and provides legal opinions required at closing.

Our Commercial Law Approach

When companies enter into relationships with lenders and other business partners, the terms of those agreements are critical and often complex. Asghar & Sons Jurists Commercial Lending, Banking, Bond, Creditors’ Rights and Bankruptcy Practice Group provides guidance that produces mutually beneficial relationships across the entire spectrum of commercial relationships.

Our Commercial Law Attorneys

We are a multi-disciplinary team with more than 20 attorneys which prides itself on achieving client goals on time and within budget.

Our Commercial Law Clients

Our clients include companies of all sizes in many industries and the institutions that finance their operations and growth, such as banks, finance companies and insurance companies. We also serve bond issuers and underwriters.

Our Commercial Law Practice

We represent nationally and locally prominent commercial banks, finance companies, insurance companies and other lenders, as well as borrowers in connection with all aspects of secured and unsecured financing arrangements of all sizes. Those arrangements include:

Revolving and term loans;
Secured transactions (including asset based lending, chattel paper financing, floor plan financing and aircraft and vessel financing);
Commercial mortgage loans;
Intercreditor agreements and loan syndications and participations;
Seller-financed transactions;
Leveraged buy-outs;
Venture capital financing;
Letters of credit and reimbursement agreements;
Foreign exchange transactions;
Commercial leasing and equipment financing;
Leveraged leases;
Agriculture finance;
Purchase of individual loans and loan portfolios;
Interest rate swaps and other derivative transactions; and
Sales of accounts and other off-balance sheet financing.

Our focus on strategic issues and our familiarity with various industries allows us to assist our clients in negotiating terms that protect them throughout the lending relationship.

7. COMPANY INCORPORATION LAWS, LAWYERS & REGISTRATION SERVICES IN PAKISTAN

Company law is the legislation under which the formation, registration or incorporation, governance, and dissolution of an entity is administered and controlled. Company is a legal entity formed by a group of individuals for the purpose of some business or undertaking, which has a legal and corporate personality separate from that of its members. A company may be formed by charter, by special Act of Parliament or by registration under the Company Act. The liability of members is usually (but not always) limited by the charter, Act of Parliament or memorandum of association. A company may be a public limited company, in which event its shares may be transferred freely among, and owned by, members of the public. All limited liability companies that are not public limited companies are private companies, denoted by the term (Pvt) Ltd. While companies are owned by their members (i.e. shareholders), they are managed by a board of directors. A company may be limited by shares, or by guarantee or an unlimited company.

Asghar & Sons Jurists has a strong presence in the field of company registration, incorporation law practice in Pakistan. We have a team of lawyers who specialist in prevailing laws as to the incorporation, registration and management of companies. Our Attorneys at Asghar & Sons Jurists under the patronage of Honorable Sir Asghar Malik have an extensive experience in the company incorporation, registration and management related laws and are infact in a very strong position to compete and sustain in the very competitive market with distinction and prestige while serving our clients. If you have any enquiry then feel free to contact, our attorneys at Asghar & Sons Jurists are always available to assist.

Our expertise in company law also gives our clients a significant advantage in more complex corporate transactions and de-mergers as, increasingly, there is a need for advice on strategic business contracts in the context of a corporate deal, for example to deal with transitional services issues or on-going supply arrangements. Specialist company law expertise combined with sectoral experience results in an in-depth understanding of the key business issues which need to be managed from a legal perspective which can be particularly helpful to private equity houses and investment banks.

Our aim at Asghar & Sons Jurists is to always to add value to our clients’ businesses by assisting them to achieve their commercial objectives in the most practical way using our expertise and commercial awareness. We are particularly conscious of the need to protect and promote clients’ legal interests effectively in the context of urgent and sensitive commercial situations. Our team is familiar with the range of specialist issues which can arise in day-to-day commercial dealings, such as competition law issues and the need to protect intellectual property rights. We work closely with other experts in the firm and are used to drawing together a number of specialist issues to provide the effective overall legal solutions which deliver the commercial objectives.

Our Company Law Counseling Group provides a complete range of company law services to our local, national and international clients. The Group handles a variety of complex transactions, including mergers, asset acquisitions and sales, joint ventures, leasing transactions and financing, bankruptcy related transactions, and business startups, as well as the preparation of contracts of all types. In addition, because companies law is often selected as the governing law for major national and international transactions, the Group works with both in-house and regular outside counsel in the structuring and documenting of such transactions and provides legal opinions required at closing.

Our Company Law Approach

When companies enter into relationships with lenders and other business partners, the terms of those agreements are critical and often complex. Asghar & Sons Jurists provides legal assistance for Commercial Lending, Banking, Bond, Creditors’ Rights and Bankruptcy Practice Group provides guidance that produces mutually beneficial relationships across the entire spectrum of commercial relationships.

Our Company Law Attorneys

We have a multi-disciplinary team with more than 15 attorneys which prides itself on achieving client goals on time and within budget.

Our Company Law Clients

Our Company Law Practice

We represent nationally and locally prominent enterprizes including commercial banks, finance companies, insurance companies and other lenders, as well as borrowers in connection with all aspects of secured and unsecured financing arrangements of all sizes. Those arrangements include:

Company Formation	Company Negligence
Choice of Entity	Company Dissolution or Liquidation
Tax Advice	Commercial Collections
Drafting Contracts	Insurance Subrogation
Buy-Sell Agreements	Partnership Disputes
Shareholder Agreements	Contract Disputes
Employment Contracts	Purchase of Commercial Real Estate
Commercial Financing	Collection Matters

Table: Company Law Practice

DESCRIPTION	BRANCH OFFICE	LIAISON OFFICE
SCOPE OF ACTIVITIES	A branch office is set up by a foreign firm to execute the contracts awarded to it.Activity will be restricted to the work mentioned in the agreement / contract signed.Cannot indulge in commercial / trading activities.	Activity is restricted to the promotion of product(s), provision of technical advise and assistance, exploring the possibility of joint collaboration and export promotion (these activities are to be mentioned in the application)Cannot undertake any commercial / trading activities.
MEETING EXPENSES	All expenses will be met out of funds transferred from abroad through normal banking channel and converted to local currency account or from the amounts received through execution of the agreement / contract.	All expenses will be met out of funds transferred from abroad through normal banking channel and converted to local currency account.
REMITTANCE FACILITY	Remittance of profits etc. is allowed subject to submission of information / documents as required in terms of Para 13 Chapter XIV of the Foreign Exchange Manual of SBP.	No remittance facility allowed.
HIRING OF FOREIGN NATIONALS	Employment of foreign nationals shall be made subject to the prior approval of the Government as per policy and in accordance with the policy of Pakistanisation.	Employment of foreign nationals shall be made subject to the prior approval of the Government as per policy and in accordance with the policy of Pakistanisation.
IMPORT AND EXPORT OF MACHINERY	Import / Export of machinery and equipment and its re-export shall be governed by the Import / Export policies of the Government.	Nil
REGISTRATION WITH SECP	Mandatory	Mandatory
FINALISATION OF CASE	6-8 weeks; however, 3 months provisional permission can be granted on the request of the Company.	6-8 weeks; however, 3 months provisional permission can be granted on the request of the Company.
PERIOD OF PERMISSION	3-5 years; renewable.	3-5 years; renewable.
DOCUMENTS REQUIRED	Six sets of the following documents are required:Application Form;Copy of Registration Certificate of the Foreign Company duly attested by Pakistan Mission;Copy of Memorandum & Articles of Association;Copy of Agreement / Contract in case of Branch Office;Copy of Company’s Profile; andCopy of Resolution / Authority Letter of the Company to establish Branch Office in Pakistan.	Six sets of the following documents are required:Application Form;Copy of Registration Certificate of the Foreign Company duly attested by Pakistan Mission;Copy of Memorandum & Articles of Association;Copy of Company’s Profile; andCopy of Resolution / Authority Letter of the Company to establish Liaison Office in Pakistan.
RENEWAL	Following documents are required:Copies of valclass Agreements / Contracts along with their duration;Income Tax Returns (for the last 3 years);Copy of latest Audited Accounts; andProceeds Realisation Certificates.	Following documents are required:Activity Report;Receipt & Payment Statement; andProceeds Realisation Certificates.
TAX TREATMENT	The corporate tax rate of 35% applies.	Nil
CHANGE OF ADDRESS / TELE ETC.	Has to be intimated to the Board of Investment and other concerned quarters.	Has to be intimated to the Board of Investment and other concerned quarters.
DOCUMENTS REQUIRED FOR CLOSURE	The following documents are required:Request Letter for Closure;Activity Report, Proceeds Realisation Certificates and Audited Accounts for the last permitted period;Copies of Press Clippings regarding Closure; andConfirmation from Tax Authorities that all assessments and dues are clear.	The following documents are required:Request Letter for Closure;Activity Report, Proceeds Realisation Certificates and Receipt & Payment Statement for the last permitted period;Copies of Press Clippings regarding Closure; andConfirmation from Tax Authorities that all dues are clear.

Table: Branch & Liaison Office Requirements

Our focus on strategic issues and our familiarity with various industries allows us to assist our clients in negotiating terms that protect them throughout the lending relationship.

8. CONTRACT LAW, CONTRACT LAWYERS & CONTRACT ENFORCEMENT IN PAKISTAN

A contract is a lawfully binding agreement that recognises and governs the rights and duties of the parties to the agreement. A contract is lawfully enforceable because it meets the requirements and support of the law. An agreement naturally involves the exchange of goods, services, money, or promises of any of those.

In the sophisticated and competitive world of contracts, we Asghar & Sons Jurists legal advisers do more than structure bids, negotiate agreements, ensure compliance with rules and regulations and resolve disputes for a various array of bussinesses. Our government, commercial & international contracts practice consists of attorneys who pair deep experience in contract law with in-depth, firsthand knowledge of the way business works.

We at Asghar & Sons Jurists provides a professional contract drafting, negotiation and advisory service for business. Whether you are looking for a standard form commercial contract for everyday use in your business, or a bespoke contract to cover a particular transaction or relationship, we will be able to provide you with quality documentation at reasonable rates. Each contract we prepare for you will have been carefully drafted to reflect your commercial requirements. We are also skilled contract negotiators, and we are able to get the best for our clients from any contractual negotiation.

We have substantial experience of advising both suppliers and customers on a broad range of commercial contracts across many different sectors and jurisdictions. Our experience includes commercial contracts for services, licensing, development, distribution, marketing, manufacturing, outsourcing, maintenance and support and on-line terms and conditions. Our commercial practice incorporates specialist tax, intellectual property and regulatory expertise to ensure that clients benefit from appropriate structuring advice and are able to protect and exploit their valuable proprietary rights.

Scope of Practice

A commercial contract refers to a legally binding agreement between parties in which they are obligated to do or not do certain things. Contracts may be written or verbal and drawn up in a formal or informal way. Most businesses create contracts in writing to make the terms of agreement clear, often seeking legal counsel when drawing important contracts. Contracts may encompass all aspects of a business, including hiring, salaries, employees rights protection, leasing and loans. A breach of contract occurs when one of the parties fails to live up to the agreements. In such a case, the law is required to provide a remedy, which in many cases involves the court system enforcing the contract or asking the party to compensate for any damage done by the breach.

Our government, commercial and international contracts practice is in its third decade of successfully representing companies and organizations that contract with federal, provincial, local and international governments and with other private firms. We focus on helping clients maintain their current and long-term competitive positions, by advising them at every step in the bidding and contracting process, in a manner that maximizes their bottom line and industry reputation.

We represent clients in a broad range of industries, from aerospace to munitions, electronics to services, and information technology to manufacturing. Our attorneys have particular experience in the procurement of complex, high-technology supplies and services, as well as commercial sales to government customers. We represent companies in commercial contract transactions with large and small private domestic and international infrastructure projects. Clients include owners, prime and sub-contractors, designer-builders, architects, engineers, and construction managers.

Features as to Contract Enforcement

We at Asghar & Sons Jurists have developed a formidable program to leverage our unparalleled experience, reputation and stability to create a comprehensive single-source solution for businesses like those from our clients. It is a comprehensive, integrated solution providing maximum market access through only one contact, a perfect mix of quality, control, and cost-efficiency and a customized package of services, sectors and geographical coverage. Thus our main features are:

One Contract	Standardised Pricing
Single Point of Contract	One Invoice
Dedicated Account Team	Saving Model
Standardised Service

Table: Contract Standardisation

If you are interested in hearing more about our program and the options for international accounts and framework agreements, please contact us.

Choice of Commercial Contracts

There are many categories and sub-categories of commercial contracts. Examples of the classes of contracts we are able to prepare include:

Agency contracts	Media Contracts
Application Service Provider Contracts	Novation Contracts
Confidentiality Contracts	Product Supply Contracts
Consultancy Contracts	Publication Contracts
Data Processing Contracts	Reseller Contracts
Distribution Contracts	Service Contracts
Franchising Contracts	Software Development Contracts
Hire Purchase Contracts	Sponsorship Contracts
Intellectual Property Contracts	Terms of Business
Manufacturing Contracts	Web Development and Hosting Contracts

Table: Commercial Contract Choices

Asghar & Sons Jurists due to its business mix, are very well placed to provide services to an increasing number of employers requiring staff across multiple countries. For international contracts have a dedicated team of specialists in place. The team’s role is to specifically enhance the service we provide to our multinational clients, and, if required, act as a single point of contact coordinating fulfillment across multiple Asghar & Sons brands.

9. CORPORATE GOVERNANCE CODE, CORPORATE LAWYERS & ENFORCEMENT IN PAKISTAN

Corporate governance is an increasingly important area of focus for stakeholders in all organizations and particularly those listed on publicly traded exchanges. Directors and other officeholders face ever greater challenges in addressing risk management, ethics, policies, procedures, and internal controls. We at Asghar & Sons Jurists under the patronage of Honorable Sir Asghar Malik offers specialized services to help clients improve corporate governance and internal control systems in line with international standards, and to comply with applicable laws and regulations. Our highly experienced professionals bring detailed knowledge to client projects, performing compliance assessments, recommending systems and process improvements, and full support for any regulatory compliance reviews.

Due to the ever changing societal norms, increasingly complex business environment and the recent corporate collapse of companies around the globe, Corporate Governance has emerged as an imperative issue at the forefront of organizational concerns. This has lead to a mounting emphasis on Board accountability, performance scrutiny and, compliance and conformance.

Corporate Governance

We at Asghar & Sons Jurists have a global capability and expert level experience in assessing and reviewing Corporate Governance structures, assisting with developing appropriate frameworks and devising solutions that meet regulatory requirements and fit corporate and cultural paradigms. With network of offices across the country, we assist clients on the ground in any jurisdiction(s) required. Our professionals are highly adept at analyzing the most sophisticated breakdowns of corporate governance frameworks, both at entity level as well as at transactional level.

Scope of Practice

Corporate Governance is a set of principles, systems, processes and policies set in place to protect and manage organisational resources. Boards accept, adopt and support governance policies and processes to ensure that organisational goals are met. The policies and processes act as a performance meter to measure the Boards performance and identify areas where the Board is responsible and accountable for their actions / decisions. Corporate Governance also incorporates ‘best practise’ principles which are compliant and conformant with current industry standards.

The role of the Board of Directors (the Board) is to define, delegate and monitor expectations placed on the organisation and the Chief Executive Officer (CEO) in relation to Strategic Planning; Policy Development; and Compliance, Risk Management and Audit. In addition, the Board’s key function is to purposefully allocate organisational resources in the best interests of all stakeholders and in line with organisations goals.

Our consultants at Asghar & Sons Jurists have several years of experience and expertise in governance and management. These attributes have been gained through working on CEO / Executive level performance evaluation, Strategic Business planning and Board / Executive mediation and dispute resolution, to name a few.

The importance of Corporate Governance advice to clients has increased dramatically in recent years. We provide sophisticated and timely advice regarding many issues that arise as a result of recent changes in securities and accounting rules and other regulations.

With experienced lawyers from our Transactional, Securities, Enforcement and Litigation Practices, combined with our Government Enforcement, Compliance and White Collar Defense attorneys, we offer a fully integrated approach to serving our clients’ corporate governance needs. We counsel, advise, and represent corporate directors and officers of public companies on all corporate governance issues. We are committed to educating our clients with continual updates on developments from SECP regulations and other standards governing public company conduct.

Our Transactional & Securities Practice attorneys frequently advise corporations, boards of directors, board committees, corporate officers, shareholders, and other parties regarding:

Board and committee best practices, composition, and procedures

We work with clients to develop and implement best practices for boards of directors as well as nominating and governance, audit, compensation, and other board committees. Our attorneys keep our clients advised of evolving best practices and monitor corporate governance proposals from the Board of Investment, the SECP, stock exchanges, and independent policy groups.

Board oversight and self-evaluation systems

Attorneys at Asghar & Sons Jurists provide advice relating to a board’s oversight function, including design and implementation of self-evaluation systems tailored to each client’s existing organizational structure and cultural needs.

Board committee charters, guidelines, and codes of conduct

We advise clients regarding the development of nominating and governance, audit, compensation, and other board committee charters. In addition, we at Asghar & Sons Jurists have vast experience in reviewing, developing, and implementing national and worldwide ethics and compliance programmes to prevent and detect violations of law and to help ensure our clients’ employees conduct business ethically and in compliance with applicable legal and regulatory requirements. As part of this service, our attorneys at Asghar & Sons Jurists work closely with our clients to develop or refine codes of conduct and aid in code and policy distribution and employee training.

Director and officer fiduciary duties and responsibilities

Our attorneys at Asghar & Sons Jurists advise board members regarding directors’ duties and responsibilities in change of control transactions, executive succession, financial reporting irregularities, internal investigations, and auditor independence. Co-operation among attorneys in our Transactional, Securities, Government Enforcement, Compliance and White Collar Defense Practices provides clients with comprehensive legal advice on director and officer fiduciary duties and shareholder rights in any situation.

Executive compensation and succession

Asghar & Sons Jurists and their dedicated team of attorneys with experience in tax law, corporate law, accounting, SECP regulatory requirements, and relevant domestic law to efficiently deliver comprehensive advice regarding executive compensation and succession issues.

Financial reporting and internal investigations

Our attorneys prepare and review internal corporate policies governing disclosure controls and procedures, internal and external corporate communications, securities trading, and document retention. We have counseled clients regarding the conduct of sensitive accounting, ethics, governance, and other internal investigations, including representation of audit committees in connection with investigations of accounting irregularities, alleged fraud, and other regulatory issues.

Preparation of proxy statements for annual and special meetings

We advise clients on the preparation of proxy statements for annual meetings and special meetings, including those held to consider business combinations. In this regard, our attorneys provide guidance to boards of directors on their obligations under SECP regulations and stock exchange rules.

10. CORPORATE LAW, CORPORATE LAWYERS & CORPORATE LEGAL SERVICES IN PAKISTAN

Corporate law is the body of law governing the rights, relations, and conduct of persons within companies, organisations and businesses. The term refers to the legal practice of law relating to corporate entities. In other sense, the law deals with the formation and operations of corporate entities which are related to commercial and contract law.

Whether you are a company director or secretary struggling to make sense of your legal obligations or a busy professional looking to outsource your legal support requirements, Asghar & Sons Jurists can help. Our range of corporate legal services will enable you to safely implement a variety of corporate law transactions in a cost-effective manner. Have you ever been asked to cancel unissued shares in a company or to prepare documentation to amend memorandum or articles of association but find that you have no idea where to start? Would ploughing through the provisions of the Companies Act, 2017, legal textbooks and precedent books to find out what you need to do eat into your valuable time? Asghar & Sons Jurists and their attorneys specialise in providing businesses with the complete range of services that they need and have a long-standing reputation for providing expert support and practical solutions to everyday problems. We are unrivalled in our ability to work closely with our clients to ensure that they have the correct corporate legal structure in place. Our in-house Corporate Legal Services team can help you with a range of matters, at very competitive rates.

The Corporate department at Asghar & Sons Jurists offers a comprehensive array of services that draw on all of the firm’s resources and expertise. Our corporate lawyers are committed to providing our clients with incomparable service that includes:

The highest level of substantive expertise and skills;
Enthusiasm and commitment to our work and clients;
Creative approaches and solutions to challenges; and
Cost management through project budgeting, monitoring and efficient staffing.

Asghar & Sons Jurists other corporate legal services are ranges from amending memorandum and articles, company name change, company re-registration, share classes, share transactions, cancellation, sub-divison and consolidation of shares, elective resolutions and issues of share warrants to bearer.

Who We Are

The Corporate Group operates as part of an overall business team and views legal issues through the lens of the specific goals and objectives of the client’s business. Our 1:1 partner to associate ratio ensures senior level involvement in every client matter. We structure our teams to match client expectations relative to billing, communication, budget and reporting structure. Partners are actively involved and readily available to clients.

Whom We Counsel

Domestic, multinational and public limited companies, Pakistani and foreign privately-held companies at all stages of development, including start ups and emerging companies, entrepreneurs, closely held and family businesses, financial institutions, private equity firms, venture capital and hedge funds, as well as corporate executives. Our clients are engaged in a wide spectrum of industries, including manufacturing and distribution, high technology, Internet, financial services, real estate, capital formation, health care, medical technology, and not-for-profit and charitable efforts.

What We Do

We specialize in both sophisticated and innovative legal solutions. Achieving our clients’ business goals is our primary objective. Because tax considerations are critical to all business planning, in all our representations we stress efficient tax planning that takes into account the economic interests of both the individual entrepreneur and the business enterprise. Our attorneys provide advice with respect to:

Business Formation	Commercial Contracts
Franchising	International Transactions
Mergers & Acquisitions	Strategic Alliances
Venture Capital Financing

Table: Corporate Services

For the convenience of general public, promoters and directors of companies, SECP had established its eight CROs at Islamabad, Karachi, Lahore, Peshawar, Faisalabad, Multan, Sukkur, and Quetta. Besides registration of companies and monitoring of their working according to law, functions of CRO’s include providing services and guidance and also to ensure that the companies and their directors comply with the statutory requirements as provided under the Companies Act, 2017. The record of companies maintained by the CROs is public record and the investors, share holders, creditors and general public, may inspect the record of company whenever they need and they may also obtained certified copy of any specific document forthwith on payment of nominal amount of fee.

CORPORATE SETUP GUIDELINES

Any three or more persons associated for any lawful purpose may, by subscribing their names to the Memorandum of Association and complying with the requirements of the Act form a public company and any one or more persons so associated may, in like manner, form a private company. If only one member form a private company it is called a single member company and if it is formed by more than one member, it is termed as a private company.

Prior approval of the Ministries / Departments etc. noted against each category of the following companies is required to be obtained before incorporations of companies:

Class of Companies	Relevant Authorities
Banking Company	Ministry of FinanceState Bank of Pakistan
Non Banking Finance Company (NBFC)	Securities & Exchange Commission of Pakistan
Security Service Providing Company	Ministry of Interior
Corporate Brokerage House	Stock Exchange (For transfer of Membership Card in favour of proposed Company)
Money Exchange Company	State Bank of Pakistan
Association Not for Profit under Section 42 of the Companies Act, 2017	Securities & Exchange Commission of Pakistan
Trade Organisation	Ministry of Commerce

Table: Company Classifications

Following are the requirements for registration of a new company under the Companies Act, 2017:

Before Incorporation Requirements

Availability of Name

The first step with regard to incorporation of a company is to seek the availability of the proposed name for the Company from the registrar. For this purpose, an application is to be made and Rs.200/- for online application and Rs.500/- for offline application is required to be paid seeking availability certificate for each name. To facilitate the promoters, a list of prohibited / sensitive names has also been provided at the link: Prohibitd Words

Documents Required for the Registration of A Limited Company

The following documents are required to be filed with the registrar concerned for registration of a private limited company:

Identification: Copy of National Identity Card or Passport, in case of foreigner, of each subscriber and witness to the Memorandum & Articles of Association.
Memorandum & Articles of Association: Four printed copies of Memorandum & Articles of Association in case of offline submission and one copy for online submission, duly signed by each subscriber in the presence of one witness. In order to facilitate general public, the standardized specimen of Memorandum of Association of various sectors has been provided on the Commission’s website.
Form 1: Declaration of Compliance with the Pre-requisites for Formation of the Company.
Form 21: Notice of situation of registered office of the Company.
Form 29: Particulars of first directors of the Company.
Registration / filing fee: Original paid challan evidencing the payment of fee as prescribed in Table – II, in any of the authorized branches of MCB Bank Limited.
Authorisation by Sponsors: The authorisation of sponsors in favour of a person to make good the deficiencies, if any, in Memorandum & Articles of Association as may be pointed out by the registrar concerned and to collect the Certificate of Incorporation.

Additional Requirements for the Incorporation of a Public Company

In addition to the requirements for incorporation of a private limited company as stated above, the public companies are required to file the following documents at the time of incorporation:

Form 27: List of persons consenting to act as director
Form 28: Consent of Directors

Additional Requirements for a Company having objects of providing Security Services

In case of company intending to provide the services of security guard, nine additional sets of each of the documents at I and II above along with the bio-data, four attested photographs of each subscriber and financial position / bank statement of the subscribers are also required to be provided. The Ministry of Interior normally grants the NOC for a security object company.

Documents Required for the Incorporation of a Single Member Company (SMC)

Any person may form a Single Member Company (SMC) and would file with the registrar at the time of incorporation, a nomination in the form as set out in Form S1 indicating at least two individuals to act as nominee director and alternate nominee director, of the Company in the event of his death. All the requirements for incorporation of a Private Limited Company shall mutatis mutandis apply to SMC.

Certified Copies of the Memorandum & Articles of Association and Certificate of Incorporation

In order to obtain certified copies of memorandum of Association, Articles of Associations and certificate of incorporation, challan of the requisite copying fee and court stamps fee of the requisite value should be furnished along with registration documents.

Documents Required for Incorporation of an Association Not for Profit

All the documents meant for incorporation of a limited company along with a licence issued by the SECP. In case of a trade body, a licence issued by Ministry of Commerce would also be submitted to the registrar concerned. The application for obtaining the requisite licence from the commission should be accompanied by draft memorandum and articles of association, list of promoters, bio-data of each promoter, declaration, names of companies in which the promoters of the proposed association hold any office, estimates of annual income and expenditure and brief statement of work already done or to be done. (Section 42).

Any three or more persons associated for lawful purpose may by subscribing their names to the memorandum and Articles of association and complying with the requirement of Companies Act, 2017 and companies general provisions and form rules 1985 form a company. A not-for-profit association (also called an NGO or NPO) may be registered as company under the provisions of the Companies Act, 2017. A not-for-profit association applies its profits or income in promoting its objects only and prohibits the payment of any profits, income, dividend or proceeds to its members, this differentiates it from the other type of companies. Any such association is required to obtain licence under Section 42 of the Ordinance read with rule 6 of the Companies (General Provisions and Forms) Rules, 1985 before its registration as a company.

The licence is issued for a period of five (5) years, renewable for further term (s) of five (5) years each. The procedure for obtaining licence, subsequent registration of such association as company limited by guarantee, and thereafter renewal of the licence when due, is provided in the provided link:

Transfer of Membership of SMC to a New Member

If the membership of SMC is transferred to a new member, the Company shall, within fifteen days from such transfer, also file with the registrar, a nomination in the form as set out in Form S1

Change in the status of SMC

SMC can be converted into a Private Company on increase of its members to more than one. The Company shall pass a Special resolution for change of status and alter its Articles accordingly within thirty days and transfer the shares within seven days. The Company shall appoint and elect one or more additional directors within fifteen days of passing the Special Resolution and notify the appointment on Form 29 prescribed under the Companies (General Provisions and Forms) Rules, 1985 within fourteen days. Furthermore, the Company is required to file a notice of the fact in writing in the form as set out in Form S2, with the registrar within sixty days from the date of passing of Special Resolution.

Company becoming SMC

A Private Company having two or more members shall become SMC by passing a Special Resolution for change of its status, making necessary alteration in it’s articles and obtaining the approval of commission. An application for seeking Commission’s approval shall be submitted by the Company in the form as set out in Form S4 within thirty days of passing the Special Resolutions for change of status to SMC.

The Company shall transfer shares in the name of single member within fifteen days of the approval of the commission and notify change in the Board of Directors on Form 29 within fourteen days from date of transfer of shares.

A certified copy of the order containing the approval together with a notice in the form as set out in Form S5 and a nomination of nominee directors in the form as set out in Form S1 shall be filed with the registrar concerned within fifteen days.

The Procedure for Online Documentation of the Incorporation of the Company

eServices Access

The client will connect to SECP eServices to log on to his / her account or signup, in case of a new user.

For incorporation process, please note that you will need to create separate User IDs for all proposed Subscribers, in order to obtain their system generated PIN. After obtaining name availability, User should use the “Manage Company Users” button available on the top right hand side of the web page to create separate / additional User IDs.

Enter the Information / Data

A successful logon to eServices by entering user ID and password will display a list of available and unavailable processes. If the Company name has been reserved successfully, the Company Incorporation facility will be available at this stage.

User will click on the company incorporation process. An input page is displayed, wherein the following information will be entered by the user.

Application Details

Check the details of the proposed company in terms of its complete name and kind to ensure that the information is correctly displayed. In case of any issue, please contact the concerned Company Registration Office (CRO).

Click on “Mode of Payment” and select the mode whether you want to make payment through “Bank Challan” or “Credit Card”.

In case you choose “Bank Challan”, then click on “Locate Bank” and select the designated bank branch from the available branches of MCB Bank Limited or United Bank Limited.

Declarant

In this section, enter the compulsory information about the declarant / Company representative. A declarant can be any person authorised to represent the proposed Company by the Owners / Board of Directors. Any employee or even the director of the proposed Company could be chosen for this responsibility.

Director / Subscriber

Enter detailed data regarding the Board of Directors and Subscribers in this section. “Add” and “Remove” buttons will create and remove rows for data entry.

Signatory

Enter details of a signatory in this section.

Press Continue Link

By pressing Continue Link, Process Document Listing Page will be displayed, containing the following links along with Sign form option:

Update Form(s) Data: Click link if you want to update the data. After updating data, press Continue link again. Process Document Listing Page will be displayed again.
View Forms: System automatically fills out the required forms using the data entered by you. You can view these forms by clicking on the given link.
View Company Profile Form: To see company profile, click this link.
Fill New Attachment Form: In this link, you can attach the required documents in PDF format e.g., copy of CNIC, name availability letter, etc. Press Save Form button after attaching the required documents.
Fill New Attachment Form Articles of Association: Click this link and attach the Articles of Association in PDF format. Press Save Form button after attaching the said file.
Fill New Attachment Form Memorandum of Association: Click this link and attach the Memorandum of Association in PDF format. Press Save Form button after attaching the said file. Please note that all the above mentioned PDF file names should be short, without spaces, and should not contain any special characters.
Fill New Bank Challan: Click link and bank challan will be displayed. Bank Challan is automatically populated with prescribed fee and other information by the eServices application. Press Save Form. Do not print and pay challan before submitting the process / form.
Sign Forms (Using PIN): The user shall Click “Sign form”. Please note that sign form link will be activated when all mandatory documents are attached and challan is saved.
Make Payment:

The process will be initiated as soon as the SECP receives the verification of deposit of fee from the Bank.

User will receive response from the SECP via email, with any of the response, acceptance (Incorporation Certificate Dispatched through Courier), rejection or issue resolution.

After Incorporation Requirements

Private Companies	Public Companies
Directors of every Company are required to appoint the first chief executive not later than fifteen days from the date of incorporation and thereafter within fourteen days from the date of election.	All the requirements meant for private companies given at left column are also applicable to public companies. However, the listed companies are also required to file list of members on CD / DVD / USB FlashDrive to the Commission and the associations are required to file with the registrar concerned annual return on Form ‘B’ instead of Form ‘A’.
The first auditor is required to be appointed by the directors within sixty days from the date of incorporation and thereafter in each AGM of the Company.	List of Directors and consent of Directors and Chief Executive are required to be filed within 14 days after the election of Directors and appointment of Chief Executive on Forms 27 & 28.
A Single Member Company (SMC) is also required to appoint a Company Secretary within fifteen days of incorporation or of becoming a SMC or of the office of Company Secretary falling vacant and notify such appointment on Form 29 within fourteen days of the date of such appointment.	A Private Company may commence its business immediately after its incorporation. However, a Public Company shall be entitled to commence its business after obtaining commencement of business certificate from the registrar concerned.
Any appointment, election or change in the Directors, Chief Executive, Auditors, Chief Accountant, legal adviser etc. is required to be notified to the registrar concerned on Form ’29’ within 14 days of the said election, appointment or change.	Statutory meeting is required to be held within a period of not less than three months but not more than six months from the date at which the Company is entitled to commence business. A statutory report is required to be circulated to the members and the registrar within the time frame as prescribed under the law.
A Company is required to notify the change in its registered office on Form-21 within 28 days from the date of change.	Return containing beneficial ownership of listed securities and change therein on Form 31 and Form 32 are required to be filed with the Registrar concerned and the SECP.
First Annual General Meeting (AGM) of the Company is required to be held within eighteen months from the date of incorporation and subsequent Annual General Meetings are required to be held once at least in every calendar year, within a period of four months following the close of its financial year and not more than fifteen months after holding of its last preceding AGM.	A Listed Company is also required to appoint a Company Secretary.
Annual return on prescribed Form ‘A’ / ’B’ as applicable is required to be filed with the registrar concerned once in each year made as on the date of Annual General Meeting, where no such meeting is held, on the last day of the calendar year .
In case of increase in paid-up capital, the Company is required to offer new shares to the existing shareholders and the offer is required to be accompanied by a circular issued under Section 83 to all the shareholders strictly in proportion to the shares held by them and, on the allotment of shares, return of allotment on Form ‘3’ is required to be filed with registrar concerned within 30 days from the date of allotment of shares. Partly paid shares are not allowed to be issued at all.
In case of death of single member of a Single Member Company, the secretary shall manage affairs of the company till transmission of shares to legal heirs of the single member, and inform the registrar concerned about the death, provide particulars of the legal hairs and in case of any impediment report the circumstances seeking within seven days of the death of directors in the form as set out in Form S 3.

Table: After Incorporation Requirements

Requirements After Establishment of Place of Business by Foreign Companies

A Foreign Company incorporated outside Pakistan, is required to file the following documents to the registrar concerned within 30 days from the establishment of its place of business in Pakistan (Sections 434 To 443 of the Companies Act, 2017):

A certified copy of the Charter, Statute or Memorandum & Articles of the Company accompanied by Form 38. The certificate is to be given by: (a) The public officer in the country where the Company is incorporated to whose custody the original is committed or (b) A notary public of the country where the Company is incorporated; or (c) An affidavit of a responsible officer of the Company in the country where the Company is incorporated.The signature or seal of the person so certifying shall be authenticated by a Pakistani diplomatic consular or consulate officer.If the documents is not in English, dully certified translation in English or Urdu language is provided (Rule 23 of Companies (General Provisions and Forms) Rules, 1985.
Address of registered office or principal office of the Company on Form 39;
Particulars of directors, Chief Executive and secretary (if any) of the company, on Form 40;
Particulars of principal officer of the Company in Pakistan, on Form 41;
Particulars of person (s) resident in Pakistan authorised to accept service on behalf of the Foreign Company, on Form 42 along with the certified copy of the appointment order, authority letter of board of directors’ resolution and consent of the principle officer;
Address of principal place of business in Pakistan of the Foreign Company, on Form 43 (Section 435).
Permission letter from the Board of Investment (BOI) with a specific validity period for opening and maintaining of a Branch / Liaison Office by a Foreign Company.

Any change or alteration in particulars stated in the documents and returns filed at the time of registration under Section 435 is required to be filed on Form 44 with the registrar concerned within 30 days of such change or alteration (Section 436); and

Foreign Company is required to file annually with the registrar concerned annual accounts in respect of its operation within Pakistan as well as its global accounts together with the list of Pakistani members and debenture holders and of places of business of the Company in Pakistan within the prescribed period (Section 437); and

Foreign Company is required to submit the renewal / extension of the permission to open / maintain a Branch / Liaison Office from the Board of Investment (BOI) on the expiry of the validity of the permission, originally granted. Foreign Company is required to give notice on Form 46 to the registrar concerned at least 30 days before it intends to cease to have a place of business in Pakistan and to publish a notice of such intention at least in two daily newspapers circulating in the Province or Provinces in which such place or places of business are situated.

INFORMATION FOR THE COMPANIES HAVING FOREIGN INVESTMENT / COLLABORATION

Foreign Investors are permitted to hold 100% equity of industrial projects without any permission of the Government. No Government sanction is required for setting up any industry, in terms of field of activity, location and size except for the following:

Arms and Ammunitions
High Explosives
Radioctive Substances
Security Printing, Currency and Mint

No new units for the manufacture of alcoholic beverages or liquors will be allowed. There is no requirement for obtaining No Objection Certificates (NOC) from the provincial governments for locating the project anywhere in the country except in areas that are notified as negative areas. With the announcement of Investment Policy, 1997 by Government of Pakistan, the foreigner investment has since been allowed on repatriate able basis in agriculture, service, infrastructure and social sectors subject to conditions indicated against each. They will have to simply register a Company with SECP under the Ordinance and to inform State Bank of Pakistan provided the relevant conditionality is fulfilled.

SERVICE SECTOR

Activities

Foreign Direct Investment (FDI) Services Sector is allowed for any activity subject to any condition that services which require prior permission / NOC or licence from the concerned agencies will continue to get the same treatment until and unless de-regulated by such agencies and will be subject to provision of respective sectoral policies. The list of deregulated services in telecommunications is as under:

E-mail / Internet / Electronic Information Services (EIS)
Data Communication Network Services
Trunk Radio Services
Cellular Mobile Telephone Services
Audio Texts Services
Voice Mail Services
Card Pay Phone Services
Close User Group for Banking Operations
International Satellite Operations for Domestic Data Communication
Paging Services
Vehicle Tracking System (VTS)
Burglar Alarm System (BAS)
Global Mobile Personal Communication System (GMPCS)
Any other Telecommunication Service, which is deregulated in future, will become part of this list

Note: Those sectors which have not been deregulated, and are with Pakistan Telecommunication Corporation Limited (PTCL), are open to foreign investors in collaboration with PTCL.

Conditions

The amount of Foreign Equity Investment in the Company / Project shall be at least US$ 0.3 Million.
Foreign investors are allowed to hold 100% of the equity subject to the condition that the repatriation of profit shall be restricted to a maximum of 60% of the total equity or profits and that a minimum of 40% of equity is held by Pakistani Investor (including sale of shares in stock exchange) within five years.

INFRASTRUCTURE SECTOR

Activities

Infrastructure projects including development of industrial zones.

Conditions

The amount of Foreign Equity Investment in the Company / Project shall be at least US$ 0.3 Million.
100% Foreign Equity is allowed on repatriateable basis.

SOCIAL SECTOR

Activities

Education, Technical / Vocational Training, Human Resource Development (HRD), Hospital, Medical and Diagnostic Services

Conditions

The amount of Foreign Equity Investment in the Company / Project shall be at least US$ 0.3 Million
100% Foreign Equity is allowed.

Corporate Agriculture Farming (CAF) Sector

The Cabinet decision dated June 19, 2002 on Corporate Agriculture Farming (CAF) Policy enunciates that such local and foreign companies would be entitled CAF legal entity that are locally incorporated under the Companies Act, 2017. In this connection, in case of foreign collaboration, 60% of Foreign Equity is allowed with minimum investment of US$ 0.3 Million. Beside the following agriculture related activities are included in CAF under the approved policy package.

Land development/reclamation of batter land, desert and hilly areas for agriculture purpose and crop farming.
Reclamation of Water Front Areas / Creeks.
Crops, Fruits, Vegetables, Flowers Farming / Integrated Agriculture (Cultivation and Processing of Crops).
Modernization and Development of Irrigation Facilities and Water Management.
On Farm Construction of Wheat / Grain Storage and Construction of Cold Storage for captive use (not on commercial basis).

Others

Tourism: Tourism has been given the status of industry and placed under priority industries i.e. category ‘c’ of the Investment Policy.
Housing and Construction: The housing and construction sector has been declared as Industry and placed under priority Industries i.e. category ‘c’ of the Investment Policy.Local and Foreign Companies involved in real estate projects will not market these projects unless the title of the property is transferred in the name of a locally incorporated Company and the ‘Commencement of Business’ Certificate is issued by the Securities & Exchange Commission of Pakistan (SECP) to the Company.
Information Technology: Computer Software and Information Technology (IT) have been declared as Industry.

11. DUE DILIGENCE & CORPORATE LEGAL SERVICES IN PAKISTAN

To maximize the value of every transaction, We at Asghar & Sons Jurists employs a focused and tailored approach to rapidly identify and understand potential deal breakers, value drivers and other areas of specific interest to our clients.

Asghar & Sons Jurists and their attorneys bring extensive experience with clients providing commercial/market diligence, financial accounting due diligence, operational due diligence, IT due diligence, valuation services, and tax due diligence in a unique integrated approach. Our professionals can execute in buy and sell-side situations.

We share our clients’ ambitions. We work to understand their reality and deliver true results—focusing on strategic decisions and practical actions. And we align our incentives with our clients’ objectives, so they know we’re in it together.

DUE DILIGENCE FRAMEWORK

TYPES OF DUE DILIGENCE

The three main categories of due diligence are legal, financial and commercial. Although these have traditionally been distinct, the best due diligence programmes maintain an element of close cooperation as the work in one area can often inform the checks being carried out elsewhere. Many practices now offer an integrated service that brings these strands together.

Law

Legal due diligence seeks to examine the legal basis of a transaction, for example to ensure that a target business holds or can exercise the intellectual property rights that are crucial to the future success of the company.

Other areas that would most likely be explored include:

legal structure
contracts
loans
property
employment
pending litigation

Financial

Financial due diligence focuses on verifying the financial information provided and to assess the underlying performance of the business.

This would be expected to consider areas such as:

earnings
assets
liabilities
cash flow
debt
management

Commercial

Commercial due diligence considers the market in which a business sits, for example involving conversations with customers, an assessment of competitors and a fuller analysis of the assumptions that lie behind the business plan. All of this is intended to determine whether the business plan stands up to the realities of the market.

Others

Other types of due diligence cover areas such as taxation, pensions, IT systems and intellectual property.

Our Integrated Due Diligence services include:

Commercial Due Diligence
Financial Accounting Due Diligence
Operational Due Diligence
IT Due Diligence
Valuation Services
Tax Due Diligence
Investigative Due Diligence

Tax Due Diligence

Identifying tax risks and an optimised tax structure is a crucial aspect of any acquisition or formation. Our consultants analyse potential exposures and opportunities to provide the extended tax intelligence needed well before negotiations are initiated.

Investigative Due Diligence

Asghar & Sons Jurists pioneered the concept of investigative due diligence. Our investigative due diligence capability provides a consultative approach to clients undertaking new and significant projects, whether underwriting an IPO, considering a merger or acquisition, participating in a joint venture or entering a new marketplace.

The risks inherent in today’s financial transactions are greater than ever. We at Asghar & Sons Jurists provides answers to questions that financial and legal analyses cannot address, especially regarding integrity issues and the reputations and backgrounds of counterparties. The Attorneys of Asghar & Sons Jurists helps identify risk so deals can proceed or be restructured for clients who engage in the following:

Mergers and acquisitions
Public offerings
Financing
Joint ventures

Private equity, venture capital and other investments

Clients employ Asghar & Sons Jurists when they need a consultative and comprehensive investigative process to identify key details and then connect the dots. They recruit the services of Asghar & Sons Jurists when they are attempting to manage the risks associated with critical transactions or new relationships — a high-value IPO, ICO or merger, a significant acquisition or investment, participating in a joint venture, or the appointment of a new board member.

Asghar & Sons Jurists global team is comprised of former prosecutors and members of law enforcement and investigative agencies, forensic accountants, financial analysts, computer and cyber-crime professionals, corporate governance specialists, former business journalists and litigation consultants. The diversity of legal professionals at Asghar & Sons Jurists enables us to bring to our cases complementary and sophisticated fact-finding techniques and analytical methodologies. Our professionals bring real-world insights to each assignment and an unparalleled ability to turn raw information into meaningful business intelligence.

We tailor our investigative due diligence to each client and their specific needs, and our work entails a thorough review and analysis of public records and inquiries of human sources. We at Asghar & Sons Jurists does not rely on databases and computer-based sources alone. These sources are often incomplete or updated only sporadically. In fact, our attorneys at Asghar & Sons Jurists conduct onsite research in developed and emerging markets and analyses this information to identify risks.

Our services include investigating, analysing and verifying significant information, such as:

Regulatory history, sanctions and violations
Criminal proceedings and civil litigation
Corporate, partnership and other business records
Property and other asset-related sources
Professional and educational history
Personal and business reputations

Valuation Services

Companies, private equity and hedge funds, investors and parties to contracts deal with transactional information that has been recorded at fair value and often subject to periodic measurement of such. What is your next transaction really worth?

The complexity of fair value measurement increases as fair value takes root in financial reporting and contractual arrangements among buyers, sellers, customers, vendors and employees. Routine business transactions often now require the computation of fair value as do strategic investment decisions.

Our professionals come from large accounting firms and independent valuation firms of national repute. They each have a background in a specialist area, as well as a deep grounding in core valuation concepts. They are known for their thoughts on complex topics and support of the valuation industry in a variety of leadership roles. We draw from extensive experience across a wide range of industries, raising industry-focused groups at Asghar & Sons Jurists. When our clients are valuing a business or other transaction, Asghar & Sons Jurists brings all of this to the table for them and more. We are supported by a technical accounting team with experience from the national offices of large accounting firms, who monitor changes in the accounting standards and regulations with valuation implications.

Let Asghar & Sons Jurists bring their state of the art proven corporate valuation services to bear on your next transaction.

PROVIDING GLOBAL DUE DILIGENCE INVESTIGATIONS SERVICES

Asghar & Sons Jurists vast network and global footprint enable our attorneys to provide our clients additional investigative capabilities. Due diligence of foreign entities may require a further understanding of local laws, languages or customs especially when records are not readily available electronically. Our attorneys team has the expertise to assist you on a global basis.

Potential Issues

You want to strengthen your company’s core business by acquiring rival products that are almost identical in function / performance to your own;
You need to build on your company’s existing activities by purchasing complementary products;
You want to purchase a company to gain access to its existing products in new markets, or to increase your customer base;
You need to expand your company’s current portfolio of products and services through the acquisition of new ones – potentially to provide a hedge against the movements in the markets in which the company operates; and
You want to spread your company’s market risk by purchasing a company providing similar products or services in another country.

How we can support you?

By enhancing the purchaser’s understanding of the target business and therefore increasing the likelihood of the deal achieving its objectives;
By helping you to identify and understand critical success factors and therefore improve your understanding of all the relevant issues so that informed decisions can be made;
By highlighting strengths that can be built upon or weaknesses that can be resolved;
By additional skills and impetus to meet the level of scrutiny required by external stakeholders;
By Enhanced competitive positioning and optimisation of potential value;
By Confidence that new operating models can be implemented;
By Alignment of major stakeholders around a key decision; and
By Integrated support to meet business needs.

More insight at Asghar & Sons Jurists financial / commercial due diligence services

Commercial due diligence involves a comprehensive review of the company’s business plan in the context of market conditions and the industry / competition; and
Strategic reviews help companies formulate their corporate strategy and diagnose poor performance, providing a basis on which to prepare plans for improvement and to evaluate new markets and potential acquisition targets. In the case of financial institutions, they also help assess the feasibility of business plans.

What makes us different?

Our strategy practice is recognised for providing rigorous views of businesses and insightful, practical solutions with highly engaged, high calibre teams. For our commercial deals advice, this means:

Strategy adviser of choice Our financial and corporate clients choose to work with us to solve their most difficult problems and unlock their biggest opportunities.
Rigorous views of businesses We bring sector expertise and an independent perspective to develop views of businesses in a disciplined way. We work with clients at pace without compromising quality.
Highly engaged, high calibre teams We have outstanding individuals who work with clients to get things done. Our people get great feedback on what it is like to work with us.

Combining financial expertise with commercial experience, our approach at Asghar & Sons Jurists focuses on identifying and analysing business fundamentals.

Our multi-disciplinary teams target business drivers, balance sheet pillars, key management, key relationships and taxation as they seek to understand and summarise the whole business for our clients.

Possessing accurate information and knowing what the key strategic drivers are for your business is vital in the decision making process.

12. E-COMMERCE LAW, LAWYERS & PRACTICE IN PAKISTAN

Here you may find information about e-commerce law and lawyers in Pakistan. Our dedicated team of professional lawyers best assists their clients in understanding e-commerce law in Pakistan. If your goal is to protect your commercial interests online or to design, implement, or revise your online marketing strategy, Asghar & Sons Jurists and their attorneys are a valuable resource for the protection of your website or internet based business. We provide your business with the tools and know-how to protect your property rights and information by designing and implementing best business practices that will ward-off potential litigation while making your online business more valuable.

We counsel technology businesses on the scope and applicability of competition and consumer protection laws to technology development, distribution and use. We seek to ensure that our clients’ online standards development, and essential facilities management activities comply with these domestic and international laws. We also counsel on consumer protection requirements for online advertising, sales and marketing, and the management and use of personal consumer data.

We at Asghar & Sons Jurists are experts in internet law and e-commerce. Our attorneys at Asghar & Sons Jurists have written extensively, lectured and taught on the legal and commercial issues involving both areas especially Honorable Sir Asghar Malik is one of the renowned name in this regard. We represent regional ISPs, website and online content developers, hosts, distributors and other electronic commerce enterprises. We also counsel more traditional companies on the legal and policy issues associated with their use both of existing and new technologies. We have consulted on electronic commercial transactions, online content management, data security, and information privacy issues for owners, operators and users of proprietary data networks (e.g., intranets and extranets). We also counsel on the commercial, legal and regulatory aspects of the internet and electronic business, including preparation of vendor and site licensing agreements and providing advice on linking, framing and other online content management issues.

Scope of Practice: E-Governance

Because we recognize that internet and e-commerce law impacts both high-tech companies and those that provide more traditional products and services, we provide all clients the opportunity to take advantage of our Internet Legal Audit. Each Audit is tailored to meet the client’s specific business parameters and is designed to address many cutting-edge legal issues before they become significant business liabilities.

The firm’s services include:

Reviewing, negotiating and / or drafting a broad range of website agreements, contracts, business policies, disclaimers, and disclosures;
Monitoring and evaluating your web-based business operations and website content to ensure compliance with industry best-practices;
Organising and monetising your e-commerce activities;
Counseling regarding compliance with e-commerce, privacy & data security, intellectual property, user-generated content safe-harbors, and consumer protection directives, as well as the international expansion of Internet-based businesses and affiliate programmes;
Designing and documenting adequate data protection and security measures that protect both your own and your consumers’ privacy and security, including database systems analysis; and
Strategic advice and risk-analysis.

In addition to transactional assistance, we are available for internet and e-commerce business litigation matters involving: domain name and cybersquatting disputes, trademark, copyright, patent, trade secret and proprietary information disputes, breach of contract claims; antitrust and unfair competition disputes; privacy disputes and false advertising disputes.

Computer Law in Pakistan

Computer law is a body of law that has been created for the acquisition, license, development, and usage of computers and related hardware as well as other forms of technology. Computer law protects buyers and sellers when entering into purchasing or leasing agreements as well as specifying the rights and obligations of the parties when entering into development or licensing agreements. Computer law allows for the ever changing world of technology to become more predictable and secure.

We’ve the expertise in clarification of contractual rights and obligations, development and licensing agreements, licensing of technology owned by third parties, Protection of ownership rights in high technology, purchasing, leasing and service agreements, requests for proposal or quotation and statement of work.

Asghar & Sons Jurists internationally recognized telecommunications group, based in the firm’s Lahore, Karachi and Islamabad offices, advises on a broad range of telecommunications-related commercial, regulatory, and infrastructure matters, particularly those with an international dimension:

Regulations;
Transactions;
Disputes;
Service Providers;
Equipment Suppliers;
Government and Public Telecom Operators;
Privatisation.

Our telecommunications lawyers have an in-depth understanding of the commercial and technological aspects of the telecommunications industry and continually monitor market developments in Pakistan. We offer our clients pragmatic and sector-specific legal advice in order to successfully meet the challenges of today’s rapidly developing international telecommunications industry.

Our attorneys at Asghar & Sons Jurists provide a full spectrum of telecommunications advice, regarding regulation, transactions, and disputes in a variety of sectors, including wireline and broadband, wireless, satellite, and Internet and e-commerce, as well as information technology. Our clients include service providers, equipment suppliers, electric utilities, and governmental bodies.

The full capabilities of our firm—with more than 250 attorneys in several offices—are available to support our telecommunications clients. Our attorneys focus on other aspects of technology law, including intellectual property litigation, patent and technology protection, copyright and content protection, trademark and identity protection, unfair competition, and life sciences. Our attorneys at Asghar & Sons Jurists also provide the traditional legal support often needed by telecom companies: corporate, litigation, employment, tax, antitrust, international trade, and property.

We at Asghar & Sons Jurists have a very experienced e- commerce legal Team, a leading international technology legal group representing information technology, electronic commerce, financial services, telecommunications, and other technology-intensive companies on cutting-edge legal issues. With an integrated team based in our Lahore, Karachi, Islamabad, Peshawar and Quetta offices, we bring to bear critical technology, regulatory, corporate, and litigation experience with tax, anti-trust, and other capabilities, to ensure efficient, cost-effective representation.

Our IT and IP Group prides itself in keeping up to date with the latest developments in all areas of IT and the licensing and protection of IP. More importantly, the Group prides itself in understanding how Technology Law, IT Law, Commercial Law and global legal issues have to be integrated in order to provide a comprehensive solution.

Our focus on strategic issues and our familiarity with various industries allows us to assist our clients in negotiating terms that protect them throughout the lending relationship.

13. EXPERT WITNESSES, LAWS & LEGAL TESTIMONY IN PAKISTAN

Due to our Vast experience in evidence recording the attorneys of Asghar & Sons Jurists are in a position to arrange and train Specialized Legal Witnesses for all areas of Legal Matters Worldwide. We have the long range of Expert Witnesses having specialized knowledge through Education, Experience, Skill and Training in all areas relevant to finding resolution of Legal disputes.

Our Expert Witnesses are formally alluding to offer their opinion as testimony in the Courts without having been a Witness to nay occurrence relating to the Law Suit.

Our Client may send us the details of their issue in the Suit and we can manage the suitable Expert to serve their purpose in the relevant Court at any place in the World.

The terms and conditions to render the services may be communicated after having the necessary information pertaining to the services of required Witness.

MEET OUR EXPERTS IN PAKISTAN

Honorable Sir Asghar Malik
Sir Ashraf Malik.
Taseer Iqbal Jaspal.

Asghar & Sons Jurists can also provide the Services of Forensic Experts in different categories who are in a position to analysis Evidence for legal proceedings and crime solving that relates to a particular application of Science and debates relating to formal argumentation, to decide questions arising from Crime or Litigation. These Experts are Consultants in Legal matter and provide Expert Reports and Testimony for Judge, Attorneys, Lawyers, Law Firms, Insurance Companies and Government Agencies in the Federal and State Court trials and Arbitrations. The client may have to intimate us about the issue involved so that the specific Expert may be chosen for the relevant category.

We at Asghar & Sons Jurists can also manage the Medical Expert Witnesses for different categories having specialized Knowledge through Education, Experience, Skills or Training in areas relevant to resolution of a Legal Dispute.

Our Expert Witness can offer his Opinion as Testimony in Court without having been to any occurrence relating to the Law Suit.

14. FOREIGN EXCHANGE COMPANY, LAWYERS & PRACTICE IN PAKISTAN

A foreign exchange company offers currency exchange and international payments to companies and private individuals. A Foreign Exchange Company has the legal right to exchange one currency for another. In Pakistan, subject to below mentioned conditions, the exchange Companies are authorized to deal with foreign currency notes, coins, postal notes, money orders, bank drafts, travellers’ cheques, transfers and other businesses as allowed by State Bank of Pakistan.

A non-banking foreign exchange company also called a foreign exchange broker or in short a forex broker is a company that offers currency exchange and international payments to private individuals and organisations. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e., there is a physical delivery of currency to a bank account. Foreign exchange companies are normally distinct from money transfer companies or remittance companies and they usually perform high-value transfers unlike their money transfer counterparts that focus on high-volume or low-value transfers generally by economic migrants back to their home country or to provide cash for travellers. Transactions can either be spot transactions or forward transactions.

In Pakistan, the Relevant Legislation/Rules for Foreign Exchange Companies are as follows:

Foreign Exchange Regulation Act, 1947;
The regulations of State Bank of Pakistan; and
The Companies Act, 2017

Licensing

The State Bank of Pakistan is the only authority that can provide NOC for a company to deal in foreign currency notes, coins, postal notes, money orders, bank drafts, travellers cheques and transfers.

The first step is that the Proposed Exchange Company should obtain the name availability certificate from Securities & Exchange Commission of Pakistan (SECP).

Once the name availability certificate is obtained, an application will be made for the Grant of NOC on the prescribed form (Annexure-2) along with the payment to the State Bank of Pakistan.

A non-refundable application processing fee of Rs. One Million (Rs 1,000,000) will be charged by State Bank. The pay order / bank draft for this amount must be accompanied along with the application.

The decision of all completed applications will be intimated within one month from the date of submission of such application.

After receiving NOC from the State Bank, the applicant will submit an application to the Securities and Exchange Commission of Pakistan (SECP) for incorporation under the Companies Act, 2017.

Once the Exchange Company is registered by SECP under the Companies Act 2017, the applicant would apply to the State Bank for issuance of license for commencement of operations.

The State Bank after going through the application, made in accordance with the regulations can grant or refuse to grant the license. If there is a refusal, the State Bank would assign reasons for such rejection. However, issuance of the license can be restricted once the limit has been reached, which will be at the mere discretion of State Bank.

The license of the Exchange Company cannot be transferred to any other entity of whatsoever nature, through any means.

Duration of the License

The license will be issued initially for a period of three years (3). Once the initial period of three years is expired then the License can be renewed up to five years from the date of expiry of the initial licence. The request for renewal must reach State Bank at least sixty days before expiry of the license along with relevant deposit / payment receipt of Rs. 500,000/- issued by the bank, as evidence of having paid the applicable fee.

Basic Rules & Regulations

Name

The Exchange Company must not include the word “Bank”, “Financial Institution”, “Investment / Commercial / Finance / Real Estate” or any other description that indicates activities other than exchange business.

Capital

Minimum authorized and paid-up capital the Company is Rs. 200 million.

The Minimum Capital Requirement is calculated as under:

Minimum Capital Requirement = Paid-up Capital less Accumulated Losses

Exchange Companies must ensure to meet their respective minimum capital requirements at all times.

Exchange Companies are allowed to have foreign participation in their equity up to a maximum of 50%. State Bank would permit repatriation of profits in proportion up to the extent of foreign equity.

The affairs of the company should only run with the declared capital of the company. Neither the shareholders and Directors of the company shall withdraw funds from the company as loan nor shall they extend loan (subordinated loan) to the company unless specific approval, in writing, from State Bank has been obtained.

Statutory Liquidity Reserve (SLR)

A SLR with 25% of the capital should be maintained in the State Bank as unencumbered approved government securities. State Bank would extend current account and SGLA facilities to Exchange Companies.

Enhancement of Capital

A Prior approval of State Bank regarding enhancement of authorized and paid-up capital by the existing Directors/shareholders will not be required. The Exchange Company may directly approach Securities & Exchange Commission of Pakistan (SECP) for fulfilment of applicable formalities to increase its authorized or paid-up capital.

Prior Approval from State Bank for Changes in Significant Parameters

A prior approval of State Bank will be mandatory for any change in the significant parameter including but not limited to:

Memorandum & Articles of the Company
Directorship
Shareholding
Statutory Auditors
Chief Executive Officer
Locations of Head Office / Outlets

Policies

The Foreign Exchange company can develop the standard policies related to Internal Controls, Audit, Human Resources, Information Technology, (AML/ CFT/ CPF) Policy etc.

Processing Fee

A non-refundable processing fee of:

New outlet at the time of proposal of Annual Network Expansion Plan (ANEP) = Rs. 50,000

Substitution of location of an outlet = Rs.25,000

Relocation of each outlet = Rs. 25,000

15. FRANCHISING LAW, FRANCHISING LAWYERS & PRACTICE IN PAKISTAN

Our franchise practice group at Asghar & Sons Jurists have an extensive experience in representing both franchisors and franchisees. Our perspective and expertise on franchising law is unique and unmatched. We use objective data from every active franchise to help you make better decisions. Here are a just few of the ways we can help your franchise.

Franchising is a much abused word and means many different things to different people. In simple terms it is the granting of certain rights by one party (the Franchisor) to another (the Franchisee) in return for a sum of money. The franchisee then exercises those rights under the guidance of the franchisor. Franchising is a business arrangement where a franchisor sells a business idea and methodology or a “franchise business” to a franchisee, who operates the business under the franchisor’s name. The franchisee is authorized to use and market goods or services under the franchisor’s trademarks, service marks, and trade names for a specific length of time. In exchange for the advantage of not having to start the business from the ground up, the franchisee usually pays the franchisor an up-front fee and a percentage of sales. Each state has its own franchise information regarding the franchise law and regulations governing franchises.

Business format franchising can be defined as a contractual licence granted by one person to another which:

Permits or requires the franchisee to carry on a particular business using the franchisor’s know-how under the franchisor’s brand as an independent business;
Allows the franchisor to exercise continuing control over the manner in which the franchisee carries on the franchised business; and
Obliges the franchisor to provide the franchisee with ongoing support in carrying on the franchised business.

As a commercial matter, the agreement inevitably requires the franchisee periodically during the period of the franchise to pay to the franchisor sums of money in consideration for the franchise and / or goods and / or services provided by the franchisor to the franchisee.

A franchise is an agreement by which the franchise business (the franchisor) licenses the business operator (the franchisee) to operate a business under the name of the franchisor. The franchisee is authorized to use and market goods or services under the franchisor’s trademarks, service marks and trade names, for a specific length of time.

The logic in buying a franchise is usually that there is significant value in the goodwill and other rights associated with the franchised business model that has previously been developed and operated successfully by the franchisor. This may or may not be the case in a given situation.

Generally, the franchisee will pay an up-front fee as well as continuing fees based on the dollar amount of goods or services sold. The franchisor offers services such as training the franchisee and providing market research to determine a favorable location for the business. The franchisor typically has strict rules and standards as to how business is conducted, the goods and services to be sold and the design and construction of the business location.

Lenders may be more willing to finance the franchisee of a reputable and established franchisor than the entrepreneur desiring to open an unproven business. Although by no means free from risk, a franchise from a franchisor with well-known and well-accepted products or services can significantly reduce business risks and enable you to own and operate a business on your own with no previous training.

If you’re considering franchising, you’ll have to carefully investigate:

The specific costs;
Whether financing is available;
What your expected earnings might be; and
How long the franchise agreement runs?

Franchise Agreement

The franchise agreement is the cornerstone document of the franchisee–franchiser relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each. A sample agreement may either be attached to the disclosure statement or presented separately. Either way, you are entitled to receive it as a prospective franchisee five business days before signature. You should have it reviewed by a lawyer familiar with franchise matters–especially since most agreements are extremely one-sided in favor of the franchiser. No one should enter into a franchise and expect to have an evenly drawn contract.

The agreement will contain provisions covering, in considerable detail, the obligations of the franchiser and franchisee regarding operating the business; the training and operational support the franchiser will provide (and at what cost); territory and any exclusivity; the initial duration of the franchise and any renewal rights; how much Franchisee must invest; how must deal with things such as trademarks, patents and signs; what royalties and service fees will pay; tax issues; what happens if Franchisee should want to sell or transfer the franchise; advertising policies; franchisee termination issues; settlement of disputes; by the company, operating practices, cancellation, and attorney fees.

The key items of the disclosure statement include:

Background information on the franchiser and any predecessor;
The identity and business background of key personnel affiliated with the franchiser or franchise brokers;
Any prior litigation actions;
Any bankruptcy history;
Franchisee’s initial franchise fee or other initial payment to begin the operation;
Other fees, such as service fees, training fees, advertising fees, royalties;
Any commitment of a franchisee to purchase or lease from designated sources;
Franchisee’s principal obligations;
Obligations of the franchiser; supervision; assistance; services; Exclusive area or territory;
Trademarks, service marks, trade names, logos, and commercial symbols; Patents and copyrights;
Any commitment of the franchisee to personally participate in the actual operation of the franchise business;
Renewal, termination, transfer and dispute resolution;
Statistical information and listing of other existing franchisees; and
Audited financial statements.

There is no standard form of franchise agreement because the terms, conditions, and the methods of operations of various franchises vary widely depending on the type of business involved. For example, franchises for printing, employment agencies, and automotive products will differ from the franchises for fast food service, convenience stores, or clothing.

A franchise agreement should achieve three fundamental objectives:

Given the absence of specific franchise legislation, it should contractually bind the franchisor and the franchisee and accurately reflect the terms agreed upon.
It should seek to protect for the benefit both of the franchisor and the franchisee, the franchisor’s intellectual property.
It should clearly set out the rules to be observed by the parties.

Reliance on Us

Call us today to discuss your specific needs.

Drafting Franchise Agreements
Compliance with Disclosure Obligations
State Registration Requirements
Trademarks and Trade Secret Protection
Intellectual Property Infringement Actions
Mergers and Acquisitions of Franchise Systems
Franchise Agreement Construction and Operation
Geographic Area Restriction Disputes
Non-Compete Clauses
Pricing and Supply Complaints
Anti-Competition and Unfair Business Practice Issues
Revocability and Forfeiture of Franchises
Injunctive Relief to Protect Franchises
The avoidance of risks in costly franchise disputes

THE TERMS

As there is no specific legislation or regulation for franchising, the franchise agreement becomes all-important in determining the rights and obligations of the franchisor and the franchisee and the relationship between them. In this respect the franchise agreement can be said to form the ‘engine room’ of the whole transaction. If difficulties should arise between the franchisor and the franchisee they will need to turn to the contract to see what, if any, rights and obligations have been provided in the franchise agreement.

What, then, should one look for in a franchise agreement?

A franchisee will look for promises:

To train the franchisee and his staff;
To supply goods and / or services;
To be responsible for advertising, marketing and promotions;
To assist the franchisee to locate and acquire property and have it fitted out and converted into a franchised outlet. (Similar considerations apply with regard to the acquisition of vehicles, fitting them out, equipping the franchisee etc.)
To assist the franchisee to set up in business;
To improve, enhance and develop the business system; and
To provide certain support management and possibly accounting services.

Franchisors will be anxious to ensure that the franchise agreement clearly sets out the obligations of the franchisee. A franchisor will therefore wish to:

Monitor the performance of the franchisee;
Protect himself from unfair competition;
Protect his intellectual property; and
Impose obligations and restrictions on the franchisee with regard to the exercise of the rights granted by him to the franchisee.

Figure: Strategic Franchising

THE INTELLECTUAL PROPERTY

These are in the nature of:

Trade Name
Goodwill
Trademarks
Confidential Information and know-how
Copyright

Unless the franchise agreement contains sufficient safeguards to protect the franchisors intellectual property rights, the franchisor may find that he is unable to prevent infringement of his rights by a third party or an ex-franchisee.

Franchisors should be aware that it is not only in the interests of the franchisor that these rights be protected. Franchisees are equally concerned to ensure that the franchisor had done everything that is reasonably possible for him to protect the intellectual property rights in question. Many franchisees purchase a particular franchise because of the high profile a franchise enjoys in the market place. In many cases, a franchisee has the choice of which franchise to purchase in the same market sector and one of the reasons why a franchisee will have chosen a particular franchise is because of its strong brand image. It follows therefore that the franchisee will be anxious to ensure that in the event of infringement, the franchisor has taken sufficient steps to safeguard his ownership in his intellectual property rights so that he can stop infringement and thereby protect the reputation of that brand name both for himself and for his franchise network. If the contract is weak on this point, franchisees will not consider that particular franchise to be a sound investment proposition because the franchisor will be limited in what he can do to prevent a ‘copy cat’ operation from being set up in direct unfair competition with a franchisee.

Brand names and trademarks are becoming increasingly important to business; they can increase the asset value of a company and therefore need to be adequately protected. The franchise agreement should therefore not only grant relevant rights to the franchisee and reserve rights for the franchisor, but should also contain mechanisms necessary for protecting the franchisors intellectual rights from infringement.

THE RULES

All franchisees should be treated as a family and, as such, there should be no room for favourites. This means that the franchise agreement should be in a standard form with all prospective franchisees being offered the same terms with no special deals being done. If a franchise agreement is to be non-negotiable then it is important, from the franchisees point of view, that is well balanced in terms of rights and obligations of the parties and takes into consideration the franchisees concerns also. Again, in the absence of legislation or regulation, which tells the franchisor and franchisee what to do and how to behave, and given that franchisors and franchisees perceive the franchise relationship to be a long term one, it is important that the contract spells out very clearly what is expected and of each party to the contract.

The franchise agreement should therefore clearly:

Specify in detail the duties and obligations both of the franchisor and of the franchisee;
State the grounds upon which the franchisor will seek to terminate the franchise agreement;
Deal with the payment of franchise fees and the timing of those payments; and
Set out the consequences of such termination.

Some thought has to be given to the franchisees and their objectives and provision should therefore be made in the franchise agreement to deal with what is to happen should the franchisee die or become permanently incapacitated.

It is also advisable to deal with the question of what is to happen if a franchisee wishes to sell his business during the term of his franchise agreement. Here, as in other matters, a balance has to be struck between the need of the franchisee to realise his investment as and when he wants to and the requirement of the franchisor to approve those coming into the franchise network and to prevent those leaving the network (for whatever reason) from continuing to use the franchisors trade secrets and competing unfairly.

The franchise transaction is complex and the franchise agreement must respect that complexity. Experience has shown that those franchisors who take the matter of the franchise contract lightly pay dearly for their mistake. To the franchisee, the franchise contract represents an investment. His business depends upon it to the extent that his business may disappear should it terminate. For the franchisor, the franchise agreement is an income producing asset which will ultimately have a place on his balance sheet. If for any reason the franchise contract turns out to be defective, the cost to the franchisor can be the loss of his whole network (given that the franchise agreement is in a standard form). Although it may be tempting for both franchisor and franchisee to rely on goodwill, ultimately it is only the contract that matters.

Whatever the size or reputation of the franchisor, prospective franchisees will always look to the quality of the franchise agreement because they know that there may be a change of policy within the franchisor company or that the people running the franchise operation may change. They know that at the end of the day, all they can rely upon will be whatever rights are written into that contract.

Once a franchise agreement has been signed, both parties will be bound by it. It can be a double-edged sword and if the franchisor has got it wrong he will have to pay the price. A final word of caution – remember that generally speaking, there is still no law against making a bad bargain!

Asghar & Sons Jurists is a full-services law firm with a national practice dedicated almost exclusively to franchise business law, distribution and business licensing matters. The law firm litigates on behalf of franchise companies throughout the country and provides legal advice on franchise development, franchise sales compliance, distribution and trademark, trade secret and copyright law and protection matters. Our lawyers have extensive experience in pre-litigation legal counseling, litigation, arbitration and mediation in trademark infringement, non-compete, antitrust, collections, underreporting and encroachment claims. In business transactions, our clients look to us to overcome obstacles and close deals. In litigation, our clients count on tactical and strategic legal advice, calculated to accomplish the desired business result, from the earliest stage of the case.

SERVICES FOR START-UP FRANCHISORS

Asghar & Sons Jurists and their attorneys specializes in helping franchise companies with all their franchise related legal needs. Whether you are a well established franchise company or an existing business looking into franchising as an option to grow your business, our law firm provides a full array of franchise legal services:

Contract Negotiations

Our experience in drafting and litigating the terms of licensing agreements gives our attorneys a unique perspective on contract negotiation. All franchise relationships are predicated on mutuality and fairness between the contracting parties. All parties rely on the enforcement of contractual provisions intended to ensure uniform quality among system franchisees. The key to contract negotiation lies in understanding which provisions can and cannot be negotiated without compromising the integrity of the franchise system.

Day to Day Franchise Advice

We are a resource for our clients. As a result of our focus on franchise, distribution and licensing matters, we have a 32 year database of forms and agreements. In most cases, our attorneys can give instructive and experienced advice, in an almost immediate exchange. As our engagements progress, we garner an inside knowledge of our clients, understand their methods of doing business and are able to provide timely and well thought out advice.

Asghar & Sons Jurists law firm and its attorneys have gained substantial expertise in helping companies with strong unit economics and good concepts use franchising as a means of exploiting market opportunities. Franchising has emerged as an alternative source to growth capital, where franchisees are responsible for financing the costs associated with unit growth. Many companies look to franchising as a means of developing the operational talent, coupled with the vested interest in making a unit successful, as an alternative to bearing the economic cost in financing the construction and developing the managerial talent necessary to achieve success. Our law firm has worked with multiple startup franchise companies in the retail and service businesses, and has considerable expertise in identifying those franchise-related structures which work and which do not. We provide the following services for start-up a Franchisor:

Understanding the basic requirements for a successful franchise system.
Structuring the franchise system to minimize legal and business risks.
Drafting all form agreements to be used with franchisees, including: Franchise Agreement, Development Agreement, Confidentiality Agreement, Non-Competition Agreement, Personal Guarantee, Promissory Note, etc.
Drafting the Uniform Franchise Offering Circular (UFOC) and exhibits.
Preparing and Filing Registration Forms required by various state agencies.
Reviewing operations and policy manuals.
Training franchise sales staff on legal compliance.
Advising on State laws affecting franchise sales and relationships.

Strategy

We discuss your business concept and your vision for expansion. If you have already decided on franchising, we’ll proceed to the next stage. If you would like our input, we can discuss: the suitability and readiness of your business for franchising; the pros and cons of franchising; alternatives to franchising; ways to set yourself apart from competing franchise systems; ways to minimize business and legal risks; ways to make your business concept more attractive to prospective franchisees; and other topics about franchising you are interested in.

Creation

Based on the particular needs of your system, We will determine the types of legal documents you will need. At a minimum, you will need a form Franchise Agreement and a Franchise Offering Circular. Other documents that might be needed include a Development Agreement, Software License, Promissory Note, Personal Guaranty, Confidentiality Agreement, and/or addendum to your franchisees’ premises lease. I will create the documents you need based on information you provide us. Your documents will be in plain English and in an easy-to-understand format. More importantly, they will be specifically tailored to your business system, and, if you want, they can even reflect the look and feel of your business.

Implementation

Once we have finalized the necessary legal documents and your franchise system is otherwise ready for roll out, you may begin to offer and sell franchises in non-registration states. This sales process is regulated by state and Federal Law. We teach you the legal rules for selling franchises.

Services for Franchisors

Evaluation of the feasibility of offering a specific franchise or business opportunity.
Assistance in developing and structuring new franchise systems.
Identifying and recruiting skilled franchise personnel.
Accurately describing franchise systems in readable and inviting disclosure packages.
Use of sophisticated computerized forms to produce draft documents quickly.
Rapid state registration of franchises and business opportunities.
Federal and state trademark registration.
Legal audits of clients’ abilities to prove compliance with franchise laws.
Ongoing advice on franchisee relations.
Compliance training for franchise sales personnel.
Review of franchise manuals and advertising.
Pre-purchase due diligence and assistance with acquisition of franchisor.
Compliance training for franchise sales personnel.
Franchise mediation.
Guidance in expanding system internationally and in negotiating foreign franchises.

Services for Franchisees

Evaluation of Uniform Franchise Offering Circulars (UFOCs) for prospective franchisees.
Pre-purchase negotiation of franchise agreements.
Review of leases for franchised business premises.
Formation and guidance of franchisee associations; collective bargaining.
Assistance in canceling or terminating franchise agreements.
Franchisee mediation, arbitration, and litigation support.

Services for Investors, Brokers, Insurers and Multiple Unit Franchisees

The Franchise Law Firm offers many services to others in the franchise community, including franchise brokers, suppliers, multiple unit franchisees, insurers, lenders, and investors in franchising companies.

Legal Services for Others in Franchising

Negotiating and drafting franchise brokerage and finder’s agreements.
Due diligence for insurers, lenders, investors and purchasers of franchisors.
Counseling franchise brokers on franchise law compliance.
Assisting in structuring licensing and distribution arrangements.
Structuring dual- or multi-party arrangements.
Advocacy of multiple unit franchisee interests.
Registration of multiple unit franchise and co-branding agreements.
Representation of franchise suppliers in contract negotiations.

Franchisee Termination

At the outset, franchisers generally have the right to choose the parties they wish to do business with and may use their own judgment in entering into a new franchise relationship. Depending upon the appropriate state law, a franchiser may have the right to terminate a franchise or to refuse to renew a franchise for “good cause” – such as failure to meet sales quotas or lack of quality standards. Many contracts are drafted in such a manner that it is probable that a franchisee would breach it at sometime allowing the franchiser to cancel the contract or not renew it. Some state statutes require specific conditions, such as failure to meet monetary obligations, correct defects, or quality standards, for termination or for non-renewal. Other states also require special notices within certain time periods be provided to the franchisee before termination or non-renewal.

When a franchisee is not in compliance with his or her obligations under the franchise agreement, the decision to terminate, along with a thorough analysis of all pre-termination options, is critical. A termination, like any decision to end a long-term relationship, has many implications. In most cases, there are options short of termination, which, under the right circumstances, may motivate a franchisee to cure, and thereby save the relationship and protect the cash flow associated with the unit. In-term actions seeking damages for breach of the agreement along with attorneys’ fees are often an effective tool to garner compliance.

Asghar & Sons Jurists have worked through literally hundreds of franchise related disputes, and have a track record of achieving prompt resolutions of even the most acrimonious disputes.

Franchise Real Estate

Our attorneys have a great deal of experience in negotiating and concluding commercial real estate transactions. We counsel clients in obtaining contractual changes which protect their interests in a transaction. We also assist clients in obtaining the necessary financing and reviewing the finance documents related to the purchase. We also assist clients in making the necessary inspections prior to becoming contractually bound to purchase the property.

Franchise Bankruptcy

In a challenging economy, it is not unusual for certain franchisees, for a variety of reasons, to become insolvent. Generally, insolvency does not happen over night, rather, a situation deteriorates over time. We provide advice to our clients with respect to working through challenging financial circumstances, with the goal of preventing the assets of the franchise from becoming part of the debtor’s bankruptcy estate. In cases where bankruptcy has already been filed, we assist franchisors in garnering almost immediate post-petition contractual compliance, and obtain orders from the bankruptcy court to protect the franchisor’s interests. In other contexts, we have represented franchisors and area developers in acquiring assets through bankruptcy, free and clear of all liens, claims and encumbrances.

Regulatory Compliance

We assist franchisors in complying with the obligations under applicable state laws governing the sale of franchises in those states which have registration statutes.

In the ordinary course, we draft franchise agreements and uniform franchise offering circulars for flat fees, which are payable over the course of the engagement. By using predictable flat fees, businesses can more effectively budget the funds necessary to roll out a franchise concept.

For established franchisors, we review existing franchise documents for regulatory compliance and other business or operational issues, and provide detailed comments or revisions with respect to existing documents.

International Franchising

As many of our clients expand beyond the territorial confines of the Pakistan, we provide advice concerning their expansion abroad. We have relationships with various attorneys in other countries who assist us in providing the local perspective on expansion within a particular country.

Mergers and Acquisitions

Clients engage us to provide advice on the best method and manner for acquiring or selling assets. The firm maintains a detailed library of forms of agreement for use in connection with acquiring assets, real property or businesses. We at Asghar & Sons Jurists have enormous experience in all aspects of these transactions, including intellectual property, real estate, licensing and other relevant matters.

16. INSOLVENCY LAWS, INSOLVENCY LAWYERS & PRACTICE IN PAKISTAN

Insolvency is the “The condition of a person who is insolvent; inability to pay one’s debts; and lack of means to pay one’s debts. It is a relative condition of man’s assets and liabilities that the assets, if all made immediately available, would not be sufficient to discharge the whole debts. Or it is the condition of a person who is unable to pay his debts as they fall due, or in the usual course of trade and business.” A person is insolvent who either has seized to pay his debts in the ordinary course of business or cannot pay his debts as they fall due or is insolvent within the meaning of Insolvency Act.

The condition which marks a man’s or a firm’s liability to meet full monetary obligations, when a person is in this strait, he can either call his creditors together and endeavor to come to some private arrangement with them according to the nature of his assets, or he can place himself in the hands of the Bankruptcy Court, which will administer the estate and distribute the assets for the benefit of the creditors. Complete and Without Conditions: For example, a bankrupt, usually after nine months receives an Absolute Order of Discharge, which means all of his debts, with certain exceptions, are wiped out.

Our attorneys at Asghar & Sons Jurists have an extensive experience in Laws related to insolvency and under the patronage of Honorable Sir Asghar Malik we are de-facto leader in legal issues related to insolvency , if you have any issue pertaining to insolvency, please feel free to contact us.

Insolvent

A debtor is said to be insolvent when he cannot pay his debts as they become due, out of his own moneys. It is, therefore, quite possible for a person to have assets exceeding his debts, and yet be insolvent, because he cannot realize his assets.

Insolvent Circumstances

The term has always been held to mean not merely being behind the word if an account were taken, but insolvency to the extent to being unable to pay just debts in the ordinary course of trade and business.

The Provincial Insolvency Act, 1920

Object of the Act

The object is to seize the property of an insolvent before he can squander it and to distribute it amongst his creditors. The jurisdiction of the Court commences when certain acts take place which are known as acts of insolvency and which give a right to his creditors to apply to the Court for his adjudication as an Insolvent.

The insolvency law has two fold purposes to serve. One is to give relief to the debtor from harassment of his creditors whose claims he is unable to meet and the other is to prevent a scramble among the creditors to get at the assets of the debtor promoting fraud and collusion between the creditor and debtor and provide a machinery by which creditors are equitably satisfied.

History of the Act

Pakistan has always been, in the main, an agricultural country. There never was a necessity left in this country for a system of insolvency law and there was no native law of insolvency in Pakistan. The present day Pakistan’s law of insolvency is simply and solely the creation of statute. Two systems of insolvency law have been simultaneously in vogue in Pakistan, one applicable to presidency—towns and the other to the mofussil. The first enactment on the law of Provincial Insolvency is to be found in the Insolvency Chapter of the Civil Procedure Code of 1859. The provisions of that act were somewhat extended to the Civil Procedure Codes of 1877 and 1879, but from 1877 till the enactment of Act III of 1907 they remained in Chapter XX of the Civil Procedure Code.

When the Provincial Insolvency Act of 1907 was passed into law, the idea of insolvency was not present in the minds of the people, hence the Act was an unsatisfactory measure and there were many defects in it. So on the 4th September, 1918, a Bill to amend the Provincial Insolvency Act was introduced in the Indian Legislative Council and was passed into law as Act V of 1920.

Applicability of the Act

Any person who is sui juris and non compos mentis or anybody of persons called a firm can take protection of the Act. The Act is not applicable to minors, lunatics, juridical persons and to corporate bodies.

Constructions and interpretation of the Act

The Act is self-contained and as such the sections have to be interpreted by themselves, without reference to any extraneous statute. The English law does not apply in this country despite the fact that insolvency law in general in this country is based on the insolvency law of England, and we have got to keep within the provisions of the Provincial Insolvency Act.

Principle behind Section 46 is to prevent injustice which would arise after a person who is insolvent’s creditor on one account and his debtor on other is compelled to pay entire amount due by him, receiving only a dividend an amount due to him. Where two persons have dealt with each other on mutual credit and one of them becomes insolvent, account can be settled between them and balance only, which is found due on either, is treated as payable. In order that Section 46 may apply, both claims, must be debts, both must be pecuniary, both must lie between same parties (i.e. Insolvent and creditor) and both must be in same capacity or right.

Decision under Section 53 operates as res-judicata in subsequent suit for title based on conveyance, Held: Decision in an insolvency case under section 53, avoiding certain conveyance operates as res-judicata in a subsequent suit for declaration of right to possession based on the conveyance. Secured creditor would be entitled to adjustment of Security.

Bar under Section 8 which bars insolvency petition against corporation etc. does not debar a person from initiating insolvency action in respect of a debt which he owes to Corporation etc. mere fact that Corporation etc. is impleaded as party to insolvency petition and debtor wants to escape debt liability, does not render as incompetent debtor’s insolvency petition.

Secured creditor cannot claim any preferential treatment in distribution of assets of insolvent. He has a right to realize security or to relinquish as provided by Section 47. Order of adjudication as to insolvency would not affect position of secured creditor as after adjudication he would be free to deal with his security and to realize if for payment of debt. It was not necessary to give any preferential treatment or priority to secured creditor in respect of debt which remains unsatisfied after realization of security, as right of a secured creditor has sufficiently been protected and liberty to deal with security has been given to him.

Secured creditor if he has not relinquished his security is entitled to adjustment of security. He can make claim in respect of such balance amount of debt which remains unsatisfied after realization of security.

The object of Section 4 is to define limits of jurisdiction of Courts exercising powers in insolvency.

Acts of Insolvency

A debtor commits an act of insolvency in each of the following cases namely:

If, in the Provinces and the Capital of the Federal or elsewhere, he makes a transfer of all or substantially all his property to a third person for the benefits of his creditors generally;
If, in the Provinces and the Capital of the Federation or elsewhere, he makes a transfer of his property or of any part thereof with intent to defeat or delay his creditors;
- He departs or remains out of the Provinces and the capital of the Federation;
- He departs from his dwelling house or usual place of business or otherwise absents himself;
- He secludes himself so as to deprive his creditors of the means of communicating with him;
If, in the Provinces and the Capital of the Federation or elsewhere, he makes any transfer of his property, or of any part thereof, which would, under this or any other enactment for the time being in force, be void as a fraudulent preference if he were adjudged an insolvent;
If, with intent to defeat or delay his creditors
If any of his property has been sold in execution of the decree of any court for the payment of money;
If he petitions to be adjudges an insolvent under the provisions of this Act;
If he gives notice to any of his creditors that he has suspended, or that he is about to suspend payment of his debts; or
If he is imprisoned in execution of the decree of any Court for the payment of money.

Explanation: For the purposes of this section the act of an agent may be the act of the principal.

If a debtor commits an act of insolvency, an insolvency petition may be presented either by a creditor or by the debtor, and the Court may on such petition make an order (hereinafter called an order of adjudication) adjudging him an insolvent.

Explanation: The presentation of a petition by the debtor shall be deemed an act of insolvency within the meaning of this section, and on such petition the Court may make an order of adjudication.

Conditions on which creditor may petition

A creditor shall not be entitled to present in insolvency petition against a debtor unless:

the debt owing by the debtor to the creditor, or, if two or more creditors join in the petition, the aggregate amount of debts owing to such creditors, amounts to five hundred rupees, and
the debt is a liquidated sum payable either immediately or at some certain future time, and
the act of insolvency on which the petition is grounded has occurred within three months before the presentation of the petition.

If the petitioning creditor is a secured creditor, he shall in his petition either state that he is willing to relinquish his security for the benefit of the creditors in the event of the debtor being adjudged insolvent, or give an estimate of the value of the security. In the later case, he may be admitted as a petitioning creditor to the extent of the balance of the debt due to him after deducting the value so estimated in the same way as if he were an unsecured creditor.

Conditions on which debtor may petition

A debtor shall not be entitled to present an insolvency petition, unless he is unable to pay his debts and

his debts amount to five hundred rupees; or
he is under arrest or imprisonment in execution of the decree of any Court for the payment of money; or
an order of attachment in execution of such a decree has been made, and is subsisting, against his property.

A debtor in respect of whom an order of adjudication whether made under the Insolvency (Karachi) Act, or under this Act has been annulled owing to his failure to apply, or to prosecute an application for his discharge, shall not be entitled to present an insolvency petition without the leave of the Court by which the order of adjudication was annulled. Such Court shall not grant leave unless it is satisfied either that the debtor was prevented by any reasonable cause from presenting or prosecuting his application, as the case may be, or that the petition is founded on facts substantially different from those contained in the petition on which the order of adjudication was made.

Every insolvency petition shall be presented to a Court having jurisdiction under this Act in any local area in which the debtor ordinarily resides or carries on business, or personally works for gain, or if he has been arrested or imprisoned, where he is in custody. Provided that no objection as to the place of presentment shall be allowed by any Court in the exercise of appellate or revisional jurisdiction unless such objection was taken in the Court by which the petition was heard at the earliest possible opportunity, and unless there has been a consequent failure of justice.

Contents of petition

1.Every insolvency petition presented by a debtor shall contain the following particulars, namely:
- a statement that the debtor is unable to pay his debts;
- the place where he ordinarily resides are carries on business or personally works for gains, or, he has been arrested or imprisoned, the place where he is in custody;
- the Court (if any) by whose order he has been arrested or imprisoned, or by which an order has been made for the attachment of his property, together with particulars of the decree, in respect of which any such order has been made;
- the amount and particulars of all pecuniary claims against him, together with the names and residences of his creditors so far as they are known to, or can by the exercise of reasonable care and diligence be ascertained by him;
- the amount and particulars of all his property together with:
  - a specification of the value of such property not consisting of money;
  - the place or places at which such property is to be found and
  - a declaration of his willingness to place at the disposal of the Court all such property save in so far as it includes such particular (not being his books of account) as are exempted by the Code of Civil Procedure, 1908, or by any other enactment for the time being in force from liability to attachment and sale in execution of decree;
- a statement whether the debtor has no any previous occasion filed a petition to be adjudged an insolvent, and (where such a petition has been filed);
Every insolvency petition presented by a creditor/creditors shall set forth the particulars regarding the debtor specified in clause (b) of sub section (1), and shall also specify:
- the act of insolvency committed by such debtor, together with the date of its commission; and
- the amount and particulars of his or their pecuniary claim or claims against such debtor.

Bankrupt

The term bankrupt is defined as: The state or condition of one who is unable to pay his debts as they are, or becomes due, amenability to the bankruptcy laws. The condition of one who has committed as “an act of bankruptcy”, and is liable to be proceeded against by his creditors therefore, or of one whose circumstances are such that he is entitled, on his voluntary application, to take the benefit of the bankruptcy laws. The term includes a person against whom an involuntary petition has been filed, or who has filed a voluntary petition, or who has been adjudged a bankrupt. Person or municipality referred to as a “debtor”.

A person who has made an assignment or against whom a receiving order has been made, or the legal status of that person.

Bankruptcy Proceedings

The taking of possession by the trustee of the property of the bankrupt actually or constructively in his possession at time of filing of petition in bankruptcy, the distribution of the proceeds received from such property, ratably, among bankrupt’s creditors whose claims have been filed and allowed, and the discharge of bankrupt from liability for the unpaid balance of such claims. Bankruptcy (in the sense of proceedings taken under the bankruptcy law) is either voluntary or involuntary; the former where the proceeding is initiated by the debtor’s own position to be adjudged a bankrupt and have the benefit of the law, the latter where he is forced into bankruptcy on the petition of a sufficient number of his creditors. Bankruptcy proceedings are governed by the Bankruptcy laws and official rules and forms.

Adjudication of Bankruptcy

The judgment or decree of the bankruptcy court that a person against whom a petition in bankruptcy has been filed, or who has filed his voluntary petition, be ordered and adjudged to be a bankrupt.

Bankruptcy Discharge

Order of Bankruptcy Court which discharges bankrupt from all dischargeable obligations and debts. For effect of, and exceptions to, discharge.

Bankruptcy Distribution

After payment of administration, priority and other debts and expenses of bankrupt estate, trustee in bankruptcy makes prorate distribution to creditors.

Bankruptcy Forms

Official forms used in Bankruptcy Court for most matters (e.g. petitions, schedules).

Bankruptcy Rules

Rules governing proceedings in bankruptcy courts; a great many of which make the Federal Rules of Civil Procedure applicable.

Bankruptcy Schedules

Official forms for listing of bankrupt’s assets, liabilities, and all unsecured creditors.

Bankruptcy Trustee

One appointed by Bankruptcy Court to take discharge of bankrupt estate, to collect assets, to bring suit on bankrupt’s claims, and to defend actions against it; he has power to examine bankrupt, to initiate actions to set aside preferences, etc.

An English term for “insolvent”. The bankruptcy law is distinguished from the ordinary law between debtor and creditor as involving these three general principles:

a summary and immediate seizure of all the debtor’s property;
a distribution of it among the creditors in general, instead of merely applying a portion of it to the payment of the individual complaint; and
the discharge of the debtor from future liability for the debts then existing.

17. INVESTMENT LAW, INVESTMENT LAWYERS AND PRACTICES IN PAKISTAN

Here you may find information about investment law in Pakistan. Our dedicated team of professional attorneys at Asghar & Sons Jurists best assists their clients as investment law in Pakistan. Pakistan is a land of many splendors and opportunities, a repository of a unique blend of history and culture of the east and the west, and is the cradle of one of the oldest civilizations. It is a populous country with 130 million tough, conscientious and hardworking people. It is strategically located at the crossroads of the Gulf States, Central Asia, and South-Asia and shares borders with China, Iran, Afghanistan, and India and while the Arabian Sea to the South offers a vast coastline for maritime trade.

The geographical location has thus made possible the foreign and domestic investment very auspicious to this country, transfer of technology from abroad and shifting of indigenously produced technology overseas. Priority industrial sectors in Pakistan are Value added Agro Industries, Supporting Industries, Information Technology and related services, Corporate Farming, Resource based Industries, Light Industries, Infrastructure and related services and Tourism Development.

TYPE OF INDUSTRY	INVESTMENT OPPORTUNITIES
Value-added Agro Industries	Fruits & VegetablesLivestock & DairyFisheriesHorticulture
Supporting Industries	TextilesGarmentsAutomotiveElectrical & Electronics
Information Technology and Related Services	A wide range of activities from software to telecommunication services
Corporate Farming	Modern farming to develop Pakistan’s agricultural sector
Resource-based Industries	Oil & GasPetrochemicalsChemicalsOther Minerals
Light Industries	Surgical InstrumentsBicyclesElectrical Appliances (Fans)Bus Body-BuildingGems & JewelryLeather and Leather Products
Infrastructure and Related Services	Hydro Electric Power GenerationRoads (Highways, Motorways)RailwaysPorts and Port Handling ActivitiesGas and Oil PipelinesUrban Mass TransitStorage Facilities for Agricultural ProduceCool Chains (For Agro Business)
A Base for the Emerging Markets of the Central Asian Republics	Pakistan provides an ideal base for exploring and supplying the growing markets of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, not to mention other neighbouring countries.

Table: Investment Opportunities

To make Pakistan a safe and profitable haven for both local and foreign investors who wish to explore and optimise the potential of inexpensive labour force, real estate and vast consumer market, the government has offered many attractive packages of incentives and our attorneys at Asghar & Sons Jurists are exacerbating their best to invite the prospective investors to facilitate them to take the maximum benefit. In order to do so we render wide range of services as Management and Investment Consultants in large number of fields to provide a greater choice to the domestic and foreign investors. The investors who want to make study for unforeseen problems may contact us for our reports on any project of their choice.

Why Invest in Pakistan

Pakistan, the cradle of one of the world’s oldest civilisations, is a land of many splendors, from the highest peaks of Himalayas through the green valleys of Indus to the Arabian Sea. Pakistan is the 9th most populous country of the world with 140 million people. Flanked by Iran and land-locked Afghanistan in the West and the Central Asian Republics and China in the North, with proximity to the affluent Middle East, Pakistan offers a vast market of over 200 million consumers. Pakistan with its warm water ports and railway networks offer shortest route to supply goods and services to the Central Asian Republics.

FEATURES	INVESTMENT HIGHLIGHTS
Abundant Land and Natural Resources	Extensive Agricultural LandCrop Production (Wheat, Cotton, Rice, Fruit and Vegetables)Mineral Reserves (Coal, Crude Oil, Natural Gas, Copper, Iron Ore, Gypsum, etc.)Fisheries and Livestock Production
Strong Human Resources	English Speaking Workforce36 Million Labour Force, Adaptable, Well Motivated and DisciplinedHighly Skilled Labour, Available at an Average Monthly Salary of US$ 150Large Corps of Experienced Managers, Engineers, Computer Professionals, Scientists, Bankers and Financiers
Large and Growing Domestic Markets	146 Million Consumers with Growing IncomesA Growing Middle-Class Moving to Sophisticated Consumption Habits
Well Established Infrastructure and Legal Systems	Comprehensive Road, Rail and Sea LinksDirect Air Links with more than 50 countriesExtra Qualitative Telecommunication and IT ServicesModern Corporate LawLong Standing Corporate Culture
Strategic Location as a Regional Hub	Principal Gateway to the Central Asia RepublicsHighly Developed Ports with Containers and Specialised TerminalsStrong and Long-standing Links with the Middle East and South AsiaComprehensive Duty-free Facilities for Investors
Deregulation	Abolition of Government Approvals for InvestmentRemoval of Foreign Exchange ControlsForeign Investors allowed to hold 100% Equity in Local CompaniesNo Restrictions on Royalty and Technical Fee Payments by Local CompaniesFull Repatriation of Capital, Capital Gains and Dividends allowed
Trade Liberalisation	Completely Deregulated, Liberalized Economy based on Market ForcesImport and Export Trade allowed to Foreign Companies registered in PakistanMacro Economic Structural Adjustment Program Successfully Under WayInflation is within Single DigitsDeclining Tariff Rates on Imports, creating an almost Free Trade RegimeForeigners have Free Access to Pakistani Capital Markets
Tax Reforms	A tax credit equivalent to 10% of the amount so invested for the purpose of balancing, modernisation and replacement of the plant and machinery, already installed in an industrial undertaking.There is also a further tax credit for a Company, an industrial undertaking established before the first day of July, 2011 till 30th June, 2016.Where a Company opts for enlistment in any registered Stock Exchange in Pakistan, a tax credit equal to 15% shall be allowed.Tax credit equivalent to 100% of tax payable to an industrial undertaking shall be allowed, for a period of five years if it establishes itself between the first day of July, 2011 and 30th day of June 2016.10% tax credit shall be allowed to a person registered under the Sales Tax Act, 1990, if ninety percent his sales made to a registered person.Income from the export of computer software and IT services is exempt up to June 30, 2016.
Capital Market Reforms	Three-Year Extension on Capital Gains Tax Exemption through Capital Markets Reform PackageRemoval of Turnover Tax on Mutual Funds and Bonus IssuesPermission for Provident Funds to Invest up to 20% of Total Assets in Equity

18. JOINT VENTURE LAW, JV LAWYERS & LEGAL PRACTICE IN PAKISTAN

Here you may find information about joint ventures in Pakistan. Our team of dedicated attorneys at Asghar & Sons Jurists are best assists their clients for joint venture set up in Pakistan.

Joint Venture is a legal entity in the nature of a partnership engaged in the joint prosecution of a particular transaction for mutual profit. An association of persons jointly undertaking some commercial enterprise, it requires a community of interest in the performance of the subject matter, a right to direct and govern the policy in connection therewith, and duty, which may be altered by agreement, to share both in profit and loses. Unlike a partnership, a Joint Venture does not entail a continuing relationship among the parties.

A Joint Venture is a legal organisation that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Like a partnership, joint ventures can involve any type of business transaction and the “Persons” involved can be Individuals, Groups of Individuals, Companies or Corporations.

Scope of Practice

Joint ventures are also widely used by companies to gain entrance into foreign markets. Foreign companies form joint ventures with domestic companies already present in markets. The foreign companies generally bring new technologies and business practices into the joint venture, while the domestic companies already have the relationships and requisite governmental documents within the country along with being entrenched in the domestic industry.

Joint Ventures are governed by state Partnership, Contracts, and Commercial Transactions Law. A Joint Venture is also treated like a Partnership for Federal Income Tax purposes. A joint venture corporation involves the same type of activity as above but within a corporate framework. Foreign joint ventures are subject to the International Trade Laws and the laws within the foreign countries.

REASONS FOR FORMING A JOINT VENTURE

Internal Reasons

Build on Company’s strengths;
Spreading costs and risks;
Improving access to financial resources;
Economies of scale and advantages of size;
Access to new technologies and customers; and
Access to innovative managerial practices.

Competitive Goals

Influencing structural evolution of the industry;
Pre-empting competition;
Defensive response to blurring industry boundaries;
Creation of stronger competitive units;
Speed of market; and
Improved agility.

Strategic Goals

Synergies;
Transfer of technology / skills; and
Diversification.

WHY FORMING THE JOINT VENTURES?

As there are good business and accounting reasons to create a joint venture (JV) with a company that has complementary capabilities and resources, such as distribution channels, technology, or finance. Joint ventures are becoming an increasingly common way for companies to form strategic alliances. In a joint venture, two or more “parent” companies agree to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared control.

FACTORS TO BE CONSIDERED BEFORE FORMING A JOINT VENTURE

Screening of prospective partners;
Joint development of a detailed business plan and short listing a set of prospective partners based on their contribution to developing a business plan;
Due Diligence – checking the credentials of the other party (“trust and verify” – trust the information you receive from the prospective partner, but it’s good business practice to verify the facts through interviews with third parties);
Development of an exit strategy and terms of dissolution of the Joint Venture;
Most appropriate structure (e.g. most joint ventures involving fast growing companies are structured as strategic corporate partnerships);
Availability of appreciated or depreciated property being contributed to the joint venture; by misunderstanding the significance of appreciated property, companies can fundamentally weaken the economics of the deal for themselves and their partners;
Special allocations of income, gain, loss or deduction to be made among the partners; and
Compensation to the members that provide services.

TYPES OF JOINT VENTURES

How you set up a joint venture depends on what you are trying to achieve. One option is to agree to co-operate with another business in a limited and specific way. For example, a small business with an exciting new product might want to sell it through a larger company’s distribution network. The two partners could agree a contract setting out the terms and conditions of how this would work.

Alternatively, you might want to set up a separate joint venture business, possibly a new company, to handle a particular contract. A joint venture company like this can be a very flexible option. The partners each own shares in the company and agree how it should be managed.

In some circumstances, other options may work better than a limited company. For example, you could form a business partnership or a limited liability partnership. You might even decide to completely merge your two businesses.

Businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short-term projects. A successful joint venture can offer:

Access to new markets and distribution networks;
Increased capacity;
Sharing of risks and costs with a partner; and
Access to greater resources, including specialised staff, technology and finance.

A joint venture can also be very flexible. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting the commitment for both parties and the business’ exposure.

RISKS INVOLVED IN JOINT VENTURES

Partnering with another business can be complex. It takes time and effort to build the right relationship. Problems are likely to arise if:

The objectives of the venture are not hundred per cent clear and communicated to everyone involved;
Partners have different objectives for the joint venture;
There is an imbalance in levels of expertise, investment or assets brought into the venture by different partners;
Different cultures and management styles result in poor integration and co-operation; and
Partners don’t provide sufficient leadership and support in early stages.

Success in a joint venture depends on thorough research and analysis of aims and objectives. This should be followed up with effective communication of the business plan to everyone involved.

Setting up a joint venture can represent a major change to your business. However beneficial it may be to your potential for growth, it needs to fit with your overall business strategy. It’s important to review your business strategy before committing to a joint venture. This should help you define what you can realistically expect. In fact, you might decide that there are better ways to achieve your business aims. If you do decide to form a joint venture, it may well help your business to grow faster, increase productivity and generate greater profits. Joint ventures often enable growth without having to borrow funds or look for outside investors. You may also be able to use your joint venture partner’s customer database to market your product, or offer your partner’s services and products to your existing customers. Joint venture partners also benefit from being able to join forces in purchasing, research and development.

RELATIONSHIP OF PARTIES IN EXISTING JOINT VENTURE

Before starting a joint venture, the parties involved need to understand what they each want from the relationship.

Smaller businesses often want to access a larger partner’s resources, such as a strong distribution network, specialist employees and financial resources. The larger business might benefit from working with a more flexible, innovative partner or simply from access to new products or intellectual property.

Similarly, you might decide to build a stronger relationship with a supplier. You might benefit from their knowledge of new technologies and get a better quality of service. The supplier’s aim might be to strengthen their business from a guaranteed volume of sales to you.

Whatever your aims, the arrangement needs to be fair to both parties. Any deal should:

Recognize what you each contribute;
Ensure that you both understand what the agreement is expected to achieve; and
Set realistic expectations and allow success to be measured.

The objectives you agree should be turned into a working relationship that encourages teamwork and trust.

CHOOSING A RIGHT JOINT VENTURE PARTNER

The ideal partner in a joint venture is one that has resources, skills and assets that complement your own. The joint venture has to work contractually, but there should also be a good fit between the cultures of the two organizations.

A good starting place is to assess the suitability of existing customers and suppliers with whom you already have a long-term relationship. You could also think about your competitors or other professional associates. Broadly, you need to consider the following:

How well do they perform?
What is their attitude to collaboration and do they share your level of commitment?
Do you share the same business objectives?
Can you trust them?
Do their brand values complement yours?
What kind of reputation do they have?

If you opt to assess a new potential partner, you need to carry out some basic checks

Are they financially secure?
Do they have any credit problems?
Do they already have joint venture partnerships with other businesses?
What kind of management team do they have in place?
How are they performing in terms of production, marketing and personnel?
What do their customers and suppliers say about their trustworthiness and reputation?

HOW TO ENTER INTO A JOINT VENTURE AGREEMENT?

Selection of a good local partner is the key to the success of any joint venture. Once a partner is selected generally a Memorandum of Understanding or a Letter of Intent is signed by the parties highlighting the basis of the future joint venture agreement.

A Memorandum of Understanding and a Joint Venture Agreement must be signed after consulting lawyers well versed in International Laws and Multi-jurisdictional Laws and Procedures.

Before signing the joint venture agreement, the terms should be thoroughly discussed and negotiated to avoid any misunderstanding at a later stage. Negotiations require an understanding of the cultural and legal background of the parties.

Before signing a Joint Venture Agreement the following must be properly addressed:

Dispute Resolution Agreements
Applicable Law
Force Majeure
Holding Shares
Transfer of Shares
Board of Directors
General Meeting
CEO/MD
Management Committee
Important Decisions with Consent of Partners
Dividend Policy
Funding
Access
Change of Control
Non-Compete
Confidentiality
Indemnity
Assignment
Break of Deadlock
Termination

The Joint Venture agreement should be subject to obtaining all necessary governmental approvals and licenses within specified period.

CREATING A JOINT VENTURE AGREEMENT

When you decide to create a joint venture, you should set out the terms and conditions in a written agreement. This will help in preventing any misunderstandings once the joint venture is up and running.

A written agreement should cover:

The structure of the joint venture, e.g. whether it will be a separate business in its own right;
The objectives of the joint venture;
The financial contributions you each will make;
Whether you will transfer any assets or employees to the joint venture;
Ownership of intellectual property created by the joint venture;
Management and control, e.g. respective responsibilities and processes to be followed;
How liabilities, profits and losses are shared;
How any disputes between the partners will be resolved; and
An exit strategy.

You may also need other agreements, such as a confidentiality agreement to protect any commercial secrets you disclose.

It is essential to get independent expert advice before any final decisions are taken – contact your local Business Link as a starting point for advice.

JOINT VENTURE RELATIONSHIP

A clear agreement is an essential part of building a good relationship. Consider these ideas:

Get your relationship off to a good start. For example, you might include a project that you know will be a success so that the team working on the joint venture can start well, even if you could have completed it on your own;
Communication is a key part of building the relationship. It’s usually a good idea to arrange regular, face-to-face meetings for all the key people involved in the joint venture. For ideas on ways to improve communication;
Sharing information openly, particularly on financial matters, also helps avoid partners becoming suspicious of each other. The more trust there is, the better the chances that your relationship will work;
It’s essential that everyone knows what you are trying to achieve and works towards the same goals. Establishing clear performance indicators lets you measure performance and can give you early warning of potential problems;
At the same time, you should aim for a flexible relationship. Regularly review how you could improve the way things work and whether you should change your objectives; and
Even in the best relationship, you’ll almost certainly have problems from time to time. Approach any disagreement positively, looking for solutions rather than trying to score points off each other. Your original joint venture agreement should set out agreed dispute resolution procedures in case you are unable to resolve your differences yourselves.

ENDING A JOINT VENTURE

Your business, your partner’s business and your markets all change over time. A joint venture may be able to adapt to the new circumstances, but sooner or later most partnering arrangements come to an end. If your joint venture was set up to handle a particular project, it will naturally come to an end when the project is finished.

Ending a joint venture is always easiest if you have addressed the key issues in advance. A contractual joint venture, such as a distribution agreement, can include termination conditions. For example, you might each be allowed to give three months’ notice to end the agreement. Alternatively, if you have set up a joint venture company, one option can be for one partner to buy the other out. The original agreement may typically require one partner to buy out the other.

The original agreement should also set out what will happen when the joint venture comes to an end. For example:

How shared intellectual property will be unbundled;
How confidential information will continue to be protected;
Who will be entitled to any future income arising from the joint venture’s activities; and
Who will be responsible for any continuing liabilities, e.g. debts and guarantees given to customers?

Even with a well-planned agreement, there are still likely to be issues to resolve. For example, you might need to agree who will continue to deal with a particular customer. Good planning and a positive approach to negotiation will help you to arrange a friendly separation. This improves the chances that you can continue to trust each other and work together afterwards. It can also raise your profile in the business community as a reliable and productive partner.

19. LIMITED LIABILITY PARTNERSHIP (LLP) & FIRM REGISTRATION IN PAKISTAN

Limited Liability Partnership (LLP) is a new business structure in Pakistan introduced by the Securities & Exchange Commission of Pakistan. The reason for introducing this business structure was to bridge the gap between small organisational units such as sole proprietorships and partnerships, which are most of the times unregistered and limited liability companies that are either governed by the Companies Ordinance, 1984 or Companies Act, 2017.

A limited liability partnership (LLP) is a partnership concern in which some or all partners have limited liabilities. It therefore can display the essentials of partnerships and companies. In an LLP, each partner is not liable for another partner’s misconduct or negligence. This is an important difference from the traditional partnership under the Partnership Act 1890, in which each partner has joint (but not several) liability. In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a company. Unlike company shareholders, the partners have the right to manage the business directly. In contrast, company shareholders must elect a board of directors under the Companies Act, 2017. An LLP also contains a different level of tax liability from that of a company.

Limited liability partnerships are distinct from limited partnerships in many countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses in which all investors wish to take an active role in management.

Asghar & Sons Jurists prides itself in the ability to bring to clients the freedom to form a business organization of their liking, under the tenets of the corporate law of Pakistan. Our team of skilled attorneys owing to their substantial experience in corporate and business affairs in Pakistan specializes in the forming of businesses of various types whether it be companies, partnerships, or limited liability partnerships. Our expertise in law enables our clients to understand better the provisions and requirements of the formation of Limited Liability Partnerships and help register, incorporate, litigate or dissolve LLPs. We bring to you as per the Limited Liability Partnership Act, 2017 and Limited Liability Partnership Regulations, 2018, the ability to establish your own LLP and can help you acquire the registration of your LLP.

Asghar & Sons Jurists will prepare your LLP Deed, which will be signed by all partners and two witnesses and will get it notarised. It will then be submitted to SECP along with copies of NICs of all partners and copies of Passports of Foreign Partners accompanied by prescribed SECP Fee. The Fee must be deposited either in United Bank Limited (UBL) or Muslim Commercial Bank Limited (MCB).

Ultimate Benefits

The benefits of choosing an LLP over the old type of partnership firms are manifold. The Limited Liability Partnership Act, 2017 and Limited Liability Partnership Regulations, 2018, enable the partners of the LLP to enjoy a limited liability previously extended only to limited companies and denied to partnerships under the old Partnership Act, 1932. Another benefit that an LLP enjoys over Firms is that a Firm is established via the Partnership Deed which evokes an upper limit of 20 for the number of partners that a firm may have, however, there is no such limitation regarding Partners in LLP.

The registering organisations differ for the two types of partnerships as well since the Registrar of Firms in each province registers Firms under the Partnership Act, 1932, whereas the LLP is being registered by the Securities and Exchange Commission of Pakistan. This entails that an LLP will be a ‘Body Corporate’ which has a separate legal existence that is distinct from its partners. This also provides the LLP the ability to hold property in its name whereas a Firm is unable to do so. An LLP cannot be dissolved by the partners owing to the separate legal identity however, a Firm may be dissolved at will. According to the act, the registration of an LLP is mandatory, but a Firms’ is optional.

The LLP will be treated as Association of Persons (AOP) under Income Tax Ordinance, 2001.

Entry Requirements

Any two or more persons associated with business with an intention to make profit may, after registration with the SECP as per the Limited Liability Partnership Act, 2017 and Limited Liability Partnership Regulations, 2018, establish an LLP.

The process of forming an LLP begins with the selection of a name subject for the organization and the submission of an application (Form I- Part I) to the registrar of the Securities & Exchange Commission of Pakistan (SECP) for the reservation of the chosen name which can be submitted online or in physical form. The chosen names are subject to the criteria set under Sec. 6 of the Act. In accordance with the availability of the select name, the submission of all relevant documents and the payment of the prescribed fee, the LLP will be registered within 2 days.

With the satisfaction of the Registrar, the applicant shall be allowed to apply for incorporation of the LLP as per the Form I-Part II within 30 days. Next the applicant shall apply for incorporation as per the Form III which requires all relevant documents and the payment of the prescribed fee. This can also be done online or in physical forms. If satisfied, the Registrar will issue a certificate of incorporation under the Act and register the LLP.

In case of refusal of application, the applicant may file an appeal to the Appellate Branch of the Commission within a time period of 60 days.

Conversion

The LLP Act 2017 also allows for the conversion from a Firm or a private limited company into an LLP. This is to be done in accordance with the LLP-Form VI which is to be submitted to the Registrar along with the relevant documents and fee. If the Registrar is satisfied with the application, the Registrar shall issue a certificate of incorporation in accordance with LLP Annexure II and register the LLP.

Dissolution

Dissolution of an LLP can be either voluntary or through court.

The Registrar may also decide to strike down the name of the LLP from the register in case an LLP does not operate in accordance with the Act or fails to comply with any of its provisions. In this case the Registrar must issue a cause to the LLP and its partners of his intention. After a period of one month passes, the Registrar may strike down the name of the LLP from the register via an order in writing and officially publish a notice of such in the Gazette. The LLP therefore stands dissolved.

The LLP will have a Designated Partner to handle the affairs relating to administrative matters as required under Sec. 10 of the Act.

With the prior approval of the Registrar, the physical forms of documents and records of the LLP kept at the LLP Registration Office may be destroyed after the expiration of, firstly, a period of ten years from the filing of the record in question in case the LLP exists, and secondly, the expiration of five years from the date of dissolution of LLP in case the LLP stands dissolved. If the said documents are not a part of any current court proceedings and are not ordered by the Court, the Commission or any competent authority then the records shall be preserved until the termination of said proceedings.

Security

The documents filed via the online services of the SECP shall be preserved permanently. It must also be ensured that the destroyed records shall permanently be preserved in electronic forms.

The SECP amended the Limited Liability Partnership Regulations, 2018 via the SRO # 126(1)/2018 as follows:

The LLP must display its certificate of incorporation at its registered office;
A register maintaining the partner’s statement of their ownership percentages and associated voting rights must be kept at its registered office;
A copy of the LLP Agreement, including its amendments if any, must be kept at its registered office.

According to a notice issued by the SECP, books related to an LLPs state of affairs for each year of its existence must be maintained at the registered office in accordance with the double entry, accrual-based accounting system.

The LLP must prepare its financial statements within a period of four months, starting from the end of each financial year. These statements must be filed in accordance with the notice of the Commission along with the payment to the Registrar.

A resolution for approval of the financial statements must be passed either by a majority number of the partners, along with the sign of the designated partners or in case there are no designated partners, by the approval of all partners.

Appointment of Auditor

With the approval of the partners, an auditor or auditors shall be appointed. This shall be done by passing a resolution by the majority of partners.

The books of the LLP must be preserved in good form and order relating of a period of at least 10 years.

20. LIQUEFIED NATURAL GAS (LNG) COMPANY INCORPORATION IN PAKISTAN

Asghar & Sons Jurists helps to establish a Company to deal with Liquefied Natural Gas which changes the state of natural gas and turns it into liquid to ease the storage process & increase its transportation flexibility. In Pakistan if a registered company (inside or outside Pakistan) wishes to carry out the business of LNG they must apply for a license in a prescribed format to Oil and Gas Regulatory Authority.

Initially a company has to apply for Provisional License under Rule 33 of LNG Rules, 2007 along with a fee of Rs. 5 million. Provisional License is granted for a period of one year (1) and within this period the licensee shall have to submit application for grant of construction license fulfilling all formalities under Rule 4 (3) of LNG Rules 2007. If required, Authority may appoint a consultant under Rule 31(i) of LNG Rules, 2007 for evaluation.

The Construction license is granted for two years. On submission of application that construction activity has commenced, the Authority appoints a consultant under Rule 33 (1)(ii) of LNG Rules, 2007 during construction to determine that whether the project has been successfully commissioned in accordance with project implementation plan. After satisfactory report from the consultant, the License for operation of LNG Terminal is issued to the applicant.

The application filed must be accompanied by various document such as certificate of incorporation, attested copies of the memorandum and articles of association of the company, attested copy of the company’s certificate of commencement of business, attested copy of the applicant’s latest yearly submission to the Corporate regulator, attested copy of the latest audited annual financial statements of the applicant, attested copy of the corporate authorizations allowing the submission of the application and etc. The list of the documents that required to be attached along with the application are provided in Rule No. 4(3) in LNG Rules 2007.

Once the documentation as well as quorum of the Authority is complete, the case is finalized within one hundred and eighty days (180). Please note that the acceptance of an application depends on area of operation, period of authorization and such other terms as the Authority may determine. The license will be granted if the application is in accordance with the rules and the LNG Policy.

The license granted by the Authority will be valid for a maximum period of twenty (20) years, while granting the license the Authority will keep in view, inter alia, the investment to be made by the applicant.

Fees (Schedule II)

Provisional Fees: Rs. 5 Million;
Application for a new license = one-half of one hundredth of one percent of the estimated cost of the project;
The following annual fees shall be payable at the time of the grant or renewal of the license, as the case may be and thereafter, yearly in advance, namely:
- one-half of one percent of the gross revenue of the licensee generated from the provision of the licensed regulated activity;
- one-tenth of one percent of the gross sale revenue of the licensee generated from the supply of LNG and / or RLNG;
- if a licensee is engaged in the supply of LNG or RLNG and is also undertaking one or more regulated activity(ies), the fees specified in i. and ii. above.

Relevant Laws

Oil and Gas Regulatory Authority Ordinance, 2002
Oil and Gas Regulatory Authority, LNG Rules 2007 / S.R.O. 458(I)/2007
Liquefied Natural Gas (LNG) Policy, 2011

21. MERGER & ACQUISITION LAWS, LAWYERS & PRACTICE IN PAKISTAN

The phrase mergers and acquisitions refer to the aspect of corporate strategy, corporate finance, and management dealing with the buying, selling, and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. A merger is a tool used by companies for the purpose of expanding their operations often aiming at an increase of their long-term profitability. There are several different types of actions that a company can take when deciding to move forward using mergers and acquisitions. Usually, mergers occur in a consensual (occurring by mutual consent) setting where executives from the target company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties. Acquisitions can also happen through a hostile takeover by purchasing the majority of outstanding shares of a company in the open market against the wishes of the target’s board. Our Attorneys at Asghar & Sons Jurists have a vast experience in dealing with the acquisitions and mergers laws promulgated in Pakistan and as well as international spectre.

The fusion or absorption of one thing or right into another; generally spoken of a case where one of the subjects is of less dignity or importance than the other. Here the less important ceases to have an independent existence.

Merger according to Contract Law

The extinguishment of one contract by its absorption into another, and is largely a matter of intention of the parties.

Merger according to Corporations

The absorption of one company by another, latter retaining its own name and identity and acquiring assets, liabilities, franchises, and powers of former, and absorbed company ceasing to exist as separate business entity. It differs from a consolidation wherein all the corporations terminate their existence and become parties to a new one.

FORMS OF MERGER

Conglomerate Merger

Merger of corporations which are neither competitors nor potential or actual customers or suppliers of each other. One in which there are no economic relationships between the acquiring and the acquired firm. A pure conglomerate merger occurs when the two merging firms operate in unrelated markets having no functional economic relationship.

Horizontal Merger

Merger between business competitors, such as manufacturers of the same type products or distributors selling competing products in the same market area.

Vertical Merger

Union with corporate customer or supplier.

Short Form Merger

A number of states provide special rules for the merger of a subsidiary corporation into its parent where the parent owns substantially all of the shares of the subsidiary. This is known as a “short-form” merger. Short-form mergers under such special statutes may generally be effected by: (a) adoption of a resolution of merger by the parent corporation (b) mailing a copy of the plan of merger to all shareholders of record of the subsidiary, and (c) filing the executed articles of merger with the secretary of state and his issuance of a certificate of merger. This type of merger is less expensive and time consuming than the normal type merger.

Merger Clause

A provision in a contract to the effect that the written terms may not be varied by prior or oral agreements because all such agreements have been merged into the written document.

A merger is popularly understood to be fusion of two companies. It means two enterprises by or under the control of a body corporate ceasing to be distinct enterprises.

The Role of Merger in Modern Capitalism

A merger is a very important feature of modern capitalism. The history of modern big corporations is a clear testimony of the importance of mergers in the corporate world. They have played an important part in the growth of most of the leading corporations of the world. Statistics show that about two thirds of the large public corporations in the United States had a merger in their history and the top 200 corporations in the United States are reputed to own about half of the total corporate wealth of the U.S.A. Some of the giant corporations of the world have resulted from consolidation of smaller companies. Any assets of a body corporate which on a change in the control of the body corporate or any enterprise of it, are dealt with in the same way as assets appropriated to any such enterprise shall be treated as appropriated to that enterprise.

Merger of Companies

Companies Ordinance 1984 regulates the procedure for merger of two companies into one. Section 284 of the Companies Ordinance 1984 describes that a company could be merged / amalgamated into another company if:

Three fourths of the creditors or members sanctioned the same. An application for sanction for merger shall be given to the Court. The Court directs the Company to convene a meeting of creditors or class of creditors or of the member of the Company or class of members in such manner as the Court directs.
No Court sanctioned the merger unless the Court is satisfied that all material facts relating to the Company such as the latest financial position of the Company, the latest auditor’s report on the accounts of the company, the pendency of any investigation proceedings in relation to the Company and the like.
A certified copy of the order of the Court shall be filed with the registrar within thirty days otherwise the order would have no effect of merger / amalgamation.
A copy of such order along with the memorandum of the company issued after the order has been made shall be filed within thirty days with the registrar. A copy of every such order shall be annexed to every copy of the memorandum of the company issued after the order has been made and filed aforesaid.
If a company make default in complying the requirements, the company and every officer of the company who is knowingly, willfully in default shall be liable to a fine which may extend to 500 rupees for each copy in respect of which default is made.

Object of Merger

Object of merger is to achieve economy of scales and to carry on business more economically and efficiently, to streamline and maintain smooth and efficient management and corporate control, to cut unnecessary administrative, secretarial and other expenses, to attain the main objectives of both the petitioner-companies more feasibly, to avoid duplication of managerial and corporate process and to otherwise carry on business more conveniently and advantageously.

Procedure for Merger / Amalgamation of Non-Banking Finance Companies

Section 282-L of the Companies Ordinance, 1984 prescribes the procedure for amalgamation of Non Banking Finance Companies:

A scheme containing the terms of the merger / amalgamation has been placed in draft before the share holders of each of the NBFC concerned separately;
The scheme shall be approved by a resolution passed by a majority in number representing two thirds in value of shareholders of each of the said NBFCs, present either in person or by proxy at a meeting called for the purpose;
Notice of every such meeting as is referred above shall be given to every shareholder of each of the NBFC concerned in accordance with the relevant articles of association, indicating the time, place and object of the meeting, and shall also be published at least once a week for three consecutive weeks in not less than two newspapers which circulate in the locality or localities where the registered offices of the NBFCs concerned are situated, one of such newspapers being in a language commonly understood in the locality or localities.
Any shareholder, who has voted against the scheme, of amalgamation at the meeting or has given notice in writing at or prior to the meeting to the NBFC concerned or the presiding officer of the meeting that he dissents from the scheme of the amalgamation, shall be entitled, in the event of the scheme being sanctioned by the Commission to claim from the NBFC concerned, in respect of the shares held by him in that NBFC, their value as determined by the Commission when sanctioning the scheme and such determination by the Commission as to the value of the shares to be paid to dissenting shareholder shall be final for all purposes.
If the scheme of amalgamation is approved by the requisite majority of shareholders in accordance with the provisions of this section, it shall be submitted to the Commission for sanction and shall, if sanctioned by the Commission by an order in writing passed in this behalf be binding on the NBFC’s concerned and also on all the shareholders thereof.
Where a scheme of merger / amalgamation is sanctioned by the Commission, the remaining or resulting entity shall transmit a copy of the order sanctioning the scheme to the registrar before whom the NBFC concerned have been registered, and the registrar shall, on receipt of any such order, strike off the name of the NBFC hereinafter in this section referred to as the amalgamated NBFC which by reason of the merger will cease to function.
On the sanctioning of scheme of amalgamation/ merger by the Commission, the property of the amalgamated NBFC shall, by virtue of the order of sanction, be transferred to and vest in, and the liabilities of the said NBFC shall, by virtue of the said order be transferred to and become the liabilities of the NBFC which under the scheme of amalgamation is to acquire the business of the amalgamated NBFC, subject in all cases to the terms of the order sanctioning the scheme.

The Process

By an order of the Central Government;
By purchase of assets;
By purchase of shares;
By Merger through a holding company;
By acquisitions of shares;
By way of a scheme in voluntary winding up;
By exchange of shares.

ACQUISITION

The act of becoming the owner of certain property; the act by which one acquires or procures the property in anything. Term refers especially to a material possession obtained by any means.

“Acquisition” is not a term of art and has, therefore, to be construed in its ordinary meaning, which covers in its ordinary meaning, in the context in which it is used, the acquiring of all kinds of rights or interests in land. It does not necessarily imply the acquiring of property rights though, when contrasting such acquisition with that of a lesser kind of rights such as requisition, acquisition is generally used to convey the obtaining of proprietary rights while requisition is confined to the mere taking of possession for a limited or unlimited period. But from this distinction it does not follow that they are entirely different concepts and cannot, therefore, be reasonably covered by the same expression. In decisions as well as statutes, the term acquisition has been used to include the temporary occupation.

“Acquisition” may be defined as a transaction or series of transactions whereby a person (individual, group of individuals or company) acquires control over the assets of a company, either directly by becoming the owner of those assets or indirectly by obtaining control of the management of the company. Where shares are closely held (held by a small number of persons), an acquisition will generally be effected by agreement with the holders of the whole of the share capital of the company being acquired. Where the shares are held by the public generally, the acquisition may be effected (a) by agreement between the acquirer and the controllers of the acquired company; (b) by purchases of shares on the stock exchange; (c) or by means of an acquisition bid.

FORMS OF ACQUISITION

Derivative Acquisitions

Derivative acquisitions are those which are procured from others. Goods and chattels may change owners by act of law in the cases of forfeiture, succession, marriage, judgment, insolvency and intestacy; or by act of the parties, as by gift or sale.

Original Acquisitions

Original acquisition is that by which a man secures a property in a shape which is not at the time he acquires it, and in its then existing condition, the property of any other individual. It may result from occupancy; accession; intellectual labor__ namely, for inventions, which are secured by patent rights; and for the authorship of books, maps, and charts, which is protected by copyrights.

An acquisition may result from the act of the party himself, or those who are in his power acting for him, as his children while minors.

Registration of charges on properties acquired subject to charge

According to Section 122 of the Companies Ordinance, 1984 where a company which has been registered in Pakistan acquires any property and creates a charge on that property then the property is required to be registered.

Procedure for registration of mortgage/charge etc. on acquisition

Approval: Approval of Board of Directors is required about agreement for acquisition of such property subject to mortgage / charge.
Registration of Charge: If any property is acquisitioned by the company which is already mortgaged / charge registered with the registrar.
The mortgage charge would be registered as if the company itself created the mortgage charge etc. The acquiring company becomes ‘mortgager’ and substitute existing mortgager and existing mortgagee becomes mortgagee of the acquiring company.
Period of 21 days meant for registration of mortgage charge shall be counted from the date of acquisition of the property.
The following Mortgage / Charge documents of acquisitioned property are filed with the registrar concerned for registration of the mortgage / charge etc:
- Form 11 containing the particulars of the mortgage / charge etc.
- Certified copies of the instruments creating the mortgage or charge.
- Certified copies of the sale deed or other documents of acquiring assets/ property.
- Affidavit regarding copies of the instruments being true. Charges etc.
- Bank challan (deposited in relevant branch of HBL) of Rs. 5,000 being filing fee.

22. MODARABA COMPANY INCORPORATION IN PAKISTAN

Asghar & Sons Jurists helps to establish a Modaraba which is a unique and prime mode of non-interest Islamic financial system. It is a form of financial contract in which one party, the investor (Rab-ul-mal) entrusts money to another party, the financial manager (Mudarib) for the purpose of carrying out a business (Modaraba). Modaraba is defined in The Modaraba Companies & Modaraba (Floatation & Control) Ordinance 1980 (hereinafter Ordinance) as a business in which a person participates with his money and another with his efforts or skills or both and shall include Unit Trust and mutual Funds by whatever name called.

The most common example of a modaraba can be found in the Islamic history when Hazrat Khadijah gave capital for the business of Holy Prophet Muhammad (Sal-Allahu Alaihe Waalahi Wassalam). The profits and losses in a Modaraba are shared between the investor and financial manager in an agreed proportion.

In Pakistan, the concept of Modaraba was introduced in 1980 when the government realized that there was a need for the Islamization of economy of Pakistan.

Types of Modaraba

S.7 of the Ordinance, 1980 explains the types of Modaraba Companies:

Modaraba Al Muqayyadah (Restricted Mudarabah)

Mudarabah Al Muqayyadah means a restricted modaraba where the investor specifies a particular business or a particular place for the financial manager, in which case he shall invest the money according to the instructions.

Modaraba Al Mutlaqah (Unrestricted Mudarabah)

Modaraba Al Mutalqah means unrestricted modaraba where the investor gives liberty and independence to the manager to undertake whatever business he deems fit. However, he is not authorized to: keep another manager or a partner mix his own investment in that particular Modarabah without the consent of investor.

In the case of Unrestricted Mudarabah, the manager is authorized to do anything which is normally done in the course of business. However, if they want to do an extraordinary work, which is beyond the normal routine of the traders, they cannot do so without the express approval of the investor.

Time period: A modaraba may be either for a fixed period or for an indefinite period.

Applicable Law

Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980
The Modaraba Companies and Modaraba Rules, 1981
The Companies Ordinance, 1984
The Religious Board
Prudential Regulations for Modaraba

Registration of a Modaraba Company

According to Sec. 4 of the Ordinance, the party shall apply to Securities & Exchange Commission of Pakistan (SECP). When a Modaraba Company is registered with SECP, another application is made for initiating the operation-the floatation of the Modaraba. This application is accompanied by a prospectus related to the nature and conduct of business, Modaraba Certificates, debentures etc.

An application for the Floatation of Modaraba shall be accompanied by a prospectus which shall contain, inter alia, the following information, namely:

The name and type of Modaraba;
The conditions and amounts of the Modaraba to be floated and the division thereof into Modaraba Certificates of fixed amount;
The business scheme, prospects and mode of distribution of profit;
The amount to be subscribed by the modaraba company to the modaraba in its own name supported by evidence about its ability to meet the commitment;
The form of Modaraba Certificate; and
Such other matters as may be prescribed.

The application, the prospectus and the documents filed therewith shall be authenticated by all the directors of the Company.

To ensure the compliance of the application with the Shariah, the documents are evaluated by the Religious Supervisory Board (RSB). After clearance from the board, the Company applies to the controller of Capital Issues and Stock Exchange for floatation of the Modarabas.

The registrar, if he is satisfied after such inquire and after obtaining such further information as he may consider necessary that the applicant is eligible for registration and that it is in the public interest so to do, may grant registration and that is it in the public interest so to do, may grant registration to such company on such conditions as he may deem fit.

General Rules

All Modarabas are registered with the registrar of Modarabas by fulfilling certain Shariah and operational requirements.
The Modaraba Funds are mobilized by issuing Modaraba Certificates. The Modaraba Certificates are non- voting shares of common stock in the Modaraba.
The Minimum capital requirement a for multipurpose Modaraba is Rs. 7.5 million & for Single purpose Modaraba it is 2.5 / 5 million.
A manager, the Mudharib will not charge more then 10% of total annual profits as its remuneration, besides the return on its capital contribution to the Modaraba.
The Modaraba Companies can issue rights, stock dividends and distribute cash dividends.
The Modaraba Company cannot be involved in any activity that is prohibited by the shariah.
75% of the Modaraba’s operations must be kept in the main line of business.
At least 15% of the Liabilities of a Modaraba must be invested in the National Investment Trust Certificates (NIT Units) or in securities of Public contribution.

State Bank of Pakistan (SBP)

The State bank has no specific regulations related to Modaraba Companies. These Companies are treated as non- banking financial institutions. The instructions of the State Bank of Pakistan for the floatation of the Modaraba by such institutions are given in the Prudential Regulations for non-banking financial institutions. Following are the salient features of these regulations which also the Modaraba Companies.

Each Modaraba will establish with the SBP a reserve fund equivalent to its own paid up capital. The reserve fund will be established by annual contribution of at least 20% of the after-tax profits of each Modaraba floated. Once the reserve fund equals the paid-up capital, the annual contribution will be decreased up to 5% of after-tax profits. Stock dividend is considered as an appropriation for this purpose.

Prospectus of the Modaraba should be approved by the Registrar Modaraba, Securities and Exchange Commission of Pakistan, after obtaining a certificate from the Religious Board to the business of the Modaraba.

Benefits of Investing in Modaraba

Halal Business
Diversified Business
Tax Benefit
Maximum Distribution of Profits
Funding and Financial Facilities under Shariah Compliant

Risks Associated with Investment in Modaraba

Market Risk
Operational Risk
Credit Risk
Regulatory or Shariah Non-Compliance

23. NON BANKING FINANCE COMPANY (NBFC) INCORPORATION IN PAKISTAN

Non banking finance companies (NBFCs), also known as non-bank financial institutions (NBFIs) are entities that provide similar like banking and financial services but do not hold a banking license. NBFCs are not subject to the banking regulations and oversight by federal and provincial authorities adhered to by traditional banks.

Non banking financial companies describe as companies “predominantly engaged in a financial activity” when more than 85% of their consolidated annual gross revenues or consolidated assets are financial in nature. Examples of NBFCs include investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders.

Asghar & Sons Jurists helps to establish the Non Banking Financial Companies (NBFC), these are financial institutions that offer services similar to a bank but do not hold a banking license. They are usually licensed to carry out businesses such as:

Investment Finance Services
Discounting Services
Housing Finance Services
Asset Management Services
Venture Capital Investment
Leasing
Investment Advisory Services

Banking and Non Banking Finance Companies Comparison

Basis	Banking Companies	Non Banking Finance Companies (NBFCs)
Meaning	Bank is a government entitled financial intermediary which aims to provide banking services to customers.	NBFC is a company which provides services similar to banking services to people without holding a bank license.
Deposit	Banks accept and lend deposit.	NBFC do not accept and lend deposit.
Payment System	Payment and settlement are the core activity of banks.	In NBFC, the payment system is not a part of the activity.
Demand Draft	Bank can issue self-demand draft on itself.	NBFC cannot issue self-demand draft their own.
Cheque Drawn	Banks can draw a self-cheque by their own.	NBFC cannot draw self-cheque their own.
Credit Creator	Banks can create credit through multiplier financial activities.	NBFC cannot do it.
Transaction Services	Bank provides a variety of transaction services.	NBFC does not facilitate transaction services.

Table: Difference between a Bank and a Non-Banking Finance Companies

Relevant Laws

In Pakistan, following are the Relevant Laws with regards to NBFC:

The Companies Ordinance, 1984 (282A- 282 K)
The Non-Banking Finance Companies and Notified Entities Regulations, 2008
The Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003

Permission to form a NBFC

As per Rule 4, any person who wishes to establish the NBFC shall make an application for permission to the Commission on the prescribed Form -I of the rules along with all the required documents and the non-refundable fee. The permission is usually in writing to form the NBFC valid for the period of six (6) months. This duration of six months can be extended to nine months in special circumstances. During this duration, the NBFC shall be incorporated and an application should be submitted to the Commission for the grant of License.

Conditions for the Grant of License

The NBFC or any other company subject to eligibility in terms of schedule I shall make separate applications to the Commission for grant of license for carrying out each form of business. The said application shall be submitted to the Commission in Form-II along with a non-refundable processing fee as may be specified by the Commission.

Fee

NOC / Permission = 250,000/- Pakistani Rupees.
Licensing = Half Million Pakistani Rupees.

The SECP has given the following chronological methodology for the incorporation of a NBFC and licensing as AMC:

The Asset Management Company (AMC)

The Asset Management Company(AMC) is a Non-Banking Finance Company(“NBFC”) licensed by the Securities and Exchange Commission of Pakistan (“SECP”) to carry out Asset Management in accordance with Part VIII-A of the Companies Ordinance, 1984 (the “Ordinance”) and the NBFC & NE Regulations, 2008 . AMC shall be incorporated under the Ordinance read with the provisions of the NBFC Rules, 2003 (the “Rules”).

The SECP has given the following chronological methodology for the incorporation of a NBFC and licensing as AMC:

NOC for Formation of NBFC: Application to Specialized Companies Division, SECP Headquarter Islamabad for obtaining permission to form an NBFC along with the following documents: Form I of the Rules along with all relevant supporting documents and Fee with Form I (as per Schedule II of the regulations)
Incorporation of NBFC: Incorporation of NBFC as a Public Limited Company, at the concerned Company registration office, as per the existing procedures, form and fees.
Licensing as AMC: Application to Specialized Companies Division, SECP Headquarter Islamabad for grant of license for to carry out Asset Management Services: Form II of the Rules along with all relevant supporting documents and Fee with Form II (as per Schedule II of the Regulations)
AMC Established

24. OFFSHORE COMPANY, LAWYERS & ESTABLISHMENT SERVICES

Globalization has made conduct of business in complete privacy almost impossible; businessmen are facing innumerable problems of excessive taxation, undue governmental control and growing rate of law suits, all these factors lead the business at brink of failure. Due to increasing business vulnerability businessmen are resorting to offshore business which is considered to be one of the best methods of tax reduction. The term “Offshore Business” is about benefiting from the asset protection services offered by various countries (known as ‘Jurisdiction’ or ‘Haven’) the legislation of these countries allows for certain important protection advantages i.e. strong asset protection feature, tax relaxation and business confidentiality. An offshore nation allows the registration of the business entity or trust also offer this entity or trust certain considerable tax reduction in lieu of an annual license fee.

An Offshore Company may be defined as, a company which is registered in any foreign country; it does not conduct most of its business in the country where it is officially based, mainly for the reason of tax reduction and freedom from government control.

Asghar & Sons Jurists helps you to establish the offshore companies in any of the tax heaven with the help of our associated attorneys across the globe under the guidance of honorable Sir Asghar Malik. We at Asghar & Sons Jurists have dedicated attorneys, resources, contacts and necessary infrastructure to establish any offshore company and infact we are in a position to even compete with international level law conglomerates. If you have any inquiry in this behalf please feel free to contact.

Origin of Offshore Business

Tax havens and the offshore company are not new phenomena, and their use expanded in the last 20 years to encompass a range of new offshore company jurisdictions. Consequently, approximately two thirds of total global financial assets are housed offshore in ‘tax haven’ countries, often through an offshore company. The success of the offshore corporation means almost all leading companies bank, borrow and invest offshore. The following information provides an overview of the history and future evolution of the offshore company, as well as key aspects of offshore tax planning.

The concept of an offshore tax haven was originally the brainchild of the US and UK, who were trying to reduce foreign aid to certain developing nations. The idea was that, as an alternative to providing foreign aid, multinationals would be encouraged to invest in these offshore jurisdictions by setting up an offshore corporation. Offshore jurisdictions generally have simple offshore company laws. The offshore industry is worth approximately US$5 trillion. Most experts agree that an offshore corporation is a long-term solution, provided it is structured as part of a comprehensive offshore tax planning strategy. Major international organisations actively derive profits from an offshore company, including aircraft maker Boeing, oil giant Exxon Mobil, American Express and Chase Manhattan Bank.

Definition

The term “Offshore Company” is ambiguous. It may refer to either:

A company which isincorporated outside the jurisdiction of its primary operations regardless of whether that jurisdiction is an offshore financial centre (sometimes known as a non-resident company) i.e. a Canadian company may be ‘offshore’ for the purposes of a USA citizen ; or,
Any company (resident or otherwise) incorporated in an offshore financial centre.

Types of Offshore Companies

Examples of offshore companies include the International Business Company (IBC). More recently new legislation has been enacted in a number of Jurisdictions, such as the British Virgin Islands, to replace the IBC type of company with the Business Company (BC).

The following types of company are common in both onshore and offshore jurisdictions:

Company having a share capital- These companies issue shares. Once the initial cost of a share (capital and premium) has been paid, the shareholders have no further obligation to the company. The shares may, subject to the rules of the company, be sold or transferred, and the shareholders have the right to enjoy the profits of the company or any proceeds of liquidation. The liability of the shareholder is therefore limited to the amount invested. Shares are assets.
Company limited by guarantee – The members of the company agree to pay up to a maximum limit in the event that the company becomes insolvent. They may acquire certain rights against the company, such as the rights to a dividend and the specific rights will be set out in the rules of the company. Membership may terminate on death, and guarantee companies have been used for not for profit organizations. There are also sophisticated estates planning schemes which make use of guarantee companies. Membership is a liability.
Hybrid – a combination of the above two classes – i.e. a company have bother liability class shares and asset class shares.
Protected cell companies – some jurisdictions permit cellular companies, where particular assets and liabilities are segregated into “cells”, in such a way that the assets of one cell cannot be used to satisfy the liabilities of another. Cell companies are particularly used for umbrella mutual funds or unit linked insurance bonds. In this instance the separate cells are effectively distinct legal entities.

It is important to note though that the above is a gross oversimplification of the near infinite variety of types of company most sophisticated jurisdictions permit. Shares themselves come in many different types with the rights in respect of dividend, preference, voting etc being determined by the constitution of the company to which they relate. Also, it is by no means uncommon for companies to utilise many different classes in particular when they are soliciting for investment from third-parties.

However, many offshore jurisdictions offer increasingly specialised forms of companies (as well as specialised trusts and partnership) seeking to increase their share of the market. Examples include limited duration companies, unlimited liability companies, companies limited by guarantee and with a share capital, restricted purpose companies and hybrid entities such as limited liability partnerships, which are more akin to companies to actual partnerships, and foundations, which are nominally trusts but are more akin to companies than trusts.

Formation

Offshore companies are meant to provide the corporate business infrastructures to aid in opening any company in the specified jurisdiction. With increasing demand for such companies’ world over, the registration has been simplified in many offshore countries for the purpose of efficiency and time saving. The important factors to consider even before starting the process of offshore company registration are as follows:

Identify the jurisdiction

From which you want the company registered. In doing this, you need to:

Know the level of security that the jurisdiction identified is able to give to the company;
Know the taxation rate per every income received, the level of capitalization should be of concern (the reason being that some jurisdiction imposes rules that only need little amount of capital to start) get to know the financial benefits that is offered by the jurisdiction countries to offshore companies; and
Know the cost of operating an offshore company in any offshore jurisdiction.

II. Ability to pay Annual Registration Fee

The company must be able to meet the nominal levy requirement that the jurisdiction charge on offshore company’s trade.

III. Explanation of Objects of company

The legitimate reasons for opening the offshore company in question must always be provided in details. This is because some individuals or group of persons tend to open the offshore companies with ill-motives. Some do it to finance terror gangs and other criminal activities, to evade tax, creditors’ evasion and fraud.

Procedure for Registration

With all these given important considerations, the process of offshore company registration may therefore continue.

Obtaining the required license

To begin the procedure, try and get the required license for the company you need to register. The methods of dealing with such offshore bank account are the most difficult process. This requires careful and selective decisions that will enable you get the best services.

For an offshore to be registered, the following legal documentation and charges must be provided:

a. The government filing fees

That is payable at the beginning of the first year. This is a renewal fee that must be paid at the end of the specified period. The fee varies with the jurisdiction of choice. An example of offshore jurisdiction where this fee is paid annually is Seychelles.

b. The Incorporation Certificate

Must be produced. This must adhere to the set rules and regulations of membership.

c. In Seychelles the letter of appointment of first directors is produced

This letter shows the names of directors and managers that will be involved in running the offshore company.

d. A special declaration of trust

Must be passed by all the stakeholders, who have been nominated to operate the company.

e. The Memorandum and Article of Union must be provided to show the agreement and role played by every member.

This documentation acts as a proof of legality of the offshore company to be opened. In both Belize, BVI, Seychelles and many other offshore jurisdictions, the procedures for registering an offshore company is the same. However, in some jurisdictions such as US, the procedures are a little bit different.

Management and control

It is worth mentioning at this juncture that taxation of a company somewhere other than its place of incorporation is not by any means an exclusively offshore concept. By way of example consider a UK incorporated company which traded exclusively in France. If the board of directors of this company were based in France there would be no doubt that the company would be subject to French tax.

Consider also a US citizen running a Bahamas company from the US, there is no doubt that the activities of that company is subject to tax in the US.

The same principle extends to regulation also.

Features of offshore companies

Memorandum and Articles of Association or by laws

These documents are fundamental to the existence of the company. The Articles detail the rights of the members, the objectives of the company and the internal processes of the company and the Memorandum states the type of Company and its capital.

Certificate of Incorporation

This is issued by the Registrar of Companies or their equivalent, and is served as proof that the company has been brought into existence. Other information may be necessary to prove that the company has not been liquidated or struck off such as a certified of incumbency or good standing.

Registered Agent

It is often the case that an agent must be appointed in the jurisdiction in which the company is incorporated for the purpose of dealing with official communications with the registrar. The Agent will have to be licensed and will assume some level of responsibility for the company’s activities.

Registered Office

This is the official address of a company, to which official documents are sent and legal notices received. It is normal for the registration agent to provide a registered office. A company may have other business and correspondence addresses.

Shareholders or other members

These are the legal owners of the company. For administrative simplicity, or for anonymity, a corporate service provider may supply nominees who will hold shares on behalf of a beneficial owner, and act on his instructions.

Directors, Managers or their delegates

The individuals who manage the day-to-day affairs of company. In many jurisdictions it is possible for companies to be directors of other companies. Corporate service providers in offshore jurisdictions will often provide directors, provided they are able to control, and be satisfied with, the activities of the company. The company is generally considered to be resident for tax purposes at the place where the decisions are made. In many cases if a person is acting as a director they will be considered de facto to be a director in spite of not having recorded this with the relevant body.

Shadow directors

In some cases, it has been shown that the formally appointed directors merely act as the alter ego of others, blindly following their instructions. In these cases, the courts have considered that those instructing the named directors really control the company, and that the named directors merely rubberstamp decisions. Companies managed in this way will be tax resident in the jurisdiction where the shadow director is resident.

Company Secretary

This is the person or body corporate that is responsible for ensuring that the company meets its statutory obligations. Corporate service providers usually provide this service.

Statutory Records

A company is obliged to maintain registers setting out certain information about the company. The mandatory records vary from jurisdiction to jurisdiction, as does the level of public access to the information contained in the records. Many jurisdictions require that the records are kept within the jurisdiction in which the company is incorporated. The records required may include minutes of meetings, registers members, directors, officers and charges.

Bookkeeping

Directors are generally required to keep proper records. They may be required to prepare audited accounts. Specific requirements vary between jurisdictions and may depend on the nature of the company’s activity. For example all banks will need to prepare audited accounts, whereas a private investment.

Typical uses of offshore companies

Offshore companies are beneficial for many purposes including at least some of the following:

1. Consultancy, Professional Services, Agency

Professionals, consultants, artists and many self-employed individuals can gain substantial advantages by working as employees or as external consultants of offshore companies, of which they may be the sole shareholders and, if they want to, the sole directors.

2. Employment of Expatriate Staff

Expatriates working overseas can frequently benefit from being employed through an offshore employment/consultancy company. This can avoid tax being deducted at source. By not remitting the full salary it can minimize tax and avoid exchange control difficulties in the country of temporary residence. This arrangement will be particularly attractive to expatriates working in politically unstable countries.

3. Property Owning Companies

There are often significant advantages in using an offshore holding company for the purpose of holding property. The advantages of such an arrangement include the avoidance of inheritance tax, capital gains tax and the ease of sale which can be achieved by transferring the property owned by the company and reduction of property purchase costs to the onward purchasers.

4. Investment Companies

Funds accumulated through investment companies set up in offshore areas can be invested or deposited throughout the world and whilst generally returns or interest payable in respect of these funds will be subject to local taxation, there are a number of offshore areas in which funds may be placed as bank deposits where the interest and/or the capital gains are paid and kept gross. To invest in global securities including mutual funds not available to “local” citizens. Offshore jurisdictions are typically less invasive allowing for aggressive and unrestrained Free Enterprise.

5. Copyrights, Patents and Trademarks

Offshore companies can purchase or be assigned the right to use copyright, patent or trademark. Royalties can then be accumulated offshore although often royalties may suffer withholding taxes at source. An interposing holding company in some cases may allow a reduction in the rate of tax withheld at source.

6. Privacy

A high net-worth individual can save professional fees and unwanted publicity by owning property or other assets through an offshore company. ECI can provide a wide range of services in the field of privacy protection.

7. Protection

To file first position liens against assets and property closing the door to predatory litigation before it begins. To segregate high-risk investments from other more secure holdings. To protect retirement funds from possible bankruptcy. Provide for the transfer of assets, for the next generation in an efficient and discreet fashion. Nominee directors and officers can allow you to conduct business transactions for your benefit while you remain anonymous. To access your funds with corporate debit or credit cards thereby maintaining absolute confidentiality.

Advantages of establishment of an offshore company

To summarize the reasons why should a businessman consider going offshore, these are main benefits for it:

1. Asset Protection

It provides security against future claims such as judgment, divorce proceedings, bankruptcy, creditors and litigation.

2. Reducing Tax Liability

A foreign jurisdiction can offer unparalleled opportunities for reduction of your tax liabilities.

3. Confidentiality

From competitors, claimants, ex-spouses, and other parties from whom you wish to keep your business interests private.

4. Simplicity and Reporting

Except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up and maintain companies especially with reference to lesser reporting requirements than so-called onshore jurisdictions – the level of information required by the registrar of companies varies from jurisdiction to jurisdiction.

5. E-Commerce

Shifting business to an Offshore Haven removes restrictions, regulations and taxation. What can you do with 50% more time and money?

6. Protect the long-term survival of multinational companies

By moving their domicile from countries with poor economic or political instability to a more stable tax haven.

7. Simplify the transfer of assets and properties held in several countries

The sale or probate of properties in different countries can become complex and expensive. If these are collectively held by an offshore company, ownership can be transferred by company’s shares rather than by transferring the actual properties owned by the company.

8. Own or lease ships or pleasure craft

Vanuatu International companies may own or lease ships or pleasure craft and pay no taxes on income derived from the vessels. Registration fees are low and Vanuatu flag vessels are welcomed in ports world-wide.

9. Reduce payroll and travel expense administration

Offshore Companies set up in Vanuatu or the British Virgin Islands need not pay social security, withholding tax, or associated expenses of employees working in other foreign countries. This can be a major savings for companies that have staff working on overseas projects.

10. Allow employment or consultancy fees to accumulate in a low tax area

Offshore corporations can contract the services of professionals to employers resident in high tax locations or politically unstable areas. This allows the fees to accumulate in a low tax jurisdiction.

11. Protect investments in other foreign countries

International Companies can give loan funds to corporations in other foreign countries. Investors may set up, but not directly own, an offshore company that loans funds to a development company set up in another country and charge interest rates that will lower tax obligations and protect the long term ability to repatriate investment funds. This can be especially important when working in countries with strict exchange controls and high tax profiles.

12. Minimise tax exposure when dealing with international transactions

An offshore corporation can buy or lease products from one country and then sell or lease them to a company in another country so the profits of the transaction are accumulated in the offshore company where there is no taxation on profits.

13. Maximise profits from intellectual property rights, franchising and licensing

An offshore company can franchise or licence intellectual property rights in other foreign Countries allowing the profits to accumulate in a tax free environment.

14. Reduction of cost of business

An offshore jurisdiction may be the right choice both for a business activity and for a more cost-effective personal life organisation. An offshore company formation and / or redomiciliation of a company to an offshore country, as well as changing one’s place of residency to a low-tax jurisdiction introduce effective solution to a more cost-effective business and life style.

Offshore Jurisdictions

There have been various attempts to define an offshore jurisdiction, and the most appropriate one is widely believed to be the following one: any country outside one’s place of residence. In addition, the financial industry has to be the only or the main economic activity, on which the whole country’s economy is based. Having stated that, almost the whole world has to be evaluated as an offshore environment, even though offshore countries, so called tax heavens of fiscal paradise, are usually referred to only low-tax or zero-tax jurisdictions.

List of offshore financial centres

It is possible to incorporate offshore companies in many jurisdictions. In some onshore jurisdictions, such as the UK and New Zealand, there are particular types of companies which offer many of the advantages of typical offshore structures. Below is the list of some of most prominent Jurisdictions in the World.

Andorra, Anguilla, Aruba, Aruba, Bahamas, Barbados, Belize, Bermuda, British Virgin Land, Brunei, Cayman Island, Cook Island, Costa Rica, Cyprus, Delaware (see also Delaware General Corporation Law) Dubai, Gibraltar, Grenada, Guernsey, Hong Kong, Isle of Man, Jersey, Jordan, Labuan, Lebanon, Liberia, Marshall Island, Mauritius, Monaco, Netherlands Antilles, Nevada, New Zealand, Panama, Ras Al Khaima, Seychelles, Singapore, Trinidad and Tobago, Turks and Caicos Island, United Kingdom, Vanuatu.

25. PHARMACEUTICAL COMPANY INCORPORATION IN PAKISTAN

Asghar & Sons Jurists and its team of dedicated attorneys help to establish Pharmaceutical Companies, also known as drug companies which are licensed for commercial businesses that are established to research, manufacture, market, and distribute drugs/medicines for the healthcare system. We at Asghar & Sons Jurists are de-facto reputation in Pakistan and beyond for the establishment of pharmaceutical companies. In Pakistan, 80% of the domestic need for medicine is fulfilled from local manufacturing whereas the other 20% through imports. The work of this industry is subject to a variety of strict rules and regulations as it involves human lives.

If anybody wishes to establish a pharmaceutical unit, he / she needs to provide a copy of the National Identity Card, deed / lease document of the land / plot, information about the company / firm, its directors or partners and the sketch of the proposed site.

Site Verification

The proposed site will be verified, it will be made sure that there is nothing located near the site which produces a disagreeable, or obnoxious odor or fumes or large quantities of soot, dust or smoke. For a license, by way of formulation a minimum plot size of not less than 2,000 square yards is required. The site verification normally takes about 3-4 weeks. Fee for site verification would be Rs. 5,000.

Layout Plan

A layout plan by the applicant, which comprises of the details of the flow of operations is also sent to the Board. If the Board is of the view that the layout drawn is in line with the current Manufacturing Practices then it will be approved. The guidelines to this affect are given in Schedule B-1 of Drug Rules 1976. Once the layout plan is found in order, it takes about 3-4 weeks for its approval. Fees for the approval of the layout plan per section is Rs. 1,000 whereas fee for revision / expansion of layout plan per section is Rs. 500.

Application for Drug Manufacturing License

As soon as the facilities are complete a formal application for grant of a Drug Manufacturing License is made on a prescribed Form-I of the Drug Rules, along with the requisite fee, for evaluation of the production and quality control facilities.

These are the four (4) types of Licenses that normally applied for to manufacture drugs:

License to manufacture by way of basic manufacture;
License to manufacture by way of semi-basic manufacture;
License to manufacture by way of formulation; and
License to manufacture by way of repacking.

A pharmaceutical unit can apply for more than one of the above licenses. An application will be made to the Secretary of Central Licensing Board in accordance to Rule 3 of Drugs Rules 1976. If the application is accepted a license will be issued for a period of five (5) years at a time, after which it is renewable on an application. Once an application for renewal has been made in time, the license continues to be in force till the decision on the application. A license may be suspended or cancelled or renewal denied if the licensee fails to comply with the conditions of license.

The Conditions for grant or renewal of a license to manufacture drugs by way of basic or semi basic manufacture are provided in Rule No. 15 of Drug Rules, license to manufacture drugs by way of formulation are provided in Rule No. 16 of Drug Rules and license to manufacture drugs by way of repacking are stated in Rule No. 18 of Drug Rules.

Fees For the grant of license (Schedule F) of Drug Rules:

By way of basic: Rs. 10,000
By way of semi-basic: Rs. 10,000
By way of formulation: Rs. 35,000
By way of repacking: Rs. 20,000

REGISTRATION OF DRUGS

Registration of a drug is granted by the Registration Board, set up by the Federal Government under the Drugs Act, 1976. The Board will most importantly make sure that the drug is safe to use.

An application for registration of a drug to be manufactured locally is made in a prescribed Form-5 under the Drugs (Licensing, Registering and Advertising) Rules, 1976. An application for registration of a drug to be imported is made in a prescribed Form-5 (A) of Drug Rules 1976. The process for branded generic drugs takes 3-6 months 6-12 months in respect of new molecules. Once the application is complete and has been evaluated it is placed before the Registration Board for its orders.

Please note that for every strength of a drug a separate application is required. A registration is issued for a period of five years at a time, after which it is renewable on an application.

APPLICATION FOR GRANT OF DRUG MANUFACTURING LICENSE FOR EXPERIMENTAL PURPOSE

According to Rule No.21 of Drug Rules 1976, if a person or an entity intends to manufacture a drug merely for experimental purposes and they do not hold a License to manufacture drugs, they must send an application in Form- 3 (Drugs Rules 1976) to the Secretary of Central Licensing Board. The License for the manufacture of drugs for experimental purposes will be granted in Form-4 of Drug Rules.

Drug Registration Fee [See rule 26 (3)]

New Drug Molecule: Rs.15,000
Any other drug for import: Rs. 15,000
Any other drug for local manufacture including Galenical: Rs. 8,000

Relevant Laws

The Drugs Act, 1976, regulates the Pharmaceutical Sector in Pakistan
Drug Regulatory Authority of Pakistan Act, 2012
Drugs (Licensing, Registering & Advertising) Rules, 1976

26. SECURITY SERVICES COMPANY INCORPORATION IN PAKISTAN

Crime happens all the time hence security is contingent. The increase in crime has developed a dire need for increased security in our country and across the globe. One way of keeping our property safe is to hire a private security service as it is not possible for the State to make sure the provision of Security 24/7 in every part of the state due to the lack of resources ranges from manpower to technological resources.. In Pakistan and beyond, there is a growing trend of the establishment of companies that are willing to providing private security services. A security service provider company is the one that provides security to various properties, offices and houses upon contract. Private Security Companies have been operating in our country under an administrative order issued by the Ministry of Interior in 1988. Asghar & Sons Jurists and their attorneys are very well conversant with the procedure for the incorporation of a private security company.

A private security company is a security company which provides armed and unarmed security services and expertise to private and public clients. Private security companies are defined as companies primarily engaged in providing guard and patrol services, such as bodyguard, parking security and security guard services. Many of them will even provide advanced special operations services as per clients’ demand. These services can be broadly described as the protection of personnel as well as of assets.

The Private Security Companies will function in the Provinces under Provincial Ordinance and rules being framed in the light of the Ordinance issued by the Federal Government. The relevant legislations with regards to the province of Punjab are Companies listed below:

The Punjab Private Security Regulation and Control) Ordinance, 2002
Punjab Private Security Companies (Regulation and Control) Rules, 2003

Asghar & Sons Jurists helps to establish a Private Security Company which is defined in section 2(g) of the Ordinance as any company incorporated under the Companies Ordinance, 1984, carrying on, maintaining or engaged in the business of providing for consideration, security guards or making other arrangements for the security of other persons and their property and cash-in-transit, functioning under a valid licence issued by the Licencing Authority.

For the purposes of this ordinance “Licencing Authority” means the Government of the Punjab or an officer nominated by Government to exercise all or any of the powers of the Licencing Authority

Procedure to Get License / NOC for Security Company Registration in Pakistan

The applicants are required to register themselves with the Securities and Exchange Commission of Pakistan (SECP). The SECP will register the company after meeting the formalities. Complete sets of documents are sent by the SECP to Ministry of Interior for NOC. The process of issuance of NOC by Ministry of Interior normally takes three to four months.

The following list of documents are required:

Memorandum and Article of Association of the Company showing authorized capital and paid-up capital of more than Rs. 10 Million (say at least Rs. 10.1 Million) if already filled with the SECP, it shall get revised where needed;
Bank Statement(s) of all the (proposed) Directors combined should show a total amount of more than Rs. 10 million in the last three months w.e.f., date of application with the SECP;
Profile of the Company as per Form specified by Ministry of Interior;
CVs stating inter alia relevant security experience and expertise of the (proposed) Directors (at least one of whom should be retired employee of Armed Forces of Law Enforcement Agencies);
Photographs of the proposed Directors;
Copies of valid CNICs of the Proposed Directors;
Copies of NTN Certificates of the (proposed) Directors;
Proposed Employment Structure of the Company duly signed (proposed) Directors with the following details:
- Minimum wages / salaries, working hours and leave entitlements of guard;
- Compensation mechanism in case of illness, injury or death of guard(s) while on duty;
- Contributions to be made for benefit of the guards (EOBI, provident fund, gratuity, insurance, etc.);
- Pension and retirements benefits;
- Proposed locations for establishment of offices for operations and number of guards to be employed for the respective office operations, and
- Details of proposed number and type of weapons and other security gadgets.
Affidavit duly attested by Oath Commissioner made by each (proposed) Directors affirming that:
- He is not dual national;
- He is not beneficiary of National Reconciliation Ordinance, 2007 (NRO)
- He has never been convicted for any offence other than minor offences (like traffic violation) by any court of law.

An application has to be made to the Licensing Authority for grant of license of a Private Security Company registered with SECP and gained the approval of the Ministry of Interior, Government of Pakistan. The application has to be accompanied with the information, documents and fee in the form and manner as may be prescribed.

The following documents are to be attached:

Application to Home Secretary for licence to operate in the province;
Incorporation Certificate from Securities & Exchange Commission of Pakistan;
Memorandum & Articles of Association;
Form 29 duly verified by the Securities & Exchange Commission of Pakistan;
Bio-date of All Directors of the Company;
CNICs and photographs of all the Directors;
NTN Certificate of the Company;
Antecedent verification report of the Director(s);
Undertaking on Stamp Paper regarding restrictions mentioned in the Rules;
Bank Account statement of the Company; and
Proposed office address in the province.

The Licencing Authority can grant or refuse to grant the licence. Provided that reasons for refusal to grant a licence shall be recorded in writing and be communicated to the applicant.

The granted licence is non-transferable, valid for a period of three years and shall be renewable on an application made in the form and on payment of such fee as may be prescribed.

The licence will only be granted if the applicant has produced satisfactory evidence that the partners and officers of the company are of good moral character and has not been involved in any fraud.

How to renew the licence?

A licensee shall furnish annual performance report before the Licencing Authority on such form and within such period as may be prescribed.

The Licencing Authority shall, through a notification in the official Gazette, prescribe the fee payable for issuance of licence or renewal thereof.

After the grant of licence?

After obtaining the licence, the licensee can employ as many persons as he may think necessary to be security guards and members of staff. He is responsible for the good conduct of each and every employee and should made sure that he is the fit and proper person to be employed as a security guard. The licensee should not employ any person as a security guard who has been convicted of any offence involving fraud or moral turpitude.

Nobody should be employed as a security guard by the licensee until he has submitted to the Licencing Authority a statement containing complete particulars and other information of such person on the prescribed form and the Licencing Authority has conveyed it’s no objection in writing to the recruitment of such security guard by the licensee.

Every licensee should maintain a list of all the persons employed by him with their full particulars and antecedents at the place of his business. The licensee should get the security guard registered at the local police station. He is also supposed to make arrangements for insurance of every security guard employed by him, with a registered insurance company, in respect of serious injury sustained amounting to disability or death of security guard in the discharge of his duties. The guards of Private Security Companies are required to be properly trained and equipped.

27. UNIVERSITY & CHARTERED INSTITUTION SETUP IN PAKISTAN

Higher education in Pakistan is the systematic process of students continuing their education beyond secondary schooling, learned societies and multiple year colleges. The governance of higher education is maintained by the Higher Education Commission (HEC) in Pakistan which oversees the financial funding, research outputs and teaching quality standards in the country. In Pakistan, the higher education system includes the public, private and military universities, all accredited by the HEC. Since independence, new universities have expanded throughout the country with support provided by the University Grants Commission (UGC), which had been an autonomous institution of recognising universities until 2002 when it was preceded by the Higher Education Commission. Pakistan produces approximately 445,000 university graduates and 12,000 computer science graduates annually.

Asghar & Sons Jurists and their attorneys can assist in establishing a new university or Chartered Institution in Pakistan. It is a multi-step process that involves compliance with the legal formalities and through the guidelines provided by the Higher Education Commission (HEC) in Pakistan and our dedicated attorneys are very well conversant with the said regulations, guidelines and process hence we are in a better position to help you. If you wants to establish any University or Chartered Institution please feel free to contact.

Legal Compliance

The first step to establish a new University is to fulfil the legal formalities by registering under the most appropriate Law of the Companies Ordinance/Societies Registration Act/Trust Act as a Foundation/Society or a Trust constituted.

*This formality is not required in case the institution is desired to be established in the public sector.

Feasibility Report

Once the applicant is registered under the relevant law, the second step is to submit a comprehensive feasibility report in accordance with the General Institutional Requirements Proforma (Form PU-01) along with a non-refundable bank draft/pay order of Rs.20,000/- (Subject to Change) in the favour of the Higher Education Commission as a fee for the evaluation of the viability report.

The application will be submitted to the Chairman, HEC (five copies + one soft copy)

Scrutiny

Once the documents are submitted by the applicant institution, the HEC will decide whether the application is prima facie potential enough to consider. If the Commission finds that there is a prima facie case for further consideration, the feasibility report will be carefully scrutinized by a panel appointed by the HEC.

Site Visit

If the feasibility report is accepted by the HEC, the HEC will appoint an Inspection Committee which will conduct an initial site visit of the possible location of the institution, its infrastructure and available facilities. The purpose of this visit is to ensure that the applicant is capable to run the academic programmes. An inspection fee of Rs. 30,000/- (Subject to Change) shall be charged, which will be payable in advance through a non-refundable bank draft/pay order in the name of the HEC by the institution concerned. The visit will include meeting with administrators, teaching staff, students and support services staff.

Recommendation for the Grant of Charter

The findings of the Inspection Committee will be reported the HEC. If the report is satisfactory, the draft charter 4 based on the Federal Universities Ordinance (FUO), 2002 of the HEC as contained in this document will be vetted by the HEC. The HEC will recommend the case for grant of Charter to the Federal Government or the Provincial Government, as the case may be.

Grant of Charter

Charter will be granted subject to the jurisdiction either by the Parliament/President of Pakistan or a Provincial Assembly/ Governor of a province, as the case may be.

Financial

That subject to the satisfaction of HEC, the institution is financially stable and has the ability to sustain a regular functioning on a long-term basis;
That the financial resources of the institution are sufficient to enable it to make due provision for its continued maintenance and efficient working. For this purpose, the sponsor shall be required to create a non-transferable Endowment Fund in the name of the Society or Trust, as the case may be. Endowment Fund shall be invested in the name of the institution or university as under:

In case of a New University

Description	Finance
Endowment Fund (Secured in the name of Trust/ Society)	Rs.50.0 million (not applicable in case of public sector university)
Tangible assets in the form of land/building etc.	Rs.100.0 million
Working Capital	Rs.50.0 million (not applicable in case of public sector university)
Total:	Rs.200.0 million

Table: New University (Subject to change)

General Guidelines

Applicants will apply to the Provincial Educational Department. In case the applicant is located in the federal territory, the application shall be made to the HEC;
Each Provincial Government will act according to the Cabinet Criteria for evaluation and grant of charter. The HEC is usually consulted by the Provincial Governments the whole process. For this reason, the clearance by the HEC will help in facilitating the grant of charter;
All the formalities and the requirements mentioned above are outlined in the General Institutional Requirements Proforma in Forms PU-01 and PU-02 and PI-02;These guidelines pertain to registration, availability of infrastructure and adequate financial resources, proposed programme of study, development of academic programme, teaching staff, admission criteria, fee structure, quality assurance mechanism, student supervision, assessment and examination etc. The main points of the criteria and requirements are highlighted for information of the entrepreneurs.
The copy of the registration deed along with a Memorandum of association will be supplied to examine the objectives and credentials of the members. A brief profile of each member of management should also be provided;
The applicant must apply to the HEC and submit 5 copies of the feasibility report including the soft copy in accordance with the General Institutional Requirements Proforma as per Form PU-01; and
Institutional and academic:
- That the site selected for the institution must be suitable from academic point of view. Sustainable physical viability, availability of water, electricity, fuel gas, telephones, building materials, furniture and labour for construction etc. must be ensured;
- That the building in which the educational institution is to be located must be suitable, and that provision will be made in conformity with the statutes and the regulations for a) the residence of students, not residing with their parents or guardians, in the hostels established and maintained by the institution, b) the supervision, physical and general welfare of students;
- That the HEC shall satisfy itself that the Body has the physical, human and financial resources to establish a viable institution;
- In case of a university, the sponsor shall have to make available at least 10 acres (3 acres in city and 7 acres on city fringes) and in case of an institute at least 3-1/3 acres of land, depending on the location having potential for further development. Virtual universities, however, shall be excluded from the condition of land;
- Any degree awarding institution of higher education having four or more departments will be eligible for title of a university. Any institution having less than four departments will be eligible for grant of charter as a degree awarding institute;
- Particular criteria/norms in respect of various aspects of setting up a new university or an institution, such as, departments, teaching and non-teaching staff, lecture halls, libraries, laboratories, internet, hostel, composition of Board of Governors etc. shall be as detailed at Form PU-02 and PI02;
- That in drawing up the organizational structure of the institution (into faculties, departments etc.), the standard and quality of teaching and efficiency of the system must be ensured;
- That an appropriate regulatory framework and mechanism is provided for regulating academic and administrative matters of the institution;
- That the educational institution has framed proper rules regarding the efficiency and discipline of its staff and other employees;
- That the strength and qualifications of teaching and other staff, and the terms and conditions of their service are adequate;
- That provision has been made for library and laboratory facilities and other practical work as detailed in Form PU-02 and PI-02;
- That at least 10% of students be granted fee exemptions and scholarships on need basis;
- That 10% of the institutional budget is specified for research;
- That where an educational institution desires to add to the courses of instruction in respect of which it has been approved, the procedure prescribed for accreditation shall, as far as possible, be followed;
- The powers to grant affiliation to any institution shall be available to a University which has built in quality criteria, judged by the HEC;
- That permission granted shall be restricted to a specified place and a particular course/degree. No sub-campus, branch or outpost shall be established or franchised without the prior approval of the HEC; and
- Campuses located in one city of a private university/ institution will be considered collectively as one unit for the application of the criteria. However, the campus of a private university/institution located in other cities would be treated as a new institution and the same criteria will be applicable to each campus.

TAXATION

INCOME TAX REFUND IN PAKISTAN

Income tax refund is a reimbursement to a taxpayer of any excessive amount paid to the federal government or a provincial government in Pakistan. Taxpayers tend to look at a refund as a bonus or a stroke of luck, but it most often represents an interest-free loan that the taxpayer made to the government. In most of cases, it is avoidable.

Asghar & Sons Jurists have many Legal experts who are very experienced to procure the refunds from the Income Tax Authorities. The relevant law, contain the provisions for issuance of refund, if Tax is paid in excess of the due amount or have been created as a result of appeal effect.

For the Income Tax, there is a provision of Section 170 of the Income Tax Ordinance 2001 which allows the tax payer, who has paid tax in excess of the amount which the taxpayer is properly chargeable under the Ordinance may apply to the Commissioner for the refund of the excess amount. There are many other situations where the excess amount is created and the tax payer, in all the situations can claim for the refund.

The procedure in respect of claiming the refund has been given in sub-section (2) of Section 170 that an application has to be given on the prescribed form which is to be verified in the prescribed manner and should be made within three (3) years of the date on which the Commissioner has issued the assessment order to the tax payer, for the tax year to which the refund application relates or the date on which the tax was paid.

When the Commissioner is satisfied that tax has been overpaid, the Commissioner can adjust or reduce the amount of refund by reducing the amount of other outstanding liability of the tax payer and can refund remainder to the tax payer. The Commissioner is obliged to refund the amount within sixty (60) days of the refund application and his decision can be challenged in appeal, in case the person is aggrieved of it.

The Board have made the rules regulating procedure for expeditious processing and automatic payment of refunds through centralize processing systems with effect from date to be notified by the board.

Where the refund due to the tax payer is not paid within three (3) months of the date on which it becomes due, the Commissioner shall pay to the taxpayer a further amount by way of compensation at the rate of KIBOR + 0.5% per annum, under S. 171, of the amount of the refund computed for the period commencing at the end of three (3) months period and ending on the date on which it was paid.

The refund also become due in consequence of appeal before the Commissioner (Appeals), appeal to the Appellate Tribunal, Reference to the High Court or an Appeal to the Supreme Court and a Revision order.

The application to the Commissioner can be made on the prescribed form given in Part VI of First Schedule of the Income Tax Rules 2002.

2. SALES TAX LAW & LAWYERS IN PAKISTAN

Sales Tax on Goods / Services

Sales Tax is a form of tax paid to a governing body for the sale of goods and services. Sales tax is an indirect tax and is generally charged at the point of purchase or exchange of certain taxable goods, charged as a percentage of the value of the product. The sales tax depends on the government in power and the individual policies enforced by it, generally being simple to calculate and collect. In simple terms, the sales tax is an additional amount of money paid while purchasing goods or services.

Asghar & Sons Jurists provides you with a faculty that specializes in the ambit of taxation. Tax laws are similar to a living entity, always changing and growing and hence, it may become difficult to keep up with them, therefore, our experts are here to help you understand and abide by them. Nearly all business transactions generate taxes which become part of the revenue of the state. Sales taxes are one major type of taxes that generate the revenue for the state exchequer. Businesses that deal with supplying or importing goods or providing services are liable to pay sales taxes. Asghar & Sons Jurists can help register as taxpayers, settle disputes between taxpayers and taxation authorities regarding a multiplicity of matters such as assessment and charging of tax, assessing of offenses and their penalties, recovery of tax amount erroneously refunded, or any other breach or violation under The Sales Tax Act, 1990 and the rules thereunder.

What is ‘Sales Tax’

A sales tax is a value added tax levied on sales. It is levied and paid only when the taxable supply is made in the course of a “taxable activity”. The value of the goods/supply is the one to be taxed. The nature of the sales tax is such that the burden of the tax is to be borne majorly by the consumer. This is because sales tax is an indirect tax. The registered supplier is just a means of collecting such tax and passing it on to the Government tax collecting authorities. The government has formed the Inland Revenue for the collection and assessment of taxes, subject to the Sales Tax Act 1990 and its subsequent amendments. Sales tax is bifurcated into two categories: sales tax on goods and sales tax on services. The legislation on sales tax on goods is done by the Federal Government and has been set to 17% since 2013. Certain items are taxed at reduced rates. The legislation for Sales Tax on SERVICES is the responsibility of the Provincial Governments and the following Acts were enacted by the relevant Provincial governments regarding sales tax on services:

The Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
The Sindh Sales Tax on Services Act, 2011.
The Punjab Sales Tax on Services Act, 2012.
The Khyber Pakhtunkhwa Finance Act, 2013.
The Balochistan Sales Tax on Services Act, 2015.

Distinction between indirect and direct taxes

Direct taxes are the kind of taxes whose burden is borne by the person on whom the tax is levied while indirect taxes are the kind of taxes the burden of which is always born by the end consumers and not the seller/importer of the supply (the entities on whom the tax is levied). The distinction between the two is laid down and guarded by the statutes and any shift of burden from the purchaser to the manufacturer or vice versa is deemed to be unlawful and is guarded by the statutes.

Liability to Pay the Tax

The liability to pay the sales tax in case of goods being supplied lies upon the consumer whereas the liability to pay the sales tax of imports lies upon the importer according to section 3 of the Sales Act 1990.

Registration

Any person who deals in making taxable supplies in the course of advancement of taxable activities must register themselves with the Commissioner Inland Revenue. Following categories of such person(s) are included:

A manufacturer not running a cottage factory
A retailer liable to pay tax under the Act
An importer
An exporter who keeps the intention of obtaining a tax refund against his zero-rated supplies
A wholesaler
A dealer or distributer
Any person who under any Federal or Provincial law is required to be registered “for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act”.

Deregistration

The Board or any officer with authorization in this behalf may, subject to the rules, deregister or blacklist a person who need not be registered as a taxpayer or is believed to have committed fraudulent activities, provided fake invoices or is believed to be a fake entity that does not in actuality exist may be deregistered or blacklisted. Any requests for tax refunds or input tax credit shall not, in this case, be entertained.

Record keeping and maintaining of books

A registered person making taxable supplies is liable to hold extensive records on the double entry system at the business premises or the registered office. These may be maintained by the person themselves or by an agent acting on his behalf. Records regarding the goods purchased and supplied by the person with details of the description, value and quantity of the goods, along with further requirements under the Act must be maintained in a manner through which the liability of the tax during a tax period can be easily determined.

Tax Returns

A person on the end of the tax period must furnish a correct return in the correct form through a bank or office designated by the Board. This return shall include the details of the purchases and the supplies made, the tax due and paid and any other prescribed information prescribing to the tax period.

3. SALES TAX REFUND IN PAKISTAN

If a registered person has overpaid sales tax because of error, he / she may request a refund of the overpaid amount from the relevant tax authorities within a year after the payment is made or after the decision or order causing the refund is announced from the end of the period for which a claim is made.

Asghar & Sons Jurists and their experts are well acquainted with the rules, regulations, law and procedure of getting the refunds of excess paid amount of Sales Tax. The provision of Sec. 66 of the Sales Tax Act, 1990 deals with the refund issue, which restricts that it should be claimed within one year. No refund of tax claimed to have been paid or over paid through inadvertence, error or misconstruction or refund on account of input adjustment, not claimed within the relevant tax period, shall be allowed unless the claim is made within one year of the date of payment. There is another restriction where a registered person did not deduct input tax within the relevant tax period, the Commissioner may, after satisfying himself that input tax is due and admissible, allow the registered person to take such adjustment in the tax period as specified by the Commissioner.

In case where the refund has become due on account of any decision or judgement of any officer of Inland Revenue or Court or the Tribunal, the period of one year shall be reckoned from the date of judgement or decision. The application of claim filed under Sec. 66 shall be disposed of within the period not exceeding 90 days from the date of filling of such application of claim. The provision of Sec. 67 deals with a Delayed Refund. Where a refund due under Sec. 10 is not made within the time specified in this behalf, there shall be paid to the claimant, in addition to the amount of the refund due to him, further some equal to KIBOR per annum of the amount of refund due, from the date following the expiry of the time specified as aforesaid to the day preceding the day of payment of refund. The refund of sales tax is also payable through sales tax bonds under Sec. 67-A which are being issued by FBR Refund Settlement Company Limited which is licensed by the SECP. These bonds are issued under the Securities Act, 2015 in lieu of payment of refund amount. These bonds have the maturity period of three years and bear simple profit of 10%. There shall be no compulsory deduction of Zakat against the bonds.

The main issue relating to refund is about the refund of input tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than 45 days of filling of refund claim. The excess input tax against supplies other than zero rated or export, such excess input tax maybe carried forward to the next tax period, along with input tax as is not adjustable of sub-sec. (1) of S. 8B. Sec. 62 of the Sales Tax Act allows drawback on re-export, when any goods which have been imported into Pakistan and on which tax has been paid on importation, are reexported outside Pakistan and such things are capable of being identified seven- eight of such tax shall, except as otherwise provided, be paid as drawback, and the provisions of Customs Act, 1969 relating to drawback of customs duties shall, so far as may be applied to such tax, as they apply for the purposes of that Act. The re-export should be made within 2 years from the date of import. FBR can extend the period for one year. FBR is also empowered to change the terms and conditions for the drawback on goods taken into use between importation and re-exportation under Sec. 63 l 64 of the Sales Tax Act. The claim should be made within one year.

Rule 11 of the Export Oriented Units and Small and Medium Enterprises Rules, 2008 allows remission of Customs Duty, Sales Tax, Federal Excise Duty and Income Tax to a licencee of an Export Oriented Unit, if the input or output goods are damaged or destroyed or rendered unfit for consumption or sale. Rules 7 and 8 of the Duty & Tax Remission for Export Rules, 2001 also allow the remission of duties and taxes, if the goods are destroyed or damaged and become unfit for consumption or sale.

Chapter V of Sales Tax Rules, 2006 deals with the procedure of payment of Refund. Rule 26 deals with Application, R. 26A is for Expeditious processing and payment of refunds, R. 28 is for filing of Refund claim, R. 29 is for Scrutiny and processing of refund claim, R. 30 is for Sanction and Payment of refund Claim, R. 34 is for Refund of excess input tax and relating to zero rated supplies, R. 38 is relating to Supportive documents and R. 39A deals with the processing of refund claims of Large Taxpayers Units. Chapter IX of The Sales Tax Special Procedures Rules, 2007 give the special procedure for processing of Refund of claims filed by the persons engaged in making zero rated supply of Ginned Cotton.

Under the provision of Sec. 61A of the Sales Tax Act, the Board may authorize the repayment in whole or in part of the input tax paid on any goods acquired or imported into Pakistan by the persons registered in AJK as are engaged in making of zero-rated supplies. The Payment of Sales Tax to Persons Registered in AJK Rules, 2008 deals with such situations. The Forms relating to the re-payment claim from Govt. of Pakistan under Sec. 61A of the Sales Tax Act and Sales Tax repayment order, are given in said Rules. Procedure for processing of refund claims of recognized Agricultural Tractor Manufacturers are given in the Refund Claims of Recognized Agricultural Tractor Manufacturers Rules, 2012. The Special Procedure for Adjustment of Sales Tax Due on Fertilizers Rules, 2015 contain the procedure of processing for adjustment of sales tax due on fertilizers.

4. BUSINESS TAX PLANNING LEGAL SERVICES IN PAKISTAN

Our team of experienced professionals offers sound, dependable, and cost-effective tax planning and compliance services to both Pakistani and International clients that are controlled and coordinated from our Lahore head office and delivered from our offices throughout Pakistan including capital cities i.e. Peshawar, Islamabad, Quetta and Karachi. In keeping with Asghar & Sons value proposition, our team of experts go that extra mile – establishing credibility with tax authorities, while keeping a tab on the frequent changes and amendments made to tax laws. We also ensure that our clients are not left in the dark, making it our business to keep them abreast with important changes made to Pakistan’s tax laws and reminding them about impending deadlines, through frequent tax alerts, reminders, a tax calendar etc.

Tax Planning Process

Tax planning is a process of looking at various tax options in order to determine when, whether, and how to conduct business and personal transactions so that taxes are eliminated or reduced.

Provide last years’s tax return;	Gather additional information;
Analyse situation and project tax savings;	Research and analysis; and
Deliver contract outlining fees;	Implement tax saving strategies.

Table: Tax Planning Goals

An Essential Component for Your Overall Financial Plan

Keep in mind that tax laws are often complex and frequently change. As a consequence, you should consult your tax advisor before making investment and tax decisions.

TAX PLANNING SERVICES

As a widely-recognised industry leader in the field of tax planning, we will make the most of your individual situation. Our services include:

Financial Planning for Consultants

Making the most of your personal financial situation and leveraging any benefits provided for by the local authorities.

Tax Compliance

Expatriate Taxation

Contracting abroad presents a number of advantages from a tax perspective, but care must be taken to remain compliant both in your host country and at home.

Offshore Taxation Issues

Offshore Taxation Issues and Advice

There are things that you can legally do to ensure that your tax compliance is managed effectively and that your tax liability is minimised.

We recommend that you contact our international tax planning specialists for appropriate advice, and allow us to structure a solution that is relevant for your circumstances.

INTERNATIONAL TAXATION COMPLIANCE

For example, you need to therefore be aware of the issues of tax compliance, including:

Tax residency and the 180 days rule;
Local tax legislation in the working country;
Offshore expat regulations and restrictions;
Issues of interactions between domicile rules and the length of contract / assignment; and
Opportunities to ensure that your international earnings are managed in a tax efficient way.

… to name just a few.

At Asghar & Sons Jurists law firm, we fully understand the issues of international tax compliance. We simplify the international taxation compliance planning process for our clients, and we provide local expertise and international tax experience to ensure that you have peace of mind by ensuring tax compliance when you are working abroad. We recommend that you contact our international tax planning specialists for appropriate advice.

INCOME TAX EFFICIENCY STRATEGIES

When working internationally, income tax rules can be very different from what you might expect in your home country.

Many countries make allowances for foreign contractors, which could mean significant tax savings during your contract abroad.

Our Business Tax Attorneys at Asghar & Sons Jurists make use of our immense experience and local knowledge to ensure optimal tax efficiency while remaining fully compliant with local and international tax legislation. We recommend that you may contact our tax planning attorneys for appropriate advice.

5. TAX LAW, TAX LAWYERS & APPLICABLE TAX RATES IN PAKISTAN

Here you may find information about tax law and lawyers in Pakistan. Our dedicated team of professional lawyers and consultants best assists their clients in understanding the tax law of Pakistan. Virtually every business decision today has tax consequences. You deserve the most practical, tuned-in and well-crafted tax solutions. We provide a comprehensive range of services from the completion of tax returns under corporation tax, self assessment to complex consultancy assignments and strategic tax planning.

Our ability to focus on our clients and deliver innovative tax solutions is enhanced by our knowledge of specific business environments including financial services, leisure, retail, sport, high growth companies, manufacturing and automotive, technology and communications, public sector, property and utilities. We also have a number of specialist tax groups who deal with specific complex areas of tax law. At Asghar & Sons Jurists our dedicated consultants can help you plan, grow and structure your business. We are known for our straightforward approach to solving our clients’ most complex business challenges. We work hand-in-hand with clients to improve the business performance, drive shareholder value and create the competitive advantage.

Our Services include:

Corporate and individual tax planning including of Trusts, Cooperative Societies and NGOs.
Compliance services including preparation of income tax and sales tax returns and Customs clearance.
Representing clients before tax authorities and assisting in preparing appeals to the Tribunals, High Courts and Supreme Court.
International Tax Consultancy including tax on international transactions and advising on double taxation treaties.
Assisting with sales tax matters including registration, de-registration and assessment.
Obtaining Advance Ruling on proposed investments or business transactions.
Establishing gratuity funds, provident funds and other employees benefit schemes and their approval from tax authorities.
Providing general tax advice based on current and evolving laws and rulings.

TAX LAW SYSTEM IN PAKISTAN

Federal taxes in Pakistan like most of the taxation systems in the world are classified into two broad categories, viz., direct and indirect taxes. A broad description regarding the nature of administration of these taxes is explained below:

Direct Taxes

Direct taxes primarily comprise income tax. For the purpose of the charge of tax and the computation of total income, all income is classified under the following heads:

Salaries
Interest on Securities
Income from Property
Income from Business or Profession
Capital Gains
Income from Other Sources

Personal Tax

All individuals, unregistered firms, associations of persons, etc., are liable to tax, at the rates ranging from 10 to 35 per cent.

Tax on Companies

All public companies (other than banking companies) incorporated in Pakistan are assessed for tax at corporate rate of 35%. However, the effective rate is likely to differ on account of allowances and exemptions related to industry, location, exports, etc.

Wealth Statement u/Sec. 116

Wealth Statement u/Sec. 116 is compulsory, where declared income is Rs. 500,000/- or more.

Tax u/Sec. 153(8A) (omitted)

Now, where NTN/CNIC is not available, the excess tax @ 2% shall not be collected.

Inter-Corporate Dividend Tax

Tax on the dividends received by a public company from a Pakistan company is payable at the rate of 5% and at the rate of 15% in case dividends are received by a foreign company. Inter-corporate dividends declared or distributed by power generation companies is subject to reduced rate of tax i.e. 7.5%. Other companies are taxed at the rate of 20%. Dividends paid to all non-company shareholders by the companies are subject to with holding tax of 10% which is treated as a full and final discharge of tax liability in respect of this source of income.

Treatment of Dividend Income

Dividend income received as below, enjoys tax exemption, provided it does not exceed Rs. 10,000/-.

Dividend received by non-resident from the state enterprises Mutual Fund set by the Investment Corporation of Pakistan.
Dividends received from a Domestic Company out of income earned abroad provided it is engaged abroad exclusively in rendering technical services in accordance with an agreement approved by the Central Board of Revenue.

Unilateral Relief

A person resident in Pakistan is entitled to a relief in tax on any income earned abroad, if such income has already been subjected to tax outside Pakistan. Proportionate relief is allowed on such income at an average rate of tax in Pakistan or abroad, whichever is lower.

PAKISTAN TAX YEAR 2020 – 2021

Tax Rates for Salaried Individuals

Division I, Part I, 1st Schedule

Serial No	Taxable Income	Rate of Tax
01	Where taxable income does not exceed Rs.600,000	0%
02	Where taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000	5% of the amount exceeding Rs.600,000
03	Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,800,000	Rs.30,000 plus 10% of the amount exceeding Rs.1,200,000
04	Where taxable income exceeds Rs.1,800,000 but does not exceed Rs.2,500,000	Rs.90,000 plus 15% of the amount exceeding Rs.1,800,000
05	Where taxable income exceeds Rs.2,500,000 but does not exceed Rs.3,500,000	Rs.195,000 plus 17.5% of the amount exceeding Rs.2,500,000
06	Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs.5,000,000	Rs.370,000 plus 20% of the amount exceeding Rs.3,500,000
07	Where taxable income exceeds Rs. 5,000,000 but does not exceed Rs.8,000,000	Rs.670,000 plus 22.5% of the amount exceeding Rs.5,000,000
08	Where taxable income exceeds Rs. 8,000,000 but does not exceed Rs.12,000,000	Rs.1,345,000 plus 25% of the amount exceeding Rs.8,000,000
09	Where taxable income exceeds Rs. 12,000,000 but does not exceed Rs.30,000,000	Rs.2,345,000 plus 27.5% of the amount exceeding Rs.12,000,000
10	Where taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000	Rs.7,295,000 plus 30% of the amount exceeding Rs.30,000,000
11	Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000	Rs.13,295,000 plus 32.5% of the amount exceeding Rs.50,000,000
12	Where taxable income exceeds Rs. 75,000,000	Rs.21,420,000 plus 35% of the amount exceeding Rs.75,000,000

Table: Tax Rates for Salaried Individuals

Tax Rates for Individuals & Association of Persons (Other Than Salaried)

Division I, Part I, 1st Schedule

Serial No	Taxable Income	Rate of Tax
01	Where taxable income does not exceed Rs.400,000	0%
02	Where taxable income exceeds Rs.400,000 but does not exceed Rs.600,000	5% of the amount exceeding Rs.400,000
03	Where taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000	Rs.10,000 plus 10% of the amount exceeding Rs.600,000
04	Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000	Rs.70,000 plus 15% of the amount exceeding Rs.1,200,000
05	Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,000,000	Rs.250,000 plus 20% of the amount exceeding Rs.2,400,000
06	Where taxable income exceeds Rs.3,000,000 but does not exceed Rs.4,000,000	Rs.370,000 plus 25% of the amount exceeding Rs.3,000,000
07	Where taxable income exceeds Rs.4,000,000 but does not exceed Rs.6,000,000	Rs.620,000 plus 30% of the amount exceeding Rs.4,000,000
08	Where taxable income exceeds Rs.6,000,000	Rs.1,220,000 plus 35% of the amount exceeding Rs.6,000,000

Table: Tax Rates for Individuals & Association of Persons (Other Than Salaried)

Tax Rates for Companies

Division II, Part I, 1st Schedule

Serial No	Type	Rate of Tax
01	Banking Companies	35%
02	Public / Private Companies	29%
03	Small Companies	22%
04	Alternate Corporate Tax (ACT) u/Sec. 113C	17% of accounting profit

Table: Tax Rates for Companies | Where the taxpayer is a small company as defined in Section 2 of the Income Tax Ordinance, 2001, tax shall be payable at the rate of 24%

Super Tax

Division II, Part I, 1st Schedule

Serial No	Type	Rate of Tax
01	Banking Company	4%
02	Other than a Banking Company, having income equal to or exceeding Rs.500 million	2%

Table: Super Tax

Gradual Reduction in Corporate Tax Rates

Serial No	Tax Year	Rate of Tax
01	2019	24%
02	2020	23%
03	2021	22%
04	2022	21%
05	2023 and onwards	20%

Table: Gradual Reduction in Corporate Tax Rates

Dividend Tax

Division III, Part I, 1st Schedule

Serial No	Description	Rate of Tax
01	In case of dividend paid by Independent Power Purchaser where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.	7.5%
02	In cases other than mentioned in 01 and 03.	15%
03	In case of dividend received by a person from a mutual fund.	25%

Table: Dividend Tax | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List.

Tax for Profit on Debt – Other than a Compaany (Sec. 7B)

Division III A, Part I, 1st Schedule

Serial No	Profit on Debt	Rate of Tax
01	Where profit on debt does not exceed Rs.5,000,000	15%
02	Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000	17.5% of the amount exceeding Rs.5,000,000
03	Where profit on debt exceeds Rs.25,000,000 but does not exceed Rs.36,000,000	20% of the amount exceeding Rs.25,000,000

Table: Tax for Profit on Debt | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List.

Profit on Debt exceeding Rs.36 million shall be subject to tax under normal law.

Tax on Shipping or Air Transport Income of a Non-Resident Person

Serial No	Description	Rate of Tax
01	In the case of shipping income	8% of the gross amount received or receivable
02	In the case of air transport income	3% of the gross amount received or receivable

Table: Tax on Shipping or Air Transport Income of a Non-Resident Person

Tax on Return on Investment (Sec. 5AA)

Division III B, Part I, 1st Schedule

Serial No	Sukuk-holder	Rate of Tax
01	Company	25%
02	Individual and AOP, if the return on investment is more than Rs.1,000,000	12.5%
03	Individual and AOP, if the return on investment is less than Rs.1,000,000	10%

Table: Tax on Return on Investment | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List

Tax on Certain Payments to Non-Residents

Serial No	Category	Rate of Tax
01	Royalty (Sec. 6)	15% of the gross amount
02	Fee for Technical Services (Sec. 6)	15% of the gross amount
03	Offshore digital services (Sec. 6)	5% of the gross amount
04	Shipping income (Sec. 7)	8% of the gross amount received or receivables
05	Air transport income (Sec. 7)	3% of the gross amount received or receivables

Table: Tax on Certain Payments to Non-Residents | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List

Tax on Income from Property for Individuals and Association of Persons (Sec. 15)

Division V, Part I, 1st Schedule

Serial No	Gross Amount of Rent	Rate of Tax
01	Where the gross amount of rent does not exceed Rs.200,000	Nil
02	Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000	5% of the gross amount exceeding Rs.200,000
03	Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000	Rs.20,000 + 10% of the gross amount exceeding Rs.600,000
04	Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs.2,000,000	Rs.60,000 + 15% of the gross amount exceeding Rs.1,000,000
05	Where the gross amount of rent exceeds Rs.2,000,000 but does not exceed Rs.4,000,000	Rs.210,000 + 20% of the gross amount exceeding Rs.2,000,000
06	Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs.6,000,000	Rs.610,000 + 25% of the gross amount exceeding Rs.4,000,000
07	Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs.8,000,000	Rs.1,110,000 + 30% of the gross amount exceeding Rs.6,000,000
08	Where the gross amount of rent exceeds Rs.8,000,000	Rs.1,710,000 + 35% of the gross amount exceeding Rs.8,000,000

Table: Tax on Income from Property

Capital Gains on Disposal of Securities

Division VII, Part I, 1st Schedule

Serial No	Period	Tax Year 2015	Tax Year 2016	Tax Year 2017	Tax Years 2018 to 2020
Securities acquired prior 01.07.2016	Securities acquired after 01.07.2016
01	Where holding period of a security is less than twelve months	12.5%	15%	15%	15%	15%
02	Where holding period of a security is twelve months or more but less than twenty-four months	10%	12.5%	12.5%	12.5%	15%
03	Where holding period of a security is twenty-four months or more but the security was acquired on or after 1st July, 2013	0%	7.5%	7.5%	7.5%	15%
04	Where the security was acquired before 1st July, 2013	0%	0%	0%	0%	0%
05	Future commodity contracts entered into by the members of Pakistan Mercantile Exchange	0%	0%	5%	5%	5%

Table: Capital Gains on Disposal of Securities | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List

A Mutual Fund or a Collective Investment Scheme or a REIT Scheme shall deduct Capital Gains Tax at the rates as specified below on Redemtion of Securities, as specified below:

Serial No	Category	Rate of Tax
01	Individual and Association of Persons	10% for stock funds	10% for other funds
02	Company	10% for stock funds	25% for other funds

Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, then the rate of tax deduction shall be 12.5%. No capital gains tax shall be deducted, if the holding period of the security is more than 4 years.

Capital Gains on Disposal of Immovable Property (Sec. 37(1A))

Division VIII, Part I, 1st Schedule

Serial No	Period	Rate of Tax
01	Where the gain does not exceed Rs.5 million	5%
02	Where the gain exceeds Rs.5 million but does not exceed Rs.10 million	10%
03	Where the gain exceeds Rs.10 million but does not exceed Rs.15 million	15%
04	Where the gain exceeds Rs.15 million	20%

Table: Capital Gains on Disposal of Immovable Property

Capital Gains on Disposal of Immovable Property being an Open Plot (Sec. 37(3A))

Serial No	Holding Period	Rate of Tax
01	Where the holding period of open plot does not exceed one year	100%
02	Where the holding period of open plot exceeds one year but does not exceed eight years	75%
03	Where the holding period of open plot exceeds eight years	0%

Table: Capital Gains on Disposal of Immovable Property being an Open Plot

Capital Gains on Disposal of Immovable Property being a Constructed Property (Sec. 37(3B))

Serial No	Holding Period	Rate of Tax
01	Where the holding period of constructed property does not exceed one year	100%
02	Where the holding period of constructed property exceeds one year but does not exceed four years	75%
03	Where the holding period of constructed property exceeds four years	0%

Table: Capital Gains on Disposal of Immovable Property being a Constructed Property

Tax on Builders (Sec. 7C)

Division VIII A, Part I, 1st Schedule

Karachi, Lahore and Islamabad	Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta	Urban Areas not specified in A and B
For Commercial Buildings
Rs.210 / Sq Ft	Rs.210 / Sq Ft	Rs.210 / Sq Ft
For Residential Buildings
Area Sq. ft	Rate Sq. ft	Area Sq. ft	Rate Sq. ft	Area Sq. ft	Rate Sq. ft
Up to 750	Rs.20	Up to 750	Rs.15	Up to 750	Rs.10
751 to 1500	Rs.40	751 to 1500	Rs.35	751 to 1500	Rs.25
1501 and more	Rs.70	1501 and more	Rs.55	1501 and more	Rs.35

Table: Tax on Builders

Tax on Developers (Sec. 7D)

Division VIII B, Part I, 1st Schedule

Karachi, Lahore and Islamabad	Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta	Urban Areas not specified in A and B
For Commercial Plots
Rs.210 / Sq Yd	Rs.210 / Sq Yd	Rs.210 / Sq Yd
For Residential Plots
Area Sq. Yd	Rate Sq. Yd	Area Sq. Yd	Rate Sq. Yd	Area Sq. Yd	Rate Sq. Yd
Up to 120	Rs.20	Up to 120	Rs.15	Up to 120	Rs.10
121 to 200	Rs.40	121 to 200	Rs.35	121 to 200	Rs.25
201 and more	Rs.70	201 and more	Rs.55	201 and more	Rs.35

Table: Tax on Developers

Minimum Tax (Sec. 113)

Division IX, Part I, 1st Schedule

Serial No	Person(s)	Minimum Tax as percentage of the person’s turnover for the year
01	Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited and Sui Northern Gas Pipeline Limited (for the cases where annual turnover exceeds rupees one billion);Pakistani Airlines;Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;Dealers or distributors of fertilizers; andPerson running an online marketplace as defined in clause (38B) of Section 2.	0.75%
02	Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;Rice mills and dealers; andFlour mills	0.25%
03	Motorcycle dealers registered under the Sales Tax Act, 1990	0.30%
04	In all cases (other than 1 to 3 and 5)	1.5%
05	Clause (24D) of Part II of the Second ScheduleDealers and sub-dealers of sugar, cement and edible oil subject to the condition that the names are appearing on the ATL issued under the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001	0.25%

Table: Minimum Tax

Reduction in Tax Liability for Full Time Teacher

Clause (2), Part III of 2nd Schedule

The tax payable by a fulltime teacher or a researcher, employed in a non-profit education or research institution duly recognised by HEC, a Board of Education or a University recognised by HEC including government research institution shall be reduced by an amount equal to 25% of the tax payable on his income from salary.Provided that this clause shall not apply to teachers of medical profession who derive income from private medical practice or who receive share of consideration received from patients.

Table: Reduction in Tax Liability for Full Time Teacher

Payment of Advance Tax

Sec. 147

Installment	Quarter	Due Dates
Individuals	AOPs / Companies
01	September	15th September	25th September
02	December	15th December	25th December
03	March	15th March	25th March
04	June	15th June	25th June

Table: Payment of Advance Tax

Advance Tax

Serial No	Person(s)	Rate of Tax
01	Industrial undertaking importing re-meltable steel (PCT Heading 72.04) and directly reduced iron for its own use;Persons importing potassic fertilizers in pursuance of Economic Coordination Committee of the cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004;Persons importing urea;Manufacturers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O. 1125(I)/2011 dated the 31st December, 2011Persons importing Gold;Persons importing Cotton; andPersons importing LNG	1% of the import value as increased by customs-duty, sales tax and federal excise duty
02	Persons importing pulses	2% of the import value as increased by customs-duty, sales tax and federal excise duty
03	Commercial importers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011.	3% of the import value as increased by customs-duty, sales tax and federal excise duty
04	Persons importing coal	4%
05	Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan	4%
06	Ship breakers on import of ships	4.5%
07	Industrial undertakings not covered under S. Nos 01 to 06	5.5%
08	Companies not covered under S. Nos. 01 to 07	5.5%
09	Persons not covered under S. Nos. 01 to 08	6%

Table: Advance Tax

Advance Tax on Dividend

Serial No	Description	Rate of Tax
01	In case of dividends paid by Independent Power Purchasers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entoty.	7.5%
02	Other than mentioned above	15%

Table: Advance Tax on Dividend

Tax on Brokerage and Commission

Serial No	Person(s)	Rate of tax
01	Advertising Agents	10%
02	Life Insurance Agents where commission received is less than Rs. 0.5 million per annum	8%
03	Persons not covered in 1 and 2 above	12%

Table: Tax on Brokerage and Commission

Collection of Tax by a Registered Stock Exchange in Pakistan

Serial No	Description	Rate of Tax
01	In case of purchase of shares as per clause (a) of sub-section (1) of Section 233A.	0.02% of purchase value
02	In case of purchase of shares as per clause (b) of sub-section (1) of Section 233A.	0.02% of sale value

Table: Collection of Tax by a Stock Exchange in Pakistan

Collection of Tax on Passenger Transport Vehicles

Serial No	Capacity	Rate per seat per annum
01	Four or more persons but less than ten persons.	Rs.50
02	Ten or more persons but less than twenty persons.	Rs.100
03	Twenty persons or more.	Rs.300

Table: Collection of Tax on Passenger Transport Vehicles

Yearly Collection of Tax on Private Motor Vehicles

Serial No	Engine Capacity	Rate of Tax
01	Up to 1000cc	Rs.800
02	1001cc to 1199cc	Rs.1,500
03	1200cc to 1299cc	Rs.1,750
04	1300cc to 1499cc	Rs.2,500
05	1500cc to 1599cc	Rs.3,750
06	1600cc to 1999cc	Rs.4,500
07	2000cc and above	Rs.10,000

Table: Yearly Collection of Tax on Private Motor Vehicles

Lump sum Collection of Tax on Private Motor Vehicles

Serial No	Engine Capacity	Rate of Tax
01	Up to 1000cc	Rs.10,000
02	1001cc to 1199cc	Rs.1,8000
03	1200cc to 1299cc	Rs.20,000
04	1300cc to 1499cc	Rs.30,000
05	1500cc to 1599cc	Rs.45,000
06	1600cc to 1999cc	Rs.60,000
07	2000cc and above	Rs.120,000

Table: Lump sum Collection of Tax on Private Motor Vehicles

Collection of Tax on Electricity Consumption

Serial No	Electricity Bill	Amount in Rs.
01	Does not exceed Rs.400	0
02	Exceeds Rs.400 but does not exceed Rs.600	80
03	Exceeds Rs.600 but does not exceed Rs.800	100
04	Exceeds Rs.800 but does not exceed Rs.1,000	160
05	Exceeds Rs.1,000 but does not exceed Rs.1,500	300
06	Exceeds Rs.1,500 but does not exceed Rs.3,000	350
07	Exceeds Rs.3,000 but does not exceed Rs.4,500	450
08	Exceeds Rs.4,500 but does not exceed Rs.6,000	500
09	Exceeds Rs.6,000 but does not exceed Rs.10,000	650
10	Exceeds Rs.10,000 but does not exceed Rs.15,000	1,000
11	Exceeds Rs.15,000 but does not exceed Rs.20,000	1,500
12	Exceeds Rs.20,000	At the rate of 12% for commercial consumers; andAt the rate of 5% for industrial consumers.

Table: Collection of Tax on Electricity Consumption

Advance Tax on Domestic Electricity Consumption

Serial No	Description	Rate of Tax
01	If the amount of monthly bill is Rs.75,000 or more	7.5%
02	If the amount of bill is less than Rs.75,000	0%

Table: Advance Tax on Domestic Electricity Consumption

Collection of Tax on Telephone Users

Serial No	Description	Rate of Tax
01	In the case of a telephone subscriber (other than mobile phone subscriber) where the amount of monthly bill exceeds Rs.1,000	10% of the exceeding amount of bill
02	In the case of subscriber of internet, mobile telephones and pre-paid internet or telephone card	12.5% of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form.

Table: Collection of Tax on Telephone Users

Tax on Cash Withdrawal from a Bank

Serial No	Description	Rate of Tax
01	Cash amount withdrawn, for the person whose name is not appearing in the active taxpayer’s list.	0.6% of the amount withdrawn

Table: Tax on Cash Withdrawal from a Bank

Advance Tax on Transactions in Bank [Transferor]

Serial No	Description	Rate of Tax
01	The rate of tax to be deducted under Sec. 231AA for the person whose name is not appearing in the active taxpayers’ list.	0.6% of the transaction

Table: Advance Tax on Transactions in Bank

Advance Tax on Banking Transactions Otherwise Than Through Cash [Receiver]

Serial No	Description	Rate of Tax
01	Banking Transaction (other than cash) at the time of sale of instrument, including demand draft, pay order, special deposit receipt, transfer of any sum through cheque, online transfer, ATM transfers or any other mode of electronic or paper based transfers.	0.4% of the transaction amount

Table: Advance Tax on Banking Transactions Otherwise Than Through Cash

Advance Tax on Purchase, Registration and Transfer of Motor Vehicles

Serial No	Engine Capacity	Rate of Tax
01	Up to 850cc	Rs.7,500
02	851cc to 1000cc	Rs.1,5000
03	1001cc to 1300cc	Rs.25,000
04	1301cc to 1600cc	Rs.50,000
05	1601cc to 1800cc	Rs.75,000
06	1801cc to 2000cc	Rs.100,000
07	2001cc to 2500cc	Rs.150,000
08	2501cc to 3000cc	Rs.200,000
09	Above 3000cc	Rs.250,000

Table: Advance Tax on Purchase, Registration and Transfer of Motor Vehicles

Advance Tax on Transfer of Registration or Ownership of Motor Vehicles

Serial No	Engine Capacity	Rate of Tax
01	Up to 850cc	__
02	851cc to 1000cc	Rs.5,000
03	1001cc to 1300cc	Rs.7,500
04	1301cc to 1600cc	Rs.12,500
05	1601cc to 1800cc	Rs.18,750
06	1801cc to 2000cc	Rs.25,000
07	2001cc to 2500cc	Rs.37,500
08	2501cc to 3000cc	Rs.50,000
09	Above 3000cc	Rs.62,500

Table: Advance Tax on Transfer of Registration or Ownership of Motor Vehicles

Tax on Cable Television Operator

License Category as provided in PEMRA Rules	Tax on License Fee	Tax on Renewal
H	Rs.7,500	Rs.10,000
H-1	Rs.10,000	Rs.15,000
H-2	Rs.25,000	Rs.30,000
R	Rs.5,000	Rs.12,000
B	Rs.5,000	Rs.40,000
B-1	Rs.30,000	Rs.35,000
B-2	Rs.40,000	Rs.45,000
B-3	Rs.50,000	Rs.75,000
B-4	Rs.75,000	Rs.100,000
B-5	Rs.87,500	Rs.150,000
B-6	Rs.175,000	Rs.200,000
B-7	Rs.262,500	Rs.300,000
B-8	Rs.437,500	Rs.500,000
B-9	Rs.700,000	Rs.800,000
B-10	Rs.875,500	Rs.900,000

Table: Tax on Cable Television Operator

Advance Tax on Sale to Distributors, Dealers or Wholesalers

Serial No	Category of Sales	Rate of Tax
01	Fertilizers	0.7%
02	Other than Fertilizers	0.1%

Table: Advance Tax on Sale to Distributors, Dealers or Wholesalers

Advance Tax on Dealers, Commission Agents and Arhatis, etc.

Serial No	Group	Amount of Tax
01	Group or Class A	Rs.100,000
02	Group or Class B	Rs.7,5000
03	Group or Class C	Rs.5,0000
04	Any Other Category	Rs.5,0000

Table: Advance Tax on Dealers, Commission Agents and Arhatis, etc.

Advance Tax on Purchase of Immovable Property

Serial No	Period	Rate of Tax
01	Where the value of immovable property is up to 3 million	0%
02	Where the value of immovable property is more than 3 million	1%

Table: Advance Tax on Purchase of Immovable Property

Advance Tax on Sale or Transfer of Immovable Property

Serial No	Description	Rate of Tax
01	The rate of tax to be collected under Sec 236K shall be in accordance with the fair market value.	1%

Table: Advance Tax on Sale or Transfer of Immovable Property

Advance Tax on International Air Ticket

Serial No	Type of Ticket	Rate of Tax
01	First / Executive Class	Rs.16,000 per person
02	Others excluding Economy	Rs.12,000 per person
03	Economy	0

Table: Advance Tax on International Air Ticket

Advance Tax on Functions and Gatherings

Serial No	Locations	Rate of Tax
01	For Islamabad, Lahore, Multan, Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Sheikhupura, Dear Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbotabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dear Murad Jamali and Turbat.	5% of the bill ad valorem or Rs.20,000 per function, whichever is higher
02	For cities other than those mentioned above.	5% of the bill ad valorem or Rs.10,000 per function, whichever is higher

Table: Advance Tax on Functions and Gatherings

Advance Tax on Insurance Premium

Serial No	Type of Premium	Rate of Tax
01	General insurance premium	4%
02	Life insurance premium if exceeding Rs. 0.3 million in aggregate per annum	1%
03	Others	0%

Table: Advance Tax on Insurance Premium

Advance Tax on Extraction of Minerals

Serial No	Description	Rate of Tax
01	The rate of tax to be collected under Sec 236V as per value of the minerals.	5%

Table: Advance Tax on Extraction of Minerals

Withholding Income Tax Rates

Nature of Payment	Tax Rate	Nature of Tax(Advance / Final / Minimum Tax)
Persons appearing in ATL	Persons not appearing in ATL

IMPORTS[Sec. 148 and Part II of First Schedule]
Industrial undertaking importing remittable steel and directly reduced iron for its own use	1%	2%	Advance Tax in the case of:Raw material or plant and machinery imported by industrial undertaking for own useImports by large import housesMotor vehicles in CBU condition imported by manufacturers of motor vehiclesForiegn produced film for screening and viewing purposesMinimum Tax in the case of:Goods sold in the same condition those were importedEdible OilPacking MaterialIn case of import of plastic raw material (PCT) heading 39.01 to 39.12, packing material and edible oil
Persons importing potassic fertilizers under ECC’s decision No ECC-155/12/2004 dated 09-12-2004
Persons importing urea
Manufacturers covered under SRO 1125(1)/2011 dated 31-12-2011 for importing items as per said SRO
Persons importing gold
Persons importing cotton
Persons importing LNG	1%	2%
Persons importing pulses	2%	4%
Industrial undertaking importing plastic raw material (PCT) Heading 39.01 to 39.12 for its own use	1.75%	Companies: 11%Others: 12%
Commercial importers, importing plastic raw material (PCT) Heaing 39.01 to 39.12	4.5%
Commercial importers covered under SRO 1125(I)/2011 dated 31-12-2011	3%	6%
Persons importing coal	4%	8%
Persons importing finished pharmaceutical products that are not manufactured in Pakistan, as certified by the Drug Regulatory Authority of Pakistan	4%	8%
Ship breaker on import of ships	4.5%	9%
Companies and industrial undertakings not covered above	5.5%	11%
Others	6%	12%

DIVIDEND, INCLUDING DIVIDEND IN SPECIE[Sec. 150, 236S, Division I Part III First Schedule & Clause 11B Part IV Second Schedule]
Dividend from a company where no tax is payable by such company due to exemption of income or carry forward of business losses or claim of any tax credits	25%	50%	Final Tax
Inter-corporate dividend within the group companies covered under group taxation, where return of the group has been filed for the latest completed tax year	0%	0%
Other cases, including repatriation of after-tax profits by branches of foreign companies	15%	30%

RETURN ON INVESTMENT IN SUKUKS[Sec. 150A, Division IB Part III First Schedule]
Received by Company	15%	30%	Final Tax
Received by an individual or an AOP, if profit is more than Rs.1 million	12.5%	25%
Received by an individual or an AOP, if profit is less than Rs.1 million	10%	20%

PROFIT ON DEBT[Sec. 150A, Division IB Part III First Schedule]
Where debt yield is up to Rs.500,000	10%	Advance Tax in the case of companiesMinimum Tax in other cases
Where debt yield is above Rs.500,000	15%	30%

PAYMENTS TO NON-RESIDENTS[Sec. 152, Division IV Part I First Schedule & Division III First Schedule]
Royalty or fee for technical services	15%	30%	Minimum Tax
Fee for offshore digital services	5%	10%
Contracts or related services	7%	14%
Insurance or re-insurance premium	5%	10%
Advertisement services to a non-resident media person relaying from outside Pakistan	10%	10%
Execution of contract by sportspersons	10%	20%
Any other receipt	20%	40%

PAYMENTS TO PERMANENT ESTABLISHMENT (PE) OF NON-RESIDENTS[Sec. 152, Division II Part III First Schedule]
Sale / supply of goods by PE of non-resident company	4%	8%	Minimum Tax
Sale / supply of goods by PE of other non-residents	4.5%	9%
Rendering / providing of services by PE of non-resident company	8%	16%
Rendering / providing of services by PE of other non-residents	10%	20%
Rendering / providing of transport services	2%	4%
Execution of contract other than contract for sale or services by PE of non-resident company	7%	14%
Execution of contract other than contract for sale or services by PE of other non-residents	7%	14%

PAYMENTS FOR FOREIGN PRODUCED COMMERCIALS[Sec. 152, Division II Part III First Schedule]
Payment against foreign produced advertisement commercial to non-residents	20%	Final Tax

PAYMENTS FOR SUPPLY OF GOODS[Sec. 153(1)(a), Division III Part III First Schedule & Clause 24A Part II Second Schedule]
Sale of rice, cotton seed oil and edible oil	1.5%	3%	Advance Tax in case of listed companies and companies engaged in manufacturingMinimum Tax for other cases
Sale by distributors of cigarettes and pharmaceutical products and large import houses	1%	2%
Sale of goods by FMCG distributors, which are companies	2%	4%
Sale of goods by FMCG distributors, which are not companies	2.5%	5%
Sale of any other goods by companies	4%	8%
Sale of any other goods by other than companies	4.5%	9%
No tax to be withheld for payments in case of:Imported goods sold by an importer where tax under Sec. 148 has been paidYarn sold by traders to taxpayers specified in the sales tax zero-rated regime as provided under clause (45A) of Part IV of Second SchedulePurchase of an asset under a lease and buy back agreement by modarabas, leasing / banking companies or financial institutions

PAYMENTS FOR SERVICES[Sec. 153(1)(b), 153(2) Division III Part III First Schedule & Division IV Part III First Schedule]
Person providing advertising services (electronic and print media services)	1.5%	3%	Minimum Tax
Persons providing transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services as defined under Clause 133 of Part I of Second Schedule, tracking services, advertising services (other than by print or electronic media), share registered services, engineering services, car rental services, building maintenance services, services rendered by PSE and PMEL, inspection, certification, testing and training services	4%	8%
Companies providing other services	8%	16%
Non-company entities providing other services	10%	20%
By export houses for services rendered for stitching dyeing, printing, embroidery, washing, sizing and weaving	1%	2%
No tax to be withheld for payments in case of payment for securitisation of receivables by Special Purpose Vehicles to Originators. Any tax deducted by a person making payment for a Special Purpose Vehicle, on behalf of the Originator, the tax is credited to the Originator.

PAYMENT ON ACCOUNT OF EXECUTION OF CONTRACTS[Sec. 153(1)(c) and Division III Part III First Schedule]
To companies	7%	14%	Advance Tax for listed companiesMinimum Tax for non-listed companies
To sportsperson	10%	20%	Minimum Tax
To others	7.5%	15%

PAYMENT OF ROYALTY TO RESIDENT PERSONS[Sec. 153b and Division IIIb Part III First Schedule]
On gross amount of royalty	15%	30%	Advance Tax

EXPORTS[Sec. 154, Division IV Part III First Schedule & Clause 47C Part IV Second Schedule]
At the time of realisation of proceeds on export of goods (Exemption to cooking oil or vegetable ghee exported to afghanistan if tax u/Sec. 148 is paid)	1%	Final TaxExporters may opt at the time of filing of return that the tax collected to be treated as Minimum Tax
Indenting commission on realisation of proceeds on account of commission to indenting agent	5%
Inland back to back LC by exporter on sale of goods under inland back to back LC or any other arrangement as may be prescribed by FBR	1%
Export of goods by units located in EPZ	1%
Payment for a firm contract by direct exporters or export houses registered under DTRE Rules, 2001 to an indirect exporter as per the said Rules.	1%

PROPERTY INCOME / RENTALS[Sec. 155, Division V Part III First Schedule]
To Companies	15% of the gross amount of rent		Advance Tax
To Individuals & AOPs	Annual Rent (Rs.)	Tax Rate
From	To
Up to 200,000	Nil
200,001	600,000	5% of the amount exceeding Rs.200,000
600,001	1,000,000	Rs.20,000 + 10% of the amount exceeding Rs.600,000
1,000,001	2,000,000	Rs.60,000 + 15% of the amount exceeding Rs.1,000,000
2,000,001	4,000,000	Rs.210,000 + 20% of the amount exceeding Rs.2,000,000
4,000,001	6,000,000	Rs.610,000 + 25% of the amount exceeding Rs.4,000,000
6,000,001	8,000,000	Rs.1,110,000 + 30% of the amount exceeding Rs.6,000,000
Above Rs.8,000,000	Rs.1,710,000 + 35% of the amount exceeding Rs.8,000,000

PRIZES AND WINNINGS[Sec. 156, Division VI Part III First Schedule]
Prize on prize bonds and crossword puzzle	15%	30%	Final Tax
Winning from a raffle, lottery, prize on winning a quiz or prizes related to companies’ sales promotion schemes	20%	40%

PETROLEUM PRODUCTS[Sec. 156A, Division VIA Part III First Schedule]
Commission or discout to petrol pump operators on petroleum products	12%	24%	Final Tax

WITHDRAWAL OF BALANCE UNDER PENSION FUND[Sec. 156B]
Withdrawal before retirement age	Average rate of tax for 3 preceding years or rate applicable for the year whichever is lower	Final Tax (Separate Block of Income)
Withdrawal in excess of 50% of accumulated balance at or after the retirement age

CASH WITHDRAWAL FROM BANKS[Sec. 231A, Division VI Part IV First Schedule & Clause 28B Part II Second Schedule]
Exchange company, duly licensed and authorised by SBP, subject to specified conditions	0.15%	Advance Tax
Cash withdrawals from Pak Rupees bank accounts where foreign remittances credited directly such accounts	Exempt	Exempt	Exempt
Other cases where total withdrawals in a day exceeds Rs.50,000 from all bank accounts	Exempt	0.6%	Advance Tax

TRANSACTIONS IN BANKS – Banking Instrument purchased against payment in cash[Sec. 231A, Division VIA Part IV First Schedule]
Sale against cash of any instrument including demand draft, payment order, CDR, STDR, RTC or any other instrument of bearer nature except payment is made throuh a crossed cheque	Exempt	0.6%	Advance Tax

TAX ON MOTOR VEHICLES[Sec. 231B, 234 Division VII Part IV First Schedule & Division III Part IV First Schedule]
Tax on purchase / transfer of motor vehicles along with annual motor vehicle tax (Not applicable to Federal, Provincial and Local Govts., Foreign Diplomatic Missions in Pakistan)	Various rates based on engine capacity	Advance Tax
On value of motor vehicle leased by Leasing Companies, Scheduled Banks, Investment Banks, DFIs or Modarabas	0%	4%

BROKERAGE & COMMISSION[Sec. 233, Division II Part IV First Schedule]
Advertising Agents	10%	20%	Minimum Tax
Life Insurance Agents where commission received is less than Rs.0.5 million per annum	8%	16%
Others	12%	24%

COLLECTION OF TAX BY STOCK EXCHANGES IN LIEU OF TAX ON COMMISSION[Sec. 233A, Division IIA Part IV First Schedule]
On purchase of shares	0.02%	0.04%	Advance Tax
On sale of shares	0.02%	0.04%

COLLECTION OF TAX BY NCCPL FROM MEMBERS OF STOCK EXCHANGES[Sec. 233AA, Division IIB Part IV First Schedule]
In respect of financing of carryover trade, margin financing, margin trading nor securities lending in shares business	10%	Advance Tax

CNG STATIONS[Sec. 233A, Division VIB Part IV First Schedule]
On the amount of gas bill	4%	6%	Minimum Tax

ELECTRICITY CONSUMPTION[Sec. 235, Division IV Part IV First Schedule & Clause 66 Part IV Second Schedule]
Electricity bil of commercial or industrial consumers [Exporters-cum-manufacturers are exempt from this collection]	Various rates	Minimum Tax (for non-corporate taxpayers upto Rs.360,000)Advance Tax (for other cases)

DOMESTIC ELECTRICITY CONSUMPTION[Sec. 235A, Division XIX Part IV First Schedule]
Where the amount of monthly bill is less than Rs.75,000	0%	Advance Tax
Where the amount of monthly bill is Rs.75,000 and above	7.5%

STEEL MELTERS, RE-ROLLERS ETC.[Sec. 235B / Sec 153(1)]
Electricity consumed for the production of steel billets, ingots and mild steel (MS products) excluding stainless steel by steel-melters, steel re-rollers, composite steel units (registered for the purpose of Chapter XI of Sales Tax Special Procedure Rules, 2007)	Rs.1 per unit of electricity consumed	Non-adjustable / Final Tax

TELEPHONE USERS[Sec. 236, Division V Part IV First Schedule]
Mobile phone bills and prepaid telephone cards	12.5%	Advance Tax
Landline bills exceeding Rs.1,000	10%
Post-paid internet and prepaid internet cards	12.5%

SALE BY AUCTION[Sec. 236A, Division VIII Part IV First Schedule]
Sale of property, goods or lease of right by public auction or tender	10%	20%	Advance Tax
Sale of lease of the right to collect tolls	10%	20%	Final Tax

PURCHASE OF DOMESTIC AIR TICKETS[Sec. 236B, Division IX Part IV First Schedule]
Tickets for routes of Balochistan coastal belt, Azad Jammu and Kashmir, FATA, Gilgit-Baltistan and Chitral	Exempt	Not Applicable
Other routes	5%	Advance Tax

SALE OR TRANSFER OF IMMOVABLE PROPERTY[Sec. 236C, Division X Part IV First Schedule]
To be collected from seller or transferor at the time of recording or attesting the transfer, where holding period of property is up to 5 years.	1%	2%	Advance Tax
To be collected from seller or transferor at the time of registering or attesting the transfer, where holding period or property is above 5 years	0%

FUNCTIONS & GATHERINGS[Sec. 236D, Division XI Part IV First Schedule]
To be collected from a person arranging or holding a function on total amount of bill and also for food, service or facility	5%	Advance Tax
Function of marriage for Islamabad, Lahore, Multan, Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Sheikhupura, Dear Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbotabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Khuzdar, Dera Murad Jamali and Turbat	Higher of 5% of the bill ad valorem or Rs.20,000 per function
For cities other than those mentioned above	Higher of 5% of the bill ad valorem or Rs.10,000 per function

CABLE OPERATORS AND OTHER ELECTRONIC MEDIA[Sec. 236F, Division XIII Part IV First Schedule]
From IPTV, FM Radio, MMDS, Mobile TV, Mobile Audio, Satellite TV Channel and Landing Rights	20% of the permission fee or renewal fee	Advance Tax
From cable operators	Various Rates
From every TV channel in respect of screening or viewing Foreign TV Drama serial or a play in any language other than English	50% of the permission fee or renewal fee

TAX ON SALES TO DISTRIBUTORS, DEALERS AND WHOLESALERS BY MANUFACTURERS AND COMMERCIAL IMPORTERS[Sec. 236G, Division XIV Part IV First Schedule]
On sale of fertilizers	0.7%	1.4%	Advance Tax
On sale of electronics, sugar, cement, iron & steel products, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint, batteries or foam	0.1%	0.2%

TAX ON SALES TO RETAILERS AND WHOLESALERS BY MANUFACTURERS. DISTRIBUTORS, DEALERS, WHOLESALERS OR COMMERCIAL IMPORTERS[Sec. 236H, Division XV Part IV First Schedule]
On sale of electronics	1%	2%	Advance Tax
On sale of sugar, cement, iron & steel products, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint, batteries or foam	0.5%	1%

TAX ON SALES OF CERTAIN PETROLEUM PRODUCTS[Sec. 236HA, Division XVA Part IV First Schedule]
On supply of petroleum products to a petrol pump operator or distributor	0.5%	1%	Advance Tax

COLLECTION OF TAX BY EDUCATIONAL INSTITUTIONS WHERE FEE EXCEEDS Rs.200,000[Sec. 236I, Division XVI Part IV First Schedule]
From resident	5%	Advance Tax
From non-resident	Exempt	Not Applicable

TAX ON DEALERS, COMMISSION AGENTS AND ARHATIS ON ISSUANCE / RENEWAL OF LICENSE[Sec. 236J, Division XVII Part IV First Schedule]
To be collected by market committees	Various rates	Advance Tax

PURCHASE OR TRANSFER OF IMMOVABLE PROPERTY[Sec. 236K, Division XVIII Part IV First Schedule]
On fair market value	1%	2%	Advance Tax

INTERNATIONAL AIR TICKETS[Sec. 236L, Division XX Part IV First Schedule]
First / Executive Class	Rs.16,000 per person	Advance Tax
Others Excluding Economy	Rs.12,000 per person
Economy	Nil

ALL TYPE OF BANKING TRANSACTIONS OF NON-FILER[Sec. 236P, Division XXI Part IV First Schedule]
Transactions otherwise through cash above Rs.50,000 in aggregate from all bank accounts per day	Not Applicable	0.6%	Advance Tax

RENT OR PAYMENT FOR RIGHT TO USE MACHINERY AND EQUIPMENT[Sec. 236Q, Division XXIII Part IV First Schedule]
To be collected in case of industrial, commercial and scientific equipment and machinery	10%	Final Tax
The deduction shall not be applicable in the following cases:Agricultural machinery; andMachinery owned and leased by leasing companies, investment banks, modarabas, scheduled banks or DFIs

EDUCATION RELATED EXPENSES REMITTED ABROAD[Sec. 236R, Division XXIV Part IV First Schedule]
Remittance of tuition fee, boarding and lodging expenses, payments for distant learing programmes and any other expenses related to foreign education	5%	Advance Tax

ADVANCE TAX ON INSURANCE PREMIUM[Sec. 236U, Division XXV Part IV First Schedule]
General Insurance Premium	0%	4%	Advance Tax
Life Insurance Premium exceeding Rs.0.3 million per annum	0%	1%
Others	0%

ADVANCE TAX ON EXTRACTION OF MINERALS[Sec. 236V, Division XXVI Part IV First Schedule]
Value of minerals extracted, produced dispatched and carried away from licensed or leased areas of mines – to be collected by provincial revenue authority / board	0%	5%	Advance Tax

ADVANCE TAX ON PURCHASE OF TOBACCO[Sec. 236X]
To be collected by Pakistan Tobacco Board or its contractor on value of tobacco purchased by a person including manufacturers of cigarettes	0%	5%	Advance Tax

ADVANCE TAX ON REMITTANCE ABROAD THROUGH CREDIT, DEBIT OR PREPAID CARDS[Sec. 236Y, Division XXVII Part IV First Schedule]
Gross amount remitted from abroad	1%	3%	Advance Tax

Table: Withholding Income Tax Rates

Customs

Goods imported and exported from Pakistan are liable to rates of Customs duties as prescribed in Pakistan Customs Tariff. Customs duties in the form of import duties and export duties constitute about 37% of the total tax receipts. The rate structure of customs duty is determined by a large number of socio-economic factors. However, the general scheme envisages higher rates on luxury items as well as on less essential goods. The import tariff has been given an industrial bias by keeping the duties on industrial plants and machinery and raw material lower than those on consumer goods.

Federal Excise

Federal Excise duties are leviable on a limited number of goods produced or manufactured, and services provided or rendered in Pakistan. On most of the items Federal Excise duty is charged on the basis of value or retail price. Some items are, however, chargeable to duty on the basis of weight or quantity. Classification of goods is done in accordance with the Harmonized Commodity Description and Coding System which is being used all over the world. All exports are exempted from Federal Excise Duty.

Sales Tax

The following personnel shall make an application in the Form STR-1, transmitted to the CRO “Central Registration Office” electronically or through registered mail or courier services for registration under Sales Tax Rules, 2006, Chapter I “Registration, compulsory Registration and De-Registration” as per following conditions:

PERSON	CONDITION	LIABILITY EXEMPTION
Manufacturer	Value of Taxable supplies does not exceed Rs. 5,000,000 in any period during the last twelve month or whose annual utility bills does not exceed Rs 600,000 during the last 12 months.	Supplies will be exempted under Sr. 42 of the Sixth Schedule.
Retailer	Value of supplies does not exceed Rs. 5,000,000 in any period during the last twelve month.	Supplies will be exempted under Sr. 42 of the Sixth Schedule.
Importer		Person is liable to be Registered.
Wholesaler / Supplier including Dealer and Distributor		Person is liable to be Registered.

Table: Sales Tax Liability Exemption

As per newly inserted Section 8B of the Act, a registered person is restricted to claim adjustment of input tax to the extent of ninety percent of output tax for that tax period. Further, it permits the adjustment of input charged in acquisition of fixed assets in twelve equal monthly installments after the start of production of a new unit. The Board is empowered to exclude any person from the above purview.

However, the input tax inadmissible in excess of 90% of the output tax, may be allowed on yearly basis in the second month following the end of the financial year of the registered person subject to the following condition namely:

In case of a registered person whose accounts are subject to audit under the Companies Ordinance, 1984 upon furnishing a statement along with annual audited accounts duly certified.
In other cases, adjustment may be allowed as per specific notification issued by the Board.

Time of Supply

Sales Tax was taxable at the earlier of the time of delivery of goods or when any payment is received by the supplier in respect of such supply. If has now been restricted only to the time of delivery of goods by the supplier irrespective of the actual time of payment.

Through newly inserted subsection (1A) of Section 23, the Board is empowered to restrict a registered person to use as many number of business bank accounts as may be specified.

As per amendment in Section 24 of the Act, retention of record and documents by a registered person has been enhanced from three years to five years.

A new concept of Withholding Agent has been introduced through SRO No 550(1)/2007, dated 30th June, 2007 wherein a withholding agent shall deduct as amount equal to one fifth (1/5th) of total sales tax shown in the sales tax invoice issued by the supplier and make payment of the balance amount to him.

Default Surcharge

For first six months 1% per month
For subsequent period till the final payment 1.5% per month
In case of tax fraud till the final payment 2% per month

Offences and Penalties

OFFENCES	PENALTIES	SECTION REFRENCE
Non filing of returns	Five thousand rupees within fifteen days, one hundred rupees for each day of default	Sec. 26
Non issuance of invoices	Five thousand rupees of five percent of the amount which ever is higher	Sec. 23
Issuance of invoices without authority	Ten Thousand rupees or five percent of the amount which ever is higher	Sec. 3, 7 and 23
Non notification change in the particulars of registration	Five Thousand rupees	Sec. 14
Failure of deposit the amount of tax due	Ten Thousand rupees or five percent of the amount whichever is higherWithin fifteen days, give hundred rupees each day of default. No penalty for miscalculation.Non payment and imprisonment for three year or both	Sec. 3, 6, 7 and 48
Repeation of miscalculation for less tax during the year	Ten Thousand rupees or three percent of the amount whichever is higher
Non filing of application registration	Ten Thousand rupees or five percent of the amount whichever is higherNon filing after sixty days conviction and imprisonment for three years
Non maintenance of records	Ten Thousand rupees or five percent of the amount whichever is higher
Non compliance with Section 25	Five Thousand rupees	Sec. 25
Receipt of second notice	Ten Thousand rupees
Receipt of third notice	Fifteen Thousand rupees
Non filing of information required by the board	Ten Thousand rupees	Sec. 26
Filing of false documentsDestruction / alteration of recordMaking of false statement	Twenty Five Thousand rupees or one hundred percent of the amount whichever is higher. Conviction and imprisonment of three years or with both	Sec. 2 (37) and General
Obstruction of Sales Tax Officer	Twenty Five Thousand rupees or one hundred percent of the amount whichever is higher. Conviction and imprisonment of three years or with both	Sec. 25, 38 and 38A
Abetment in commissioning of tax fraud	Twenty Five Thousand rupees or one hundred percent of the amount whichever is higher. Conviction and imprisonment of three years or with both	Sec. 2 (37)
Violation of any embargo placed or removal of goods in connection with recovery of tax	Twenty Five Thousand rupees or one hundred percent of the amount whichever is higher. Conviction and imprisonment of three years or with both	Sec. 48
Obstructions of Sales Tax Officer	Twenty Five Thousand rupees or one hundred percent or three percent of he amount whichever is higher	Sec. 31 and General
Non compliance with Section 73	Five thousand rupees or three percent of the amount whichever is higher	Sec. 73
Non fulfillment of notification issued under any of the provisions of this Act	Five Thousand Rupees of three percent of the amount whichever is higher	Sec. 71 and General
Sales Tax officer causing loss to the sales tax revenue	Convection and imprisonment for three year or five equal to tax, or with both	General
Contravention with provision of this act and no penalty has been provclassed	Five Thousand Rupees or three percent of the amount, which ever is higher	General
Non filing of the summary of sale or purchase invoices	Twenty Five Thousand Rupees	Sec. 26(5)

Table: Offences and Penalties

Sales Tax is levied at various stages of economic activity at the rate of 15 per cent on:

All goods imported into Pakistan, payable by the importers;
All supplies made in Pakistan by a registered person in the course of furtherance of any business carried on by him; and
There is an in-built system of input tax upto 90% adjustment and a registered person can make this adjustment of tax paid at earlier stages against the tax payable by him on his supplies. The tax paid at any stage does not exceed 15% of the total sales price of the supplies.

Performing a High Quality Audit

In today’s ever changing global economy, businesses need trusted advisers. Our audit specialists take the time to understand your business as well as the industry in which you operate, whether it is in Pakistan and / or abroad.

Our audit approach focuses on understanding the clients’ business and control issues from the inside out. It combines a rigorous risk assessment, diagnostic processes, and audit testing procedures as well as a continuous assessment of our clients’ service performance. Our state of the art, audit tool, Audit System supports all phases of the audit process including planning, executing, reporting.

Investment Advisory Services

All investment carries some risk and thus needs careful analysis and expert advice. The key to be a successful investor is to achieve appropriate risk/return trade off by identification of risks that exist and their proactive management.

Our Investment Advisory Service professionals specialize in identifying risks arising from regulation, competition and macro economic forces and designing strategies to manage it to your advantage. Our range of services includes:

Advice on analyzing investment prospects and mode of doing business in Pakistan including advising on the form of legal entity, incorporation, obtaining of necessary permissions and help in dealing with local regulators.
Identification of suitable business partners and conducting due diligence.
Feasibility studies including preparation of projected financial statements and project.
Appraisal through NPV, IRR, Payback and DCF analysis including cost assessment and revenue projections.
Sensitivity analysis
Tariff and pricing studies

NOTE:

The contents as narrative above are subject to change through annual amendment.

6. FILING INCOME TAX RETURNS IN PAKISTAN

If you’ve got a job with a regular paycheck, you’re almost certainly already paying taxes. While your employer withholds the taxes you owe on your earnings / income and sends them to the federal government, there’s a lot more to do with the process to make sure you’re paying taxes appropriately.

For starters, your payroll withholding usually isn’t exactly right: The decisions you make when you set up your payroll withholding at the beginning of your employment can result in you under or excessively paying your taxes.

Further, you may be able to reduce the taxes you owe and thus, get a refund on taxes you already paid by taking certain deductions or credits provided for in the tax law. On the flip-side, you might have additional income not included in your paycheck that you’re legally required to report, and which may result in you owing more in taxes.

The result of all this is that you’re required to file a tax return every year. Through this process, it’s determined whether you owe additional taxes beyond what you’ve already paid to the federal government, or if you’re owed a refund of the taxes you’ve already paid.

Our Taxation Attorneys at Asghar & Sons Jurists are very well conversant with the taxation related laws etc hence we are in a better position to file income tax returns for our prestigious clientele and beyond; if you need to file your income tax returns please feel free to contact us.

Understanding the Income Tax Basics

Prior to the Registration and Filing of your Income Tax Return, it is suggestable that you should establish the basic understanding on these processes. Knowledge of basic concepts would not only ensure that the tasks are performed easily but also in the befitting manner.

Taxable Income

Taxable Income means Total Income reduced by donations qualifying straight for deductions and certain deductible allowances.

Total Income

Total Income is the aggregate of Income chargeable to Tax under each head of Income.

Head of Income

Under the Income Tax Ordinance, 2001, all Income are broadly divided into following five heads of Income:

Salary
Income from Property
Income from Business or Profession
Capital Gains; and
Income from Other Sources

Resident

An individual is Resident for a Tax Year if the individual:
- Is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and [eighty-three] days or more in the tax year;
- Is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and twenty days or more in the tax year and, in the four years preceding the tax year, has been in Pakistan for a period of, or periods amounting in aggregate to, three hundred and sixty-five days or more; or
- Is an employee or official of the Federal Government or a Provincial Government posted abroad in the Tax Year.
An Association of Persons is Resident for a Tax Year if the control and management of its affairs is situated wholly or partly in Pakistan at any time in that year;
A Company is Resident for a Tax Year if:
- It is incorporated or formed by or under any law in force in Pakistan;
- The control and management of its affairs is situated wholly in Pakistan at any time in the year; or
- It is a Provincial Government or a local Government in Pakistan.

Non-Resident

An Association of Persons, a Company and an Individual are Non-Resident for a Tax Year if they are not Resident for that year.

Source of Income in Pakistan

Is defined in Sec. 101 of the Income Tax Ordinance, 2001, which caters for Incomes under different heads and situations. Some of the common Source of Incomes in Pakistan are as under:

Salary received or receivable from any employment exercised in Pakistan wherever paid;
Salary paid by, or on behalf of, the Federal Government, a Provincial Government, or a local Government in Pakistan, wherever the employment is exercised;
Dividend paid by Resident Company;
Profit on debt paid by a Resident Person;
Property or rental Income from the lease of immovable property in Pakistan; and
Pension or annuity paid or payable by a Resident or permanent establishment of a Non-Resident.

Foreign Source of Income

Is any Income, which is not a Source of Income from Pakistan.

Person

An Individual;
A Company or Association of Persons incorporated, formed, organized or established in Pakistan or elsewhere; and
The Federal Government, a foreign government, a political subdivision of a foreign government, or public international organisation.

Company

A Company as defined in the Companies Act, 2017;
A body corporate formed by or under any law in force in Pakistan;
A modaraba;
A body incorporated by or under the law of a country outside Pakistan relating to incorporation of Companies;
An amendment has been made through Finance Act, 2013 to enlarge the scope of definition of a Company. Now as per Income Tax Ordinance, 2001 a company includes:
- A co-operative society, a finance society or any other society;
- A non-profit organization; and
- A trust, an entity or a body of persons established or constituted by or under any law for the time being in force.
A foreign association, whether incorporated or not, which the Board has, by general or special order, declared to be a company for the purposes of this Ordinance;
A Provincial Government;
A Local Government in Pakistan; and
A Small Company

Association of Persons

Includes a firm (the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all), a Hindu undivided family, any artificial juridical person and any body of persons formed under a foreign law, but does not include a Company.

Tax Year

Is a period of twelve months ending on 30th day of June i.e. the financial year and is denoted by the calendar year in which the said date falls. For example, tax year for the period of twelve months from July 01, 2017 to June 30, 2018 shall be denoted by calendar year 2018 and the period of twelve months from July 01, 2018 to June 30, 2019 shall be denoted by calendar year 2019. It is called Normal Tax Year.

Special Tax Year

Means any period of twelve months and is denoted by the calendar year relevant to the Normal Tax Year in which closing date of the Special Tax Year falls. For example, Tax Year for the period of twelve months from January 01, 2017 to December 31, 2017 shall be denoted by calendar year 2018 and the period of twelve months from October 01, 2017 to September 30, 2018 shall be denoted by calendar year 2019.

Register for Income Tax

The first step of filing your Income Tax Return is to register yourself with Federal Board of Revenue (FBR).

For Income Tax Registration Individual can register online through Iris Portal
Whereas, the principal officer of AOP and Company needs to visit Regional Tax Office (RTO)

Tax Payer Registration Basics

Some important facts about Registration

An individual, a company and an association of persons (AOP) or foreign national shall be treated as registered, when they are e-enrolled on the Iris portal.

E-Enrollment with FBR provides you with a National Tax Number (NTN) or Registration Number and password.

In case of individuals, 13 digits Computerized National Identity Card (CNIC) will be used as NTN or Registration Number.

NTN or Registration Number for AOP and Company is the 7 digits NTN received after e-enrollment.

These credentials allow access to Iris portal, the online Income Tax system, which is only way through which online Income Tax Return can be filed.

Requirements Before Registration

An individual needs to ensure that the following information is available before starting the e-enrollment.

Requirements of e-enrollment for an individual are as follows:

CNIC/NICOP/Passport number
Cell phone number in use
Active e-mail address
Nationality
Residential address
Accounting period
In case of business income:
- business name
- business address
Principal business activity
Name and NTN of employer in case of salary income
Address of property in case of property income

Principal Officer of the Company and AOP needs to ensure that the following information is available before starting e-enrollment.

Following particulars are required for registration:

Name of the Company or AOP
Business name
Business address
Accounting period
Business phone number
E-mail address
Cell phone number of principal officer of the company or AOP
Principal business activity
Address of industrial establishment or principal place of business
Company type, like public limited, private limited, unit trust, trust, NGO, society, small company, modaraba or any other
Date of registration
Incorporation certificate by Securities and Exchange Commission of Pakistan (SECP) in case of company
Registration certificate and partnership deed in case of registered firm
Partnership deed in case firm is not registered
Trust deed in case of trust
Registration certificate in case of society
Name of representative with his CNIC or NTN
Following particulars of every director and major shareholder having 10% or more shares in case of company or partners in case of an AOP, namely:
- Name
- CNIC / NTN / Passport and
- Percentage of Share

Requirements for Registration of Non-Resident Company having permanent establishment in Pakistan shall furnish the following particulars:

Name of the Company
Business address
Accounting period
Phone number of business
Principal business activity
Address of principal place of business
Registration number and date of the branch with the Securities and Exchange Commission of Pakistan (SECP)
Name and address of principal officer or authorized representative of the Company
Authority letter for appointment of principal officer or authorized representative of the Company
Cell phone number of principal officer or authorized representative of the Company and
Email address of principal officer or authorized representative of the Company

Non-Resident Company not having permanent establishment in Pakistan shall furnish the following particulars:

Name of the Company
Business address in the foreign country
Name and nationality of directors or trustees of the Company
Accounting period
Name and address of authorized representative of the Company
Authority letter for appointment of authorized representative of the Company
Cell phone number of authorized representative of the Company
Email address of authorized representative of the Company
Principal business activity and
Tax Registration or incorporation document from concerned regulatory authorities of the foreign country

Registration Process

Online Registration

Online registration is available only for:

Individual and not for Association of Person or Company;

Before starting online registration, the Taxpayer must have:

Understanding on the Registration Process;
A computer, scanner and internet connection;
A cell phone with SIM registered against their own CNIC;
A personal email address belonging to them;
Scanned document in PDF of:
- Certificate of maintenance of personal bank account in his own name;
- Evidence of tenancy / ownership of business premises, if having a business;
- Paid utility bill of business premises not older than 3 months, if having a business.
Online registration is available at Iris Portal

Registration at Facilitation Counters of Tax Houses

Registration at Facilitation Counters of Tax Houses is available for all:

Individual, Association of Person and Company;
Income Tax and Sales Tax;

For Registration of An Individual, The Individual Must:

Personally go to any Facilitation Counter of any Tax House;
Take the following documents with him:
- Original CNIC;
- Cell phone with SIM registered against his own CNIC;
- Personal Email address belonging to him;
- Original certificate of maintenance of personal bank account in his own name;
- Original evidence of tenancy / ownership of business premises, if having a business;
- Original paid utility bill of business premises not older than 3 months, if having a business.

For Registration of An AOP, Anyone of the Members / Partners Must:

Personally go to any Facilitation Counter of any Tax House
Take the following documents with him:
- Original partnership deed, in case of Firm;
- Original registration certificate from Registrar of Firms, in case of Firm;
- CNICs of all Members / Partners;
- Original letter on letterhead of the AOP signed by all Members / Partners, authorizing anyone of the Members / Partners for Income / Sales Tax Registration;
- Cell phone with SIM registered against his own CNIC but not already registered with the FBR;
- E-mail address belonging to the AOP;
- Original certificate of maintenance of bank account in AOP’s name;
- Original evidence of tenancy / ownership of business premises, if having a business;
- Original paid utility bill of business premises not older than 3 months, if having a business.

For Registration of A Company, the Principal Officer Must:

Personally go to any Facilitation Counter of any Tax House
ake the following document with him:
- Incorporation Certificate of the Company;
- CNICs of all Directors;
- Original letter on letterhead of the company signed by all Directors, verifying the Principal Officer and authorizing him for Income Tax / Sales Tax Registration;
- Cell phone with SIM registered against his own CNIC but not already registered with the FBR;
- E-mail address belonging to the Company;
- Original certificate of maintenance of bank account in Company’s name;
- Original evidence of tenancy / ownership of business premises, if having a business;
- Original paid utility bill of business premises not older than 3 months, if having a business.

Modification of Income Tax Registration

Income Tax Registration of a person can be modified after discovering any change or omission in any information, particulars, data or documents associated with the registration of the person.

Person would have to file a modification form of registration in Iris to change the relevant particulars.

The Commissioner will grant or refuse the requested modification of the person after examining the modification form of registration and making any inquiry deemed necessary.

Person can within thirty (30) days of the decision regarding modification file a representation before the Chief Commissioner.

Chief Commissioner will decide on the merits of the representation filed.

Cancellation of Income Tax Registration

Commissioner may by order in writing cancel the Income Tax Registration of a taxpayer after ascertaining that there is no outstanding liability against the taxpayer; and all the relevant information, particulars, data or documents associated with the Registration of the taxpayer warrant such a cancellation.

Change In Particulars of Registration

In case there is a change in the name address, or other particulars as stated in the registration certificate, the registered person shall notify the change in the prescribed form to the RTO within fourteen days of such change.

The change in the business category shall be allowed after RTO has verified the manufacturing facility and confirmed the status as industrial consumer of the electricity and gas distribution companies.

Change Your Personal Details

A person can change their registration information recorded for filing Income Tax Return in three (3) possible ways.

Changing information through Iris, a person can change / update information by logging into Iris. Following information can be updated by the person through Registration Form 181 (filed for modification) Income Tax:
- Mobile number
- E-mail
- Personal / Residential Address
- Business Address
- Addition of Business Branches
- Legal Representative u/Sec. 87 of the Income Tax Ordinance, 2001
- Bank Account
Changing information through Federal Board of Revenue (FBR) helpline, a person can also change or update information through FBR helpline via phone or email. Following information can be updated through the helpline:
- Name
- Date of Birth
- Gender
- Disability Status
- Senior Citizen Status
Changing Information by visiting Regional Tax Office (RTO). For changes in registration regarding the following issues, the person will have to visit their relevant RTO:
- Discontinuance of business
- Jurisdiction for Income Tax Return Assessment
- Deregistration
- Updating CNIC Number
- Updating Pakistan Origin Card (POC)

Filing the Income Tax Return

Logging Into IRIS

File online Income Tax Return by logging into Iris. Iris is online portal where Income Tax Return is filed.

If you are a first time Income Tax filer, registration will be required before you can file your Income Tax Return.

After registration you can log into Iris and file your Income Tax Return. Those having obtained a National Tax Number (NTN) or Registration Number but do not have credentials to log into Iris can get access by clicking on ‘E-enrollment for Registered Person’

Password for IRIS Login

E-enrollment with Federal Board of Revenue (FBR) provides you with NTN or Registration Number and password. You can login to Iris by entering your NTN or Registration Number and password.

Reset Password

If you need to reset your password to gain access to Iris, you can click ‘Forgot Password’ on the Iris login screen. Enter all the data in the required fields.

Codes will be sent to your email address and mobile number. Enter the codes in the provided fields. A new window will open in which you will be given option to reset your password.

Change Password for IRIS

Password can be changed by logging into Iris and clicking ‘Change Password’ on the top right of the screen. Enter the required information in the dialog box opened.

Completing Income Tax Returns

To complete online Income Tax Return a person must complete the Return of Income form and Wealth Statement (statement of assets & liabilities) form.

To facilitate the taxpayers, FBR’s Knowledge Base Portal provides step by step written and video guides on filing Income Tax Return and Wealth Statement.

Successful submission of Income Tax Return and Wealth Statement in Iris is confirmed when both the forms have moved from the Draft folder to Completed Task.

Reconciliation of Wealth Statement

Wealth Statement will only be successfully submitted, once current year’s wealth has increased/decreased from previous year’s wealth by the same amount as your income has exceeded/fallen short of your expenses. Failure to reconcile wealth statement won’t allow you to submit your Income Tax Return.

Salaried Person – Income Tax Return

To facilitate salaried person in filing their Income Tax Return, Declaration form 114(I) has been provided. Salaried person would need to complete the Declaration form 114(I) in order to successfully submit their Income Tax Return.

Persons who are deriving income only from salary and other sources, where salary is more than 50% of Income can avail this form.

Change PIN for IRIS

Pin can be changed by logging into Iris and clicking ‘Change Pin’ near the top of the screen. Enter the required information in the dialog box opened.

Completing Income Tax Returns

An Income Tax Return can be revised within five (5) years of being originally filed to correct any omission or wrong statement discovered later on.

In order to revise the Income Tax Return filed, one has to file an application for revision in Iris. After approval of your application you can file a revised Income Tax Return in Iris.

Revising Wealth Statement

A Wealth Statement (statement of assets and liabilities) can be revised in Iris before receipt of the notice under sub-section (9) of section 122 of the Income Tax Ordinance, 2001 without the need to file an application seeking approval for revision.

Filing Income Tax Return After Deadline

To file the online Income Tax Return after due date you would still have to complete the filing of Income Tax Return as described above.

Record Keeping For Income Tax Return

Persons having taxable income are bound to keep Income Tax Return records for six (6) years.

Persons Obligated to File Income Tax Return

You might be obligated to file Income Tax Return if you are a certain category of person or have income up to certain threshold.

Credits, Rebates and Exemptions For Income Tax Return

You can avail Tax Credits, Rebates and Exemptions only if you are an Active Taxpayer.

Privacy of Personal Information

By not filing your Income Tax Return in spite of having taxable income, you will be liable to the penalty and prosecution under the provisions of Income Tax Ordinance 2001. Your personal information is not disclosed to anyone except the tax officials.

Income Tax Return Forms

If you are filing your Income Tax Return manually then you may download the same here:

Witholding Tax Forms

Active Taxpayer List (ATL)

The Active Taxpayer List (ATL) is a central record of online Income Tax Return filers for the previous Tax Year.

ATL Update

ATL is published every financial year on the 1st March and is valid up to the last day of February of the next financial year. For example, Active Taxpayer List for Tax year 2017 was published on 1st March 2018 and will be valid till 28th February 2019. Similarly, Active Taxpayer List for Tax year 2018 will be published on 1st March 2019 and will be valid till 28th February 2020.

The ATL is updated on every Monday on the Federal Board of Revenue (FBR) website.

Entry in Active Taxpayer List (ATL)

A person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL. For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

Person	Surcharge (PKR)
Company	20,000
Association of Persons	10,000
Individuals	1,000

Table: Surcharge

A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

Entry in Active Taxpayer List (ATL)

The late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

Only after the payment of surcharge will the name of the late filer become part of ATL.

Check Active Taxpayer Status

Active Taxpayer status can be checked in the following three (3) ways:

Verification Through Online Portal

The ATL Status Check allows you to confirm your Active Taxpayer status.

Check Active Taxpayer Status by SMS

Check Individual’s Active Taxpayer status by SMS through the following procedure:

Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966. Check Active Taxpayer status of AOP and Company by SMS through the following procedure: Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

Check AJ&K Active Taxpayer status by SMS through the following procedure:

For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966. Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

Check Active Taxpapyer Status by Downloading ATL

You can also download ATL from:

Active Taxpayer List (Income Tax)

The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.

Active Taxpayer Benefits

Being on the ATL gives you certain benefits:

Lower rates of tax deduction at source by banks on both profits and cash withdrawals
Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles
Lower rate of tax on buying and selling of property
Lower withholding tax rate on capital gains on sale of securities
Charges for tax on dividend will be lower
Lower rate of withholding tax on prize bond winnings
Allows you to claim back overpaid tax that has been withheld

Withholding Tax Rates

Applicable Withholding Tax Rates (Updated up to June 30, 2019)

Pay Income Tax

In order to pay your Income Tax dues, the person has to log into eFile.

You can log into efile by using the same credentials you used to log into Iris. After logging into the efile, the person has to access the e-Payments tab.

E-Payments

In the e-Payments tab, the person will access Create Payment and then select Income Tax Annual Return option.

The resulting selection will lead you to Income Tax e-Payment page. On this page a payment slip (PSID) will be created by

Selecting the relevant Tax Year
Typing the Tax amount due
Selecting the mode of payment
Clicking the create button on the bottom of the page

Confirm the e-Payment created. This will successfully create your e-Payment slip. The e-Payment slip can be deposited in any National Bank (NBP) / State Bank (SBP) branch. Select the nearest city where you want to deposit the payment slip from the drop down list.

Click the print button to download the PSID on your computer. Deposit the PSID in any of the available branches of the city of your choice.

Computerised Payment Receipt

Computerized Payment Receipt (CPR) is generated after paying the tax due. This is reflected in Iris within 24 hours of depositing the payment.

Tax payable is to be made on or before the designated Income Tax due date for each person.

Payment of Income Tax Through Alternate Delivery Channels (ADC)

Kindly refer to the User Guide in order to make your tax payment through Alternate Delivery Channels (ADC) such as ATMs and Internet Banking.

Penalty for Late Payment

Failure to pay tax payable on due date will attract penalty or default surcharge or both. Failure to make payment on your tax dues is an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year or both.

Surcharge Payment – ATL

Only after the payment of surcharge will the name of the late filer become part of ATL.

Income Tax Due Dates

Person	Due Dates
Individual & Association of Persons (AOP)	On or before 30th September
Company	On or before 31st December
Company having a special tax year	On or before 30th September

Table: Income Tax Due Dates

Tax Period For Income Tax Return

Income Tax Return relates to a specific tax year. A tax year is a period of twelve months ending on 30th day of June i.e. the financial year and is denoted by the calendar year in which the said date falls. For example tax year 2017, covers a period from 1st July 2016 to 30th June 2017.

Tax year includes special tax year, which means any period of twelve months and is denoted by the calendar year relevant to the normal tax year in which closing date of the special tax year falls. For example, tax year for the period of twelve months from January 01, 2016 to December 31, 2016 shall be denoted by calendar year 2017 and the period of twelve months from October 01, 2016 to September 30, 2017 shall be denoted by calendar year 2018.

Income Tax Refund

Refund can be only claimed if the person has filed their Income Tax Return electronically. A manual Return does not entitle you to a refund.

The refund amount should be clearly reflected in your Income Tax Return in Iris.

Refund resulting from the Income Tax Return can be claimed by filing a separate application in Iris. To check the status of your application, please visit your relevant Regional Tax Office (RTO).

The refund can also be claimed later on after submitting your Income Tax Return, but within two years from the date of filling of return (date of assessment) or from the date on which the tax was paid, whichever is later.

Entitlement of Refund

However, persons filing Tax Return for Tax year after the specified due date will not be entitled to refund during the period the person is not included in ATL and Income Tax authorities will not incur any liability of compensation for delayed refund for the period the person is not appearing in ATL and such period shall not be counted for the purpose of computing additional payment for delayed refund.

Right of Appeal

Most appeals arise on account of disagreement between the taxpayer and the tax collectors (Inland Revenue department) regarding the quantification of the taxable income and tax liability thereon as well as levy of default surcharge, penalties, etc.

To resolve such disagreements, law lays down the procedure, which gives the taxpayer right of appeal before the Commissioner (appeals) and if still not satisfied, a further right of appeal before the Appellate Tribunal and Higher Courts of the country.

Persons Eligible to Appeal

Any person dissatisfied with any order passed by a Commissioner/Officer Inland Revenue has the right of appeal.

In case of an Individual, the Individual himself; in case of an Association of Person (AOP), any partner or member of the association; and in case of a Company the principal officer.

In case of a deceased individual, the legal representatives of the deceased; and in case of an individual under legal disability or a nonresident person, his/her/it’s “representative”.

Requirements for Making an Appeal

In order to make an appeal person has to submit the tax due along with the return of income, on the basis of income declared.

Time Limit for Making an Appeal

Time limit for filing an appeal before the Commissioner (appeals) is thirty (30) days from the date of receipt of notice of demand relating to an assessment, penalty or any other order.

7. INTERNATIONAL TAX LAW & INTERNATIONAL TAX LAWYERS IN PAKISTAN

Here you may find information about international tax law in Pakistan. Our dedicated team of professional lawyers best assists their clients as to international tax law in Pakistan. A global business can become entangled in a complex web of tax rules and regulations in unfamiliar territories. We can help align your tax strategies with your business needs, meeting compliance obligations wherever they arise. Similarly, governments and tax authorities around the world are responding to globalization, economic uncertainty and the connected economy by imposing tighter trading rules and pursuing tax revenues with ever more determination.

Multinational organizations now face more and more demands from different jurisdictions as individual authorities endeavor to collect taxes on cross-border activities. Asghar & Sons Jurists and our associated attorneys across the Globe believe that dedicated international tax professionals shall best equipped and acquainted to tackle these demands, as well as uncover planning opportunities that can lead to enhanced financial performance.

Broad Capabilities

Our professionals at Asghar & Sons Jurists focus on the critical field of transfer pricing, providing services ranging from comprehensive supply chain restructuring to transfer pricing planning to controversy management to aiding in compliance with documentation requirements.

Foreign Tax Desks

The Asghar & Sons Jurists foreign tax desk programme has revolutionized the provision of international tax services. Professionals serving on desks work side-by-side with colleagues on similar rotations, creating a dynamic, team-based environment that fosters the development of truly integrated planning solutions – whenever and wherever they are needed.

Scope of Practice

Asghar & Sons Jurists international tax practice group, under the patronage of honorable Sir. Asghar Malik, advises clients in virtually all areas of domestic and international taxation, including income taxation, corporate taxation, real estate taxation, intellectual property taxation and value-added tax. We specialize in developing creative solutions to complex problems inherent in structuring cross-border commercial, investment and technology transfer transactions, making full use of the global network of double-taxation treaties and off-shore tax solutions. We have assisted both domestic and foreign multinationals in resolving sensitive tax-related issues both in Pakistan and around the globe. We have developed a network of international taxation experts around the globe with whom the tax practice group regularly consults regarding foreign tax ramifications on cross-border deals. Representation also extends to tax and other investment incentives under national, regional and multilateral regimes. Asghar & Sons Jurists representation extends to all relevant tax authorities as well as to both civil and white-collar litigation in the courts.

Lawyers in the Firm’s International Tax group routinely advise clients with respect to the extraterritorial aspects of Pakistan income taxation, both in connection with the Firm’s transactional work for business and individual clients, and as special tax counsel to smaller law firms with an international business practice and in other situations. We advise clients on the Pakistan tax consequences of numerous cross-border transactions and assist in structuring inbound and outbound business and financial relationships.

The following are among the areas where members of the International Tax group have advised foreign and domestic clients:

Investments in hybrid and specialized foreign and domestic securities
Cross-border joint ventures and global strategic alliances
Asset purchase and sale transactions within and outside Pakistan
Cross-border licensing
Pakistan and foreign branch operations
Pakistan and foreign purchasing transactions
Cross-border equipment leasing transactions
Investments in foreign and domestic real estate
Domestic and foreign project finance transactions
Transactions involving emerging markets including former Soviet Bloc countries
Cross-border transfers of employees
Tax aspects of international philanthropy
Cross-border aspects of e-commerce and transfers of intangibles

Members of the International Tax group also work closely with the client’s other advisors, including in-house counsel and accountants, public accountants and investment bankers. Our lawyers also have established good working relationships with tax professionals in many foreign countries, including law firms, accounting firms and tax consulting firms and work with such foreign professionals as needs dictate.

Agreements as to Avoidance of Double Taxation

The Government of Pakistan has so far signed agreements to avoid double taxation with 64 countries including almost all the developed countries of the world. These agreements lay down the ceilings on tax rates applicable to different types of income arising in Pakistan. They also lay down some basic principles of taxation which cannot be modified unilaterally. The list of countries with which Pakistan has concluded tax treaties is given below:

1. Austria
2. Azerbaijan
3. Bahrain
4. Bangladesh
5. Belaraus
6. Belgium
7. Bosnia Herzegovina
8. Brunei
9. Canada
10. China
11. Denmark

12. Egypt
13. Finland
14. France
15. Germany
16. Hungary
17. Indonesia
18. Iran
19. Ireland
20. Italy
21. Japan
22. Jordan

23. Kazakhstan
24. Korea (Republic of)
25. Kuwait
26. Kyrgystan
27. Kenya
28. Lebanon
29. Libya
30. Malaysia
31. Malta
32. Mauritius
33. Morocco

34. Nepal
35. Netherlands
36. Nigeria
37. Norway
38. Oman
39. Philippines
40. Poland
41. Portugal
42. Qatar
43. Romania
44. Saudi Arabia

45. Serbia
46. Singapore
47. South Africa
48. Spain
49. Sri Lanka
50. Sweden
51. Switzerland
52. Syria
53. Tajikistan
54. Thailand
55. Tunisia

56. Turkey
57. Turkmenistan
58. Ukraine
59. United Arab Emirates
60. United Kingdom
61. United States
62. Uzbekistan
63. Vietnam
64. Yemen

Table: Consulates Abroad

Members of the International Tax group have assisted clients in connection with controversies involving international tax issues before the Central Board of Revenue. Working with members of the Firm’s Individual Clients Department, lawyers in the International Tax group regularly assist in estate, family and business planning structures for expatriate, non-resident Pakistanis, non-resident aliens and Pakistani citizens with foreign family and business interests.

Our International tax lawyers are well conversant that how the multinationals’ international transactions are taxed in Pakistan. They deal with the matters of banking sector, non-resident companies, petroleum / gas exploration companies, pharmaceuticals, telecommunication, satellite TV channels and mobile phone companies. Our legal experts are capable to examine international transactions of permanent establishments with particular reference to e-commerce, e-communications, electronics / computer softwares, splitting of contracts and determination of beneficial ownership and attribution concepts of investment income. The Federal Board of Revenue (FBR) of Pakistan is going to reform International Tax Rules and our advisors are keenly watching the changes to be made so that all the effectees may not suffer more than their due share. Although the complexity and inconsistency of the International Tax Law in Pakistan annoy the executives of multinational companies but our tax lawyers have the expertise to soothe their displeasure.

INTELLECTUAL PROPERTY

TRADEMARK LAW, APPLICATION & REGISTRATION SERVICVES IN PAKISTAN

Here you may find information about trademark law and lawyers in Pakistan. Our dedicated team of professional lawyers best assists their clients in understanding the trademark law in Pakistan. We routinely interact with patent and trademark examiners in the Pakistan Patent and Trademark Office, and secure and protect intellectual property rights efficiently on a very cost-effective tariff. Asghar & Sons Jurists law firm have well conversed intellectual property lawyers, speak the business and technical languages of our clients. The whole focus of our IP counsel is securing for clients the maximum competitive advantage from effective exploitation and protection of their intellectual assets.

Intellectual property issues are critical to the success of any business entity, regardless of its size. Asghar & Sons Jurists and their associate attorneys helps clients in virtually all industries, obtain, protect and enforce patents, trademarks, copyrights, trade secrets and other intellectual property rights. Our IP lawyers have strong technical backgrounds and extensive legal and commercial experience as in-house IP counsel, patent and trademark examiners. We routinely interact with patent and trademark examiners in the Pakistan Patent and Trademark Office, and secure and protect intellectual property rights efficiently on a very cost-effective tariff. Our intellectual property lawyers speak the business and technical languages of our clients. If you have any query for trademark law or trademark registration, feel free to contact us.

How do you protect your BRAND?

Registering a trade mark will give its owner the right to exclusively use, license or sell the mark within the categories for which it is registered, blocking others from using a mark that is substantially identical or deceptively similar. In this way, trade marks protect brand identity and secure a company’s rights; to its image. A trade mark remains registered indefinitely if it continues to be used.

What is a trademark?

The Trade Marks Ordinance 2001 defines a trademark any mark capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of other undertakings. A sign can include a letter, word, name including personal name, signature, figurative element, numeral, device, brand, heading, label, ticket, aspect of packing, shape, color, sound or any combination of these features.

Why register a trademark?

If a trade mark isn’t registered and infringement is suspected, the owner must establish by extensive evidence that as a result of its use of and reputation in the mark the other person’s use is likely to cause deception or confusion. The dispute would be dealt with under the common law action of passing off.

What are the criteria for registration?

In order to be registered, a trademark cannot be one that other traders need to use to promote their own goods or services, such as a directly descriptive term, geographic word or common surname. It must also be capable of distinguishing the applicant’s goods or services from those of other traders and cannot mislead the public about the nature of the goods or services.

When has a trademark been infringed?

In Pakistan, a registered trade mark is infringed by the unauthorized use of that mark, or a mark that is substantially identical or deceptively similar to it:

In relation to any goods or services for which the trade mark is registered;
In relation to goods or services that are similar (Unless the alleged infringer establishes the use isn’t likely to deceive or cause confusion); or
Where the relevant mark is well-known in Pakistan and use (even on unrelated goods or services) indicates a connection with the owner and thereby adversely affects its interests.

What is the role of a trademark attorney?

Trademark attorneys are qualified to act on behalf of clients (along with registered patent attorneys and lawyers) in relation to matters arising under the Trade Marks Ordinance, 2001. They advised on issues relating to registration and enforcement of trade marks and prosecute the applications before the Trade Marks Registry.

Trademark Registration Process

Trademark Registration & Advice

Our network of offices and correspondent firms assists clients in establishing, maintaining, and enforcing trademark rights on a global basis. We provide practical guidance and precision in translation and other services needed during the local registration process. Rather than simply communicating problems and impediments, we create solutions.

Typical projects in the trademark area of our practice include:

Advising on selection and suitability of marks for registration;
Advising on proper use of trademarks in packaging, labeling, advertising in print and electronic media;
Searching prior registrations and applications;
Advising on prospects for obtaining registration;
Filing applications and prosecution to registration;
Conducting opposition proceedings;
Making renewal, assignment or modification of registered trademarks;
Advising on rights in trade names, trade dress, passing-off, unfair competition, and unregistered trademark rights acquired through use;
Negotiating and drafting agreements for the purchase, sale, or licensing of trademark rights;
Registering license and user agreements;
Trademark watching service for conflicting marks;
Advising in relation to infringing use;
Conducting consultations and investigations obtaining evidence concerning the infringement of trademarks, requesting for; and
Taking deregistration actions against rival marks that have been improperly registered or not used.

Trademark Laws in Protection of Intellectual Property Rights

Trade Marks Ordinance, 2001

Trade Marks Ordinance 2001 deals with the remedies regarding protection of Intellectual Property Rights in case of violation of any registered trade mark.

Infringement of Trade Marks

Section 39 and 40 of the Trade Marks Ordinance 2001 deal with the situations where an infringement of a registered trademark has been occurred. Section 39 says that a registered trademark deems to be a personal property of the proprietor. If any person other than the proprietor uses that mark for the trade which is similar to the goods or services for which that mark has been registered, it shall be deemed to be the infringement of the registered trademark under Section 40. If the words “registered goods” have been displayed on their packaging or on their container, it is a notice to prohibition of certain acts relating to those goods under Section 41.

No infringement in certain cases

Section 42 of the Trade Marks Ordinance 2001 describes certain conditions in which trade mark has not been infringed:

Where the person’s name or person’s place of business, so long as such use doesn’t result in a likelihood of confusion or otherwise interfere with an existing trade mark or other property right;
The name of the predecessor in business of the person or the name of the predecessor’s place of business;
The person uses the mark in a good faith to indicate the kind, quality, quantity, intended purpose, value, geographical origin, or some other characteristics of goods or service; or
The person uses the mark for the purposes of comparative advertising.

Action for Infringement

Section 46 says that the action for infringement of the trade mark can be taken by the proprietor of the trade mark.

Remedies for Infringement

Damages;
Injunctions;
Accounts; or
Any other remedies which are available to the person having some other property rights.

Place where the suit has to be instituted

According to Section 117 of the Trade Marks Ordinance 2001, any suit for the infringement of any trade mark shall be instituted before District Court.

Transitional Provisions

The provisions of the Fourth Schedule shall have effect with respect to the transitional matters, including the treatment of trademarks registered under the Trade Marks Act, 1940, and applications for registration and other proceedings pending under that Act, on the commencement of the Trade Marks Ordinance 2001.

GENERAL REMEDIES UNDER THE CODE OF CIVIL PROCEDURE, 1908

Temporary Restraining Order and a Preliminary or Permanent Injunction

If you are being wronged, you may ask the appropriate court to grant a Temporary Restraining Order and a Preliminary or Permanent Injunction to prevent and/or stop further infringement under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure 1908.

Statutory Damages

Allegedly infringing items or articles can be impounded while the action is pending and may be ordered destroyed or subject to other disposition if there is an infringement. An infringer can be liable for actual damages plus additional profits of the infringer or statutory damages.

Liable for Injury to Business Reputation

Further, an infringer could be held liable for injury to business reputation or the dilution in the value of the copyright, patent, or trademark. Costs and attorneys’ fees sometimes also may be awarded to the prevailing party.

PENALTIES IN PAKSITAN PENAL CODE DESIGNED AGAINST INFRINGEMENT OF TRADE, PROPERTY AND OTHER MARKS

Trademark has been defined in Section 478 of the Pakistan Penal Code and Property Mark has been explained in Section 779 ibid. Section 480 defines the false trademark and 481 deals with the using of false property mark.

The text of Section 478 to 489 of the Pakistan Penal Code 1860, provide penalties against infringement of Trade, Property and other Marks which is given below:

Punishment for using a false Trademark or Property Mark

Section 482 says that whoever uses any false trademark or any false property mark shall be punished with:

imprisonment of for a term which may extend to one year; or
with fine; or
with both.

Punishment for counterfeiting a Trademark or Property Mark

According to Section 483 the punishment for counterfeiting any trademark or property mark is two years with fine or confinement only or fine only.

Punishment for counterfeiting a mark used by a public servant

The offence under Section 484 is an aggravated form of the offence described in the preceding one. An enhanced punishment is, therefore, given where a mark used by a public servant is counterfeited. A three years punishment has been described for counterfeiting a property mark or any other mark used by a public servant.

Punishment for making or possessing any instrument for counterfeiting a Trademark or Property Mark

According to Section 485 whoever makes or has in his possession any die, plate or other instrument for the purpose of counterfeiting a trademark or property mark shall be punished with imprisonment for three years with or without fine or fine only.

Making a false mark upon any receptacle containing goods

Section 487 furnished the false marking of case, package, or receptacle containing goods in a manner reasonable calculated to deceive a public servant or any other person. It is not required that the mark should be a trade mark or property mark. A person making a false mark upon any receptacle containing goods can escape punishment under this section only if he proves that he acted without intent to defraud.

Punishment for making use of any such false mark

According to Section 488 whoever makes use of any such false mark in any manner prohibited by Section 487 be punished as if he has committed an offence against Section 487 unless he proves that he acted in good faith.

Punishment for tempering with Property Mark

Section 489 says whoever removes, destroys, defaces or adds to any property mark with intention to cause injury to any person shall be punished with one year imprisonment with fine or without fine or fine only.

PROTECTION UNDER CUSTOMS ACT, 1969

Section 15 specified certain goods which are not allowed to brought into Pakistan, whether by air, or by sea or by land. It includes:

goods having applied a counterfeit trade mark;
goods having applied a false trade description;
goods made or produced outside Pakistan and having applied any name or trade mark of any proprietor, dealer or trader in Pakistan unless:
- the name or trade mark is as to every application, accompanied by a definite indication of the goods that these are made or produced in a place outside Pakistan;
- the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark.
goods made or produced outside Pakistan and intended for sale and having applied a design in which copy right exists under the Patents and Designs Act.

Prohibition or restriction of importation or exportation of goods

According to Section 16, the Central Government may, from time to time, by notification in the official gazette, prohibit or restrict the bringing into or taking out of Pakistan of any goods of specified description under Section 15 by air, sea or land.

Confiscation of Goods

Section 17 of the Customs Act 1969 says that if any goods specified in Section 15 are imported into or attempted to be exported out of Pakistan shall be liable to detention or confiscation.

2. PATENT & DESIGN LAW, PATENT LAWYERS & PRACTICE IN PAKISTAN

Here you may find information about patent law and and lawyers in Pakistan. Our team of attorneys best assist their clietns in understanding the Patent Law existing herein Pakistan. Increasing competition and global commerce have changed the way patents are approached and managed. Today, it is essential to have an intellectual property strategy that includes maximizing the potential value of a company’s patents as well as reducing unnecessary costs and risks.

Asghar & Sons Jurists is one of largest among all IP firms in Pakistan under the Patronage of Honorable Sir Asghar Malik. Our Law firm has filed patents with the Patent and Trademark Office in a wide range of disciplines including Information technology, Biotechnology / Life sciences, Chemicals, Manufacturing and Electronics etc. While obtaining patents is essential, it is only one step in developing a patent portfolio that offers the necessary protection, as well as optimizes marketability. Clients of Asghar & Sons Jurists benefit from constant reviews of patent use, competitor actions and market trends. The firm establishes and manages portfolios of Pakistani and foreign patents for large corporations and large enterprises as well.

What is a patent?

A patent is a right of exclusion granted by a government to the inventor of an article, device, substance, process or method which is new, inventive and useful in return for its development and disclosure to the public.

What rights does a patent provided?

Patents provide the inventor with the right to exclude others from exploiting the invention for the life of the patent, which is generally up 20 years from filing.

What can be patented?

Virtually any new and useful advance can be patented, for example mechanical devices, electric circuits, chemical compounds, genetically altered life forms and the application of computer software and algorithms. Business methods and manufacturing process can also be patented, especially if they involve computers and information technology. The advance doesn’t need to be a major breakthrough – a small improvement or variation may be patentable. It is necessary, however, for there to be an inventive step, i.e. the improvement can’t be considered obvious to a skilled worker in the relevant filed.

What can’t be patented?

Generally, items such as plans, schemes, artistic creations and mental process cannot be patented. Since the law determining permissible subject matter for patents is based upon an accumulation of court decisions, what can be successfully patented has changed over the years and varies from country to country.

What are the different types of applications and patents?

Provisional application

The first step in filing a patent application in Australia is often the lodgment of an application, accompanied by a provisional specification, at the Patent Office. The provisional specification describes the invention and (in most cases0 its date of lodgment determines the ‘priority date’, on which date the invention must be new.

Complete application (leading to standard patent)

Within 12 months of lodging the provisional application can be lodged at the Patent Office. Where an invention is in development when a provisional specifications can be lodged in the 12-months period to include additional material. All such provisional specifications can be combined in a single with a series of numbered paragraphs called claim. The claims define the monopoly sought – both the particular embodiment of the invention as described in detail in the specification and variations.

Divisional application

Under the Patents Act 1990 it is possible to file a patent application that claims the same priority date as one previously filed and claims matter disclosed in an earlier application. These divisional in an application have a maximum term of 20 years, common with the parent case, but must be filed prior to sealing of the parent complete application.

Innovation patent

The novelty test for an innovation patent, as for a standard patent, includes publication or use anywhere in the world. However a lower innovative step applies. The innovation patent contains a maximum of five claims, has a shorter term (eight years instead of 20) and no extension of term is available. Applications are not subjected to examination, however, for the patent to be relied on infringement proceedings – the patentee must request examination and the patent must be validated.

Patents of addition

An application for a patent of addition may be made for a single improvement in, or modification of, the main invention in an earlier patent. The owner must be the same as the earlier patent or a person authorised by the owner.

Is there a worldwide patent?

No. Patents are obtained on a country-by-country basis, although there are a small number of regional patent arrangements, including one in Europe. The Patent Cooperation Treaty also exists, however this only applies for a short time during the application stage and national patens still ultimately result.

What is the role of a patent attorney?

Patent attorneys provide the expertise required in order to obtain and protect IP rights. This involves managing the processes by which patents, trademarks’ rights are granted, and advising on the issues surrounding their validity and infringement. Patent attorney must have a degree in engineering or since.

What is a registered design?

A design is a feature of shape, configuration, pattern or ornamentation of an article capable of being judged by the eye. It is possible to register a design and there by obtain protection for the external appearance of a product. Protection is usually sought for either three-dimensional features of shape and /or configuration or two-dimensional features of pattern and/or ornamentation. The design must be new and original at the date of application for registration.

When has a registered design been infringed?

Generally, by the unauthorised application of the design (or an obvious or fraudulent imitation) to any article to which the design is registered – including importation, sale / hire and offering to sell / hire.

What could prevent your design from registered?

Any earlier registration, publication, sale or use in Pakistan of an article that differs only in immaterial detail, or in features commonly used in the trade, from the design for which protection is being sought.

Is there a worldwide registered design?

No. Registered designs are obtained on a country-by-country basis, although a single European Community Design has recently been introduced.

PROTECTION OF INTELLECTUAL PROPERTY UNDER PATENTS ORDINANCE 2000

Suit for infringement of a patent

A patentee may institute a suit under section 60 in the District Court which have the jurisdiction to try the suit against any person who during the continuance of the patent acquired by him under this law, in respect of an invention, makes, sells or uses the invention without his license, or counterfeits it, or imitates it.

Reliefs in suits for infringement

If a patent is infringed by infringer and a suit for infringement has been field against him then the remedies can be availed by the patentee. The Court can order to:

desist form infringement;
infringer to pay the right holder damages adequate to compensate for the injury he has suffered because of infringement;
pay the right holder expenses which may include appropriate attorney’s fee;
the recovery of profits, damages and pre-established damages;
dispose off the goods (which found to be the infringing) outside the channels of commerce without giving any compensation to the infringer;
dispose off the material, implements and predominant, use of which has been in infringing goods, outside the channels of commerce to minimize the risk of more infringement without giving any compensation to the infringer;
infringer to inform the right holder of the identity of third parties involved in production and distribution of the infringing goods and their channel of commerce in case of serious infringement;
adequate compensation to the party who has been wrongfully restrained by the party on whose request measures has been taken;
the applicant to pay the defendants expenses including attorneys fee.
prevent an infringement, if there are imported goods the court can order to prevent its customs clearance;
preserve its relevant evidence in the alleged infringement; and
provisional measures to prevent the delay which cause harm to the right holder or where there is a demonstrable risk of evidence being destroyed.

PROTECTION UNDER REGISTERED DESIGNS ORDINANCE 2000

Remedies under Section 8

If any person infringes a registered proprietor’s right, the proprietor may:

bring a suit against him for the recovery of damages; and
bring a suit for an injunction for the continuance of the infringement.

3. COPYRIGHT LAW, COPYRIGHT LAWYERS, PROTECTION & SERVICES IN PAKISTAN

A copyright is an intellectual property right granted by the government that gives the owner exclusive rights to use the original expressive work with some limited exceptions. Notable instances entitled to copyright protection include the original works of fictional writings, non-fictional writings, music, lyrics, architectural design, artistic works, paintings, and sculptures etc.

It is the right of literary property as recognized and sanctioned by a positive law, the Copyright Ordinance, 1962 as amended by Copyright (Amended) Act 1992. An intangible, incorporeal, right granted by these statutes to the author or originator of certain literacy or artistic productions, whereby he is invested for a limited period, with the sole and exclusive privilege of multiplying copies of the same and publishing and selling them.

Are you seeking a law firm that may efficiently protect your artistic work from potential or real threats? Our team of copyright lawyers and consultants at Asghar & Sons Jurists possesses extensive experience in filing copyright applications, registration and securing your copyrights in Pakistan in a very professional manner. Copyright protection subsists in original works of authorship fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced or otherwise communicated, either directly or with the aid of a machine or device. Works of authorship include following categories:

Literary Works;
Musical Works including any accompanying words;
Dramatic Works, including any accompanying music;
Pantomimes and choreographic works;
Pictorial, Graphic, and Sculptural works;
Motion pictures and other audio-visual works; and
Sound recordings.

In no case does copyright protection for an original work of authorship extend to any idea, procedure, process, system, method of operation, concept, principle or discovery, regardless of the form in which it is described, explained, illustrated or embodied in such work.

Common Law Copyright is that right which author has in his unpublished literary creations, a kind of property right whose extent is to give him control over first publication of his work or to prevent its publication.

By reprinting the whole work verbatim;
By reprinting verbatim a part of it;
By imitating the whole or part, or by reproducing the whole or part under abridged form;
By reproducing the whole or part with colourable alternation;
By converting it into a dramatic work;
By making mechanical contrivance whereby it may be reproduced;
By performing it in public; and
By dealing with copies made or imported in contravention of Copyright Act.

Nothing can with greater propriety be called in man’s property then the fruit of his brain. The property in any article or substance accruing to him by virtue of his own mechanical labour is never denied to him, the labour of his mind is no less arduous and consequently no less worthy of the protection of the law. It has nevertheless been a matter of frequent controversy whether copyright is a natural right or one entirely dependent on statute.

If it is a natural right then the period of protection must be logically to have been unlimited.

Know Your Legal Device

We Asghar & Sons Jurists deal in copyright registration, help in making agreements to get license, protect international copyright and infringement. Though frequently overlooked in the business world, copyright is an inexpensive, yet powerful, legal device. By protecting the expression of innovative ideas such as publications, computer applications, and designs, a strategic copyright program helps to ensure continued success for technology-based enterprises.

At Asghar & Sons Jurists, our copyright attorneys have extensive experience in helping clients file for copyright protection, and work proactively to identify ownership issues before they arise. In addition to counseling our clients on the registration of original works of authorship, we can assist them in establishing systems for policing and enforcing their copyrights.

In this day and age, maintaining control of digital works can pose special challenges for businesses. Our attorneys have expertise in the applicability of copyright to digital mediums such as software, digitized text, and electronic databases, and can provide insight into how the law impacts high-technology companies.

Seeking a Strong and Responsive Copyright Law Firm?

Our knowledgeable copyright attorneys have many years of pre-law industry experience, and can appreciate the sophistication of our clients’ technologies. The solid intellectual backbone of our firm allows us to cater to a wide range of electrical, chemical, mechanical, and biological arts. Representative technologies include communication systems and protocols, hybrid circuitry, power systems, integrated circuits, transducers, computer-implemented applications, quantum well devices, supercritical fluids, polymer compounds, textiles, and tools and related gadgetry.

In keeping with the firm’s core philosophy, our associates are dedicated to providing responsive and courteous service at all stages of copyright prosecution. We invite you to learn more about how our Law Firm can help safeguard your company’s valuable intellectual property assets.

COPYRIGHT PROTECTION UNDER COPYRIGHT ORDINANCE 1962

Duration of Copyright

The period of copyright of a literary, dramatic, musical or artistic work (other than a photograph) is the life of the author and 50 years thereafter. In the case of a cinematographic work and a photograph, copyright subsists until 50 years from the beginning of the calendar year from publication of the work.

Infringement of Copyright

The act of copying of work, which is entitled to copyright protection, by any method, either directly or with the aid of a machine or device constitutes an infringement of the copyright in the work. Section 56 of the Ordinance provides that copyright in a work shall be deemed to be infringed in the following cases:

A. When any person without the consent of the owner of the copyright or without a licence granted by such owner or the Registrar under the Ordinance or in contravention of the conditions of a licence so granted or of any condition imposed by a competent authority under the Ordinance:

Does anything the exclusive right to do which is by this Ordinance conferred upon the owner of the copyright; or
Permits for profit any place to be used for the performance of the work in public where such performance constitutes an infringement of the copyright in the work unless he was not aware and had no reasonable ground for suspecting, that such performance would be an infringement of the copyright, or

When any person:

Makes for sale or hire or sells or lets for hire, or by way of trade displays or offers for sale or hire, or
Distributes either for the purpose of trade to such as extent as to affect prejudicially the owner of the copyright, or
By way of trade exhibits in public, or
Imports into Pakistan, any infringing copies of the work.

Infringement of Computer Programmes

Pursuant to the restrictions imposed under Section 56 of the Ordinance, even the purchasers of computer programmes may not copy, adapt or make copies of adaption of the programmes in connection with their use by themselves or their employees. The unauthorized use of a computer programme in a computer is also infringement of the copyright. Accordingly, if a duplicate of a computer programme is acquired by someone who has no licence to use it, the copyright owner has the right to prevent him using it. Section 56 also restricts rental of computer programmes to un-authorised users. Intention to copy computer programmes is not an essential ingredient of infringement; nor is it essential that the copying be in the same medium. Thus, a computer programmme stored on diskettes (or any other magnetic media) can be infringed by copying the same on paper, or taking a print-out of the same.

Liability for Infringement

In the event of infringement, liability of infringement falls upon the person who, without the consent of the owner of the computer programme does any of the restricted acts; or authorizes any other person to do any such acts; or commits any acts of infringement.

Remedies for Infringement

There are two remedies for breach of copyright in Pakistan; civil proceedings and criminal proceedings. Accordingly, a person whose copyright has been infringed is able to sue for damages, claim an injunction, an account of the profits gained by the defendants as a result of the infringement, delivery up of infringing articles etc. Recently added section 74(3) of the Ordinance provides that all offences under the Ordinance are cognizable and non-bailable. Section 59 of the Ordinance provides that an action may be brought by the original owner of the copyright, which, inter alia, include the person to whom an exclusive licence has been granted. Amended Section 65 of the Ordinance provides that every suit or other civil proceedings regarding infringement, at the discretion of the applicant, should be instituted and tried in the Court of the District Judge.

Section 66 of the Ordinance, as amended by the Amendment Act, provides that any person who knowingly infringes or abets the infringement of the copyright in a work (defined to include computer programmes), or any other right conferred by the Ordinance shall be punishable with imprisonment which may extend to 3 years, or with fine which may extent to one hundred thousand rupees (one US dollars nearly equals twenty five rupees), or with both. Additionally, Section 70B of the Ordinance provides that where any person convicted for an offence punishable under, inter alia, Section 66 is again convicted for the same offence, he shall in such event be imposed with a fine (beside the imprisonment which may extent to 3 years) upto rupees two hundred thousand.

Recently amended Section 74(1) of the Ordinance now gives additional powers to police to seize infringing copies of the work. The section empowers any police officer, if he is satisfied that an offence in respect of infringement in any work has been, is being, or is likely to be committed, to seize without warrant all copies of the work and all plates and recording equipments used for the purposes of making infringed copies of the work, wherever found, and all copies, plates and recording equipments so seized shall, as soon as possible, be produced before a Magistrate.

Offences by Companies

Section 71 of the Ordinance provides that where an offence under the Ordinance is committed by a company, every person who at the time was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company is deemed to be guilty of such offence and is liable to be proceeded against and punished accordingly. Except in the circumstances, the accused proves that the offence was committed without his knowledge or that he exercised due diligence to prevent the commission of such offence, he is deemed guilty.

4. INTELLECTUAL PROPERTY LAW, IP LAWYERS & ENFORCEMENT SERVICES IN PAKISTAN

Asghar & Sons Jurists is one of the leading Intellectual property laws firm in Pakistan with its network spread across Pakistan rendering Intellectual Property Enforcement Services to its clients proficiently and efficiently.

In today’s competitive world it is important to ensure that the Companies are protected from any degrading reputation to their brand names specifically in terms of counterfeiting. Counterfeiting and theft of one’s brand name and products is one of the major problems faced by the Companies all around the world especially in Pakistan. Pakistan is the 6th most populous country of the world and is large consumer market but it has massive record of infringement/counterfeit of the rights pertaining to trademark, patent, design and copyrights. Obviously, this causes a lot of problems for the Companies in terms of their goodwill and reputation as the consumers tend to get confused and may associate the fake brand name with Original.

OUR EXPERTISE

Asghar & Sons Jurists is one of the nation’s leading IP law firms focused on a full-service IP practice with a network spreading across Pakistan rendering Anti-Counterfeiting, Enforcement and Brand Protection services in both four-wall and digital counterfeiting sectors to its international and local clients.

We closely and methodically work with our clients to enhance effective anti-counterfeiting programs that help combating misappropriation / brand piracy issues due to the invasion of the “clones” and “knock-offs” at the market place or on the dot com portals.

We help assist companies / brands to design strategies to combat manufacturing and sales of grey marketing and work holistically on proactive anti-counterfeiting solutions as the paradigm of risk has shifted from predictable to hi-tech online businesses as well.

We at Asghar & Sons Jurists have developed and successfully implemented comprehensive plans while understanding the world intimately, for the prevention and elimination of the contextual nature of counterfeiting involving B2B and B2C sites together with the help of conjoining law enforcement regime. We have done it extensively, and done it with precision.

COUNTERFEITING OF TRADEMARKS AND COPYRIGHTS IN PAKISTAN

By way of controlling of infringement/counterfeit, we render following services to our clients.

Criminal Remedies

Identifying the infringers and counterfeiters
Issuance of a legal / warning notices to the infringers / counterfeiters and publication of such notices in the press.
Conducting raids, searches and site visits to discover the knock-offs / counterfeits in order to provide the clients and the law enforcement with the full picture of the ongoing operations of the counterfeiters, with the help of the appropriate law enforcement agencies.
Monitoring the parallel imports and grey market goods in collaboration with the Inland Customs Authorities. We then follow up with importers to seek forfeiture of the goods and also keep frequent checks on social sites to locate the sources of the sales of fake products.
In case of violation of IP rights; take legal action with concerned law enforcement agencies i.e. Police / Federal Investigation Agency (FIA) and Custom authorities.
Lodging of F.I.R against the infringers/counterfeiters before appropriate department.
Seizure and confiscation of counterfeit goods / products and seizure of premises where applicable.
Post raid proceedings i.e. contesting of bail and conducting the trial before the Court till final decision.

Civil Remedies

Filing of Civil suits, obtaining injunctive or stay order against the infringers / counterfeiters and recovery of damages etc. before Intellectual Property Tribunal (IPO Tribunal) and or before Higher Courts.
Filing of complaint before Competition Commission of Pakistan (CCP) for deceptive marketing / trade malpractices.
Filing of Appeals before appropriate appellate forums i.e. Higher or Superior Courts against the order passed by IPO Tribunal and CCP.

FAMILY

FAMILY LAW, FAMILY LAWYERS & PRACTICE IN PAKISTAN

Here you may find information about family law in Pakistan. Our team of family lawyers at Asghar & Sons Jurists best assist their clients in resolving family law related affairs in Pakistan. The legal system is based on English common law and Islamic law. The former is more influential in commercial law while the later is more influential in personal status (and more recently, criminal and tax law to some extent).

After the partition of India in 1947, the legislation relating to Muslim family law introduced in British India continued to govern personal status. A seven-member Commission on Marriage and Family Laws was established in 1955 with a remit to consider the personal status laws applicable in the new state and determine the areas needing reform. The Commission submitted its report in 1956, suggesting a number of reforms, including, for example, the consideration of all triple talaqs (except for the third of three) as single, revocable repudiations.

The report led to much debate, with many leading ulema (including but not limmited to Maulana Abual Ala Maududi, leader of the Jamaat-i-Islami) opposing its recommendations. The Muslim Family Laws Ordinance, 1961 adopted some of the provisions of the Report of the Marriage and Family Laws Commission, aiming to reform divorce law and inheritance law relating to orphaned grandchildren, introduce compulsory marriage registration, place restrictions on the practice of polygamy, and reform the law relating to dower and maintenance in marriage and divorce, as well as to amend existing legislation with relation to marriage age. Again, various sectors of the ulama regarded this as unjustified interference or tampering with the classical law. When the first Constitution of Pakistan was finally promulgated in 1956, it included a provision that came to be referred to as the repugnancy clause. This clause stated that no law repugnant to Islamic injunctions would be enacted and that all existing laws would be considered in light of this provision, in order to institute appropriate amendments. This repugnancy provision has been retained and actually strengthened in the succeeding Constitutions.

After a military take-over in 1999, the Constitution was again suspended. During 2000, discussions continued about possible amendments to the Constitution.

Schools of Fiqh

The predominant madhhab is the Hanafi, and there are sizeable Jafari and Ismaili minorities. The legal status of the Ahmadis is somewhat unclear. They self-identify as Sunni Muslims, but were declared non-Muslims by the state. In 1974, then-Prime Minister Zulfiqar Ali Bhutto finally conceded to a long-standing campaign waged by conservative religious elements agitating for the official designation of Ahmadis as non-Muslims. There have been Ahmadi initiatives to adopt a modified version of the Muslim Family Laws Ordinance 1961 to be applied to Ahmadi personal status cases. There are also Christians, Zoroastrian, Hindu, Sikh and Jewish minorities in Pakistan.

Constitutional Status of Islamic Law

The third Constitution was adopted on 10th April 1973, suspended in 1977, and re-instituted in 1985; it has undergone numerous amendments over time. It was suspended again in 1999 and remained suspended at the time of writing.

Article 1 of the Constitution declares that Pakistan shall be known as “the Islamic Republic of Pakistan” and Article 2 declares Islam the state religion. In 1985, the Objectives Resolution contained in the preamble of the Constitution was made a substantive provision by the insertion of Article 2A, thereby requiring all laws to be brought into consonance with the Quran and sunnah. Chapter 3A establishes the Federal Shariat Court and stipulates that the Court shall take up the examination of any law or provision of law that may be repugnant to the “injunctions of Islam, as laid down in the Holy Quran and the Sunnah”. If a law or provision is determined to be repugnant, the Court is to provide notice to the federal or provincial government specifying the reasons for the decision. The Court may also examine any decisions relating to the application of the hudud penalties which have been decided by any criminal court, and may suspend the sentence if there is any question as to the correctness, legality or propriety of any finding, sentence or order or the regularity of the proceedings. The Supreme Court also has a Shariat Appellate Bench empowered to review the decisions of the Federal Shariat Court and consisting of three Muslim Supreme Court judges and up to two ulama. Part IX of the Constitution is entitled Islamic Provisions and provides for the Islamization of all existing laws, reiterating that no laws shall be enacted which are repugnant to the injunctions of Islam. An explanation appended to Part IX clarifies that, with respect to personal law, the expression “Quran and Sunnah” means the laws of any sect as interpreted by that sect.

The Islamic provisions also provide for the creation of an Islamic Ideology Council of 8 to 20 members appointed by the President. They must have “knowledge of the principles and philosophy of Islam as enunciated in the Holy Quran and Sunnah, or understanding of the economic, political, legal or administrative problems of Pakistan.” The Islamic Council is meant to represent various schools of thought as far as that may be practical, and at least one woman should be appointed. Its function is to make recommendations to the Majlis-e-Shoora (Parliament) and the Provincial Assemblies “as to the ways and means of enabling and encouraging the Muslims of Pakistan to order their lives individually and collectively in all respects in accordance with the principles and concepts of Islam as enunciated in the Holy Quran and Sunnah.” The Council also determines for the federal and provincial governments whether or not proposed laws are repugnant, and compiles for them in suitable form “such Injunctions of Islam as can be given legislative effect.

Judicial System

The judiciary is composed of three levels of federal courts, three divisions of lower courts, and a Supreme Judicial Council. District courts in every district of each province, having both civil and criminal jurisdiction though they deal mainly with civil matters. High Court of each province has appellate jurisdiction over the lower courts. Supreme Court has exclusive jurisdiction over disputes between federal and among provincial governments, and appellate jurisdiction over High Court decisions. Federal Shariat Court established by Presidential Order in 1980. This Court has a remit to examine any law that may be repugnant to the “injunctions of Islam, as laid down in the Holy Quran and the Sunnah.” If a law is found to be repugnant, the Court is to provide notice to the level of government concerned specifying the reasons for its decision. The Court also has jurisdiction to examine any decisions of any criminal court relating to the application of hudud penalties. The Supreme Court also has a Shariat Appellate Bench empowered to review the decisions of the Federal Shariat Court. The West Pakistan Family Courts Act, 1964 governs the jurisdiction of Family Courts. These courts have exclusive jurisdiction over matters relating to personal status. Appeals from the Family Courts lie with the High Court only. The Family Courts have exclusive jurisdiction over matters pertaining to the dissolution of marriage, dower, maintenance, the restitution of conjugal rights, the custody of children, and guardianship.

Relevant Legislation

Guardians and Wards Act, 1890
Child Marriage Restraint Act, 1929
Dissolution of Muslim Marriages Act, 1939
Muslim Family Laws Ordinance, 1961
(West Pakistan) Muslim Personal Law (Shariat) Application Act, 1962
(West Pakistan) Family Courts Act, 1964
Offence of Zina (Enforcement of Hudood) Ordinance, 1979
Law of Evidence (Qanun-e-Shahadat) Order, 1984
Enforcement of Sharia Act, 1991
Dowry and Bridal Gifts (Restriction) Act, 1976
Prohibition (Enforcement of Hudood) Order, 1979
Offence of Qazf (Enforcement of Hudood) Order, 1979
Execution of Punishment of Whipping Ordinance, 1979 (many provisions of this Ordinance were repealed later on so as to limit the number of crimes to which it is applicable)

Notable Features

The West Pakistan Muslim Personal Law (Shariat) Application Act, 1962

Repealed the 1937 Muslim Personal Law (Shariat) Application Act as well as provincial legislation on the application of Muslim personal law. The new Act directs the application of Muslim personal law, notwithstanding any custom or usage, to all questions of personal status and succession where the parties are Muslims. One particular provision of the new legislation states that, “the limited estates in respect of immovable property held by Muslim females under the customary law are hereby terminated”; this constitutes the opposite stance to customary land law to the 1937 enactment, and so the new Act provides that it will not apply retrospectively.

Marriage Age

18 for males and 16 for females; penal sanctions for contracting under-age marriages, though such unions remain valid.

Marriage Guardianship

Governed by classical Hanafi law, though influence of custom is strong; in Abdul Waheed v. Asma Jehangir (PLD 1997 Lah 331), court confirmed that, under current law, adult Hanafi Muslim woman can contract herself in marriage without wal’s consent as essential requirement for validity of contract is the woman’s consent and not the wali’s.

Marriage Registration

The Muslim Family Laws Ordinance (MFLO), 1961 introduced reforms to various aspects of the classical law. The reforms concern the registration of marriage and divorce, inheritance rights of orphaned grandchildren, restrictions on polygamy, consideration of every talaq (except the third of three) as single and revocable, formalisation of reconciliation procedures in disputes relating to maintenance or dissolution of marriage, and recovery of mahr, along with specified penalties for non-compliance.

Penal sanctions for those in violation of mandatory registration requirements for marriage; failure to register does not invalidate the marriage. The MFLO introduced marriage registration and provides for penalties of fines or imprisonment for failure to register. However, a Muslim marriage is still legal if it is contracted only according to the religious requisites.

Polygamy

The MFLO also instituted some limited reforms in the law relating to polygamy, with the introduction of the requirement that the husband must submit an application and pay a fee to the local Union Council in order to obtain prior written permission for contracting a polygamous marriage. The application must state the reasons for the proposed marriage and indicate whether the applicant has obtained the consent of the existing wife or wives. The chairman of the Union Council forms an Arbitration Council with representatives of the existing wife or wives and the applicant in order to determine the necessity of the proposed marriage. The penalty for contracting a polygamous marriage without prior permission is that the husband must immediately pay the entire dower to the existing wife or wives as well as being subject to a fine and/or imprisonment; any polygamous marriage contracted without the Union Council’s approval cannot be registered under the MFLO. Nevertheless, if a man does not seek the permission of his existing wife or the Union Council, his subsequent marriage remains valid. Furthermore, the difficulty in enforcing resort to the application process to the Union Council, combined with the judiciary’s reluctance to apply the penalties contained in the MFLO (as indicated by the case law), tend to restrict the efficacy of the reform provisions. This has led some observers to describe the provisions requiring the permission of the Arbitration Council as a mere formality.

Constraints placed on polygamy by requirement of application to the local Union Council for permission and notification of existing wife/wives, backed up by penal sanctions for contracting a polygamous marriage without prior permission; husband’s contracting polygamous marriage in contravention of legal procedures is sufficient grounds for first wife to obtain decree of dissolution.

Obedience / Maintenance

The chairman of the Union Council will also constitute an Arbitration Council to determine the matter in cases where a husband fails to maintain his wife or wives, or fails to maintain co-wives equitably (at the application of one or more wife or wives, and in addition to their seeking any other legal remedy). Any outstanding dower or maintenance not paid in due time is recoverable as arrears of land revenue. Also, where no details regarding the mode of payment of mahr are recorded in the marriage contract, the entire sum of the dower stipulated therein is presumed to be payable as prompt dower.

Talaq (Divorce)

Consideration of every talaq uttered in any form whatsoever (except the third of three) as single and revocable; formalisation of reconciliation and notification procedures, and procedures for recovery of mahr and penalties for non-compliance; talaq was generally rendered invalid by failure to notify in 1960s and 1970s, but introduction of Zina Ordinance led to changes in judicial practice so that failure to notify does not invalidate talaq.

Efforts were also made to reform the classical law as it relates to the exercise of talaq. The MFLO requires that the divorcing husband shall, as soon as possible after a talaq pronounced “in any form whatsoever”, give the chairman of the Union Council notice in writing. The chairman is to supply a copy of the notice to the wife. Non-compliance is punishable by imprisonment and/or a fine. Within thirty days of receipt of the notice of repudiation, the chairman must constitute an Arbitration Council in order to take steps to bring about a reconciliation. Should that fail, a talaq that is not revoked, either expressly or implicitly, takes effect after the expiry of ninety days from the day on which the notice of repudiation was delivered to the chairman. If the wife is pregnant at the time of the pronouncement of talaq, the talaq does not take effect until ninety days have elapsed or the end of the pregnancy, whichever is later. The classical law regarding the requirement of an intervening marriage in order to remarry a former husband who has repudiated the same woman three times is retained. Failure to notify invalidated the talaq until the late 1970s and early 1980s, but the introduction of the Zina Ordinance allowed scope for abuse as repudiated wives were left open to charges of zina if their husbands had not followed the MFLO’s notification procedure. Thus, judicial practice has, since the early 1980s, recognised as valid repudiations in contravention of the notification procedure. The rules regarding notification and arbitration apply, mutatis mutandis and so far as applicable, to delegated divorce (talaq al-tafwid), or to marriage dissolved other than by talaq.

Judicial Divorce

Grounds on which women may seek divorce include: desertion for four years, failure to maintain for two years or husband’s contracting of a polygamous marriage in contravention of established legal procedures, husband’s imprisonment for seven years, husband’s failure to perform marital obligations for three years, husband’s continued impotence from the time of the marriage, husband’s insanity for two years or his serious illness, wife’s exercise of her option of puberty if she was contracted into marriage by any guardian before age of 16 and repudiates the marriage before the age of 18 (as long as the marriage was not consummated), husband’s cruelty (including physical or other mistreatment, unequal treatment of co-wives), and any other ground recognized as valid for the dissolution of marriage under Muslim law; judicial khula may also be granted without husband’s consent if wife is willing to forgo her financial rights; leading case Khurshid Bibi v. Md. Amin (PLD 1967 SC 97)

The Dissolution of Muslim Marriages Act, 1939

Continues to govern divorce in Pakistan. The Act has been amended by the Muslim Family Laws Ordinance 1961 to include the contracting of a polygamous marriage in contravention of the MFLO in the grounds entitling a woman to a decree for the dissolution of her marriage. Another amendment raises the age at which a woman has to have been married by her father or other guardian to exercise her option of puberty from 15 to 16; thus, the option of puberty may be exercised if the girl was married before the age of 16 if she repudiates the marriage before the age of 18 so long as the marriage was not consummated. The “judicial khula” is a significant feature of divorce law in Pakistan. It is welcomed by some as giving women the right to divorce regardless of grounds, provided that she is prepared to forgo her financial rights (i.e., repaying her dower). It is criticized by others who point out that judges may rule for a judicial khula in cases where women are clearly entitled to a judicial divorce under the terms of the DMMA without losing their financial rights. In Khurshid Bibi v. Mohd. Amin (PLD 1967 SC 97), the question for the Supreme Court to determine was stated as follows: “(Is) a wife, under the Muslim law, entitled, as of right, to claim khula, despite the unwillingness of the husband to release her from the matrimonial tie, if she satisfies the Court that there is no possibility of their living together consistently with their conjugal duties and obligations.” The Supreme Court stated that the Muslim wife is indeed entitled to khula as of right, if she satisfies the Court that she would be forced into a hateful union if the option of khula was denied her by her husband.

Post-Divorce Maintenance / Financial Arrangements

Governed by classical law In terms of maintenance during and after marriage, the classical law is applied. The post-independence changes to the Indian Criminal Procedure Code that allow a divorced wife who is unable to support herself to claim maintenance from her former husband have not been reflected in the Criminal Procedure Code of Pakistan. While the Indian Criminal Procedure Code was extended so as to apply to divorce, no such reforms have been made to section 488 of the Criminal Procedure Codes of either Pakistan or Bangladesh.

Child Custody

General rule is that divorced wife is entitled to custody until 7 years for males (classical Hanafi position) and puberty for females, subject to classical conditions, though there is some flexibility as best interests of the ward are considered paramount according to Guardians and Wards Act, 1890.

Succession

Governed by classical law; reform introduced in post-independence legislation allows for orphaned grandchildren through sons and daughters to inherit the share their father / mother would have been entitled to had they not predeceased the grandparents.

The Qanun-e-Shahadat (Law of Evidence) Order, 1984

Replaced the Evidence Act 1872, though it essentially restates the original legislation, but as it was intended to bring the law of evidence closer to Islamic injunctions, there were changes which specifically impacted upon women. The Order introduced changes to the law as it relates to the presumption of legitimacy. The original Evidence Act did not provide for a minimum period of gestation, and the maximum was 280 days. Now, the minimum gestation period is set at six months and the maximum at two years, bringing the provision into accordance with the majority position in classical Hanafi fiqh. With regard to the changes introduced relating to womens testimony, practice since the Orders issuance has been for instruments pertaining to financial or future obligations to be attested by two men, or one man and two women while courts may accept or act on the testimony of one man or one woman in all other cases.

The Offence of Zina (Enforcement of Hudood) Ordinance, 1979

Introduced the concepts of fornication and adultery into criminal law. The Pakistani Penal Code had not afforded any recognition to fornication as a crime, and adultery was only defined as an offence under section 497 if a man had intercourse with the wife of another man without his permission; the woman involved bore no criminal liability. The Zina Ordinance provides for severe penalties for committing adultery or fornication, and reiterates the classical distinction between married and unmarried parties in determining punishments. Thus, the hadd punishment for a married person convicted of zina is rajm, stoning to death, a penalty that has not been carried out by the state, and the hadd for an unmarried person found guilty of zina is one hundred lashes in a public place. The Ordinance also makes a distinction between tazir and hadd punishments for zina, as hadd punishments are generally more severe and require a more rigorous standard of proof. If the accused confesses to the crime, or if there are four pious adult Muslim male eye-witnesses to the actual act of penetration, the hadd penalty may be applied. Often the higher standard of evidentiary requirements is not met, and if there are other complications as well (appeals, retractions of confessions, etc.), the usual course has been to apply tazir punishments, defined as imprisonment for up to ten years, thirty lashes, and a fine.

The Enforcement of Sharia Act, 1991

Affirms the supremacy of the sharia, (defined in the Act as the injunctions of Islam as laid down in the Holy Quran and Sunnah) as the supreme law of Pakistan. The Act states that all statute law is to be interpreted in the light of sharia and that all Muslim citizens of Pakistan shall observe the sharia and act accordingly. Section 20 of the Act states that notwithstanding anything contained in this Act, the rights of women as guaranteed by the Constitution shall not be affected.

Law / Case Reporting System

The decisions of Pakistani courts are published in Pakistan Legal Decisions (PLD), Civil Law Cases (CLC), Monthly Legal Digest (MLD) and a number of other law reports.

International Conventions & Reports to Treaty Governing Bodies

Pakistan signed the CRC in 1990, and ratified the Convention the same year. The reservation made upon signature regarding the CRC being interpreted in light of Islamic legal principles and values was withdrawn in 1997.

Pakistan acceded to the CEDAW in 1996, with a general declaration to the effect that Pakistan’s accession to the Convention is subject to the provisions of the national Constitution.

Court System

Court system of Pakistan is made up of many courts differing in levels of legal superiority and separated by jurisdiction. Some of the courts are federal in nature while others are provincial.

Pakistan has three levels of federal courts, three divisions of lower courts, and a Supreme Judicial Council. District courts exist in every district of each province, with civil and criminal jurisdiction. The High Court of each province has appellate jurisdiction over the lower courts. The Supreme Court has exclusive jurisdiction over disputes between and among provincial governments, and appellate jurisdiction over High Court decisions.

The Federal Shariat Court was established by Presidential Order in 1980. This Court has a remit to examine any law that may be repugnant to the “injunctions of Islam, as laid down in the Holy Quran and the Sunnah.” If a law is found to be ‘repugnant’, the Court is to provide notice to the level of government concerned specifying the reasons for its decision. The Court also has jurisdiction to examine any decisions of any criminal court relating to the application of hudud penalties. The Supreme Court also has a Shariat Appellate Bench empowered to review the decisions of the Federal Shariat Court.

The West Pakistan Family Courts Act 1964 governs the jurisdiction of Family Courts. These courts have exclusive jurisdiction over matters relating to personal status. Appeals from the Family Courts lie with the High Court only.

Anti Terrorism Court of Pakistan
Jirga
Pakistan Penal Code
Blasphemy law in Pakistan
Copyright protection in Pakistan
Gay rights in Pakistan
The Oath of Judges Order, 2000

A court is a public forum used by a power base to adjudicate disputes and dispense civil, labour, administrative and criminal justice under its laws. In common law and civil law states, courts are the central means for dispute resolution, and it is generally understood that all persons have an ability to bring their claims before a court. Similarly, those accused of a crime have the right to present their defense before a court.

Court facilities range from a simple farmhouse for a village court in a rural community to huge buildings housing dozens of courtrooms in large cities. A court is a kind of deliberative assembly with special powers, called its jurisdiction, to decide certain kinds of judicial questions or petitions put to it. It will typically consist of one or more presiding officers, parties and their attorneys, bailiffs, reporters, and perhaps a jury.

The term “court” is often used to refer to the president of the court, also known as the “judge” or the “bench”, or the panel of such officials. For example, in the United States the term “court” (in the case of U.S. federal courts) by law is used to describe the judge himself or herself.

In the United States, the legal authority of a court to take action is based on three major issues: (1) Personal jurisdiction; (2) Subject matter jurisdiction; and (3) Venue.

Jurisdiction

Jurisdiction, meaning “to speak the law” is the power of a court over a person or claim. In the United States, a court must have both personal jurisdiction and subject matter jurisdiction. Each state establishes a court system for the territory under its control. This system allocates work to courts or authorized individuals by granting both civil and criminal jurisdiction (in the United States, this is termed subject-matter jurisdiction). The grant of power to each category of court or individual may stem from a provision of a written constitution or from an enabling statute. In English law, jurisdiction may be inherent, deriving from the common law origin of the particular court.

Trial and Appellate Courts

Courts may be classified as trial courts (sometimes termed “courts of first instance”) and appellate courts. Some trial courts may function with a judge and a jury: juries make findings of fact under the direction of the judge who reaches conclusions of law and, in combination, this represents the judgment of the court. In other trial courts, decisions of both fact and law are made by the judge or judges. Juries are less common in court systems outside the Anglo-American common law tradition.

Civil Law Courts and Common Law Courts

The two major models for courts are the civil law courts and the common law courts. Civil law courts are based upon the judicial system in France, while the common law courts are based on the judicial system in Britain. In most civil law jurisdictions, courts function under an inquisitorial system. In the common law system, most courts follow the adversarial system. Procedural law governs the rules by which courts operate: civil procedure for private disputes (for example); and criminal procedure for violation of the criminal law.

The Federal Shariat Court (FSC) of Pakistan consists of 8 muslim judges including the Chief Justice. These Judges are appointed by the President of Pakistan choosing from amongst the serving or retired judges of the Supreme Court or a High Court or from amongst persons possessing the qualifications of judges of a High Court.

Of the 8 judges, 3 are required to be Ulema who are well versed in Islamic law. The judges hold office for a period of 3 years, which may eventually be extended by the President.

The FSC, on its own motion or through petition by a citizen or a government (federal or provincial), has the power to examine and determine as to whether or not a certain provision of law is repugnant to the injunctions of Islam. Appeal against its decisions lie to the Shariat Appellate Bench of the Supreme Court, consisting of 3 muslim judges of the Supreme Court and 2 Ulema, appointed by the President. If a certain provision of law is declared to be repugnant to the injunctions of Islam, the government is required to take necessary steps to amend the law so as to bring it in conformity with the injunctions of Islam.

The court also exercises revisional jurisdiction over the criminal courts, deciding Hudood cases. The decisions of the court are binding on the High Courts as well as subordinate judiciary. The court appoints its own staff and frames its own rules of procedure.

Eversince its establishment in 1980, the Federal Shariat Court has been the subject of criticism and controversy in the society. Created as an islamisation measure by the military regime and subsequently protected under the controversial 8th Amendment, its opponents question the very rationale and utility of this institution. It is stated that this court merely duplicates the functions of the existing superior courts and also operates as a check on the sovereignty of Parliament. The composition of the court, particularly the mode of appointment of its judges and the insecurity of their tenure, is taken exception to, and it is alleged, that this court does not fully meet the criterion prescribed for the independence of the judiciary. That is to say, it is not immune to pressures and influences from the Executive.

In the past, this court was used as a refuge for the recalcitrant judges. And whereas some of its judgments, particularly the ones which relying on the Islamic concept of equity, justice and fair play, expanded and enlarged the scope and contents of individual’s rights were commended, others that tend to restrict the rights of women, are severely criticized and deplored. In brief there is a need for a serious discussion on the status, utility and functions of this Court.

Asghar & Sons Jurists and its family lawyers are well acquainted with the above Family Laws and are in a well position to represent you at any level of proceedings in family courts.

2. THREE / TRIPLE DIVORCE / TALAQ LAW, LAWYERS & PRACTICE IN PAKISTAN

Divorce or dissolution of marriage is the ending of a marriage before the death of either spouse. It can be contrasted with an annulment, which is a declaration that a marriage is void, though the effects of marriage may be recognized in such unions, such as spousal support or alimony, child custody, child support, and distribution of property.

In some jurisdictions, a divorce must be certified by a court of law, as a legal action is needed to dissolve the prior legal act of marriage. The terms of the divorce are also determined by the court, though they may take into account prenuptial agreements or postnuptial agreements, or simply ratify terms that the spouses have agreed on privately. Often, however, the spouses disagree about the terms of the divorce, which can lead to stressful and expensive litigation. Less adversarial approaches to divorce settlements have recently emerged, such as mediation and collaborative divorce, which negotiate mutually acceptable resolution to conflicts. In some other countries, when the spouses agree to divorce and to the terms of the divorce, it can be certified by a non judiciary administrative entity.

After a military take-over in 1999, the Constitution was again suspended. During 2000, discussions continued about possible amendments to the Constitution.

DIVORCE (Talaq / Khula) under Muslim Family Laws

The contract of marriage under the Mohammedan Law may be dissolved in any one of the following ways:

By the husband at his will, without the intervention of a Court;
By mutual consent of the husband and wife, without the intervention of a Court; and
By a judicial decree at the suit of the husband or wife.

The wife cannot divorce herself from her husband without his consent, except under a contract whether made before or after marriage, but she may, in some cases, obtain a divorce by judicial decrees.

Necessary Ingredients of Divorce / Talaq

Should be Intentional

In one case cited as 2004 YLR 619, Federal Shariat Court and 1993 CLC 219 (LHC) categorically observed that a conscious and wilful pronouncement of talaq with the intention to release the wife from marriage bond is a necessary and fore-most requirement of talaq. Thus, in the absence of element of intention to release wife from marital bond, no divorce can be said to be affected.

Should be Communicated

Talaq should be communicated to wife, either verbally or in writing.

Kinds of Divorce / Talaq

Talaq-al-Ahsan

This consists of a single pronouncement of divorce made during a tuhr (period between menstruations) followed by abstinence from going to wife to establish marital relationship till the period of iddat. The said form of Talaq is revocable during the iddate period, however after expiration of the same, the talaq becomes irrevocable and effective. The mode of talaq so recognized under Sec. 7 of the Muslim Family Law Ordinance 1961, is that of Talaq-e-Ahsan.

Talaq-e-Hasan (Proper)

This consists of three pronouncements made by husband during successive three tuhrs, without establishing any physical relationship with the wife, in any of the three tuhrs. The said form of talaq is revocable after first and second pronouncement but after third pronouncement, it becomes irrevocable.

Talaq-e-Biddat

This consist of three pronouncement made during a single tuhr or a single pronouncement made during a tuhr clearly indicating an irrevocable intention to dissolve the marital tie.

Delegated Divorce

It is a form of divorce, wherein husband grants the right to his wife to pronounce divorce upon herself. The divorce pronounced by exercising said right operates in the same manner as the divorce pronounced by the husband.

Talaq-e-Mubarat

In this form of divorce, both husband and wife mutually agreed to divorce and to free themselves from the marital tie and obligations.

Divorce Process

Procedure of Divorce / Talaq to be followed by a Pakistani Muslim Citizen living in Pakistan

According to Muslim Family Laws Ordinance, 1961, to give effect to talaq / divorce there are three requirements:

Pronouncement in accordance with Muslim Law;
Service of Notice upon Chairman; and
Service of the Copy of Notice upon Wife.

If any one of such conditions is not satisfied, the Talaq / divorce would not be effected even after 90 days. The procedure of divorce as contemplated in Section 7 of Muslim Family Laws Ordinance, 1961 is as under:

Any man who wishes to divorce his wife shall, as soon as may be after the pronouncement of talaq / divorce in any form whatsoever, give the Chairman notice in writing of his having done so, and shall supply a copy thereof to the wife.
Whoever contrivance the provisions of sub-section (1) shall be punishable with simple imprisonment for a term which may extend to one year or with fine which may extend to five thousand Rupees or with both.
A Talaq / Divorce unless revoked earlier expressly or otherwise, shall not be effective until the expiration of ninety days from the day on which notice under sub-section (1) is delivered to the Chairman.
Within thirty days of the receipt of notice under sub-section (1) the Chairman shall constitute an Arbitration Council for the purpose of bringing about reconciliation between the parties, and the Arbitration Council shall take all steps necessary to bring about such reconciliation.
If the wife be pregnant at the time of talaq / divorce is pronounced, talaq / divorce shall not be effective until the period mentioned in sub-section (3) or the pregnancy, whichever be later, ends.
Nothing shall debar a wife whose marriage has been terminated by talaq / divorce effective under this section from remarrying the same husband, without an intervening marriage with a third person unless such termination is for third time so effective.

Notice under Section 7(1) is to be given to the Chairman of the Union Council of the Union or Town, where the wife in relation to whom divorce has been pronounced was residing at the time to its pronouncement. However, if at the time of pronouncement of divorce, the wife is not residing in any part of Pakistan, the Union Council that shall have the jurisdiction in such cases shall either be the Union Council of the Council or Town where she last resided with such person whereas, in any other case, the Union Council of the Council or Town, where the person pronouncing the divorce is permanently residing in Pakistan.

Procedure of Divorce / Talaq to be followed by a Pakistani Muslim Citizen living in Foreign Countries

Under Notification No. S.R.O. 1086(K)/61, dated 8-11-1961 and different precedent of superior courts, where both the parties to marriage are permanent residents of foreign Country then the Union Council in Pakistan would not have the jurisdiction to entertain and proceed with the divorce proceedings in Pakistan. The function of Chairman Arbitration Council under Muslim Family Laws Ordinance, 1961, were to be performed by an appointed officer of Pakistan Mission abroad.

However, if any of the spouse is living in Pakistan at the time of pronouncement of divorce then the divorce proceedings can be validly initiated in Pakistan.

Validity and Authenticity of Talaq-e-Biddat : Controversial Issue

The question pertaining to divorce which generally arises in the society is that whether the writing of three divorces would operate as single divorce or it would be irrevocable triple divorce?

The concept of Talaq-e-Biddat and its practice in the light of Holy Quran, Sunnah and legislation of different Islamic Countries has been reproduced by us hereunder:

Talaq-e-Biddat in the Light of Holy Quran

The word talaq derives from Arabic and means ‘freeing or undoing the knot.’ In Islamic terminology, it refers to a divorce.

The Quranic message is very explicit about divorce. It leans more toward safeguarding marriage than dissolving it abruptly.

The chapter on women in the Quran draws attention to the need for arbitration before husband and wife to decide to part ways. It commands:

And if you fear a breach between the two, appoint an arbiter from his people and an arbiter from her people. If they both desire agreement, Allah will effect harmony between them. (4:35)

In the event that triple talaq is pronounced in one go operates as triple divorce, then where does the chances of Arbitration stands, as stated in the Holy Quran.

The Quran prescribes certain norms and procedure to execute divorce, which are required to be followed:

Those who intend to divorce their wives shall wait four months; if they change their minds and reconcile, then God is forgiver, merciful. If they go through with the divorce, then God is hearer, knower. (2:226-227)

It continues to say:

And the divorced women must wait for three menstrual courses… and their husbands are fully entitled to take them back (as their wives) during this waiting period, if they desire reconciliation. (2:228)

Elsewhere, it further decrees:

Divorce may be pronounced twice; then the wife may either be kept back in fairness or be allowed to separate in fairness. Then, if the husband divorces his wife (for the third time), she shall not remain lawful for him after this divorce, unless she marries another husband… (2:229-230)

The Islamic scripture demands time and patience in executing a divorce in the hope of making the union possible knowing that the couple is bound to have differences.

There is a complete chapter devoted to divorce in the Quran entitled ‘At-Talaq’, which explains:

O Prophet, when you divorce women, divorce them for their prescribed waiting-periods, and count the waiting-period accurately, and fear Allah, your Lord. And do not turn them out of their houses [during the waiting-period], nor should they themselves leave them, except in case they commit an open indecency…You do not know: Allah may after this bring about a situation [of reconciliation]. Then when they have reached the end of their [waiting] periods either retain them [in wedlock] in a fair manner or part with them in a fair manner, and call to witness two just witnesses from among yourselves, and [O witnesses] bear witness equitably for the sake of Allah. (65:1-2)

The divine book of Islam is filled with examples of exercising restraint in divorce. There is not a single verse that validates the notion of triple talaq in one sitting.

Dismissal of One-Time Triple Talaq by the Holy Prophet (P.B.U.H)

According to a report, Abdullah bin Abbas, a companion of the Prophet said that triple talaq in one sitting was considered as only one talaq during the Prophet’s time, the period of the first caliph Abu Bakr and during the early years of the second caliph Umar (Sahih Muslim, 1482).

Once Rukanah bin Yazid, a companion of the Prophet, had divorced his wife thrice in one sitting. Regretting what he had done, he approached the Prophet, who asked him how he had divorced his wife. Yazid answered that he had done so by pronouncing the word talaq thrice. The Prophet asked him if he had pronounced it in a single sitting, to which he replied in the affirmative. The Prophet then said that it had the effect of one divorce and that he could take his wife back.

Difference of Opinions Among Different Schools of Thought

The scholars differed concerning the ruling on one who divorces his wife by saying “I divorce you thrice”. It is submitted, that ‘talaq-e-biddat’ is recognized only by a few Sunni schools. Most prominently, by the Hanafi sect of Sunni Muslims. It was however emphasized, that even those schools that recognized ‘talaq-e-biddat’ described it, “as a sinful form of divorce”.7; others are of the view that divorce takes place only once.

Shaykh ‘Abd al-‘Azeez ibn Baaz (may Allaah have mercy on him) was asked: A man divorced his wife by saying “I divorce you thrice”; what is the ruling on that?

He replied: If a man divorces his wife three times with one word, such as saying, “You are thrice divorced”, some of scholars are of the view that the woman is indeed thrice divorced and becomes forbidden for her husband until she has been married to another man in a serious marriage in which the new husband has intercourse with her and they only separate as a result of death or divorce, not a tahleel marriage (i.e., a marriage of convenience aimed at making it permissible for her to remarry her former husband).

They quoted as evidence for that the fact that ‘Umar ibn al-Khattaab (may Allaah be pleased with him) counted such a divorce as being three and judged among people accordingly.

Other scholars were of the view that this is to be regarded as a single divorce, and the husband may take her back so long as the ‘iddah has not yet ended. If the ‘iddah has ended then she may marry him with a new marriage contract. They quoted as evidence for that the report narrated in Saheeh Muslim from Ibn ‘Abbaas (may Allaah be pleased with him) who said: “At the time of the Messenger of Allaah (peace and blessings of Allaah be upon him), the time of Abu Bakr (may Allaah be pleased with him) and the first two years of the caliphate of ‘Umar (may Allaah be pleased with him), a threefold divorce was counted as one. ‘Umar said: “People are being hasty with regard to a matter in which they should not rush. Let us count it as three and judge between people accordingly.” According to another report narrated by Muslim: Abu’l-Sahba’ said to Ibn ‘Abbaas (may Allaah be pleased with them): “Was not three counted as one at the time of the Messenger of Allaah (peace and blessings of Allaah be upon him) and the time of Abu Bakr (may Allaah be pleased with him) and the first three years of the time of ‘Umar (may Allaah be pleased with him)?” He said: “Yes,”

They also quoted as evidence the report narrated by Imam Ahmad in al-Musnad with a jayyid isnaad from Ibn ‘Abbaas (may Allaah be pleased with him), that Abu Rakaanah divorced his wife by saying “I divorce you thrice”, then he regretted it, so the Prophet (peace and blessings of Allaah be upon him) returned her to him with one word and said, “This is only one (divorce).”

This was the view of Ibn ‘Abbaas (may Allaah be pleased with him) according to a saheeh report narrated from him; according to the other report narrated from him he shared the view of the majority. The view that they should be regarded as one divorce was narrated from ‘Ali, ‘Abd al-Rahmaan ibn ‘Awf and al-Zubayr ibn al-‘Awwaam (may Allaah be pleased with them).

This was also the view of a number of the Taabi’een, Muhammad ibn Ishaaq the author of al-Seerah, and a number of the earlier and later scholars. It was also the view favoured by Shaykh al-Islam Ibn Taymiyah and his student Ibn al-Qayyim (may Allaah have mercy on them). This is also my view, because that is following all of the texts, and because it is also more merciful and kind to the Muslims. Fataawa Islamiyyah, 3/281, 282.

But after the ‘iddah is over you cannot take her back, rather you have to make a new marriage contract with her.

With regard to taking the wife back after the ‘iddah is over – i.e., after three menstrual cycles – this is not valid, because once a woman’s ‘iddah is completed she becomes a “stranger” for her husband and she is not permissible for him except with a new marriage contract. Fataawa Islamiyyah, 3/293

Legislation Over Divorce in Pakistan

It is worthwhile to mention here that by enacting Sec. 7 of the Muslim Family Law Ordinance, 1961, the legislature of Pakistan has condemned and abolished the practice of disapproved form of talaq and mode prescribed in the Ordinance was that of a Talaq-e-Ahsan. Sub-section (6) of Sec. 7 of the Muslim Family Law Ordinance, 1961 allows the couple to remarry without an intervening marriage unless they had been divorced thrice. Reliance in this respect is also placed upon PLD 2003 Pesh. 169 (DB).

Section 7 of the Muslim Family Law Ordinance, 1961 reads as under:

7. Talaq (1) Any man who wishes to divorce his wife shall, as soon as may be after the pronouncement of talaq in any form whatsoever, gives the Chairman notice in writing of his having done so, and shall supply a copy thereof to the wife.

(2) Whoever, contravenes the provisions of sub-section (1) shall be punishable with simple imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees, or with both.

(3) Save as provided in sub-section (5), a talaq, unless revoked earlier, expressly or otherwise, shall not be effective until the expiration of ninety days from the day on which notice under sub-section (1) is delivered to the Chairman.

(4) Within thirty days of the receipt of notice under sub-section (1), the Chairman shall constitute an Arbitration Council for the purpose of bringing about a reconciliation between the parties, and the Arbitration Council shall take all steps necessary to bring about such reconciliation.

(5) If the wife be pregnant at the time talaq is pronounced, talaq shall not be effective until the period mentioned in sub-section (3) or the pregnancy, whichever be later, ends.

(6) Nothing shall debar a wife whose marriage has been terminated by talaq effective under this section from remarrying the same husband, without an intervening marriage with a third person, unless such termination is for the third time so effective.

Precedent Over Talaq-e-Biddat in Pakistan

Further, Mr. Justice Syed Jamshed Ali in one case cited as 2003 YLR 2623, has categorically held that the pronouncement of three divorces in one sitting operates as a single divorce. The Hon’ble judge while passing the aforesaid judgment has discussed the English translation of the relevant verses from Surah-al-Baqarah, Surah-al-Nisa and Surah-Al Talaq from the Holy Quran published by King Fahd Holy Quran Printing Complex, Al-Madinah – Al Munawarah and relied upon the report of Ibn’Abbas, narrated in Page 86, Chapter 4 of the Muslim Law of Divorce by K.N. Ahmad (1984), wherein it has been specified that the pronouncement of three divorces at one and the same time was treated as one divorce during the time of the Prophet (peace be upon him), the first Caliph and during the first two or three years of regime of the Second Caliph. But the Second Caliph found that people used to pronounce divorces want only many time and in order to discourage this undesirable practice he introduced the rule that pronouncement of three divorces at one and the same time shall be treated as three divorces or a final or Mughallazah divorce.

Abrogation of Talaq-e-Biddat under Laws of Distinct Islamic Countries

That, in addition to the above, it is pertinent to mention here that there are a number of Muslim Countries wherein, the practice of talaq-e-Biddah has been abolished under the law and pronouncement of three divorces in one sitting is said to operate as one revocable divorce. The countries which have abolished ‘talaq-e-biddat’ have been divided into Arab States, Southeast Asian States, and Subcontinental States and the relevant clauses of their laws are reproduced hereunder for your kind perusal.

LAWS OF ARAB STATES

Algeria

Algeria is a theocratic State, which declares Islam to be its official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Code of Family Law 1984 | Law No.84-11 of 1984 as amended in 2005

Article 49. Divorce cannot be established except by a judgment of the Court, preceded by an attempt at reconciliation for a period not exceeding three months.

Egypt

Egypt is a secular State. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Law of Personal Status 1929

Law 25 of 1929 as amended by Law 100 of 1985

Article 1. A Talaq pronounced under the effect of intoxication or compulsion shall not be effective.

Article 2. A conditional Talaq which is not meant to take effect immediately shall have no effect if it is used as an inducement to do some act or to abstain from it.

Article 3. A Talaq accompanied by a number, expressly or impliedly, shall not be effective except as a single revocable divorce.

Article 4. Symbolic expressions of talaq, i.e., words which may or may not bear the implication of a divorce, shall not effect a divorce unless the husband actually intended it.

Iraq

Iraq is a theocratic State, which declares Islam to be its official religion. The majority of Iraq’s Muslims is Shias. On the issue in hand, it has enacted the following legislation:

Code of Personal Status 1959

Law 188 of 1959 as amended by Law 90 of 1987

Article 35. No divorce shall be effective when pronounced by the persons mentioned below:

a one who is intoxicated, insane or imbecile, under duress, or not in his senses due to anger, sudden calamity, old age or sickness;

b a person in death-sickness or in a condition which in all probabilities is fatal and of which he actually dies, survived by his wife.

Article 37.

(1) Where a Talaq is coupled with a number, express or implied, not more than one divorce shall take place.

(2) If a woman is divorced thrice on three separate occasions by her husband, no revocation or remarriage would be permissible after that.

Article 39.

(1) When a person intends to divorce his wife, he shall institute a suit in the Court of Personal Status requesting that it be effected and that an order be issued therefor. If a person cannot so approach the court, registration of the divorce in the court during the period of Iddat shall be binding on him.

(2) The certificate of marriage shall remain valid till it is cancelled by the court.

Jordan

Jordan is a secular State. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Code of Personal Status 1976

Law 61 of 1976

Article 88.

(1) Talaq shall not be effective if pronounced under intoxication, bewilderment, compulsion, mental disorder, depression or effect of sleep.

(2) ‘Bewildered’ is one who has lost senses due to anger or provocation, etc., and cannot understand what he is saying.

Article 90. A divorce coupled with a number, expressly or impliedly, as also a divorce repeated in the same sitting, will not take effect except as a single divorce.

Article 94. Every divorce shall be revocable except the final third, one before consummation and one with consideration.

Article 98. Where an irrevocable Talaq was pronounced once or twice, renewal of marriage with the consent of parties is not prohibited.

Kuwait

Kuwait is a theocratic State, which declares Islam to be the official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has the following legislation in place:

Code of Personal Status 1984

Law 51 of 1984

Article 102. Talaq may be effected by major and sane men acting by their free will and understanding the implications of their action. Therefore Talaq shall not take effect if the husband is mentally handicapped, imbecile, under coercion, mistake, intoxication, fear or high anger affecting his speech and action.

Article 109. If a Talaq is pronounced with a number (two, three) by words, signs or writing, only one Talaq shall take effect.

Lebanon

Is a secular State. Muslims constitute its majority, which is estimated to be 54% (27% Shia, and 27% Sunni). On the issue in hand, it has enacted the following legislation:

Family Rights Law 1962

Law of 16 July 1962

Article 104. A divorce by a drunk person shall have no effect.

Article 105. A divorce pronounced under coercion shall have no effect.

Libya

Is a theocratic State, which declares Islam to be its official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Family Law 1984

Law 10 of 1984 as amended by Law 15 of 1984

Article 28. Divorce is termination of the marriage bond. No divorce will become effective in any case except by a decree of a competent court and subject to the provision of Article 30.

Article 29. Divorce is of two kinds – revocable and irrevocable. Revocable divorce does not terminate the marriage till the expiry of Iddat. Irrevocable divorce terminates the marriage forthwith.

Article 30. All divorces shall be revocable except a third-time divorce, one before consummation of marriage, one for a consideration, and those specified in this law to be irrevocable.

Article 31. A divorce shall be effective only if pronounced in clear words showing intention to dissolve the marriage. Symbolic or metaphorical expression will not dissolve the marriage.

Article 32. A divorce pronounced by a minor or insane person, or if pronounced under coercion, or with no clear intention to dissolve the marriage, shall have no legal effect.

Article 33. A divorce pronounced by a minor or insane person, or if pronounced under coercion, or with no clear intention to dissolve the marriage, shall have no legal effect.

Article 35.

(1) A divorce meant to be effect on some action or omission of the wife shall have no legal effect.

(2) A divorce given with a view to binding the wife to an oath or restrain her from doing something shall have no legal effect.

(3) A divorce to which a number is attached, by express words or a gesture, shall effect only a single revocable divorce, except when it is pronounced for the third time.

Article 47. A divorce must be pronounced in a court and in the presence of the other party or his or her representative. The court shall before giving effect to a divorce exhaust all possibilities of reconciliation.

Morocco

Is a theocratic State, which declares Islam to be its official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Code of Personal Status 2004

Law 70.03 of 2004

Article 79. Whoever divorces his wife by Talaq must petition the court for permission to register it with the Public Notaries of the area where the matrimonial home is situated, or where the wife resides, or where the marriage took place.

Article 80. The petition will mention the identity of spouses, their professions, addresses, number of children, if any, with their age, health condition and educational status. It must be supported by a copy of the marriage agreement and a document stating the husband’s social status and financial obligations.

Article 81. The court shall summon the spouses and attempt reconciliation. If the husband deliberately abstains, this will be deemed to be withdrawal of the petition. If the wife abstains, the court will notify her that if she does not present herself the petition may be decided in her absence. If the husband has fraudulently given a wrong address for the wife, he may be prosecuted at her instance.

Article 82. The court will hear the parties and their witnesses in camera and take all possible steps to reconcile them, including appointment of arbitrators or a family reconciliation council, and if there are children such efforts shall be exhausted within thirty days. If reconciliation takes place, a report will be filed with the court.

Article 83. If reconciliation attempts fail, the court shall fix an amount to be deposited by the husband in the court within thirty days towards payment of the wife’s post-divorce dues and maintenance of children.

Article 90. No divorce is permissible for a person who is not in his senses or is under coercion or provocation.

Article 92. Multiple expressions of divorce, oral or written, shall have the effect of a single divorce only.

Article 123. Every divorce pronounced by the husband shall be revocable, except a third-time divorce, divorce before consummation of marriage, divorce by mutual consent, and divorce by Khula or Talaq-e-Tafweez.

Sudan

Is a theocratic State, which declares Islam to be its official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has the following legislation in place:

Law on Talaq 1935

Judicial Proclamation No.4 of 1935

Article 1. A divorce uttered in a state of intoxication or under duress shall be invalid and ineffective.

Article 2. A contingent divorce which is not meant to be effective immediately and is used as an inducement or threat shall have not effect.

Article 3. A formula of divorce coupled with a number, expressly or impliedly, shall effect only one divorce.

Article 4. Metaphorical expressions used for a divorce shall have the effect of dissolving the marriage only if the husband actually meant a divorce.

Syria

Is a secular State. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Code of Personal Status 1953

Law 59 of 1953 as amended by Law 34 of 1975

Article 89. No divorce shall take place when the man is drunk, out of his senses, or under duress. A person is out of his senses when due to anger, etc. he does not appreciate what he says.

Article 90. A conditional divorce shall have no effect if not actually intended and used only as an inducement to do or abstain from doing something or as an oath or persuasion.

Article 92. If a divorce is coupled with a number, expressly or impliedly, not more than one divorce shall take place.

Article 94. Every divorce shall be revocable except a third-time divorce, one before consummation, a divorce with a consideration, and a divorce stated in this Code to be irrevocable.

Article 117. Where a person divorces his wife the court may, if satisfied that he has arbitrarily done so without any reasonable cause and that as a result of the divorce the wife shall suffer damage and become destitute, give a decision, with due regard to the husband’s financial condition and the amount of wife’s suffering, that he should pay her compensation not exceeding three years’ maintenance, in addition to maintenance payable during the period of Iddat. It may be directed to be paid either in a lump sum or in instalments as the circumstances of a case may require.

Tunisia

Is a theocratic State, which declares Islam to be its official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has enacted the following legislation:

Code of Personal Status 1956

Law 13-8 of 1956 as amended by Law 7 of 1981

Article 31.

(1) A decree of divorce shall be given: (i) with the mutual consent of the parties; or (ii) at the instance of either party on the ground of injury; or (iii) if the husband insists on divorce or the wife demands it. The party causing material or mental injury by the fact of divorce under clauses (ii) and (iii) shall be directed to indemnify the aggrieved spouse.

(2) As regards the woman to be indemnified for material injury in terms of money, the same shall be paid to her after the expiry of Iddat and may be in the form of retention of the matrimonial home. This indemnity will be subject to revision, increase or decrease in accordance with the changes in the circumstances of the divorced wife until she is alive or until she changes her marital status by marrying again. If the former husband dies, this indemnity will be a charge on his estate and will have to be met by his heirs if they consent to it and will be decided by the court if they disagree. They may pay her in a lump sum within one year from the former husband’s death the indemnity claimable by her.

Article 32.

(1) No divorce shall be decreed except after the court has made an overall inquiry into the causes of rift and failed to effect reconciliation.

(2) Where no reconciliation is possible the court shall provide, even if not asked to, for all important matters relating to the residence of the spouses, maintenance and custody of children and meeting the children, except when the parties specifically agree to forgo all or any of these rights. The court shall fix the maintenance on the basis of all those facts which it comes to know while attempting reconciliation. All important matters shall be provided for in the decree, which shall be non-appealable but can be reviewed for making additional provisions.

(3) The court of first instance shall pass orders in the matters of divorce and all concerning matters including the compensation money to which the divorced wife may be entitled after the expiry of Iddat. The portions of the decree relating to custody, maintenance, compensation, residence and right to visit children shall be executed immediately.

United Arab Emirates

UAE is a theocratic State, as the Federal Constitution declares Islam to be the official religion. The Constitution also provides for freedom of religion, in accordance with established customs. Muslims of the Shia sect constitute its majority. On the issue in hand, it has the following legislation in place:

Law of Personal Status 2005

Federal Law No.28 of 2005

Article 140.

(1) If a husband divorces his wife after consummation of a valid marriage by his unilateral action and without any move for divorce from her side, she will be entitled to compensation besides maintenance for Iddat. The amount of compensation will be decided with due regard to the means of the husband and the hardship suffered by the wife, but it shall not exceed the amount of one year’s maintenance payable in law to a woman of her status.

(2) The Kazi may decree the compensation, to be paid as a lump sum or in instalments, according to the husband’s ability to pay.

Yemen

Is a theocratic State, which declares Islam to be the official religion. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has the following legislation in place:

Decree on Personal Status 1992

Decree 20 of 1992

Article 61. A divorce shall not be effective if pronounced by a man who is drunk, or has lost his senses, or has no power of discernment, if this is shown by his condition and action.

Article 64. A divorce to which a number is attached, whatever be the number, will effect only a single revocable divorce.

Article 65. The words saying that if the wife did or failed to do something she will stand divorced will not effect a divorce.

Article 66. The words that if an oath or vow is broken it will effect a divorce will not dissolve the marriage even if the said oath or vow is broken.

Article 67. A divorce can be revoked by the husband during the Iddat period. After the expiry of Iddat, a direct remarriage between them will be lawful.

Article 71. If a man arbitrarily divorces his wife without any reasonable ground and it causes hardship to her, the court may grant her compensation payable by the husband not exceeding maintenance for one year in accordance with her status. The court may decide if the compensation will be paid as a lump sum or in instalments.

LAWS OF SOUTHEAST ASIAN STATES

Indonesia

The Constitution of Indonesia guarantees freedom of religion among Indonesians. However, the Government recognizes only six official religions – Islam, Protestantism, Catholicism, Hinduism, Buddhism, and Confucianism. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has the following legislation in place:

Law of Marriage 1974

Law 1 of 1974

Article 38. A divorce shall be effected only in the court and the court shall not permit a divorce before attempting reconciliation between the parties. Divorce shall be permissible only for sufficient reasons indicating breakdown of marriage.

Article 41. In the event of a divorce both the parents shall continue to be responsible for the maintenance of their children. As regards custody of children, in case of a dispute between them the court shall take a decision. Expenses of maintenance and education shall be primarily the father’s liability, but if he is unable to discharge this liability the court may transfer it to the mother. The court may also direct the former husband to pay alimony to the divorced wife.

Marriage Regulations 1975

Regulation 9 of 1975

Article 14. A man married under Islamic law wanting to divorce his wife shall by a letter notify his intention to the District Court seeking proceedings for that purpose.

Article 15. On receiving a letter the court shall, within thirty days, summon the parties and gather from them all relevant facts.

Article 16. If the court is satisfied of the existence of any of the grounds mentioned in Article 19 below and is convinced that no reconciliation between the parties is possible it will allow a divorce.

Article 17. Immediately after allowing a divorce as laid down in Article above the court shall issue a certificate of divorce and send it to the Registrar for registration of the divorce.

Article 19. A divorce may be allowed on the petition of either party if the other party:

a) has committed adultery or become addict to alcohol, drugs, gambling or another serious vice;

b) has deserted the aggrieved party for two years or more without any legal ground and against the said party’s will;

c) has been imprisoned for at least five years;

d) has treated the aggrieved party with cruelty of an injurious nature;

e) has been suffering from a physical deformity affecting conjugal duties, or where relations between the spouses have become too much strained making reconciliation impossible.

Malaysia

Under the Constitution of Malaysia, Islam is the official religion of the country, but other religions are permitted to be practiced in peace and harmony. Muslims of the Sunni sect constitute its majority. On the issue in hand, it has the following legislation in place:

Islamic Family Law Act 1984

Act 304 of 1984

Article 47.

(1) A husband or a wife who desires a divorce shall present an application for divorce to the court in the prescribed form accompanied by a statutory declaration containing (a) particulars of the marriage and the name, ages and sex of the children, if any, of the marriage; (b) particulars of the facts giving the court jurisdiction under Section 45; (c) particulars of any previous matrimonial proceedings between the parties, including the place of the proceedings; (d) a statement as to the reasons for desiring divorce; (e) a statement as to whether any, and if so, what steps have been taken to effect reconciliation; (f) the terms of any agreement regarding maintenance and habitation of the wife and the children of the marriage, if any, and the division of any assets acquired through the joint effort of the parties, if any, or where no such agreement has been reached, the applicant’s proposals regarding those matters; and (g) particulars of the order sought.

(2) Upon receiving an application for divorce, the court shall cause summons to be served on the other party together with a copy of the application and the statutory declaration made by the applicant, and the summons shall direct the other party to appear before the court so as to enable it to inquire whether or not the other party consents to the divorce.

(3) If the other party consents to the divorce and the court is satisfied after due inquiry and investigation that the marriage has irretrievably broken down, the court shall advise the husband to pronounce one Talaq before the court.

(4) The court shall record the fact of the pronouncement of one Talaq and shall send a certified copy of the record to the appropriate Registrar and to the Chief Registrar for registration.

(5) Where the other party does not consent to the divorce or it appears to the court that there is reasonable possibility of a reconciliation between the parties, the court shall as soon as possible appoint a Conciliatory Committee consisting of a religious officer as Chairman and two other persons, one to act for the husband and the other for the wife, and refer the case to the Committee.

(6) In appointing the two persons under sub-section (5) the court shall, where possible, give preference to close relatives of the parties having knowledge of the circumstances of the case.

(7) The court may give directions to the Conciliatory Committee as to the conduct of the conciliation and it shall conduct it in accordance with such directions.

(8) If the Committee is unable to agree or if the court is not satisfied with its conduct of the conciliation, the court may remove the Committee and appoint another Committee in its place.

(9) The Committee shall endeavour to effect reconciliation within a period of six months from the date of its being constituted or such further period as may be allowed by the court.

(10) The Committee shall require the attendance of the parties and shall give each of them an opportunity of being heard and may hear such other persons and make such inquiries as it thinks fit and may, if it considers it necessary, adjourn its proceedings from time to time.

(11) If the Conciliatory Committee is unable to effect reconciliation and is unable to persuade the parties to resume their conjugal relationship, it shall issue a certificate to that effect and may append to the certificate such recommendations as it thinks fit regarding maintenance and custody of the minor children of the marriage, if any, regarding division of property and other matters related to the marriage.

(12) No advocate and solicitor shall appear or act for any party in any proceeding before a Conciliatory Committee and no party shall be represented by any person other than a member of his or her family without the leave of the Conciliatory Committee.

(13) Where the Committee reports to the court that reconciliation has been effected and the parties have resumed their conjugal relationship, the court shall dismiss the application for divorce.

(14) Where the Committee submits to the court a certificate that it is unable to effect reconciliation and to persuade the parties to resume the conjugal relationship, the court shall advise the husband to pronounce one Talaq before the court, and where the court is unable to procure the presence of the husband before the court to pronounce one Talaq, or where the husband refuses to pronounce one Talaq, the court shall refer the case to the Hakams [arbitrators] for action according to section 48.

(15) The requirement of sub-section (5) as to reference to a Conciliatory Committee shall not apply in any case (a) where the applicant alleges that he or she has been deserted by an does not know the whereabouts of the other party; (b) where the other party is residing outside West Malaysia and it is unlikely that he or she will be within the jurisdiction of the court within six months after the date of the application; (c) where the other party is imprisoned for a term of three years or more; (d) where the applicant alleges that the other party is suffering from incurable mental illness; or (e) where the court is satisfied that there are exceptional circumstances which make reference to a Conciliatory Committee impracticable.

(16) Save as provided in sub-section (17), a Talaq pronounced by the husband or an order made by the court shall not be effective until the expiry of the Iddat.

(17) If the wife is pregnant at the time the Talaq is pronounced or the order is made, the Talaq or the order shall not be effective until the pregnancy ends.

Philippines

Is a secular State. Christians constitute its majority. On the issue in hand, it has the following legislation in place:

Code of Muslim Personal Law 1977

Decree No.1083 of 1977

Article 46.

(1) A divorce by Talaq may be effected by the husband in a single repudiation of his wife during her Tuhr [non-menstrual period] within which he has totally abstained from carnal relations with her.

(2) Any number of repudiations made during one Tuhr [non-menstrual period] shall constitute only one repudiation and shall become irrevocable after the expiration of the prescribed Iddat.

(3) A husband who repudiates his wife, either for the first or second time shall have the right to take her back within the Iddat period by resumption of cohabitation without need of a new contract of marriage. Should he fail to do so, the repudiation shall become irrevocable.

Article 85. Within seven days after the revocation of a divorce the husband shall, with the wife’s consent, send a statement thereof to the Circuit Registrar in whose records the divorce was previously entered.

Article 161.

(1) A Muslim male who has pronounced a Talaq shall, without delay, file with the Clerk of the Sharia Circuit Court of the place where his family resides a written notice of such fact and the circumstances attending thereto, after having served a copy to the wife concerned. The Talaq pronounced shall not become irrevocable until after the expiration of the prescribed Iddat.

(2) Within seven days from receipt of notice the Clerk of the Court shall require each of the parties to nominate a representative. The representatives shall be appointed by the court to constitute, with the Clerk of the Court as Chairman, an Agama [religious scholars] Arbitration Council which shall try and submit to the court a report on the result of arbitration on the basis of which, and such other evidence as may be allowed, the court will pass an order.

(3) The provisions of this Article will be observed if the wife exercises right to Talaq-e-Tafweez.

Article 183. A person who fails to comply with the requirements of Article 85, 161 and 162 of this Code shall be penalized by imprisonment or a fine of two hundred to two thousand Pesos, or both.

LAWS OF SUB-CONTINENTAL STATES

Bangladesh

Is theocratic States, wherein Islam is the official religion. Said Muslim country Muslims of the Sunni sect constitute the majority. On the issue in hand, it has the following legislation in place:

Muslim Family Laws Ordinance 1961

Ordinance VIII of 1961 amended in Bangladesh by Ordinance 114 of 1985

Article 7.

(1) Any man who wishes to divorce his wife shall, as soon as may be after the pronouncement of Talaq in any form whatsoever, give the Chairman a notice in writing of his having done so, and shall supply a copy thereof to the wife.

(2) Whoever contravenes the provision of sub-section (1) shall be punishable with simple imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand taka, or with both.

(3) Save as provided in sub-section (5), a Talaq unless revoked earlier, expressly or otherwise, shall not be effective until the expiration of ninety days from the day on which notice under subsection (1) is delivered to the Chairman.

(4) Within thirty days of the receipt of notice under sub-section (1) the Chairman shall constitute an Arbitration Council for the purpose of bringing about reconciliation between the parties, and the Arbitration council shall take all steps necessary to bring about such reconciliation.

(5) If the wife be pregnant at the time Talaq is pronounced, Talaq shall not be effective until the period mentioned in sub-section (3) or of pregnancy, whichever is later, ends.

(6) Nothing shall debar a wife whose marriage has been terminated by Talaq effective under this section from re-marrying the same husband without any intervening marriage with a third person, unless such termination is for the third time so effective.

Sri Lanka

Is a secular State. Buddhists constitute its majority. On the issue in hand, it has the following legislation in place:

Muslim Marriage and Divorce Act 1951

Act 6 of 1951 as amended by Act 40 of 2006

Section 17

(4) Save as otherwise hereinafter expressly provided, every marriage contracted between Muslims after the commencement of this Act shall be registered, as hereinafter provided, immediately upon the conclusion of the Nikah ceremony connected therewith.

(5) In the case of each such marriage, the duty of causing it to be registered is hereby imposed upon the following persons concerned in the marriage; (a) the bridegroom, (b) the guardian of the bride, and (c) the person who conducted the Nikah ceremony connected with the marriage.

Section 27 Where a husband desires to divorce his wife the procedure laid down in Schedule II shall be followed.

Keeping in view different Quranic verses and reports narrated in Saheeh Muslim from Ibn ‘Abbaas (may Allah be pleased with him) who said: “At the time of the Messenger of Allah (peace and blessings of Allah be upon him), the time of Abu Bakr (may Allah be pleased with him) and the first two years of the caliphate of ‘Umar (may Allah be pleased with him), a threefold divorce was counted as one” as well as the laws of Pakistan and different Islamic States, where under, triple divorce in one sitting is counted as one, we’re of the opinion that the three divorces in one sitting operates as one and said divorce can be repudiated by the parties within the waiting period.

It is not however, out of place to mention here that in cases where the marriage is non-consummated one, the irrevocable divorce become effective immediately and there is no obligation upon the divorcee to observe iddat period.

UNDER THE CHRISTIAN LAW

Divorce Act, 1869 is relating to the divorce of persons professing the Christian religion, and to confer upon certain Court jurisdiction in matters matrimonial. There are three modes described for seeking Divorce:

Dissolution of Marriage
Nullity of Marriage
Judicial Separation

Dissolution of Marriage (Section 7 and 10 of the Divorce Act, 1869)

In 2017, in one case titled as Ameen Masih Versus Federation of Pakistan and others the Hon’ble Lahore High Court has restored Sec. 7 of the Divorce Act, 1869. Restored section 7 is to be read harmoniously with Section 10 of the Act. This means that grounds of divorce on the basis of adultery are available and anyone who wishes to invoke them is free to do so, but for those who wish to seek divorce on the ground of irretrievable breakdown of marriage, they can rely on section 7 of the Act and avail of the additional grounds of divorce available under the Matrimonial Causes Act, 1973 (UK), which will be available to the Christians in Pakistan and will be enforceable in Pakistan.

Judicial Separation

According to Section 22 of the Divorce Act, 1869, No decree shall hereafter be made for a divorce a mensa er toro, but the husband or wife may obtain a decree of judicial separation, on the ground of adultery, or cruelty, or desertion without reasonable excuse for two years or upwards, and such decree shall have the effect of as divorce mensa et toro under the existing law, and such other legal effect as hereinafter mentioned.

Application for judicial separation on any one of the grounds aforesaid may be made by either husband or wife by petition to the Court of Civil Judge; and the Court, on being satisfied of the truth of the statements made in such petition and that there is no legal ground why the application should not be granted, may decree judicial separation accordingly.

In every case of a judicial separation under this Act, the wife shall, from the date whilst the separation continues, be considered as unmarried with respect to property of every description which she may acquire or which may come to or devolve upon her. A decree of judicial separation is a court order similar to divorce, under which the couple remains legally married but their normal marital obligations cease and they no longer have to go on living together.

In judicial separation cases, the court has the same range of powers as in divorce cases to issue orders on dividing the matrimonial property and providing for the custody, support and maintenance of children. A judicial separation also negates any provision for the spouse in a will, unless a new will is made which reinstates them as a beneficiary. However, unlike a divorced spouse, one who is judicially separated may still be eligible for benefits under a pension scheme on the death of their partner. The application procedure for a judicial separation starts with one of the parties presenting a “Judicial Separation Petition” to the Court. A divorce petition can be used for this purpose, as long as it is amended by deleting the references to the marriage having “broken down” and the intention to dissolve the marriage. The Courts also require the completion of a “Statement of Arrangements” form, including similar information to that needed for a divorce, and the original Marriage Certificate, or a certified copy of this. The court fees payable are at a similar level to those for a divorce petition.

The grounds for judicial separation are much the same as for divorce, except that there is no requirement to prove that the marriage has broken down irretrievably, and the couple does not have to have been married for any minimum length of time. As with divorce petitions, grounds for judicial separation are adultery, unreasonable behaviour, desertion for at least two years, separation with consent for two years or separation without consent for five years. There is also the additional ground for judicial separation of “being habitually drunk”. Unlike in the case of divorce, only one decree is issued, once the court is satisfied that the requirements for judicial separation have been met. The main circumstances under which judicial separation takes place are when one or both of the parties are opposed to divorce, perhaps for religious reasons; when the couple have been married for less than a year, during which there is an absolute ban on divorce; or when it may be difficult to provide the evidence of irretrievable breakdown of the marriage which is necessary for divorce.

A couple who have obtained a judicial separation can still apply for a divorce later on, after they have been legally married for at least three years. If they do so, the information they originally submitted in the application for judicial separation can be used again by the courts in considering their application for divorce.

If a couple decides that they wish to become full marriage partners again, they can apply for their judicial separation to be rescinded by the courts.

UNDER THE PARSI LAWS

The Parsi Marriage and Divorce Act (III of 1936) Under the Parsi Marriage and Divorce Act, 1936 there are following modes of Divorce:

Suit for Nullity

According to the Section 30 of the Parsi Marriage and Divorce Act, (III of 1936), in any case which consummation of the marriage is from natural causes impossible, such marriage may, at the instance of either party thereto, be declared to be null and void.

Suit for Dissolution

According to the Section 31, if a husband or wife shall have been continually absent from his or her wife or husband for the space of seven years, and shall not have been heard of as being alive within that time by those persons who would have naturally heard of him or her, had he or she been alive, the marriage of such husband or wife may, at the instance of either party thereto, be dissolved.

Suit for Judicial Separation

According to Section 34 of the Parsi Marriage and Divorce Act, 1936 any married person may sue for judicial separation on any of the ground for which such person could have filed a suit for divorce, or on ground that the defendant has been guilty of such cruelty to him or her or their children, or has used such personal violence, has behaved in such a way as to render it in the judgment of the Court improper to compel him or her to live with the defendant.

Constitution of Special Courts under the Act

For the purpose of hearing suits under this Act, a special Court shall be constituted under Section 18 in such places in the territories of Provincial Governments as such Government respectively shall think fit.

Every Court so constituted shall be entitled the Parsi District Matrimonial Court of the place at which it is constituted. Every Appeal filed against the order of the court shall lie to the High Court.

DIVORCE UNDER THE HINDU LAWS AS APPLICABLE IN INDIA

As per the ancient Hindu laws there was no place for Divorce and it was with the codification of Hindu law that the first grounds for the new age laws were laid down. Divorce between two persons married under the Hindu Marriage Act is also governed by the same act.

The Hindu Marriage Act, 1955 applies not just to Hindus in the ordinary sense, but any person who is a Buddhist, Jaina or Sikh by religion, domiciled in India and who is not a “Muslim, Christian, Parsi or Jew by religion.” The Act expressively prohibits polygamy by stipulating that a Hindu marriage can be solemnized between two Hindus if neither party has a living spouse at the time of marriage and that if they are not of unsound mind or not suffering from severe bouts of epilepsy. It prohibits child marriages by stating that bridegroom should have “completed the age of twenty one years and the bride the age of eighteen years at the time of the marriage.” Certain types of marriages are explicitly prohibited in the Act, under the definition of prohibited marriages. A marriage may be solemnized through customary rites and ceremonies or by taking seven steps around the sacred fire or through a simple process of registration. Registration of marriage is however not compulsory. According to the Act, both parties to marriage have the right to claim their conjugal rights or seek judicial separation based on certain conditions. The Act also defines when marriages are voidable, such as when there was no consent of the guardian, impotency, pregnancy by another person before marriage etc.

According to Hindu Marriage Act, 1955 (India), divorce can be sought on certain grounds, namely, adultery, cruelty, desertion for two years, religious conversion, mental abnormality, venereal disease, leprosy, renunciation of the world, physical separation and absence of communication for more than seven years and so on. Following is an extract from the Act regarding these stipulations.

Any marriage solemnized, whether before or after the commencement of the Act, may, on a petition presented by either the husband or the wife, be dissolved by a decree of divorce on the ground that the other party:

has, after the solemnization of the marriage had voluntary sexual intercourse with any person other than his or her spouse; or
has, after the solemnization of the marriage, treated the petitioner with cruelty; or
has deserted the petitioner for a continuous period of not less than two years immediately preceding the presentation of the petition; or
has ceased to be a Hindu by conversion to another religion; or
has been incurably of unsound mind, or has suffering continuously or intermittently from mental disorder of such a kind and to such an extent that the petitioner cannot reasonably be expected to live with the respondent.
that there has been no resumption of cohabitation as between the parties to the marriage for a period of one year or upwards after the passing of a decree for judicial separation in a proceeding to which they were parties; or
that there has been no restitution of conjugal rights as between the parties to the marriage for a period of one year or upward after the passing of a decree of restitution of conjugal rights in a proceeding to which they were parties. A wife may also present a petition for the dissolution of her marriage by a decree of divorce on the ground:
- in the case of any marriage solemnized before the commencement of this Act, that the husband had married again before the commencement or that any other wife of the husband married before such commencement was alive at the time of the solemnization of the marriage of the petitioner:
- that the husband has, since the solemnization of the marriage, been guilty of rape, sodomy or bestiality; or
- that in a suit under Section 18 of the Hindu Adoptions and Maintenance Act, (78 of 1956), or in a proceeding under Section 125 of the Code of Criminal Procedure, 1973, (Act 2 of 1974) or under corresponding Section 488 of the Code of Criminal Procedure, (5 of 1898), a decree or order, as the case may be, has been passed against the husband awarding maintenance to the wife notwithstanding that she was living apart and that since the passing of such decree or order, cohabitation between the parties has not been resumed for one year or upwards; or
- that her marriage (whether consummated or not) was solemnized before she attained the age of fifteen years and she has repudiated the marriage after attaining that age but before attaining the age of eighteen years.

According to the Act, both parties to a marriage may seek legal separation by mutual consent on the ground that “they have been living separately for a period of one year or more, that they have not been able to live together and that they have mutually agreed that the marriage should be dissolved.” Newly married couple cannot file a petition for divorce within one year of marriage. Divorced couple can remarry if the divorced proceedings are complete and there is no right of appeal against the court decree. Bigamy is a punishable offence under the Indian Penal Code. An aggrieved party in a divorce petition may seek permanent alimony and maintenance from the other party while filing a petition for divorce and if convinced, the court may grant gross sum on monthly or periodical basis for a term not exceeding the life of the applicant.

The experienced attorneys at Asghar & Sons Jurists helps and facilitate the clients in completing all the cordial formalities for getting their divorce registered in Pakistan, even if they are residing abroad and are not able to appear before the Union Councils/ Courts and also render the Legal Opinions over the issue of validity of Divorce and its implications in Pakistan and beyond.

3. CHILD ADOPTION LAW & LEGAL GUARDIANSHIP IN PAKISTAN

Child Adoption is a process where a person assumes the guardianship of another, usually a child, from that person’s biological or legal parent or parents. Legal child adoptions permanently transfer the rights and responsibilities to guardian, along with filiation, from the biological parent or parents. Here you may find information about child adoption law and legal guardianship in Pakistan. Our dedicated team of professional lawyers at Asghar & Sons Jurists best assists parents / guardians on account of child adoption in Pakistan.

Children of all ages need permanent, stable, loving families. The Department of Human Services at Asghar & Sons Jurists ensures that children placed for adoption within Pakistan or across Pakistan or international lines benefit from all legal protection. Further assistance may be available to a child and their adoptive family. Asghar & Sons Jurists offers complete, comprehensive and individual adoption services to adoptive parents and the couple intended to abandon their child in a professional, caring and supportive manner.

Note: We Don’t Offer the Services for Arrangement of the Abandoned Children and only assist you in seeking the Legal Guardianship.

Adoption creates a legal parent / child relationship for:

Children whose birth parents make an adoptive plan;
Children adopted from outside Pakistan;
Children adopted by stepparents; and
Children who come under guardianship of the country.

Adoption of Children Under Country Guardianship

When courts terminate parents’ rights, children are placed in foster care and committed to the guardianship of the country. The department’s goal is to find permanent homes, preferably through adoption, for all children under country guardianship. The country social service agency like Edhi Foundation caring for the child is responsible for identifying children’s needs, finding an adoptive family and supporting the adoption placement.

The process of adopting a child under state guardianship is:

A court terminates parental rights and places a child under country guardianship;
Country agencies select a family who can best meet a child’s needs;
Private adoption agencies like Edhi Foundation assist and support the creation of a new family; and
The court finalizes the adoption under Guardians & Wards Act.

Asghar & Sons Jurists law firm provides assistance, legal advice, and representation for identified, interstate, and family adoptions. We assist adoptive parents in completion of all the legal formalities which include drafting of Adoption Deed, filing of Petition for Guardianship before the appropriate Court of law and Application for allowing the adoptive parents to take the child outside the jurisdiction of the Court.

Our Adoption Services Include:

Completing adoption plans for adoptive parents who have identified the family or Birth mother intended to abandon their / her child;
Providing adoptive parents with the birth parents’ background and medical informationl;
Obtaining the birth mother’s prenatal records and forwarding them for review by a medical professional of the adoptive parents choice;
Placement of the newborn child with adoptive parents upon discharge from the hospital;
Complying with Interstate Compact requirements (if adoptive parents reside outside Pakistan); and
Providing all legal services necessary to terminate the parental rights of the birth parents and finalization of the adoption by a Pakistani Court (Adoptive parents living outside of Pakistan are not usually required to return to Pakistan for the adoption finalization hearing).

Our Specialized Areas of Practice Include:

Identified Adoptions

We assist in completing adoption plans for adoptive parents who have identified their own birth mothers.

Intercountry Adoptions

If either the birth mother or the adoptive parent(s) reside outside Pakistan, we comply with all requirements of the Intercountry Compact for the Placement of Children. We have successfully completed a large number of intercountry adoptions.

Family Adoptions

We also specialize in adoptions that may involve a stepchild, relative or other family member (as defined by law).

CRIME

CRIMI8NAL LAW, CRIMINAL LAWYERS, PROCEDURES & CRIMINAL TRIALS IN PAKISTAN

Criminal law concerns the system of legal rules that define what conduct is classified as a crime and how the government may prosecute individuals that commit crimes, infact criminal legal administration system is a pinnacle of any civilized society. In instances where an individual fails to adhere to a particular criminal statute, he or she commits a criminal act by breaking the law.

Criminal Law is an extreme field of practice coverning all those aspects that entail crime as its factor. Every act or omission that violates a command, derives its force from legislature or from authority – either political or religious – that has absolute sway over the matters of state is considered to be a crime. This is the reason that state stands as a prosecutor against the alleged culprit.

Pakistan has a very detailed criminal law that is though outdated to some extent but it tends to cover all aspects that do constitute a crime. To understand the criminal law in Pakistan one needs to understand the socio cultural phenomena of this country also. Most of the criminal law that has been prevailing in Pakistan was introduced by the British Empire when India was a colony and Pakistan was part of it. Even then a care was taken to understand the social conditions and criminal law was tried to be conditioned according to the cultural circumstances of the colony. This is the reason that it was willfully accepted by India and Pakistan both after their freedom from British Empire. Code of Criminal Procedure (V of 1898) that was implemented in colony is still largely the prescribed criminal procedure followed by the courts in Pakistan. Similarly the Penal Code (XLV of 1860) that was introduced in colony is still largely followed in shape of Pakistan Penal Code.

Asghar & Sons Jurists and its criminal lawyers have enormous experience in dealing with criminal matters at any stage from the F.I.R to the criminal trial, examination stage, cross-examination stage, etc. Honorable Sir Asghar Malik even started his career as a criminal lawyer as it has a lot of scope due to the prevailing law and order situation in Pakistan even otherwise we have a lot of landmark criminal cases at the disposal. Our criminal attorneys appear before the lower magisterial courts, Court Of District and Sessions Courts, and Higher Apex Courts a daily basis by dealing with the cases in a proactive manner.

Territorial Jurisdiction

Criminal courts acts within their prescribed jurisdiction under the law. The territorial jurisdiction of an ordinary criminal court can be tabulated as follows:

Supreme Court being the most apex court of Pakistan has the supreme administrative authority over functionality of all the criminal courts of Pakistan.

When any person is apprehended for committing any crime, after investigation – that is to be completed within 14 days u/Sec. 173 of Criminal Procedure Code (Cr PC) – he / she is subjected to rigorous trial in the prescribed criminal court that has jurisdiction in the said matter. Court before commencement of trial is duty bound to allow an alleged offender to appoint defence counsel of his / her choice under Article 10 of Constitution of Pakistan. Then Court pronounces a Charge against an alleged offender that describes the nature of offence and the nature of act or omission that constitutes a specific crime. Thereafter, prosecution is given an opportunity to present evidence that it has against the alleged offender. The defence counsel of alleged offender is given full opportunity to cross examine and object to the prosecution evidence, within the prescribed limits of law. Though prosecution being the duty of the state is to be conducted by the state appointed counsels but any person who being aggrieved by the offence can appoint his / her own prosecution counsel, in addition to the state counsels already duty bound to prosecute. After the prosecution concludes its evidence the presiding Judge put certain questions u/Sec. 342 Cr PC to the alleged offender. These questions are very crucial as presiding Judge gives an opportunity to alleged offender to explain incriminating evidence against him / her. Alleged offender is also given an opportunity to appear as his own witness. Moreover he / she is also given an opportunity to present documentary evidence and witnesses in his / her defence. After the conclusion of defence evidence the trial is concluded and the Presiding Judge pronounces judgment. Judgment could be of acquittal or punishment. In both cases prosecution and alleged offender has right to appeal against the judgment of the trial court. The appeal is made to the immediate superior court of the trial court.

Punishment is universally accepted mode of retribution and deterrence. Punishment varies with the nature of crime. Different punishment can be given for the same crime. But retrospective punishment and double punishment in any case is specifically prohibited by the Constitution of Pakistan. Article 12 states: “No law shall authorise the punishment of a person for an act or omission that was not punishable at the time of the act or omission”, similarly Article 13 states: “No person shall be punished for the same offence more than once”. Article 13(b) also states: “No person shall, when accused of an offence, be compelled to be witness against himself”.

Constitution of Pakistan specifically demarcates the contours of Criminal Law of Pakistan by stating unequivocally in Article 9: “No person shall be deprived of life or liberty save in accordance with law”. And the Law shall never be against the universally accepted Fundamental Rights, this is specifically and explicitly enshrined in Article 8 of the Constitution of Pakistan.

The fundamentals of criminal law are based on the principle of justice, equity and good conscience. They provide adequate guidelines for the formulation a rational penal policy. In order to be influential the criminal law must have four important elements, that is, politicality, specificity, uniformity and penal sanction. The functioning of the criminal justice system is wide enough to achieve its goals and objectives. Its ultimate goal is undoubtedly to make the society safer for its citizens. Most widely accepted aims of the criminal law include:

The enforcement of criminal law should reflect the society’s disapprobation for criminal activity through apprehending, convicting and punishing the offenders.
Deterring criminals from indulging in criminal activities and at the same advising the other people as to how to avoid falling a victim to a crime.
Criminal law should be beneficially used to rehabilitate the offenders and incapacitating those who might otherwise prove to be a potential danger to the society.
Ensuring safety and security of people through maintenance of law and order.
Helping the victims to get adequate compensation from the offender wherever possible.
Efficient and fair application of law ensuring proper treatment of suspects, defendants, those who are held in custody and witnesses. Also ensuring that the innocents are acquitted without harassment and guilty is duly punished.
Ensuring that criminal justice system is accountable to the society.

In Pakistan the major statutes relating to criminal law are the Pakistan Penal Code 1860 and the Criminal Procedure Code, 1898. Out of these two the former deals in defining all the offences and mentioning their punishments along, the former is specifically a code of procedure. The criminal procedure code is essentially a procedural law, which provides machinery for the punishment of offenders against the substantive criminal law example the Pakistan Penal Code. In fact the two codes are to be read together. Apart from these two statutes, which specifically deal in the criminal branch of law, there are certain other general laws which attract criminal liability like, Negotiable Instruments Act which attracts criminal liability in case of dishonoring cheque, although new provision of section 489-F has also been added in Pakistan Penal Code, regarding dishonestly issuing a cheque. Information Technology Law is also going to be drafted very soon which will deal with the wrongs relating to the Computer and Information Technology etc. The firm possessing an expertise in this branch has, through its most experienced and efficient attorney’s has successfully handled a pile of such cases involving penal prosecution. The experience of the lawyers at work in this arena has provided us a distinct position from the rest.

The Criminal Procedure Code prescribes the Constitution of the Criminal Courts and offices and speaks of the powers of the courts. It contains various general provisions pertaining to the information to the Magistrates and Police and gives the procedure of arrest, escape and relating to the process to compel appearance through summons, warrant of arrest, proclamation and attachment and other rules regarding processes. It also prescribed the processes to compel the production of documents and other movable property and for the discovery of persons wrongfully confined through summons to produce and search warrants. The Criminal Procedure also helps for prevention of offences through security for keeping the peace and good behavior and to prevent the unlawful assemblies, public nuisances or apprehended danger, disputes as to immoveable property, preventive action of the police and their powers to investigate. The Cr.P.C also deals with the proceedings in prosecution and gives the jurisdiction to Criminal Courts according to place of inquiry or trial, complaints to the Magistrates, commencements of proceedings before Magistrates and inquiry into cases triable by the Courts of Sessions or High Courts. It also prescribes nature and form of charges and joinders of charges and gives the procedure of trial by Magistrates including summary trial and trial before High Court and Court of Sessions and gives the mode of taking recording evidence in inquiries and trial and finally judgment.

The Criminal Procedure Code further defines the steps of submission of sentences for confirmation, execution, suspensions, remissions and computations of sentences, previous acquittals and convictions. This also dictates the steps of Appeals, References and Revisions. It further has special provisions relating to cases in which European and Pakistan British subjects are concerned and lunatics. It also defines the strategy of proceedings in case of certain offences affecting the administration of justice, of the maintenance of wives and children. It also ordains the actions regarding directions of the nature of a Habeas Corpus and have the supplementary provisions regarding public prosecutor, bail, commissions for the examination of witness, special rules or evidence. Provisions as to bonds, of the disposal of property, transfer of criminal cases and supplementary provisions relating to European and Pakistan British subjects and others. It also specifies the conduct of irregular proceedings and miscellaneous matters.

Pakistan Penal Code, 1860 specifies the extent of punishments against different crimes and offences committed within Pakistan and beyond Pakistan but which by law may be tried within Pakistan and extra territorial offences. The PPC further assigns the policy of general exceptions, right of private defense, abetment, and criminal conspiracy. It further requires the actions against offences against the state, relating to the Army, Navy and Air Force and against public tranquility.

It also dictates the policy against offences by or relating to public servant, offences relating to offences and contempt of the lawful authority of public servants. It further stipulates the system against the false evidence and offences against public justice and relating to coins and Government Stamps and pertaining to weights and measures. The PPC also assigns the policy relating to offences affecting the public health, safety, convenience, decency and morals. It also assigns a scheme regarding offences relating to religion, affecting the human body, wrongful restraint and wrongful confinement, of rape and of unnatural offences. This also ordains the steps against offences against property through theft, extortion, robbery and dacoity, hijacking, criminal misappropriation of property, criminal breach of trust, receiving of stolen property, of cheating, fraudulent deeds and disposition of property, mischief and criminal trespass.

The PPC also defines the punishment against offences relating to documents and to Trade or Property marks through forgery or false documents, counterfeiting currency and bank notes and criminal breach of contracts of service. It also dictates the punishment against offences relating to marriage, defamation, criminal intimidation, insult and annoyance and the attempts to commit offences.

2. CYBERCRIME LAW, CYBER LAWYERS & ENFORCEMENT IN PAKISTAN

Cybercrime, also known as computer crime, the use of a computer as an instrument to perform an illegal act, such as committing fraud, trafficking in child pornography and intellectual property, stealing identities, or violating privacy and online fraud etc. Cybercrime, especially through the Internet, has grown in importance as the computer has become central to commerce, entertainment, and governance. Now a days cyber security is becoming the prime consideration in the legislation & policy making of modern states.

There is no doubt that Information Technology has intruded in our life in such a manner and extent that presently nobody can imagine a well-facilitated and luxury life without it. Computers, Scanners, World Wide Web Sites, Intranet and Internet Electronic Messaging and Mails, Electronic Data Transfers and Exchange of Information, Electronic Commerce and Banking System, all are necessities of life based on or using different components based on the use of Information Technology, which are abundantly in use in our domestic, social and business life. Mobile phones, laptops and latest computers are using Digital Databases for different purposes. Similarly, Digital Databases are accessible through Intranet and Internet at International level without any problem or loss of time.

The dawning of Information Technology age has facilitated our life but at the same time it has given birth to different complex problems like its regulatory matters and use of the Information Technology for criminal and other heinous purposes by different anti-social elements. Regulatory matters regarding use of Information Technology require legal frame works and laws. Similarly, misuse and anti-social elements that are causing fear and disturbance not only in personal lives but also in the smooth running of social and commercial life, as a whole.

At Asghar & Sons Jurists law firm we has a team of cyber laws legal practitioners who are well conversed and acquainted with the cyber laws, regulations, statutes etc for the prevention of cyber crimes hence we are in a position to even compete with the international level cyber security law firms. Our attorneys at daily basis involved in Cyber related laws and litigation; if you have any query please feel free to contact.

However, as the use of Information Technology has no boundaries, thus it is very difficult to design its regulatory regimes and regulatory laws to determine strict liability in case wrong and criminal application of different Software, Information Technology techniques and other related matters. Presently, all the nations and countries are facing the same problems for establishing effective regulatory regimes and legal systems for proper benefit of Information Technology within certain parameters which are beneficial to the society.

In Pakistan, in addition to the Pakistan Telecommunication (Re-Organization) Act, 1996, (Act XVII of 1996), The Electronic Transactions Ordinance, 2002 (Ordinance LI of 2002) is the first law to regulate different aspects and uses of Information Technology but the same has not solved all the problems. Thereafter, other laws have been made and promulgated to address different issues relating to Information Technology and its use for different purposes. After promulgation and enforcement of these laws, there was a need to compile these laws with case laws developed during this period for the benefit of legal professionals, academicians, researchers and general public.

It is also to point out that the Pakistan Telecommunication (Re- organization) Act, 1996 (XVII of 1996), is the basic legal framework given by the Parliament to achieve the ambitious goals in the telecommunication and Information Technology Sector in Pakistan providing different key organizations including the Pakistan Telecommunication Authority. Pakistan Telecommunication Authority has made a lot of efforts to regulate each and every aspect of the telecommunication sector in Pakistan and to meet the internationally posed challenges of competition and transparency. However, the Pakistan Telecommunication (Re-organization) Act, (XVII of 1996), The Telegraph Act, 1885 (Act XIII of 1885), and the Wireless Telegraphy Act, 1993 (Act XVII of 1933), have been introduced in different regimes. Prevention of Electronic Crimes Ordinance, 2007 (Ordinance LXXII of 2007) relating to Telecommunication Sector in Pakistan covering all aspects regarding telecommunications and Information Technology in their legal, national and international perspectives which may be consulted and used if you feel necessary and suitable to boost up your knowledge and information about basic regulatory regimes and frameworks in the telecommunications and information fields.

The growing danger from crimes committed against computers, or against information on computers, is beginning to claim attention in national capitals. In most countries around the world, however, existing laws are likely to be unenforceable against such crimes. This lack of legal protection means that businesses and governments must rely solely on technical measures to protect themselves from those who would steal, deny access to, or destroy valuable information.

Self-protection, while essential, is not sufficient to make cyberspace a safe place to conduct business. The rule of law must also be enforced. Countries where legal protections are inadequate will become increasingly less able to compete in the new economy. As cyber crime increasingly breaches national borders, nations perceived as havens run the risk of having their electronic messages blocked by the network. National Governments should examine their current statutes to determine whether they are sufficient to combat the kinds of crimes. Where gaps exist, Governments should draw on best practices from other countries and work closely with industry to enact enforceable legal protections against these new crimes.

What’s Different about Cyber Crime?

Undeterred by the prospect of arrest or prosecution, cyber criminals around the world lurk on the Net as an omnipresent menace to the financial health of businesses, to the trust of their customers, and as an emerging threat to nations’ security. Headlines of cyber attacks command our attention with increasing frequency. According to the Computer Emergency Response Team Coordination Center (CERT/CC), the number of reported incidences of security breaches in the first three quarters of 2000 has risen by 54 percent over the total number of reported incidences in 1999. Moreover, countless instances of illegal access and damage around the world remain unreported, as victims fear the exposure of vulnerabilities, the potential for Copycat Crimes, and the loss of public confidence. Cyber crimes—harmful acts committed from against a computer or network—differ from most terrestrial crimes in four ways. They are easy to learn how to commit; they require few resources relative to the potential damage caused; they can be committed in a jurisdiction without being physically present in it; and they are often not clearly illegal.

The laws of most countries do not clearly prohibit cyber crimes. Existing terrestrial laws against physical acts of trespass or breaking and entering often do not cover their “virtual” counterparts. Web pages such as the E-Commerce sites recently hit by widespread, distributed denial of service attacks may not be covered by outdated laws as protected forms of property. New kinds of crimes can fall between the cracks, as the Philippines learned when it attempted to prosecute the perpetrator of the May 2000 Love Bug virus, which caused billions of dollars of damage worldwide.

Effective Law Enforcement is complicated by the transnational nature of cyberspace. Mechanisms of cooperation across national borders to solve and prosecute crimes are complex and slow. Cyber criminals can defy the conventional jurisdictional realms of sovereign nations, originating an attack from almost any computer in the world, passing it across multiple national boundaries, or designing attacks that appear to be originating from foreign sources. Such techniques dramatically increase both the technical and legal complexities of investigating and prosecuting cyber crimes.

Six weeks after the Love Bug attack, the Philippines outlawed most computer crimes as part of a comprehensive e-commerce statute. In order to prevent a repeat of the catastrophe that prompted this action, however, the future of the networked world demands a more proactive approach, whereby Governments, Industry, and the Public Work together to devise enforceable laws that will effectively deter all but the most determined cyber criminals.

Poor Information Security Reduces the Competitiveness of Nations

In considering nations’ information security, the evaluated public trust in the security of information processed and stored on networks in each country. In this context, information security included: an assessment of the strength of legal protections and progress in protecting intellectual property rights, especially for software; the extent of efforts to protect electronic privacy; and the strength and effectiveness of the legal framework to authorize digital signatures. The existence of legal frameworks to prosecute cyber criminals, for a predictable environment of strong deterrence for computer crime is critical to the effective protection of valuable information and networks.

Although several countries, particularly in Europe and Asia, were found to have addressed a number of these broader information security factors, few countries were able to demonstrate that adequate legal measures had been taken to ensure that perpetrators of cyber crime would be held accountable for their actions. Overall, nearly half of the countries were rated as needing substantial improvement in information security. In addition, only a small fraction of countries needing substantial improvement indicated that progress was currently underway.

Outdated laws and regulations and weak enforcement mechanisms for protecting networked information, create an inhospitable environment in which to conduct e-business within a country and across national boundaries. Inadequate legal protection of digital information can create barriers to its exchange and stunt the growth of e-commerce. As e-business expands globally, the need for strong and consistent means to protect networked information will grow.

The Cyber Crime Laws of Nations

In the wake of the Philippines inability to prosecute the student responsible for the virus, McConnell International surveyed its global network of Information Technology policy officials to determine the state of cyber security laws around the world. Countries were asked to provide laws that would be used to prosecute criminal acts involving both private and public sector computers.

Over fifty national governments responded with recent pieces of legislation, copies of updated statutes, draft legislation or statements that no concrete course of action has been planned to respond to a cyber attack on the public or private sector. Countries were provided the opportunity to review the presentation of the results in draft, and this report reflects their comments.

Countries that provided legislation were evaluated to determine whether their criminal statutes had been extended into cyberspace to cover ten different types of cyber crime in four categories: Data-Related Crimes including interception, modification and theft; Network-Related Crimes including interference and sabotage; Crimes of Access including hacking and virus distribution and Associated Computer-Related Crimes including aiding and abetting cyber criminals, computer fraud and computer forgery.

Thirty-three of the countries surveyed have not yet updated their laws to address any type of cyber crime. Of the remaining countries, nine have enacted legislation to address five or fewer types of cyber crime, and ten have updated their laws to prosecute against six or more of the ten types of cyber crime.

Countries with fully, substantially or partially updated laws, in Pakistan, successful prosecutions of computer-related fraud have effectively updated the law. Pakistan also provides an example of a phenomenon in many countries—that law enforcement officials have strong confidence that existing laws provide sufficient coverage against the “computer-related crimes” of aiding and abetting cyber crimes, and computer-related fraud and forgery.

Even among these countries, crimes are not treated uniformly. In some, unauthorized access is a crime only if harmful intent is present; in others, data theft is a crime only if the data relates specifically to an individual’s religion or health, or if the intent is to defraud. Laws tend to be biased in favor of protecting public sector computers.

Discrepancies exist even within countries. For example, in September 2000, the Australian Democratic Party criticized the South Australian (state) government for creating a haven for cyber criminals by not having updated its laws to combat computer-based crime in accordance with the laws of Australia’s other states. Moreover, there is little uniformity across nations in terms of which types of crimes have been addressed through updated statutes.

The penalties provided in updated criminal statutes vary widely. Mauritius, the Philippines, and the United States have stronger penalties than many other countries for convictions of covered cyber crimes.

Finally, of the 33 countries with no updated laws in place, 13 indicated that progress toward the adoption of updated legislation to combat cyber crime is underway. Seven of these 13 countries are in Africa or the Middle East, indicating that, although these regions have not yet adequately addressed the issue of cyber crime, many countries are aware that action is needed.

Law Is Only Part of the Answer

Extending the rule of law into cyberspace is a critical step to create a trustworthy environment for people and businesses. Because that extension remains a work in progress, organizations today must first and foremost defend their own systems and information from attack, be it from outsiders or from within. They may rely only secondarily on the deterrence that effective law enforcement can provide.

Conclusion

1. Reliance on terrestrial laws is an untested approach

Despite the progress being made in many countries, most countries still rely on standard terrestrial law to prosecute cyber crimes. The majority of countries are relying on archaic statutes that predate the birth of cyberspace and have not yet been tested in court.

2. Weak penalties limit deterrence

The weak penalties in most updated criminal statutes provide limited deterrence for crimes that can have large-scale economic and social effects.

3. Self-protection remains the first line of defense

The general weakness of statutes increases the importance of private sector efforts to develop and adopt strong and efficient technical solutions and management practices for information security.

4. A global patchwork of laws creates little certainty

Little consensus exists among countries regarding exactly which crimes need to be legislated against, even in the 19 countries that have already taken steps to address cyber crimes. In the networked world, no island is an island. Unless crimes are defined in a similar manner across jurisdictions, coordinated efforts by law enforcement officials to combat cyber crime will be complicated.

5. A model approach is needed

Most countries, particularly those in the developing world, are seeking a model to follow. These countries recognize the importance of outlawing malicious computer-related acts in a timely manner in order to promote a secure environment for e-commerce. But few have the legal and technical resources necessary to address the complexities of adapting terrestrial criminal statutes to cyberspace. A coordinated, public-private partnership to produce a model approach can help eliminate the potential danger from the inadvertent creation of cyber crime havens.

Recommendations

The weak state of global legal protections against cyber crime suggests three kinds of action.

1. Firms should secure their networked information

Laws to enforce property rights work only when property owners take reasonable steps to protect their property in the first place. As one observer has noted, if homeowners failed to buy locks for their front doors, should towns solve the problem by passing more laws or hiring more police? Even where laws are adequate, firms dependent on the network must make their own information and systems secure. And where enforceable laws are months or years away, as in most countries, this responsibility is even more significant.

2. Governments should assure that their laws apply to cyber crimes

National governments remain the dominant authority for regulating criminal behavior in most places in the world. One nation already has struggled from, and ultimately improved, its legal authority after a confrontation with the unique challenges presented by cyber crime. It is crucial that other nations profit from this lesson and examine their current laws to discern whether they are composed in a technologically neutral manner that would not exclude the prosecution of cyber criminals. In many cases, nations will find that current laws ought to be updated. Enactment of enforceable computer crime laws that also respect the rights of individuals are an essential next step in the battle against this emerging threat.

3. Firms, governments, and civil society should work cooperatively to strengthen legal frameworks for cyber security

To be prosecuted across a border, an act must be a crime in each jurisdiction. Thus, while local legal traditions must be respected, nations must define cyber crimes in a similar manner. An important effort to craft a model approach is underway in the Council of Europe. The Council is crafting an international Convention on Cyber Crime. The Convention addresses Illegal Access, Illegal Interception, Data Interference, System Interference, Computer-related Forgery, Computer-related Fraud, and the Aiding and Abetting of these crimes. It also addresses investigational matters related to jurisdiction, extradition, the interception of communications and the production and preservation of data. Finally, it promotes cooperation among law enforcement officials across national borders.

Late in its process, the Council began to consider the views of affected industry and civil society. This process is making the Council’s product more realistic, practical, efficient, balanced and respectful of due process that protects individual rights. At this point, most observers support provisions to improve law enforcement cooperation across borders. However, industry, through the World Information Technology and Services Alliance argues that the requirements on service providers to monitor communications and to provide assistance to investigators, as outlined in the Draft Convention, would be unduly burdensome and expensive. Another provision considered objectionable could criminalise the creation and use of intrusive software, or hacking programmes, which are designed for legitimate security testing purposes. This action could stifle the advances in technology vital to keep up with evolving cyber threats. Privacy and Human Rights Advocates object to the Draft Convention’s lack of procedural safeguards and due process to protect the rights of individuals, and to the possibility that the ensuing national laws would effectively place restrictions on privacy, anonymity and encryption.

Types of Cyber Crimes

Theft of Telecommunications Services
Communications in furtherance of Criminal Conspiracies
Telecommunications Piracy
Dissemination of Offensive Materials
Electronic Money Laundering and Tax Evasion
Electronic Vandalism, Terrorism and Extortion
Sales and Investment Fraud
Illegal Interception of Telecommunications
Eelectronic Funds Transfer Fraud

Problem Areas

Telecommunications
Electronic Vandalism, Terrorism and Extortion
Stealing Telecommunications Services
Telecommunications Piracy
Pornography and other Offensive Material
Telemarketing Fraud
Electronic Fund Transfer Crime
Electronic Money Laundering

LAWS RELATING TO CYBER CRIME IN PAKISTAN

The Electronic Transactions Ordinance, 2002

The purpose of this ordinance is to recognize and facilitate Documents, Records, Information, Communications and Transactions in electronic form, and to provide for the accreditation of Certification Service Providers.

Defendant, according to sales contract, was to supply 1,600 M.T. steel rods, but it supplied only 500 M.T. of steel rods. Plaintiff filed suit claiming damages against defendant in respect of balance 1,100 M.T. of steel rods. Defendant filed application for stay of plaintiff’s suit seeking direction from the Court to order plaintiff to refer the dispute to arbitration as the parties by the very said contract had agreed to settle all disputes by arbitration. Claim of plaintiff was that sale transaction was based on pro forma invoice, purchase order and correspondence by faxes and E-mails and that plaintiff had never entered into any sales contract containing an agreement to arbitration.

In a paragraph of the Order, it has been observed that “The learned counsel for the Plaintiff has also argued that the Sales Contract has not been signed and therefore is not enforceable. As discussed above, the Defendant has established that sales contract was electronically sent to the plaintiff who acted on the same and opened a Letter of Credit in accordance with its terms and conditions, which also contained an arbitration clause. The submissions of the learned Advocate for the Plaintiff have no force in view of the provisions of the Electronics Transactions Ordinance, 2002 (Ordinance LI of 2002) – It is further to be pointed out that after promulgation of Electronic Transactions Ordinance, 2002, the Qanun-e- Shahadat, 1984 (P.O. 10 of 1984) stands amended in terms of section 29 of the Ordinance, 2002 – By the said amendments various definitions of the Qanun-e-Shahadat Order have been changed and specifically by addition of section 2(e) in the said Order all the documents produced or generated through modern devices have been given evidentiary value…

It is further observed in Paragraph 11 of the Order thereof that in view of the aforesaid provisions of the Electronic Transactions Ordinance 2002, as well as amendment in the Qanun-e-Shahadat Order, it appears that it is no longer necessary for electronically transmitted documents, which include Commercial / Banking Contracts, to be manually signed or for the same to be attested by any witness.

The Payment Systems and Electronic Fund Transfers Act, 2007

The purpose of the Act is to provide regulatory framework for payment systems and electronic fund transfers. “Electronic fund” means the money transferred through an electronic terminal, ATM, telephone instrument, computer, magnetic medium or any other electronic device to order, instruct or authorize Banking Company, a Financial Institution or any other Company or Person to debit and credit an account. The Act gives powers to State Bank of Pakistan that if it finds it necessary in the public interest, it can designate a “Payment System” (means a system relating to payment of instruments, or transfer, clearing, payment settlement, supervision, regulation or infrastructure etc.) as a Designated Payment System by a written order. State Bank can revoke the designation of payment system.

It also deals with Payment Systems, Real Time Gross Settlement System (RTGS), Operator Arrangement, Clearing and other obligations, Documentation of Transfers, Notification of Error, Liability of parties and penalties etc.

The Prevention of Electronic Crimes Ordinance, 2007

Aim of the Ordinance is to make provision for prevention of Electronic Crimes. Prevention of any action directed against the confidentiality, integrity and availability of electronic system, networks and data as well as the misuse of such system, networks and data by providing punishment of such actions and to provide mechanism for investigation, prosecution and trial of offences and the other matters connected thereto.

It deals with Criminal access, Criminal data Access, Data damage, System damage, Electronic fraud, Electronic forgery, Misuse of Electronic System or Electronic Device, Unauthorized access to Code, Misuse of encryption, Malicious code, Cyber stalking, Spamming, Spoofing, Unauthorized Interception, Cyber Terrorism it also deals with their punishments, abetting, aiding and attempts to commit offences, prosecution and trial of offences, establishment of investigation and prosecution agencies etc.

The Pakistan Telecommunication (Re-Organization) Act, 1996

The aim of the Act is the re-organization of telecommunication system. It provides for re-organization of telecommunication system in Pakistan by establishing the Pakistan Telecommunication Authority, the Frequency Allocation Board, National Telecommunication Corporation and the Pakistan Telecommunication Employees Trust, Regulation of Telecommunication Industry, Transfer of Telecommunication Services to private sector and matters connected and incidental thereto.

It elaborates the powers, functions and responsibilities of the Pakistan Telecommunication Authority.

Cognisance of the offences punishable under the Pakistan Telecommunication (Re-Organization) Act, 1996, could only be taken by the Court on a complaint in writing by an officer authorised by the Authority or the Board.

The Telegraph Act, 1885

The Act deals with telegraphs in Pakistan. The Federal Government may grant a license to any person that he may establish, maintain or work a telegraph within any part of Pakistan. The Government and the telegraph officer both shall not responsible for any loss or damage which may occur in consequence of failure to the receipt, transmission or delivery of any message unless the telegraph officer is negligent in performing his duties.

The Wireless Telegraphy Act, 1933

Wireless Telegraphy Act deals with the possession of wireless telegraphy apparatus. It prohibits the possession of wireless telegraph apparatus without a license. The Federal Government has power to exempt any person or class of persons from the operation of this Act by making rules on it either generally or on conditions. It also prescribes offences and penalties in case of violation of this Act.

The Anti-Money Laundering Ordinance, 2007

The Ordinance is made for prevention of money laundering. A person shall be guilty of the offence of money laundering if he acquires, converts, possesses or transfers property, knowing or having reason to believe that such property is proceeds of crime, or renders assistance to another person for the acquisition, conversion, possession or transfer of, or for concealing or disguising the true nature, origin, location, disposition, movement or ownership of property, knowing or having reason to believe that such property is proceeds of crime. The punishment for money laundering shall be one year but may extend to ten years according to the gravity of the offence and he shall also liable to fine which may extend to one million rupees and shall also be liable to forfeiture of property involved in the money laundering.

Asghar & Sons Jurists along with our cyber attorneys deal in all kinds of Cyber Crime Laws including Anti-Money Laundering Ordinance, 2007 in a very professional manner. We at Asghar & Sons Jurists are always available to assist the public who is facing any issue regarding the breach of Cyber Law. If you have any inquiries please feel free to contact us, we will assist you proactively.

3. BLUE COLLAR CRIME & LAWYERS IN PAKISTAN

Blue collar crimes are considered to be criminal offenses which are of a less social platform than that of professional white collar crimes. While many blue collar crimes involve force, violence, or weapons, they are also types criminal offenses which are simply crimes of opportunity.

Our dedicated team of professional lawyers at Asghar & Sons Jurists are best acquainted to assist their clients in combating blue-collar crimes in Pakistan. Blue-collar crime is a term given to criminal acts more likely to be committed by citizens of lower social class in society, such as those which inflict direct harm on the person or property of others. This is in contrast to white-collar crime, which is generally committed by citizens of higher social class, who are more likely to be presented with the opportunity to commit such crimes.

In criminology, blue-collar crime is any crime committed by an individual from a lower social class as opposed to white-collar crime which is associated with crime committed by individuals of a higher social class.

“Blue-collar crime” is an informal classification and holds no particular legal weight. For the most part, blue-collar crime entails whatever crimes are most immediately possible for a person to commit, those that are most often spurred by passion rather than those that require careful deliberation. Crimes against the person, crimes against property, and many forms of victimless crime such as prostitution, gambling and drug abuse all tend to be classified as blue-collar crime. Blue-collar crimes are, for the most part, those that cause an immediate and highly visible injury to society, so they’re usually punished much more rapidly and severely than white-collar crime. Also, citizens of lower social class cannot generally afford high-quality legal assistance, which means they tend to suffer far more severe punishment than white-collar criminals.

Blue-collar crimes are crimes that happen on the streets everyday. This is just one among the many types of crimes such as white-collar crimes and computer crimes which involves the use of computers in committing the crimes. Blue-collar crimes can be include, but are not limited to the following: Kidnapping, Shoplifting, Vandalism, Rape.

Blue collar crimes are also crimes which are more visible, detected sooner, and occur on a more frequent basis than crimes of a white collar nature.

Citizens of higher social class are certainly capable of committing “blue-collar” crimes, and do, all the time. However, the vast majority of these crimes are committed by citizens of lower social class, who in turn have limited opportunities to commit white-collar crimes such as financial fraud and money laundering, which is how these classifications originated.

Asghar & Sons Jurists is a law firm that possesses the practical experience and necessary infrastructure to effectively assist you through each and every aspect of your blue collar crime defense case.

As Your Blue Collar Crime Attorney & Lawyer

We will listen to your story, inform you of your legal rights, thoroughly investigate and analyze the evidence against you, put the actions of law enforcement under a microscope, determine what the best possible defense would be, and aggressively represent your rights with every legal resource available by law. At Asghar & Sons Jurists, we are extremely detailed in our investigation of the facts and evidence of your case, which ensures we always maintain due diligence in our effort to provide each of our blue collar crime clients the highest standard of legal representation.

Defending Your Criminal Charges

We will fight to ensure your legal rights are protected in an effort to successful resolve your legal situation in the best possible manner, we will:

Negotiate to have your charges dropped or dismissed;
Negotiate to have your charges reduced;
Negotiate for a diversion program (when available);
Negotiate for probation instead of jail or prison time; and
When a trial is unavoidable, we will aggressively defend your legal rights with every legal resource available with us.

If you or a loved one has been accused of a blue collar crime crime, we urge you to be proactive in ensuring your legal rights are protected by contacting an experienced blue collar crime attorney & lawyer at ZA-LLP as soon as possible by calling any of our office near your location.

Depending on your criminal history, and any additional charges you may be facing, the penalties for a blue collar crimes may include:

Varying terms of jail time or imprisonment;
Hefty monitory fines;
Lengthy terms of probation;
Potential forfeiture of property and assets;
Potential forfeiture of specific basic civil rights;
Community service; and
In crimes involving injuries or property damage, legal standing for a civil suit against you as well.

When accused of a blue collar crime, you should never take your legal rights lightly. Your rights are a privilege, and our firm considers it an honour to protect those rights by providing professional legal service you can trust and depend upon.

4. WHITE COLLAR CRIME & LAWYERS IN PAKISTAN

Find information as to white-collar crime in Pakistan. Our dedicated team of professional lawyers at Asghar & Sons Jurists best assists their clients in combating the white collar crime in Pakistan. The legal system of a country primarily aims to give justice to all its citizens without any discrimination. But this discrimination is in every legal system is true to exist. These are the loopholes in the system, which required to be looked into.

In the society, where we live is no exception, an offence committed by a person of low social rank is penalized stringently under the hard rules of law but the same offence is committed by a person of high social rank, situation changes.In practice, law or I would say system appears to be more soften towards the offender.

As the society emerged and developed, the new challenges arose in every field collaterally in the world of crimes. A crime which is known as “White-Collar crime” also emerged in this course. This term was first coined by the sociologist Edwin Sutherland who was the chief proponent of this social concept of crime.

Within the field of criminology white-collar crime has been defined by Edwin Sutherland as:“A crime committed by a person of respectability and high social status in the course of his occupation” (1949)

It deals with criminal acts by public servants, persons in authority or even by persons involved in commercial organizations. White-collar crime therefore overlaps with corporate crime because the opportunity for fraud, bribery, insider trading, embezzlement, computer crime and forgery is more available to white-collar employees.

White-collar crimes have a drastic effect over the economy and financial state of a country.

Classifications of White-Collar Crime

This was for the first time the classification of white collar crime was done under the National Accountability Ordinance; whereas all the previous statutes did not define this term: It includes two persons:

Holder of Public Office: which also includes the public servants as defined in Sec. 21 of the Pakistan Penal Code, 1860; and
A person; as in the case of a Company or a body corporate, the sponsors, Chairman, Chief Executive, Managing Director, elected directors, by whatever name called.

Holder of Public Office

The holder of public office has been defined in the section 5, clause (l), of National Accountability Ordinance 1999:

“Holder of public office” means a person who:

has been the President of Pakistan or the Governor of a Province.
is, or has been the Prime Minister, Chairman Senate, Speaker of the National Assembly, Deputy Speaker National Assembly, Federal Minister, Minister of State, Attorney General and other Law Officer appointed under the Central Law Officers Ordinance, 1970 (VII of 1970), Advisor to the Prime Minister, Special Assistant to the Prime Minister, Federal Parliamentary Secretary, Member of Parliament, Auditor General, Political Secretary, Advisor or Consultant to the Prime Minister and holds or has held a post or office with the rank or status of a Federal Minister or Minister of State;
is, or has been, the Chief Minister, Speaker Provincial Assembly, Deputy Speaker Provincial Assembly, Provincial Minister, Advisor to the Chief Minister, Special Assistant to the Chief Minister, Provincial Parliamentary Secretary, Member of the Provincial Assembly, Advocate General including Additional Advocate General and Assistant Advocate General, Political Secretary, Advisor or Consultant to the Chief Minister and who holds or has held a post or office with the rank or status of a Provincial Minister;
is holding, or has held, an office or post in the service of Pakistan, or any service in connection with the affairs of the Federation, or of a Province, or of a local council constituted under any Federal or Provincial law relating to the constitution of local councils, or in the management of corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization established, controlled or administered by or under the Federal Government or a Provincial Government, other than a person who is a member of any of the Armed Forces of Pakistan, or for the time being is subject to any law relating to any of the said Forces, except a person who is, or has been a member of the said Forces and is holding, or has held, a post or office in any public corporation, bank, financial institution, undertaking or other organization established, controlled or administered by or under the Federal Government or a Provincial Government;
is, or has been, the Chairman or Vice Chairman of a Zila Council, a Municipal Committee, a Municipal Corporation or a Metropolitan Corporation constituted under any Federal or Provincial law relating to local councils; and “Explanation” For the purpose of this the expressions “Chairman” and “Vice Chairman” shall include “Mayor” and “Deputy Mayor” as the case may be, and the respective councilors therein;
any person who has served in and retired or resigned from or has been discharged or dismissed from the Armed Forces of Pakistan.

Commission of Offence

The white collar crime is said to be committed; when a holder of a public office, or any other person, is said to commit or to have committed the offence of corruption and corrupt practices:

If he accepts or obtains from any person or offers any gratification directly or indirectly, other than legal remuneration, as a motive or reward such as is specified in section 161 of the Pakistan Penal Code 1860 for doing or forbearing to do any official act, or for showing or forbearing to do show, in the exercise of his official functions, favor or disfavor to any person, or for rendering or attempting to render any service or disservice to any person; or
If he accepts or obtains or offers any valuable thing without consideration, or for a consideration which he knows to be inadequate, from any person whom he knows to have been, or likely to be, concerned in any proceeding or business transacted or about to be transacted by him, or having any connection with his official functions or from any person whom he knows to be interested in or related to the person so concerned; or
If he dishonestly or fraudulently misappropriates or otherwise converts for his own use, or for the use of any other person, any property entrusted to him, or under his control, or willfully allows any other person so to do; or
If he by corrupt, dishonest, or illegal means, obtains or seeks to obtain for himself, or for his spouse or dependants or any other person, any property, valuable thing, or pecuniary advantage; or
If he or any of his dependants or benamidars owns, possesses, or has acquired right or title in any assets or holds irrevocable power of attorney in respect of any assets or pecuniary resources disproportionate to his known sources of income, which he cannot reasonably account for or maintains a standard of living beyond that which is commensurate with his sources of income; or
If he misuses his authority so as to gain any benefit or favor for himself or any other person, or renders or attempt to render or willfully fails to exercise his authority to prevent the grant, or rendition of any undue benefit or favor which he could have prevented by exercising his authority; or
If he has issued any directive, policy, or any SRO (statutory Regulatory Order) or any other order which grants or attempts to grant any undue concession or benefit in any taxation matter or law or otherwise so as to benefit himself or any relative or associate or a benamidar or any other person; or
If he commits an offence of willful default; or
If he commits the offence of cheating as defined in section 415 of the Pakistan Penal Code, 1860, and thereby dishonesty induces members of the public at large to deliver any property including money or valuable security to any person; or
If he commits the offence of criminal breach of trust as defined in section 405 of the Pakistan Penal Code (Act XLV of 1860) with regard to any property including money or valuable security entrusted to him by members of the public at large; or
If he in his capacity as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust as provided in section 409 of the Pakistan Penal Code,1860 in respect of property entrusted to him or over which he has dominion; and

Under Art.199 of Islamic Republic of Pakistan High Court has jurisdiction to issue writ against National Accountability Bureau and its functionaries. The Chairman NAB shall have the, at any stage of the investigation under this Ordinance, to direct that the accused, if not already arrested, shall be arrested. Accused must be informed of the grounds of his arrest.

Types of White Collar Crime

The aggrieved parties may bring their claims under the mechanism hereinafter provided in the statutes to the Courts or to a special institution known as National Accountability Bureau established under National Accountability Ordinance 1999. Followings are the types of White Collar Crime:

Embezzlement

The taking of someone’s property by a person with whom it is entrusted.

Larceny

Involves taking someone’s property without paying for or returning it.

Extortion

Illegal use of one’s official position or powers to obtain property, funds, or patronage; also known as blackmailing.

Fraud

This often includes but is not limited to health care fraud and tax fraud.

Price Fixing

An agreement between two parties to set prices for a certain product, thereby violating free market operations.

Racketeering

The extortion of money by force or a pattern of criminal activity committed to further the interests of a criminal syndicate.

Computer Fraud

Using a computer or technological devices to commit a crime.

Securities and Commodities Law Violations

Environmental Law Violations

Bank Fraud

To engage in an act or pattern of activity where the purpose is to defraud a bank of funds.

Racketeering

The operation of an illegal business for personal profit.

Tax Evasion

When a person commits fraud in filing or paying taxes.

Bribery

When money, goods, services, information or anything else of value is offered with intent to influence the actions, opinions, or decisions of the taker. You may be charged with bribery whether you offer the bribe or accept it.

Cellular Phone Fraud

The unauthorized use, tampering, or manipulation of a cellular phone or service. This can be accomplished by either use of a stolen phone, or where an actor signs up for service under false identification or where the actor clones a valid electronic serial number (ESN) by using an ESN reader and reprograms another cellular phone with a valid ESN number.

Cyber Crime

Where computer hackers steal information sources contained on computers such as: bank information, credit cards, and proprietary information.

Insider Trading

When a person uses inside, confidential, or advance information to trade in shares of publicly held corporations.

Insurance Fraud

To engage in an act or pattern of activity wherein one obtains proceeds from an insurance company through deception.

Investment Schemes

Where an unsuspecting victim is contacted by the actor who promises to provide a large return on a small investment.

Kickback

Occurs when a person who sells an item pays back a portion of the purchase price to the buyer.

Larceny / Theft

When a person wrongfully takes another person’s money or property with the intent to appropriate, convert or steal it.

Money Laundering

The investment or transfer of money from racketeering, drug transactions or other embezzlement schemes so that it appears that its original source either cannot be traced or is legitimate.

Telemarketing Fraud

Actors operate out of boiler rooms and place telephone calls to residences and corporations where the actor requests a donation to an alleged charitable organization or where the actor requests money up front or a credit card number up front, and does not use the donation for the stated purpose.

Welfare Fraud

To engage in an act or acts where the purpose is to obtain benefits (i.e. Public Assistance, Food Stamps, or Medicaid) from the State or Federal Government.

Weights and Measures

The act of placing an item for sale at one price yet charging a higher price at the time of sale or short weighing an item when the label reflects a higher weight.

For Instance when accused is guilty of an offence mentioned above i.e. When the Embezzlement is said to be committed?

When one or more individuals dishonestly appropriating or secreting assets, usually financial in nature, when such assets have been entrusted to them. It is a kind of financial fraud.

For instance, a clerk or cashier handling large sums of money can embezzle cash from his or her employer, a lawyer can embezzle funds from clients’ trust accounts, a financial advisor can embezzle funds from investors, or a spouse can embezzle funds from his or her partner. Embezzlement may range from the very minor in nature, involving only small amounts, to the immense, involving large sums and sophisticated schemes. Often it involves the trusted person embezzling only a small proportion or fraction of the funds received, in an attempt to minimize the risk of detection. If successful, embezzlements can continue for years (or even decades) without detection. It is often only when the funds are needed, or called upon for use, that the victims realize the funds or savings are missing and that they have been duped by the embezzler. Embezzlement is a statutory offense so the definition of the crime varies. Typical elements are:

Fraudulent conversion (The requirement that the conversion be fraudulent means simply that the defendant willfully and without claim of right or mistake converted the property to his or her own use);
Property of another; and
By a person who has lawful possession of the property.

Embezzlement is a crime against ownership; that is, the owner’s right to control the disposition and use of the property. The conversion element requires a substantial interference with the true owner’s property rights (unlike larceny, where the slightest movement of the property when accompanied by the intent to deprive one of the possessions of the property permanently is sufficient)

Embezzlement statutes do not limit the scope of the crime to conversions of personal property. Statutes generally include conversion of tangible personal property, intangible personal property and chose’s in action. Real property is not typically included. The critical element is that the defendant must have been in lawful possession of the property at the time of the fraudulent conversion and not have mere custody of the property. If the defendant had lawful possession the crime is embezzlement. If the defendant merely had custody, the crime is larceny. If the embezzlement is committed in companies the claim may be refer to the Court under Section 290 of the Companies Ordinance, 1984.

How the offender is penalized under the law of the land as guilty of such offences?

Federal Investigation Agency (FIA) in Pakistan

Corruption Establishment used to take care of the Provincial subjects in their respective provinces. National Accountability Bureau (NAB) being a Federal Agency with wide powers and laws having over riding effects was looking after whole of Pakistan. However in 2004 section 409 PPC was deleted from FIA Act and all cases pending in special courts transferred to NAB.

Till 2004, the primarily role was to investigate the cases of corruption and white collar crime. In 2004, government transferred Anti-Corruption and Economic Crime functions to the NAB.

PAKISTAN PENAL CODE 1860

Section 161 to 165-A Pakistan Penal Code, 1860, Sec 5 of Prevention of Corruption Act, 1947 and Sec 9 of the National Accountability Ordinance, 1999 are the main tools in the hands of enforcement agencies of anti corruption laws. The Provincial Anticorruption Establishment uses the first two sets of laws while the National Accountability Bureau uses the third set of laws.

Section 161 PPC: Public servant taking gratification other than legal remuneration in respect of an official act
Section 162 PPC: Taking gratification, in order, by corrupt or illegal means, to influence public servant
Section 163 PPC: Taking gratification, for exercise of personal influence with public servant
Section 164 PPC: Punishment for abetment by public servant of offences defined in Section 162 or 163
Section 165 PPC Public servant obtaining valuable thing, without consideration from person concerned in proceeding or business transacted by such public servant
Section 165-A. Punishment for abetment of offences defined in Sections 161 and 165

National Accountability Ordinance (No.XVIII) of 1999

The promulgation of National Accountability Ordinance was a step forward to make efforts to eliminate corruption and corrupt practices, to provide effective measures to the society by setting up an institution of National Accountability Bureau.

The National Accountability Ordinance repealed the Ehtesab Act 1997, and all the pending proceedings would be transferred to the NAB, from the date of promulgation of the Ordinance.

The prevention of Corruption Act was the first legislation in an effort to control/eradicate corruption from the country. This Act is still in force but failed to achieve the objects. Then the Federal Government of Pakistan in November 1999 promulgated the National Accountability Ordinance. The Act was made applicable not only to public servants but its scope was extended to “holders of public office” and “persons” involved in corporate business.

The provisions of the Code of Criminal Procedure, 1898. (Act V of 1898), shall mutatis mutandis, apply to the proceedings under this Order. the provisions of Chapter XXIIA of the Code shall apply to trials under this Ordinance. Although the Accountability Court may, for reasons to be recorded, dispense with any provision of the Code and follow such procedure as it may deem fit in the circumstances of the case.

Previous Legislations

Prevention of Corruption Act, 1947
Public and Representative Offices Disqualification Act, 1949 (PRODA)
Elective Bodies (Disqualification Order, 1959 (EBDO)
Pakistan Criminal Law Amendment Act, 1958
Ehtesab Act, 1996 (Repealed)
National Accountability Bureau Ordinance, 1999

Other Related Laws

Pakistan Penal Code, 1860
Criminal Procedure Code, 1898
Income Tax Act
Customs Act
Recovery of loan Ordinance

Under Art. 199 of Islamic Republic of Pakistan, High Court has jurisdiction to issue the writ against National Accountability Bureau (NAB) and its functionaries.

The Chairman NAB shall have the, at any stage of the investigation under this Ordinance, to direct that the accused, if not already arrested, shall be arrested. Accused must be informed of the grounds of his arrest.

Grant of Bail

If he aids, assists, abets, attempts or acts in conspiracy with a person or a holder of public office accused of an offence as provided in clauses (i) to (xi). All offences under this Ordinance shall be non-bail able and notwithstanding anything contained in section 426, 491, 497, 498, and 561-A or any other provision of the Code of Criminal Procedure 1898, or any other law for the time being in force no Court shall have any jurisdiction to grant bail to any person accused of any offence under the National Accountability Ordinance.

International Co-operation Request for Mutual Legal Assistance

The Chairman NAB or any officer authorized by the Federal Government may request a Foreign State to do the following acts in accordance with the law of such State; to have evidence taken, or documents or other articles produced.

Punishments for Corruption and Corrupt Practices

A person who commits the offence of corruption and corrupt practices shall be punishable with imprisonment for a term which may extend to 14 years, or with fine, or with both, and such of the assets and property of such person which is found to be disproportionate to the known sources of his income or which is acquired by money obtained through corruption and corrupt practices whether in his name or in the name of any of his dependents, or benamidars shall be liable to be forfeited to the appropriate Government.

Transfer of Property Void

While the inquiry, investigation or proceedings are pending before the NAB or the Accountability Court; and any transfer of any right, title or interest or creation of a charge on such property shall be void.

Voluntary Return and Plea Bargain

Where before the commencement of the trial at any time thereafter, with the leave of the Court, the holder of a public office or any other person accused of any offence under this Ordinance voluntarily returns to the NAB, the assets or gains acquired through corruption or corrupt practices and discloses the full particulars relating thereto, the Chairman NAB, may release the accused person with the leave of the Court, or, proceed with the trial subject to such conditions if any, as may be imposed by the Court.

Power of the Court to Freeze Property

If there appear reasonable grounds for believing that the accused has committed such an offence, order the freezing of his property, movable or immovable, or part thereof, whether in his possession or in the possession of any relative, associate or person on his behalf.

The Accountability Court shall have exclusive jurisdiction to entertain and adjudicate upon all claims or objections against the freezing of any property under Sec. 12 above. Such claims or objections shall be made before the Accountability Court within 14 days from the date of the order, freezing such property.

Disqualification to Contest Elections

Where an accused person is convicted for the offence of corruption or corrupt practices, he shall stand disqualified for 21 years for seeking or from being elected, chosen appointed or nominated as a member or representative of any public office, or any statutory or local authority of the Government of Pakistan.

Provided that any accused person who has availed the benefit of sections 26 and 27 of this Ordinance shall also be deemed to have beets convicted for an offence under this Ordinance, and shall stand disqualified for 21 years as above.

Reporting of Suspicious Financial Transactions

It shall be the duty of all banks and financial institutions to take prompt and immediate notice of all unusual or large transactions with context to the account, which have no apparently genuine economic or lawful purpose and upon bona fide professional judgment of the Bank suspicion that such transactions could constitute or be related to illegal or illicit activities, corruption or corrupt practices. Where there are reasonable grounds to believe that the assets of a person or any part thereof were acquired through corruption or corrupt practices, and there was no other likely source of acquiring such assets or part thereof, it shall be presumed, unless proved to the contrary by the accused person, that such assets or part thereof were acquired, generated or obtained through corruption and corrupt practices.

Cognisance of Offences

The Court shall not take cognizance of any offence under this Ordinance except under this Ordinance except on a reference made by the Chairman NAB or an officer of the NAB duly authorized by him.

A reference under this Ordinance shall be initiated by the National Accountability Bureau on

A reference received from the appropriate government; or
Receipt of a complaint; or
Its own accord.

Where the Chairman NAB, or an officer of the NAB duly authorized by him, is of the opinion that it is, necessary and appropriate to initiate proceedings against any person, he shall refer the matter for inquiry or investigation. The responsibility for inquiry into an investigation of an offence alleged to have been committed under this Ordinance shall rest on the NAB.

Conciliation Committee

Where a person has been arrested or is in the custody of NAB on the charge that he is guilty of committing the offence of willful default on account of non-payment of dues to a bank or financial institution or cooperative society, he may apply to the Chairman NAB for the reconciliation of his liability through Conciliation Committee and the Chairman NAB may refer the matter to a Conciliation Committee. The Governor, State Bank of Pakistan shall constitute one or more Conciliation Committees for the purposes of this Ordinance.

Accused to be Competent Witness

According to Section 29 of NAO 1999, Any person charged with an offence punishable under this Ordinance shall be a competent witness for the defence and may give evidence on oath in disproof of the charges made against him; the accused shall not be compelled to be a witness against himself; and where an accused person appears as a witness of his own choice and refuses to answer any question the court may draw such adverse inference from such refusal as it may think proper.

The Accountability Court shall have the jurisdiction and power to take cognizance of an offence committed in the course of the investigation or trial of a case by any officer, any witness, including an expert, who has tendered false evidence in the case, whether he deposed in Court or not, or any other person, under sections 176 to 182 of Chapter X, or sections 191 to 204, or 211 to 223, or 225‑A of Chapter XI, of the Pakistan Penal Code 1860 (Act XLV of 1860), or under any other law relating to false evidence and offences against public justice, and to summarily try him and award punishment provided for the offence under the law.

Prohibition to Hamper Investigation

If any person concerned with inquiry, investigation and prosecution of a case consciously and deliberately and with malice compromises, hampers, misleads, jeopardizes or defeats an inquiry or investigation of a case under process before NAB or any concerned agency or authority or the Court.

According to Section 31-A of NAO 1999, Whoever absconds in order to avoid being served with any process issued by any Court or any other authority or officer under this Ordinance or in any manner prevents, avoids or evades the service on himself of such process or conceals himself to screen himself from the proceedings or punishment under this Ordinance shall be guilty of an offence under this ordinance punishable with imprisonment which may extend to three years notwithstanding the provisions of Sec. 87 and 88 of Code of Criminal Procedure, 1898, Code or any other law for the time being in force.

Withdrawal from Prosecution

According to Section 31-B of NAO 1999, The Prosecutor General Accountability may, with the consent of the Court, withdraw from the prosecution of any accused person generally or in respect of any one or more of the offences for which he is tried and upon such withdrawal before a charge has been framed.

Court to take Cognisance of Offence with Prior Approval of the State Bank

According to Section 31-C of NAO 1999, No Court established under this Ordinance shall take cognisance of an offence against an officer or an employee of a bank or financial institution for writing off, waiving, restructuring or refinancing any financial facility; interest or mark-up without prior approval of the State Bank of Pakistan.

Appeal and Revision

Any person convicted or the Prosecutor General Accountability, if so directed by the Chairman NAB, aggrieved by the final judgment and Order of the Court under this Ordinance may, within ten days of the final judgment and Order of the Court prefer an appeal to the High Court of the Province where the Court is situated. Provided that no appeal shall lie against any interlocutory order of the Court.
All appeals against the final judgment filed before the High Court will be heard by a Bench of not less than two Judges constituted by the Chief Justice of the High Court and shall be finally disposed of within thirty days of the filing of the appeal.
No revision shall lie against any interlocutory order of the Court.

According to Section 16-B of the National Accountability Ordinance, 1999, The Court shall have the power to punish for contempt of Court with imprisonment for a term which may extend to six months and with fine which may extend to one million rupees.

Structure and Functioning of the National Accountability Bureau (NAB)

National Accountability Bureau (NAB)

There shall be constituted a National Accountability Bureau for the whole of Pakistan
Chairman National Accountability Bureau
Acting Chairman, National Accountability Bureau
Deputy Chairman, National Accountability Bureau
Appointment of members of the staff and officers of the National Accountability Bureauis done by the Chairman NAB or any other person on his behalf.
Prosecutor General Accountability

Power to Sek Asistance

According to Section 27 of NAO 1999, The Chairman NAB shall have the power to seek full and complete assistance and call for all or any documents and information relevant to or in connection with any matter or proceedings pending before the NAB, from any Department of the Federal Government, Provincial Government, Local Authority, Bank, Financial institution, person or any authority and institution or department in the public sector or the private sector, as he may deem it fit and proper to demand or require, provided that in any case in which a question of secrecy is involved or is raised at time, the Chairman’s decision shall be final.

Reporting of Pblic Cotracts

According to Section 33B, All Ministries, Divisions and Attached Departments of the Federal Government, all departments of Provincial and local governments, the Federal Government or Provincial Government holders of public office shall furnish to NAB a copy of any contract, entered into by such Ministries, Divisions and Attached Departments of the Federal Government, all departments of Provincial Government or local governments, statutory corporations or authorities established by the Federal Government or Provincial Government or such holders of public office on its behalf, as the case may be, of the minimum monetary value of fifty million rupees or more, within such time as is reasonably practicable from the date of signing such contract.

Measures of Prevention of Corruption and Corrupt Practices

According to Sec.33C of NAO 1999, The Chairman NAB, shall from time to time, constitute committee comprising officers of the NAB or other persons or organizations from the private or public sectors to promote and educate the people how to combat and attenuate the corrupt practices in the society and to implement the laws and monitor its implementation.

NAB to submit Annual Report

According to Sec 33-B, The Chairman NAB shall as soon as possible after the end of every calendar year but before the last day of March next following, submit to the President a report of its affairs for that year which report shall be a public document and on the publication copies thereof shall be provided to the public at a reasonable cost.

Section 36 of the National Accountability Ordinance, also provides the immunity to concerned authorities that no suit, prosecution, or any other proceedings shall lie against the Federal Government, Provincial Government, Chairman NAB, or any other member of the NAB or any person exercising any power or performing any function under this Ordinance. And under sec. 37 of The National Accountability Ordinance 1999, the Chairman of the National Accountability Bureau with the approval of the President has the power to issue an order and also make rules, not inconsistent with the provisions of the ordinance to remove any difficulty which arises, while giving effect to its provisions.

5. ASSET SEARCH & BACKGROUND INVESTIGATION IN PAKISTAN

An asset search and investigation is the locating of public records that confirm personal property or real estate held by a person or corporate entity. These searches or investigations uncover value and any potential liabilities that may be related with a property or other valuables. Asset search investigations occur regularly to help individuals and organisations in satisfying their due diligence, personal disputes, debt recovery, and financial statement verification during a family or child support case.

Here you may find information on Asset Search & Background Investigation Services in Pakistan. Locate assets to satisfy a judgment, debt or other collection matter, determine the economic viability of litigation, locate assets of a decedent or incompetent person, perform a background check on a prospective employee, develop more detailed information on the financial condition of a business or individual or locate missing witnesses, debtors, heirs, etcetera.

Our private detectives and investigators at Asghar & Sons Jurists use many modern and conventional means to determine the facts in a variety of matters. To carry out investigations they may use various types of surveillance or searches ranges from men to machine. To verify facts such as an individuals’ place of employment or income, they may make phone calls or visit his work place. In other cases specially those involving missing persons and background check, our investigators often interview people to gather as much information as possible about any individual. In all cases our private detectives and investigators assist other attorneys, businesses and the public with a variety of legal, financial and personal problems.

Asghar & Sons Jurists is a full-service private investigation and consulting firm. We have recruited many retired people from the intelligence agencies having the experience of handling the investigation in various areas of Pakistan. We are also specialized in litigation, investigative support, corporate verification, fraud and due diligence, employee pre-screening background investigations, and material custody. Our comprehensive investigator database will match you with a qualified professional to meet your investigative needs. We are well known for our tireless work ethic and relentless effort pertaining to checking spouses, criminal, civil backgrounds, insurance, and security. Some of our specialties are:

Affidavits of Due Diligence
Asset and Background Searches
Asset Investigations
Aviation Investigations
Background Check
Bill & Account Collection
Cheating Spouses
Civil Investigations
Client Meetings
Collecting Child Support
Collection Research
Computer Crimes Investigations
Construction Investigations
Corporate Investigations
Corporate Records Research
Court Research
Covert Camera Installations
Criminal Background
Criminal Investigations
Criminal Records Research
Divorce Asset Investigations
Drivers License Information
Drug Investigations
Electronic Surveillance
Fire and Explosion Investigations

Handwriting Analysis
Harassment Investigations
Homicide Investigations
Insurance & Criminal Investigations
Insurance Fraud Investigation
Interviews
Investigations
Judgment Collection
Missing Person Investigation
Missing Persons
Motor Vehicle Searches
Municipal Record Searches
Municipal, State & Federal Levels
Nationwide Affiliates
Nationwide Service
Notary Services
Photography
Polygraph
Pre-Marital Investigations
Prison Records Research
Private Investigations
Process Service
Professional License Investigations
Property Searching
Public Records Searches

Real Property Records Research
Research Routine Service
Rush Services
Service for all Legal Documents
Skip Tracing
Small Claims
Speaking
Subpoena Preparation
Subpoena Service
Subpoenas
Suicide Investigations
Summons and Complaints
Surveillance
Sworn Statements
Taped Surveillance
Technical Surveillance
Television & Radio Programs
Translations
Videotape Duplication
Witness Interviews
Witness / Trial Preparation

Table: Asset Search & Background Investigation Services

We accept assignments from the general public, attorneys, law firms, law enforcement agencies, banks, insurance companies, investigation agencies and licensed private investigators.

6. DEFAMATION LAW, LAWYERS & LITIGATION IN PAKISTAN

The term defamation is defined as “Holding up to a person to ridicule, scorn or contempt in a respectable and considerable part of the community; may be criminal as well as civil. Includes both libel and slander. Defamation is that which tends to injure reputation; to diminish the esteem, respect, goodwill or confidence in which the plaintiff is held, or to excite adverse, derogatory or unpleasant feelings or opinions against him. Statement which exposes person to contempt, hatred, ridicule or obloquy. The unprivileged publication of false statements which naturally and proximately result in injury to another. A communication is defamatory if it tends so to harm the reputation of another as to lower him in the estimation of the community or to deter third persons from associating or dealing with him. The meaning of a communication is that which the recipient correctly, or mistakenly but reasonably, understands that it was intended to express.”

With regard to falsity the law is that if the matter is defamatory falsity is presumed until it is proved to be true. Words are prima facie defamatory when their natural, obvious and primary sense is defamatory, but there may be words and expressions which are prima facie innocent but in their secondary or latent meaning they may be defamatory.

Asghar & Sons Jurists law firm has a group of legal professionals who are well conversed and acquainted with the law of defamation and procedures. Our attorneys are at daily basis filed civil as well criminal cases against the defamatory statements, publications and imputations, infact our attorneys are very proactive in dealing with cases of defamation; if you have any query please feel free to contact us.

There may be oblique references, suggestions and insinuations which may be no less defamatory merely because they are coached in language which prima facie is innocent. Apart from the allegations of fact there may be comments and these may themselves become defamatory if they do not come within the description of fair comment on a matter of public interest. And where the imputation is false or the comment is not fair and bona fide it would be deemed to be malicious; the maliciousness in law consisting of doing a thing without just cause or excuse. A matter will be deemed to be defamatory if it exposes the plaintiff to hatred, contempt ridicule or tends to injure him in his profession or trade. The words of the libel and the circumstances attending its publication themselves afford evidence of malice in fact.

An imputation harms a person’s reputation which in the estimation of others directly or indirectly either:

lowers his / her moral or intellectual character; or
lowers his / her character in respect of his / her caste or calling or his / her credit; or
causes it to be believed that his / her body is in a loathsome state, or in a state generally considered disgraceful.

Spoken words, even if defamatory, do not amount to a crime under the English law, except when they are seditious, blasphemous, grossly immoral or obscene. The Penal Code makes no distinction between spoken and written defamation. Nor does it recognize the distinction of English law whereby under certain circumstances, words might be libelous if written, but are not slanderous if spoken.

The English Doctrine that libel is an offence because it tends to a breach of the peace is not adopted in the Code. The definition in the Code applies to words as well as writings. The defamatory matter must be published i.e. communicated to a person other than the one defamed. According to the English law, if such matter is communicated to the person defamed it will be sufficient for an indictment, if it is likewise to provoke a breach of the peace. The person who makes the imputation intending to harm the reputation of another, as well as the person who publishes are alike guilty. The publisher need not be the maker of the defamatory matter.

Judge: A judge cannot be prosecuted for defamation for words used by him whilst trying a case in court even though such words are alleged to be false, malicious and without reasonable cause.

Counsel or pleader: Criminal proceedings can be instituted against a counsel or pleader for uttering words that are defamatory, or are calculated to hurt the feelings of others or are absolutely devoid of all solid foundation. The Bombay High Court has held that so long as an advocate acts on his instructions he has the fullest liberty of speech (Bhaisanker v. Wadia) 2 Bom. L R 3. Where express malice is absent, the advocate or pleader would be protected. (In re: Nagrriji Trikamji 19 B 340.

The following acts are made punishable: (1) Printing or engraving matter known to be defamatory, (2) Sale of printed or engraved substance containing defamatory matter.

Defamation according to Pakistani Law

Defamation Ordinance 2002 covers all matters pertaining to defamation accrued in Pakistan:

Section 3 of the Defamation Ordinance 2002 defines defamation and its forms:

Any wrongful act or publication or circulation of a false statement or representation made orally or in written or visual form which injures the reputation of a person, tends to lower him in the estimation of others or tends to reduce him to ridicule, unjust criticism, dislike, contempt or hatred shall be actionable as defamation.
Defamation is of two forms namely: (i) Slander and (ii) Libel
Any false oral statement or representation that amounts to defamation shall be actionable as slander.
Any false written documentary or visual statement made either by ordinary form or expression or by electronic or other modern means or devices that amounts to defamation shall be actionable as libel.

Section 4 makes the Defamation actionable:

The publication of defamatory matter is an actionable wrong without proof of special damage to the person defamed and where defamation is proved, damage shall be presumed.

Defences to the law of defamation have been provided in Section 5

In defamation proceedings a person has a defence if he shows that:

he was not the author, editor, publisher or printer of the statement complained of;
the matter commented on is fair and in public interest and is an expression of opinion and not an assertion of fact and was published in good faith;
it is based on truth and was made for public good;
assent was given for the publication by the plaintiff;
offer to tender a proper apology and publish the same was made by the defendant but was refused by the plaintiff;
an offer to print or publish a contradiction or denial in the same manner and with the same prominence was made but was refused by the plaintiff;
the matter complained of was privileged communication such as between lawyer and client or between persons having fiduciary relations; and
the matter is covered by absolute or qualified privilege.

According to Section 6 of the Defamation Ordinance certain acts of the government does not come within the ambit of defamation, these are called absolute privileges: Any publication of statement made in the Federal or Provincial legislatures, reports, papers, notes and proceedings ordered to be published by either House of the Parliament or by the Provincial Assemblies, or relating to judicial proceedings ordered to be published by the Court or any report, note or matter written or published by or under the authority of a Government, shall have the perfection of absolute privilege.

Explanation: In this section legislature includes a local legislature, and Court includes any Tribunal or body exercising the judicial powers.

Section 7 exempts certain things from defamation, these are called qualified privileges: Qualified Privilege: Any fair and accurate publication of parliamentary proceedings, or judicial proceedings which the public may attend and statements made to the proper authorities in order to procure the redress of public grievances shall have the protection of qualified privileges.

Section 8 prescribes that notice of action must be given by the plaintiff to the defendant before any legal action would be taken by the plaintiff against the defendant: No action lies unless the plaintiff has, within two months after the publication of the defamatory matter has come to this notice or knowledge, given to the defendant, fourteen days notice in writing of his intention to bring an action, specifying the defamatory matter complained of.

Section 9 gives remedies in case the defamation is proved: Remedies: Where Defamation shall be proved to have occurred, the Court may pass order directing the defendant to render an apology, if acceptable to the plaintiff, and publish the same in similar manner and with the same prominence as the defamatory statement made and pay reasonable compensatory damages as general damages with a minimum of Rs. 50,000 (Rupees fifty thousand) and in addition thereto, any special damage incurred that is proved by the plaintiff to the satisfaction of the Court.

Section 10 says that CPC and Qanoon-e-Shahadat Order will apply mutatis mutandis to the defamation proceedings.

Section 11: Ordinance not to prejudice action for criminal defamation: Nothing in this ordinance shall prejudice any action for criminal liable or slander under any law for the time being in force.

Section 12: Limitation for doing an action against:

an author, editor, proprietor or publisher of a newspaper;
the owner of broadcasting station;
an officer, servant or employee of the newspaper or broadcasting station; or
any other person.

for defamation contained in the newspaper or broadcast from the station or its publication otherwise shall be taken within 6 months after the publication of the defamatory matter come to the notice or knowledge of the person, defamed.

Section 13: Trial of Cases: The District Court shall have the jurisdiction to try cases under this ordinance.

Section 14: Court to decide cases expeditiously: The Court shall decide a case under this Ordinance within a period of ninety days.

Section 15: An appeal against the final decision and decree of the Court shall lie to the High Court within 30 days and the High Court shall decide the appeal within sixty days.

Provided that no appeal shall lie against an interlocutory order of the Court.

Section 499 through Section 502 of the Pakistan Penal Code elaborates the definition, explanation, exceptions and punishment to the Law of Defamation in Pakistan.

According to Section 499 of the Pakistan Penal Code, 1860, Defamation has been described as under:

Whoever by words either spoken or intended to be read, or by sign or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases hereinafter excepted, to defame that person.

Explanation 1: It may amount to defamation to impute anything to a deceased person, if the imputation would harm the reputation of that person if living, and is intended to be harmful to the feelings of his family or other near relatives.

Explanation 2: It may amount to defamation to make an imputation concerning a company or an association or collection of persons as such.

Explanation 3: An imputation in the form of an alternative or expressed ironically, may amount to defamation.

Explanation 4: No imputation is said to harm a person’s reputation, unless that imputation directly or indirectly in the estimation of others, lower the moral intellectual character of that person in respect of his caste or of his calling, or lowers the credit of that person or causes it to be believed that the body of that person is in loathsome estate, or in a state generally considered as disgraceful.

There are certain exceptions to the section aforementioned:

First Exception: Imputation of truth which public requires to be made or published: It is not defamation to impute anything which is true concerning any person if it be for the public good that the imputation should be made or published. Whether or not it is for the public good is a question of fact.

Second Exception: Public conduct or public servants: It is not defamation to express in good faith any opinion whatever respecting the conduct of a public servant in the discharge of his public functions, or respecting his character, so far as his character appears in that conduct, and no further.

Third Exception: Conduct of any person touching any public question: It is not defamation to express in good faith any opinion whatever respecting the conduct of any person touching any public question, and respecting his character, as far as his character, appears in that conduct, and no further.

Fourth Exception: Publication of reports of proceedings of courts: It is not defamation to publish a substantially true report of the proceedings of a court of justice, or of the result of any such proceeding.

Explanation: A justice of the Peace or other officer holding an enquiry in open Court preliminary to a trial in a Court of Justice is a Court within the meaning of the above section.

Fifth Exception: Merits of case decided in Court or conduct of witness and other concerned: It is not defamation to express in good faith any opinion whatever respecting the merits of any case, civil or criminal, which has been decided by a Court of Justice, or respecting the conduct of any person as a party, witness or agent, in any such case, or respecting the character of such person, as far as his character appears in that conduct, and no further.

Sixth Exception: Merits of public performance: It is not defamation to express in good faith any opinion respecting the merits of any performance which its author has submitted to the judgment of the public, or respecting the character of the author so far as his character appears in such performance, and no further.

Explanation: A performance may be submitted to the judgment of the public expressly or by acts on the part of the author which imply such submission to the judgment of the public.

Seventh Exception: Censure passed in good faith by person having lawful authority over another: It is not defamation if a person having over another any authority, either conferred by law or arising out of a lawful contract made with that another, to pass in good faith any censure on the conduct of that other in matters to which such lawful authority relates.

Eighth Exception: Accusation preferred in good faith to authorized person: It is not defamation to prefer in good faith an accusation against any person to any of those who have lawful authority over that person with respect to the subject-matter of accusation.

Ninth Exception: Imputation made in good faith to person for protection of his or other’s interests: It is not defamation to make an imputation on the character of another, provided that the imputation be made in good faith for the protection of the interest of the person making it, or of any other person, or for the public good.

Tenth Exception: Caution intended for good of person to whom conveyed or for public good: It is not defamation to convey a caution, in good faith, to one person against another, provided that such caution be intended for the good of the person to whom it is conveyed, or of some person in whom that person interested or for the public good.

According to Section 500 of the Pakistan Penal Code, 1860 punishment for defamation has been described here whoever defames another shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both.

Printing or engraving matter known to be defamatory: Whoever prints or engraves any matter, knowing or having good reason to believe that such matter is defamatory of any person, shall be punished with simple imprisonment for a term which may extend to two years or with fine, or with both.

Sale of printed or engraved substance containing defamatory matter: Whoever sells or offer for sale any printed or engraved substance containing defamatory matter, knowing that it contains such matter, shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both.

Word “defamation” in Section 12 (3) of the West Pakistan Press & Publications Ordinance, 1963 is used in context of offence as referred to in Section 499, P.P.C. and not in its dictionary sense. In order to found an action for libel it must be proved that the statement complained of is:

False;
In writing;
Defamatory; and
Published.

Defamation has to be tried by the District Court under Section 13 of the Defamation Ordinance, 2002. Section 3 of this ordinance prescribes that defamation means to make a false statement causing injury to the reputation of a person or to bring him in ridicule, unjust criticism and dislike. A distinction in this context needs to be drawn between the statement, which is not proved and one which is explicitly found to be false for the purposes of Defamation Ordinance, 2002. All benefits under criminal law are to be granted to an accused and the prosecution must establish its case beyond a reasonable doubt. Very strong burden of proving a statement is to be discharged by the plaintiff in a suit for damages and the mere fact that it could not be proved does not necessarily show that it was false. If such a distinction is obliterated every accused granted the maximum benefit of doubt may upon acquittal bring an action for defamation, which does not appear to be the intention of law.

Requisites To The Law Of Defamation

(1) Publication – an essential ingredient

Under the Penal Code in order that an offence of defamation may be committed there must be making or publication of any imputation concerning any person by words either spoken or intended to be read, or by signs or by visible representations, intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person. To constitute the offence of defamation there must, be making or publication of an imputation concerning any person and the making or publication must be with intent to harm or knowing or having reason to believe that such imputation will harm, the reputation of such person. Unless there is publication there can be no offence of defamation committed. It must be remembered that the Indian Penal Code exhaustively codifies the law relating to offences with which it deals and the rules of the common law cannot be resorted to for inventing exemptions which are not expressly enacted.

(2) Makes or publishes

Section 499 brings under the criminal law the person who published as well as the person who makes the defamatory imputation. So there can be no offence of defamation unless the defamatory statement was either made or published by the accused. Section 499 emphasizes the words “makes or publishes”, if there is no evidence that the petitioner had either made or published the defamatory imputation, then there is an end of the matter and the further question of justification or whether there was express malice will not arise. The offences then lie in the dissemination of harmful information concerning another. This is expressed in the section by the words “makes or publishes”. The word “makes” is intended to refer to the originator of the imputation, but it is equally applicable to one who, though not its author, repeats, writes or copies it. The word “makes” is intended to supplement the sense of “publishes”, which is, no doubt, used here in its etymological sense as connoting “to make public or to make known to people in general”.

(3) Journalists in better position than any other person

Journalists are in a better position than any other person. Even the truth of an allegation does not permit a justification under first exception to Section 499 unless it is proved to be in the public good. The question whether or not it was for public good is a question of fact like any other relevant facts in issue.

(4) How made

The last essential requisite for action of defamation is the publication of the defamatory words. This consists of communication to others. Hence, if the words complained of are only communicated to the plaintiff who is defamed, there is no publication. For defamation is the injury to reputation; therefore, the wrong is only done when others are informed against the plaintiff which affect their opinion about him. Publication to third party is the essence of libel.

There will be no defamation if only the plaintiff is informed of the defamatory words. His opinion about himself is no consideration. It is what others think about him. Therefore the communication of the defamatory words to at least one other person is enough to injure the reputation. As remarked by Lord Esher, M.R., that “publication” is “the making known of the defamatory matter, after it has been written, to some person of whom it is written. If the statement is sent straight to the person of whom it is written there is no publication of it”. The uttering of a libel to the party libeled is clearly no publication for the purposes of a civil action. Thus “that material part of the cause of action in libel is not the writing, but the publication of the libel.”

The defamatory statement made in an affidavit, intended to be used in an affidavit, intended to be used in judicial proceedings is held to amount to sufficient publication without proof of the contents of the documents containing the libel being brought to the knowledge of any specific person other than the person defamed.

A wrong of defamation, as such consists in the publication of a false and defamatory statement concerning another person without lawful justification.

The gist of the offence of defamation lies in the dissemination of the harmful imputation. When a defamatory statement is published, it is not only the publisher, but also the maker, who becomes responsible and it is in that context that the word “makes” is used. It is of essence that in order to constitute the offence of defamation it must be communicated to a third person because what is intended by the imputation is to arouse the hostility of others. If a person merely writes defamatory words and keeps the writing with himself, the offence is not made out. Likewise if the libeler merely communicates the liable to the person defamed it does not constitute an offence under the said action though it may amount to an insult and may be punishable as such. The question whether the libel in fact has been communicated to a third person is material. It is not enough that the libeller posted it to a third person. It cannot be disputed that a communication to be defamed himself will not be a publication within the meaning of defamation law.

We at Asghar & Sons Jurists have a very vast experience in defamation laws and our attorneys are very well conversant with the civil and criminal remedies against the defamation. if you have any issue regarding defamation then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

CIVIL

CIVIL LAW, CIVIL LAWYERS & LITIGATION IN PAKISTAN

Civil law, or civilian law, also known as private law, regulates disputes between private persons or corporate entities. It is thus different to cases dealing with matters between people and the government, i.e. public law and criminal law. Civil law deals with issues such as personal injury, contracts, property, inheritance and family law. Civil law is a legal system originating and intellectualized within the framework of common law, the key feature of which is that its core principles are codified into a referable system which serves as the prime source of law.

Are you party to a lawsuit? Then, you definitely need a Civil Law Lawyer to represent you in your case. Even if you are not party to any civil lawsuits, you may find that retaining a Civil Law Lawyer can be quite beneficial. For example, if you are creating or party to a trust, contract, mortgage, title, or lease a Civil Law Lawyer can advise you of your legal rights and obligations to save you a lot of money and legal hassles down the road. A qualified Civil Law Lawyer can also help you if you are running a business. Businesses end up in civil lawsuits all the time. A Civil Law Lawyer can give you timely advice that can save you from costly civil law litigation. Select a qualified Civil Law Lawyer that’s right for you.

We at Asghar & Sons Jurists have a very vast experience in civil laws and our attorneys are very well conversant with the civil remedies and practices for the protection of valuable civil rights. Infact we have one of the best civil lawyers under our cadre who are involved in defending the civil rights of our prestigious clientele in Pakistan and even otherwise we have a multiple landmark civil disputes at our disposal; if you have any civil dispute regarding any moveable or immoveable property then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

CHALLENGE INJUSTICE TO OBTAIN JUSTICE

We also litigate housing discrimination, public accommodation discrimination, and various other civil rights cases. Our civil rights lawyers have handled campaign finance litigation and injunctions and litigation on behalf of abortion clinics. As a progressive law firm, we are interested in challenging injustice to obtain justice in the proactive practice of law.

As a matter of prestige and honor the Asghar & Sons Jurists and its civil lawyers are regarded as one of the preeminent litigators in Pakistan, and general civil litigation is the firm’s mainstay. The firm has handled virtually every kind of litigation imaginable – for individuals and for institutions. It has been involved with the most complex cases facing businesses across the industry spectrum, with a particular emphasis on two things: first, rapid response when clients must obtain or resist emergency relief, and second, preparing cases for actual trial in the courtroom.

The firm’s civil practice is national in scope. Lawyers from the firm have appeared in Supreme and High Courts throughout the country. They have provided national direction and co-ordination in class actions and other complex cases in which clients are forced to appear in numerous jurisdictions simultaneously. In these cases, the firm has experience in developing a comprehensive strategy, avoiding wasteful duplication of discovery efforts, making sure that consistent factual and legal positions are taken by local counsel, working closely with them to implement the national strategy, and co-ordinating with other counsel in joint defense arrangements. Through these efforts, the firm works to achieve the best possible litigation results with cost efficiency, including saving the valuable time of corporate executives and employees.

In ancient times where there was a dispute over property, one had to defend those rights with sword and spear. Even today, if you do not defend your rights you will lose them. Fortunately, battle is now waged in courts instead of on a battlefield. We are all potential Plaintiffs or Defendants. The Law Officers of Asghar & Sons Jurists specialize in battles pertaining to intellectual and real property rights. We will advise you of those rights, your chances of winning or losing your battle and the possible costs involved. We have been involved in federal litigation over patents, trademarks, copyrights, the right of privacy and publicity. In the state courts we have specialized in real property, contract litigation, and collections. Although references are available.

In the legal world, “The best battle is often the battle never fought.” Asghar & Sons Jurists and its civil attorneys also advises clients on how to avoid litigation. Before using a new, possibly innovative, product we can do a patent search for you. Before using a new trademark or service mark we can search to see if anyone else is using a confusingly similar mark. If you are in business or going into business we can tell you the probable result of the signing of a contract or what will happen if you breach a previously signed contract. We are experienced in many other areas. Please do not hesitate to ask about any issue.

If you have a civil matter and are not sure what to do about it we would be happy to sit down with you and discuss the situation. We will not charge you for this initial consultation if you do not retain us. Our aim is to help you obtain the best results at the lowest cost.

2. CONSUMER PROTECTION LAW, LAWYERS & PRACTICE IN PAKISTAN

Consumer protection law or consumer law is considered as an area of law that regulates private law relationships between individual consumers and the businesses who are selling those goods and services.

The idea of consumer protection laws was firstly adopted in Pakistan by the Federal Government in 1995 when The Islamabad Consumer Protection Act, 1995 was passed. Later on The Provincial Governments followed this pattern and the provincial assembly of Khyber Pakhtunkhwa passed The Khyber Pakhtunkhwa Consumer Protection Act, 1997. The provincial assembly of Baluchistan passed The Balochistan Consumer Protection Act, 2003, the provincial assembly of Punjab passed The Punjab Consumers Protection Act, 2005 and provincial assembly of Sindh passed a Consumer Protection Bill in 2015 to protect the rights of consumers. The basic purpose of making these Acts, a part of our legislation, is to establish a prosperous society where all consumers may feel themselves secured and where there is no room exists for fraudulent acts.

After the approval of these Acts, district consumer courts are established for all the districts of Islamabad, Punjab, Khyber Pakhtunkhwa and Balochistan while the enactment in Sindh province is in process, so that people may easily access to these courts for the protection of their rights. Along these district consumer courts a network of district consumer protection councils has been spread in all four provinces of Pakistan. These councils are established to create awareness among masses about their basic rights and benefits as a consumer.

We at Asghar & Sons Jurists have a very vast experience of consumer protection laws and our attorneys are very well conversant and acquainted with the legal remedies against the breach of consumer protection laws. if you have any issue regarding consumer related legal issue then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

Scope of Practice

The law provides for establishing consumer dispute redressed machinery at the district level.
It applies to all goods and services.
It covers all sectors, whether private, public or any individual person.
The law provides for a relief of a specific nature and also for compensation to the consumer as appropriate.
The provisions of these Acts are in addition to and not in derogation of the provisions of any other law for the time being in force.
Doctrines of “Privity of Contract” and “Caveat Emptor” has not been covered under these Acts.
Consumer courts have been empowered to impose penalty in terms of imprisonment and fine as well to the defaulters for non-compliance of the orders passed by them.

When and how a consumer can access to district consumer court?

According to “Consumer Laws” a consumer should go to district consumer court:

If illegal, fake, bad quality and expired products are being sold in the market;
If receipt is not being provided by the shopkeeper;
If rate list is not displayed;
If the consumer has any complaint against the warranty of any product he has purchased;
If manufacturing date, expiry date and ingredients are not mentioned over packing;
If any product is being sold through false advertisement;
If the consumer has experienced bad service by any govt. or private organization/individual; and
If there is an absence of a clear policy regarding the purchasing and returning of product.

Requirements as to Filing a Case In Consumer Court

The complaint must contains:

Name, address and C.N.I.C number of the petitioner;
Particulars of the respondent(s);
Copy of the legal notice must be attached to that application;
Details of the claims and damages;
Documentary proof (such as receipt) etc.;
Relief sought; and
Affidavit of the Complainant.

It should be kept in mind that no court fee is charged in any case which is filed for the protection of consumer’s rights. But masses are not willing to get benefit of this act. A consumer may also contact District consumer protection councils if he/she has any complaint. All District Co-ordination officers (DCO’s) are also authorized to hear these complaints. Moreover consumer may also file a complaint in district consumer courts for compensation.

Our common people have always been remained unable to protect their basic rights just because of their lack of interest or lack of knowledge. Furthermore people think that such procedures are only wastage of time and money. But Consumer Courts are providing Speedy Remedy to the people/complainants.

3. DEBT RECOVERY LAW, LAWYERS & DEBT RECOVERY PROCEDURE IN PAKISTAN

Debt collection is the process for pursuing the payments of debts owed by an individual, companies or organisations. An organisation that specialises in recovery of debt is called a collection agency or debt collector.

Business Restructuring and Creditor Rights Practice Area represents debtors and creditors in all aspects of business restructurings, workouts and bankruptcies. Our value proposition for clients lies in providing “East Coast” experience and expertise at “Mid-West” hourly rates. The practice consists of partners and associates spread among the firm’s Karachi, Lahore and Islamabad offices. We have extensive experience in the automotive, steel, telecommunications, basic manufacturing, retail and wholesale goods, and distress debt trading industries. Our attorneys regularly appear on behalf of clients in bankruptcy courts in Karachi, Lahore and Islamabad and in bankruptcy courts across Pakistan, including in Peshawar and Quetta.

We at Asghar & Sons Jurists have a very vast experience in debt recovery laws and our attorneys are very well conversant with the civil, criminal and banking courts remedies for debt recovery against the defaulter entities. As a matter of pride and distinction our Honorable Sir Asghar Malik is pioneer in Debt recovery Laws in Pakistan. If you have any issue regarding Debt Recovery in Pakistan and Beyond then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

The Business Restructuring and Creditor Rights Practice represents clients in virtually every aspect of complex litigation and transactional matters involving troubled and financially distressed businesses, including the acquisition and sale of assets and claims; the prosecution and defense of preference and fraudulent conveyance claims; the formation and implementation of credit policies and procedures; the structuring of loans and other financing arrangements involving debtor-in-possession financing, letters of credit, leasing and floor-planning; and the negotiation and formulation of out-of-court restructuring arrangements and reorganization plans. As necessary to achieve clients’ objectives, our practice regularly draws on attorneys in the firm’s Labor and Employment, Litigation and Tax Departments, and its Mergers and Acquisitions and Real Property Practices. We also encourage our attorneys growing International Practice, having successfully represented businesses and individuals from USA, Kingdom Of Saudi Arabia, United Arab Emirates, Canada, United Kingdom, Europe, Middle East and Asia Pacific.

Taking legal action to reclaim debt should be a last resort, and often the threat is enough to make your customers pay you. However, if your usual ways of recovering debt have failed, there are things to consider before beginning the legal process. The court generally offers three processes for settling disputes depending on the amount of money involved. The small claims process – part of the civil court system – is an inexpensive and straightforward way of settling disputes over smaller amounts. Claims over Rs. 200,000 should go through either the fast track process (up to Rs. 500,000) or the multi-track process (above Rs. 1,000,000). However, a High Court judge may also refer cases involving larger sums to the small claims process – or you can request this with your debtor’s agreement.

Figure: Debt Recovery Assessment

Deciding whether to make a claim

Legal action is best kept as a last resort, so you should explore all other options:

Consider some form of alternative dispute resolution, such as mediation or arbitration. Your contracts may already specify how disputes should be resolved. Resolution procedures can make it easier to control costs and are often less confrontational than court proceedings.

Figure: Debt Recovery Legal Proceedings

Consider taking back your goods and services, if appropriate

Mediation is a simple, cheap method of resolving disputes. It can save you time and money and can assist all parties in reaching a mutually beneficial resolution. This can help maintain the business relationship once the dispute is settled.

Remember – you’re unlikely to keep a customer that you pursue through the courts. It may be better to accept a small loss and retain a large client than risk offending them.

Even if making a claim seems the only answer, you should consider your chances of winning. In many cases your claim may not be disputed. But in others, it could be difficult to prove the customer is at fault.

Make sure the customer can pay

Remember that you can’t be certain of receiving the money owed – let alone any costs or expenses – if the person or company you’re taking action against has no assets or a history of bad debt. Credit reference agencies should be able to give you a credit rating for the defendant and details of any unpaid court judgments.

If you win the judgment, the customer is required to pay the sum claimed. If properly claimed, they are required to pay court fees and interest as well. If they do not pay, you must be prepared to take steps to enforce the judgment.

Be prepared for the costs

Note that:

Court fees are payable when you issue a claim and if you have to enforce the judgment;
Fees are payable if you lose or do not succeed in enforcing your judgment; and
You may have solicitor’s costs and other costs – if you win and succeed in enforcing the judgment, you may be able to claim these back from the defendant.

You will have to pay court fees in advance. However, they can be recovered from the defendant if you win. If you lose or you do not succeed in enforcing your judgment you will not be able to reclaim those costs.

Choosing the right legal route

If you decide to issue a claim, the amount of your claim will determine which court may handle it – the civil court, or the High Court.

The civil court is where most claims are issued and you should go to this first to make a claim. Civil courts deal with a range of claims, including debt recovery. Larger and more complex claims will normally be heard in the High Court.

The final warning letter / legal notice

Whichever course of legal action you choose, you must send a final warning letter in form of legal notice before you begin. Do this because: it often prompts payment or the courts may penalise you on costs if one is not sent.

Using solicitors and debt recovery agents

If your case is straightforward, you could prepare the claim, present the case and handle the enforcement on your own. Most people choose not to use solicitors in the small claims track.

But there may be times when you decide you want to seek advice from a solicitor. You should note that:

Legal aid is not usually available for small claims cases
Legal costs aren’t normally recoverable
If your claim is for a large amount, is likely to be disputed or the case is complicated, or even if you’re simply not comfortable handling it on your own, it is probably sensible to get professional help. This will usually be a solicitor or debt recovery agent.

Choosing a professional attorney

Finding a professional attorney can be a challenge, and often a personal recommendation is a good way to choose. Before you make a decision, ask the following questions:

Is the solicitor a sole practitioner or part of a large firm?
Is there a department specialising in debt recovery?
Does the firm have a mediator or dispute resolution service so you can consider this alternative?
How will you be charged – rate per hour plus expenses or a percentage of the sum recovered?
If they do business on a “no win, no fee” basis, are there any hidden costs? Will you have to pay court costs?

Debt recovery agents

Other organisations working in debt collection are debt recovery agents and credit agents.

Debt recovery agents employ solicitors and take legal action to recover your money.

Some credit agencies, though not all, will take over the collection of debt. They usually try to recover debt by:

Sending out routine letters
Telephoning customers

Enforcing the judgment

Unfortunately enforcing the judgment is often harder than obtaining it in the first place.

Firstly, it’s worth checking that the debtor can afford to pay you. Ask the court for an order to obtain information from the judgment debtor. This orders your debtor to go to court for questioning under oath about their finances. Once you know your debtor’s circumstances, you can decide whether it’s worth applying to the court for one of the following enforcement actions.

A warrant of execution

This allows court bailiffs to take goods from your debtor’s home or business, although there are safeguards in place and certain goods cannot be taken. After a holding period the goods or assets will be sold at auction. Fees and expenses will be taken from the proceeds and you will be given the remainder.

Attachment of earnings order

This usually applies to an individual person in employment, but it can apply to private pensions too. The employer is ordered to make deductions from the person’s wages or salary.

Third-party debt order

This is where the court orders a freeze on money held by a person, institution or organisation, which might otherwise be paid to a defendant against whom you have a judgment. Thus the holder is the third party and they will prevent withdrawal of the money until the court decides whether all or part of it should be paid to you.

Charging order

The court places a “charge” on the debtor’s property, equivalent to the amount you are owed. The property could be a house, stocks or shares, or money. A charging order does not oblige the debtor to sell their property, but if they do, they must pay you before they can take the rest of the proceeds.

Receiver for an equitable execution

If you believe that you can’t recover your debt using the methods above, you can apply to the court to approve a receiver – who you have selected – to conduct an equitable execution. This involves the receiver collecting money which the debtor is owed, e.g. rent, in order to repay you. You should seek legal advice before applying for a receiver to determine whether it’s the most appropriate course of action for your business.

Winding up or bankruptcy

If the customer is insolvent, as a last resort you can apply for a bankruptcy or winding-up petition, to stop the business from functioning.

Winding up and bankruptcy petitions

Most suppliers, investors and staff try to get their money by issuing a claim. But you can issue a winding up petition or a bankruptcy petition instead.

Winding up and bankruptcy are also ways of enforcing judgment after a claim has been won, in an effort to actually get your money. However, unpaid tax and wages take priority over other debts for any of the debtor’s available funds.

How winding up works

It applies to a company rather than an individual.
After the winding up the company ceases to exist.
If the company is insolvent at the time, not all the creditors get paid in full.
Rules apply and each creditor gets a percentage of what they are owed.

How bankruptcy works

Bankruptcy applies to a person or a general partnership. If it is a general partnership, all the partners are made bankrupt.
The assets are sold and the proceeds are paid to the unpaid creditors.
Each creditor gets a percentage of what they are owed.

The threat and how it works

Often the mere threat of winding up or bankruptcy is very effective. But if the customer still refuses to pay you might consider the following steps:

A statutory demand, from a legal stationer or solicitor, must be delivered to the customer, preferably by hand.
On receipt, the customer has a fixed number of days to pay or respond.
If they do not do so, you can issue a winding up petition or bankruptcy petition.
If you are right and follow all procedures correctly, the customer will be wound up or made bankrupt.
But just because you issue the petition does not mean you get priority over whatever money becomes available.
You should seek legal advice before you act, and you should only act if the money is definitely owing.

You have to pay fees to bring an action and the court will add these to the amount owed. However, this is no guarantee you’ll be reimbursed.

As a last resort, if the amount you’re owed is more than Rs. 200,000, you can apply to make an individual debtor bankrupt, or issue insolvency proceedings if the debtor is a limited company. Such proceedings can be costly.

Appointing a liquidator or trustee

Where a company is put into liquidation or a person is made bankrupt, you may have to appoint a licensed liquidator or trustee in bankruptcy.

Insolvency practitioners charge fees to the money recovered and you may have to guarantee these fees if the money recovered is not enough.

4. CONSTITUTIONAL LAW, LAWYERS & PRACTICE IN PAKISTAN

Constitutional law is a body of law which defines the role, powers, and structure of distinct organisational units within a governmental setup, namely, the executive, the parliament or legislature, and the judiciary; as well as the basic rights of citizens. You may find the info here about the constitutional law, law of writs and jurisdiction of courts in Pakistan.

Constitution is not an ordinary statute made in ordinary legal procedure. It is the creation of a Constitutional Act and therefore the sanctity of a Constitution is much higher than any statute made by the legislature. A Statute is an act to fulfill a particular social, political or economic need and so its efficacy of importance does not endure so long. But a Constitution is made to endure with the avowed purpose to fulfill the aspiration of the people who made it. It is by the people, for the people and a documentation of the cherished good of the people. Constitutions are not conceived and acted in vacuum, and as an instrument of Government. It is always intended the condition and as it is itself conditioned by the circumstance and environment of the community whose activities seek it to regulate. It is never internal and differs from other laws only in respect of general national purpose, it has in view. Constitution, written – unwritten has a philosophy of its own: it is the means of ordering the life of people. This way we should have good understanding of our constitution.

Constitution is supreme and all of the legislation of a country is in conformity with the fundamental principles as enshrined in the constitution. We at Asghar & Sons Jurists have a very vast experience in Constitution of Islamic Republic Of Pakistan 1973 and our attorneys are very well conversant with the Constitutional remedies against the violation of fundamental rights and statutes. As a matter of prestige and esteem our Honorable Senior Sir Asghar Malik is regarded as one of the best constitutional Expert in Pakistan. if you have any issue regarding defamation then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

One reason why the law of constitution is imperfectly understood is that we rarely put it side by side with the constitutional provisions of other countries. In other words a comparative study of the constitution is absolutely necessary for its perfect understanding. Apart from it we should also study to find out that what was in the mind of constitution makers.

Constitutional interpretations by Courts have played an important role in settling political problems as well as other issues involving individuals and parties. These interpretations have also restricted or expanded the scope of action of different functionaries of the Government and enabled individuals and groups to enjoy constitutional and legal protection. The Supreme Court of America, in a case held that an unconstitutional act is not a law, it confers no rights, it imposes no duties, it creates no offence and this act is inoperative as it has never been passed. The Superior Courts in Pakistan also support this viewpoint. In all matters, aggrieved person can avail the statutory remedy of Appeal or Revision, which is not some times adequate, effective, efficacious, convenient, beneficiary and expeditious. In such situations the aggrieved party can avail the extra ordinary remedy by invoking constitutional jurisdiction of the High Court or Supreme Court, which is obviously speedy and effective remedy and foster the justice. These conditions occasionally overlap or conflict with each other.

Law of Writs in Pakistan

A writ is an official written directive issued by an organisation with administrative or judicial jurisdiction; in modern sense, this organisation is known as a court. There are many types of writs exist including prerogative writs, summons and warrants but there are many others.

The writ, in common parlance, is an order issued by a court in the name of an authority requiring the performance of a specific act.

Prerogative Writs

The “prerogative” writs or writs based on privileges are a subclass of the group of writs, those that are to be heard before regular cases on a court’s docket except other such writs. The most common types of prerogative writs are mandamus, certiorari, habeas corpus, procedendo, prohibito, and quo warranto, although these technical names have not been prescribed in the constitution.

Writ of Mandamus

Mandamus is a judicial remedy which is in the form of an order from a superior court to any subordinate court, organisational or public authority to do or refrain from doing some specific act which that body is obliged under the law to do or abstain from doing, as the case may be, and which is in the nature of public duty and in certain cases of a statutory duty. It cannot be issued to force an authority to do something against any statutory law.

Writ of Certiorari

Certiorari is a writ intending for seeking judicial review, currently means an order by a superior court directing a lower court, tribunal, or public authority to submit the record in a certain case for review.

Writ of Habeas Corpus

Habeas corpus is a legal action through which a prisoner can be released from an unlawful custody or detention. The remedy can be pursued by the prisoner or by another person coming to his / her assistance. Habeas corpus originated in the English legal system, has historically been an important legal mechanism, protecting rights of individual against arbitrary governmental action.

Writ of Procedendo

A writ of procedendo is a remedy where there is a delay in rendering a judgment that amount to a abandonment or denial of justice. It is an order of a higher court to lower court, directing that court to extract a delayed judgment. The writ does not specify as to what judgment the lower court must extract, it merely orders the lower court to proceed to judgment. Rebuttal to comply with the writ may subject the lower court to an excerpt for contempt.

Writ of Prohibito

The Court may issue a writ of prohibition to prohibit the authority from acting in excess of its jurisdiction. This writ is normally issued by a superior court to the lower court asking it not to proceed with a case which does not fall under its jurisdiction.

Writ of Quo Warranto

The writ of quo warranto is issued against a person who claims or usurps a public office. Through this process, the court inquires ‘by what authority’ the person supports his or her claim.

Other writs

Other writs include audita querela, capias, coram nobis, fieri facias, mittimus, ne exeat republica, praemuire, scire facias, frrts and venire facias etc.

Writ Petition Process

A writ petition is a request made by an individual, aggrieved by a court order to receive expedited attention in a court of appeals. An individual who wishes to file a writ petition must first determine if his / her case can be appealed. It’s important to remember that all courts will have different requirements dependent on location of court and type of court. You should always pursue a legal counsel when considering a writ petition. These steps will help you to determine the petition-status of your appeal and understand the writ petition process.

Writ’s Objective

Writ petitions are filed when a petitioner believes that the court has made an error that adversely affected the outcome of their case. You must be able to eloquent the nature of this error and measure its legal stance. If your case concerns an issue of extensive interest or raises an original issue about the law, then you may have grounds for filing a writ of petition. Moreover, if a court ruling could cause you an unintended harm, then you may have an option.

Express Accusations

While every writ petition procedure will differ, each will require you to eloquent the nature of your case and provide an originated reason for expedited appeal. A writ begins with an accusation against a court in which you must briefly state the facts related to your trial. You might highlight key evidence presented in your favour or pinpoint the instant at which you feel the court erred.

Convey Preferred Upshot

The second stage of a writ procedure will require you to tell the court as how you want the court to reconcile its error. Generally; petitioners do this in order of importance, starting with a petition for the court to rehear the case and ending with a request for the court to refund all fees related to the appeal.

Create Entreaty

The third and final part of the procedure is the creation of entreaty, in which you call the court’s attention to your statement of fact along with supportive arguments. You must also prove that you have no other solution beyond a writ petition and that you need speedy and justifiable consideration of the writ.

Compliance of Writ

Once you’ve consulted legal counsel and prepared your writ petition, you can submit it to the court for consideration. All courts have different deadlines for filing a petition so it’s important that you check with your local court to make sure you’ve filed it in time.

Order of the Court

After considering the facts and figures as narrated inside the writ petition, court will issue an order accordingly.

Jurisdiction of Courts

These writs are issued by the High Courts under Art. 199 of the Constitution of Islamic Republic of Pakistan and by the Supreme Court under Art. 184 of the Constitution. The sole object of Art. 184 is for enforcement of the fundamental rights conferred in Part-2, Chapter 1, of the Constitution. No petition can lie before the Supreme Court unless there is infringement of fundamental right. The High Court can interfere, if the action is mala fide or arbitrary or does not confirm to the statutory requirement, or the order is patently erroneous.

Although the writ jurisdiction conferred upon the High Court is discretionary but this right is not a privilege and is a very valuable right conferred on a citizen. Art. 77 of the Constitution provides that no tax shall be levied or collected except by the authority of law and Art. 18 allows free trade, business or profession throughout Pakistan. Any provision of a specific law cannot override Art. 184 / 199 of the Constitution.

Writs are issued by the High Courts under Art. 199 of the Constitution for the enforcement of fundamental rights, for the redress of any other provision of the constitution or any provision of any statute, Ordinance, Order, Rule or Regulation or illegality by any authority. No writ petition can be entertained if any other statutory remedy for such redress is available but where the defect of jurisdiction is apparent on the face of the proceedings, or there is abuse of discretionary power, a writ will be issued despite of the existence of alternate remedy. There is plethora of judgments of Superior Courts which differentiate the circumstances under which these courts should have entertained a writ. Aggrieved persons can contact us for availing this remedy under the Constitution.

The subject of constitutional law is gradually assuming importance in our country due to its relevance to community problems and issues. The issues such as the protection of individual rights and freedoms, the composition and functions of governmental institutions, the powers and functions of State functionaries, etc., are issues of common interest and concern. The study of constitutional law is, thus a matter of increasing interest, not just for the professionals in the legal field, but also to common citizens. A class of this kind at ZA-LLP, therefore, very useful in creating awareness among the people about legal and constitutional issues and leads to better understanding of the evolving legal concepts and principles, thereby paving the way for constitutional rule, observance of rule of law and better governance in the society.

“The Constitution of a country, is not merely a lawyer’s document, but is in fact the vehicle of nation’s life.” It is, thus a politico-legal document and is a revelation of the great purposes which with the legislative, executive and judicial limbs of the State and demarcates their respective spheres of operation. It defines the relationship between a Federation and the Provinces comprised within it. It deals with the fundamental rights and duties of the citizens of the Country. Thus, according to H.L.A. Hart, the Constitution prescribes the paramount norms whereas the law prescribes norms which are in turn derived from the paramount norms.

5. HUMAN RESOURCE MANUAL / EMPLOYEE HANDBOOK SERVICES IN PAKISTAN

A human resource manual is a document detailing an organization’s policies regarding employee management and the relationship between managers and employees. Taking the form of either an employee handbook or an internal document used by management, it aims to describe workplace practices, hiring and termination procedures, and other pertinent information.

Because these guides are essential for communicating an organization’s workplace policy and because they are often referenced in legal proceedings, they must be thorough and accurate.

We at Asghar & Sons Jurists have a very vast experience and our attorneys are very well conversant with the drafting a HR Manual for your establishment comprising the following areas, as per your instructions and aspirations.

Contract & Letters

Acceptance Letter

An acceptance letter document is a written acknowledgement given by one party after accepting an offer or an invitation from another party. A formal written acceptance letter is a formal document that can be used as a legal or professional reference. It can be issued upon acceptance of an appointment letter, contract, social invitation, accepting a scholarship, final a business or insurance payment settlement, while conclude negotiations and so on. The acceptance letter implies your positive response to a second party to assure them of your commitments to what they may have proposed or to be offered.

Acknowledgement Letter

Acknowledgement letters allow those associated with you to know that you value their time and opinion. A well written letter of acknowledgement shows polite professionalism and sincere appreciation and can be used in all situations.

Address Proof Letter / Proof of Residency

An address proof letter, as the name itself suggests, is a legal document issued as proof of an individual’s address.

Agreement Termination Letter

An agreement termination letter is a notice given for canceling or ending a contract. It is a formal and legally binding declaration of your intention to end or terminate all relations with another party.

Announcement Letter

An announcement letter is a type of letter used for a number of business and personal situations. An announcement can be made in response to several situations such as promotion, retirement, engagement, wedding etc., In business announcement can be made for launching new products or business practices.

Apology Letter

An apology is a way through which we express regret for the past action or behavior. Apology letter is a written statement of acceptance of fault or mistake and to apologize to someone for the mistakes, wrong doing, mis-understanding and Misbehaviors done in the past.

Application Letter

Application letter is a formal letter written to make any request to a specific person or to an organization, application can be for leave, for job or an application for admission in a school or university, application for extension of a project or a report.

Appraisal Letter

Appraisal letter is used to declare the result of the Performance Appraisal Process conducted by the HR Department. It is issued for appreciating and motivating an employee hard word and performance and achievement during a calendar year. The organization also extends its gratitude to those employees for their outstanding contribution in the growth of the company.

Appreciation Letter

Appreciation letter is the recognition of the excellent work performance of an employee on his role. It is given to encourage the employee and also acknowledge the efforts and good work done by an employee. Letter of appreciation is also issued to say thank you for the contribution and appreciating the efforts put in.

Approval Letter

Approval letter is written to a person or an organization to get the approval to proceed further in any task like an approval for a leave, approval for loan, approval for payment or purchase.

Cancellation Letter

Cancellation letter or Email is for communicating cancelling of a contract, subscription or an event.

Charge Sheet

Charge Sheet means a written statement of certain allegations upon the offender to communicate that what is done is lawbreaking and not acceptable as per the code of conduct. The objectives of Charge sheets are to highlight and address the exact Point of misconduct committed by the employee and demanding to submit an explanation in his / her defense and to present it to the management of the organization.

Human Resources – HR Process

HR Exit

Exit process is most important part of HR Process, where employer may get the true feedback regarding the best part and the loopholes of the HR Process, where they can improve.

Onboarding Process

HR Onboarding process best practices, checklist and templates is the prime part of the HR Process which involves employee recruitment process. This is the gateway of the new employee to the company here they get introduced to the company, its policies, skills and behaviors. This process includes the complete recruitment and joining process. This process includes introduction of employee with other employees and company’s hierarchy.

Employee Engagement Process

Employee engagement process includes the job distribution, training and development programs and appraisal process. The Job distribution process starts after the onboarding process, once the joining formalities are done, the job role and its responsibility are handed over to the employee. The training and development are related to the job role the candidate is performing. Training and development are provided to develop the skills and techniques of the employee, so that he may perform well, which will benefit the organization. This process also develops and motivates the employees. And at last the appraisal process, which is most important as it is the rewarding process to enhance the moral and spirit of employee to perform well.

Performance Management

Performance Management System

Performance management system is the systematic approach to measure the performance of employees. It is a process through which the organization aligns their mission, goals and objectives with available resources (e.g. Manpower, material, systems and set the priorities.

Job Performance Standards

Job performance principle are some specific parameters or standards which are bounded for employees on which basis job performance degree is evaluated, calculated and monitored. The performance standards are observed based on the job role and the duties associated with the post.

Evaluation Procedure

Performance standards and expectations, based on an up-to-date position description, should be clearly communicated to employees at the time of appointment to their position and as they change thereafter. Employees must encourage participating in the process by providing written comments on the evaluation form regarding their substandard evaluation. Employees should also receive adequate training necessary to effectively perform the duties and responsibilities of their position.

Employee Self Evaluation

Employee self-evaluation is very much necessary for the organization, as self- evaluation is the self-realization for the employee about their performance. This also helps employee to set new goals for themselves and for their carrier. This evaluation also helps employer to understand and analyze each employee and their mindset. Employee Self Evaluation process helps employee to explore their own talents and also allows employee to flourish and produce their talents in front of management. This process also helps the management to make them note all your achievements and contribution towards your company. Employee need to write about their achievements, success, challenges, learning process etc.

Training & Development Plan

Training and Development Plan is basically the plan or schedule which management or higher authorities provide to get effective outcome of work. It helps to create effectivity and thus adds to the growth of the company. Training and development improve skills, personality and performance. To choose the right training and development you need to realize what kind of training is required for your employees and how it will benefit the organization. In order to inspire the employees to take part in the training you need to properly explain or demonstrate how it will benefit them or how it may be helpful in their job role. Ones the training and development plan is chalked out it must be shared with the employees.

Performance Appraisal Form

Performance Appraisal Form is the basic and most important requirement to start the appraisal process. This form is the main support to decide appraisal process. The form contains complete details of employee record, his tenure in the organization, his job role, contribution, achievements, performance record, and special comments from reporting person. Proper rating is provided by the employer or senior authority.

Balanced Scorecard

Balanced Scorecard is a performance-based metric which companies used for strategic management. It improves the internal functions and external results of the business. Balanced scorecard basically connects dot between the strategic part of the organization and the operational elements. It makes sure that mission, vision and core values of the organization are well reflected in the objective, initiatives and measures taken by the employees. It also checks the strategic performance is on the line to strategic focus areas.

Bell Curve Performance Appraisal Management System

There are various performance appraisal systems which exist and used by different organization. When an organization wants to link the performance of the employee directly with the reward, generally bell curve performance appraisal system is utilized. In this system, the employees are categorized based on the ranking given to their performance. The system uses three categories namely, top performer, average performer and low performer employees based on the performance. The bell curve performance appraisal system provides a systematic way to identify the star performers and to link their performance with appropriate reward.

Performance Appraisal

In every organization there is need to understand the abilities of the employees to perform and grow, performance appraisal acts as a tool to check the development opportunities for the employees. It is a systematic evaluation of the work performed by the employees.

360 Degree Performance Appraisal

The 360-degree performance appraisal system is a way to make sure the appraisal is done in a full-fledged way considering all the elements surrounded to the employee.

Job Analysis

Job analysis is one of the important terms in human resource. It is a way to determine the nature of the job and the duties employee has to perform. It also provides information about what kind of people should be hired for a particular job profile. It is a systematic way to collect information and make judgment about all the things related to a job.

Job Description

The first thing which a candidate asks for after joining the organization is ‘job description’. It is the common document which is frequently referred by the employee and employer. The concept of job description is linked with the job analysis. In fact, job description can be termed as the end result of job analysis.

Training & Development

Training Needs Analysis

Training needs analysis is a systematic process of identifying which kind of training is required and provide the details related to training implementation. It is also known as a tool to identify the new skills, knowledge and attitudes which employees need to acquire in order to improve performance. The Training Needs Analysis (TNA) helps organization to find out the gap in terms of skills and training in their existing employees to perform the current and upcoming Jobs efficiently. The Training Manager uses the Analysis very carefully to design the right Training program to meet the skill and training requirement of the employees to enhance productively and ultimately to achieve the goals and objectives set by the organisation.

What is Training

Well prepared and trained staff can be to some degree powerful without all around arranged vital plans or association culture however without vital learning and aptitudes everything may crumple. The major outcome of training is learning. Training may be stated as “Arranged program intended to enhance execution and realize quantifiable changes in learning, abilities, states of mind and social conduct of workers. Training may be careered out through various approaches like on the job, through classroom session, on site / off site, online, and case studies.

Training Needs Identification

Well trained, knowledgeable employees are valuable resources for any business. When recruiting new employees, part of the recruitment process should be matching the prospective employee’s skills and experience to the job description and person specification. Training and development is not just increased knowledge. It offers the advantage of networking and drawing best from others experiences. Therefore, the businesses should pay utmost importance to how the training activity is carried out, right from the NEED ITENTIFICATION (at functional, organizational and individual levels) along with a proper establish system of evaluation that evaluates the effectiveness of training needs at the immediate level, job level and outcome level.

Training Strategy

Training strategy deals with how planned training is going to impact the organization futuristically. The major purpose of training in an organization is to achieve performance of its employees an all levels. But how the training and development department accomplish this depends upon many factors including management and supervisory style, organization climate, quality of the working environment, nature of the work etc. These factors will differ from one company to another. Thus, the strategies call for will vary from one company to another bearing on the strategies adopted by the training department in consideration with organization goal and vision.

Learning & Technology Adaptation

Several corporate enterprises are using variety of creative and innovative method to impart learning to their employees and other stakeholders like virtual class rooms, video conference, audio conferences and web conferences.

Training & Development Process

Training development is a five-step process in which company train their employees in specific skills and further monitor their performance constantly to help them develop overall personality. The training and development activity start with a question about why the training is required. While end with the evaluation of output of training and development program. Steps that are involved in training and development process include need of training and development, goals and objectives, methods of training, implementation of program and evaluation and constant monitoring.

Employee Training Evaluation Process

The purpose of evaluation is to determine whether or not the training achieved the desired objective. Training evaluation is a continual and systematic process of assessing the value or potential value of a training program, course, activity or event. All organizations, regardless of size or type, should use some process of assessing the effectiveness of training undertaken by employees. Results of the evaluation are used to guide decision-making around various components of the training.

Training Methods

A comprehensive list of different Training and Development Methods are listed below which are being used.

Apprenticeships	Employee Job Rotations	Coaching
Employee Lateral Promotions	Career Progression Plannings	Counseling
Classroom or Online Lectures	Discussions	Case Studies
Programmed Instructions	Study of Incident & Analysis	Transactional
Committee Cultural Activities	Buzz Sessions	Conferences
Game Management & Events	Panel Group Discussions	Internship Invitations
Key Executive Speaking	Key Executive Listening	Key Executive Writing
Taskforce Building	Problem Solving Skills	Seminars & Conferences
Educational Courses	Quantitative Methodology	Committee Memberships

Table: Training Methods

Recruitment

Guide for Recruitment & Selection

The recruitment guide describes the detailed description of the process including expected deliverable from Human Resource Department primarily. The HR Head has to facilitate the process of the job opening as the goals defined by HR are reached. The HR Head has to recommend the right recruitment source to be used, has to prepare the recommended time plan for opening the job vacancy. Additionally, the HR Head has to discuss with the manager about the possibilities of the internal recruitment for the vacancy.

Purpose or Objectives of Recruitment

The purpose of recruitment is to fulfill the current and future requirements of the organisation.

Recruitment Strategies

The recruitment strategy is a document tells about the target position on the job market and the main recruitment sources to be used.

Recruitment Marketing Plan

Recruitment Marketing is the creative approach of marketing to find the most qualified candidates in a way that makes them want to apply for the job positions. The goal of the content is to tell a good story that leaves job seekers with a meaningful and exceptional impression of your company.

Recruitment Management System (RMS)

A recruitment management system is also known as an applicant tracking system is an online software which has various processes that have been designed in a way so that recruitment can be managed from a centralized point. RMS facilitates all processes of recruitment starting from job posting to onboarding of the candidate.

E-Recruitment

Online e-Recruitment is for e-enrollment utilising innovation and specifically web / Web-based assets for errands required with finding, drawing in, surveying, meeting and contracting new candidates.

Lateral Recruitment

Lateral Recruitment from an organization prospective translates into a talent acquisition usually at the incumbents existing level and span of operations. This recruitment is generally done form the same industry or a competition company. It’s a strategic hire which in turn would be able to quickly contribute towards set goal or an outcome company defines for a specific role within the organization with minimal training.

Recruitment Checklist

The recruitment checklist is the recruitment tool that navigates managers during the process. The checklist describes the process briefly, and it highlights the main recruitment milestones.

Job Posting

Job Posting is the advertising of the job vacancy. The perfect job posting reaches the defined target group of potential job candidates.

Recruitment Consultant

Recruitment consultants work with companies to help them finding the right people for their Job positions. They also work for candidates to find a job also to find the role that is suitable for them.

Recruitment Outsourcing Process (RPO)

Recruitment Outsourcing is a part of human resource processes is the latest practice being followed by middle and large sized organizations where they outsource the recruitment process to some the Recruitment consultant, search and select companies or recruitment Specialist companies.

Factors Affecting the Recruitment Process

The recruitment function of the organisations is direct or indirect ways affected by a mix of various internal and external forces.

Various Recruitment Forms

There are mainly two kinds of recruitments, one internal and the second external. Methods of internal recruitment includes internal advertisements (e-mails, newsletters, forms), word of mouth, promotions, internal employee referrals, retired employees for temporary or contract positions, temporary employees for permanent positions and former employees for part time / freelance work. On the other hand, the external recruitment includes advertising on job portals and newspapers, referrals and the involvement of recruitment agencies.

Current Trends in Recruitment

Technology is changing the way a recruiter hires someone and is making the process more efficient than ever before. E-recruitment is a smart use of technology to accelerate the recruitment process.

Recruiting Challenges

Recruitment Process

The Recruitment Process in human resource management starts with identification of job vacancy in the organization, later the HR department analyzes the job requirement, review the job application, screen and shortlist the desirable candidates and the process ends with hiring of right and best candidate for the job.

Human Resource (HR) Manual / Employee Handbook

About Organisation

This document is in order to familiarize employees with the organisation and provide information about Organisation’s History, services provided to the clients and customers, working conditions, key policies, procedures and benefits affecting employment at Organisation.

The Employment

Employment Status & Record Values

Employee Benefit Programmes of Organisations

Employee Benefit Programme is introduced in every company, to satisfy and motivate employees in the organisation. These benefits are provided to employee by employer on various grounds which can be medical, leave, facilities, educational, disability or health.

Wage & Salary Administration

Wage and Salary Administration is referring to decide and actualise the successful strategies and practices of worker remuneration working in an association.

Welfare Policy

Welfare policy is to ensure the benefits, facilities given to the employees to work in a better environment.

Health, Safety & Environment of Company

Health, safety and environment describes the provisions maintained by employer for employee. To get certified, companies and factories are bound to maintain health and safety facilities and also must have a healthy working environment.

Workplace Injury Management

Workplace Injury Management and Worker’s Compensation includes facilities related to workplace safety. Employees either in corporate office or factory or site office is provided proper health security so that they can work in safe environment.

Employee Conduct & Discipline

Employee conduct and discipline is extremely necessary for the organization as that binds the employee in proper rules and regulations. Employee conduct and rule involves certain terms, conditions, rules and regulations which helps to keep the decorum of the organization.

Grievance Redressal Policy

Grievance redressal policy is the procedure provided by employer to employee so that they can vent out the issue or complication they face and to get a proper solution to this.

Resignation / Retirement / Termination in Organisation

Resignation, retirement and termination are different terms of detachment of employees from the organisation in different situations.

Intellectual Property & Security

Intellectual property is referred to the softcopy of data, new inventions, formulas, confidential information, data, and business policies of the company or organization. Leaking this information or using them for self-interest is considered as unethical. Abiding these terms and conditions for employees are considered as a heinous crime and can go up to termination of employees.

Conflict of Interest in Organisation

Conflict of interest come up whenever the personal and professional or business interests of an employee are potentially at odds with interests of Organization. Now-a-days organization looks into the potential interest into the employees and try to involve them into the particular field so that they can give the best output of it.

Privacy

Privacy is the last part of the HR Manual, which is to be mentioned as a mandatory field as HR manual of each company has its own unique style and their own rules, regulations, commitments, facilities which are extremely confidential. So, reuse of these policies for any other company without permission is not allowed and is considered as unethical.

HR Policy

Late Coming Policy

Employees are expected to adhere to office timings. Usually a grace time of fifteen (15) minutes is permitted after which it will be treated as “Late – Coming”. If an employee leaves office more than two hours before closing time i.e. 5.00 pm., it will be treated as half day and it should not exceed more than three occasions in a month.

Whistleblower Policy

Whistleblower definition as it sounds as whistle-blower refers to the person who “blow the whistle” or “Raise the Voice” against anything which is not Right or not legal. It may be against any person, employer, business, system, process and procedure within the organization or outside the organization. It is like Standing up against anything which is harmful or against the betterment” the world is full with whistleblower examples where people stood-up against and brought extra-ordinary changes.

Transfer Policy

Job transfer is the shift of job for employees; the change can be in terms of place of job, department of job or shift of job. The employees are replaced or moved lateral to serve the best for the organization. There are six types of transfer which can be implemented in the organization based on the purpose of the transfer. These six types of transfers include shift transfer, rotation transfer, replacement transfer, remedial transfer, production transfer and penal transfer.

Promotional Policy

Taking an employee to the next level of grade and designation is termed as promotion. A promotion is an upward advancement of an employee which gets him/her to a higher position, better pay and privileges, bigger profile and job responsibilities. In human resource management, it is important to have a robust promotion policy, policy and terms that are communicated explicitly to the employees.

Mobile Policy

In certain companies, company owned mobile phones are given to employee to carry out their job. It is given to employee whose job demands to be contactable or require mobile application to perform their role. In such situations it is highly recommended to draft a policy regarding the usage of mobile phones, loss of device, the return of device upon resignation / termination and the right of the company to take disciplinary actions.

Job Rotation Policy

Job rotation is movement of employees on different job role which enriches their skills, ability to work on different roles and experience. It is a useful HR strategy to create awareness among employees about all types of job performed in their vertical.

Laptop Policy

To meet the requirement of fast and better communication, employees may need to use information and data readily available all the times. Companies may provide Laptops and draft a policy regarding its use, return and replacement.

Reward & Recognition Policy

Employees besides wanting a good salary, friendly environment, growth opportunity also want to be appreciated for the outstanding work performed by them. Reward and recognition play a major role in attracting and retaining talent within the organisation. It not only acts as a morale booster but also promotes 3 P’s i.e. Productivity, Positivity, and Promotion. Hence a rewarding policy in a company will increase the effectivity of the work of employees.

Code of Conduct Policy

Generally, the code of conduct is written for employees of a company which protect the business and informs the employee of the company’s expectation in terms of behavior. The purpose of the code of conduct policy is to define guidelines regarding employee behavior with respect to their supervisor, colleagues and organization as a whole. Examples of code of conduct might include fair dealing, disclosure of information and financial matters, confidentiality, harassment, fraud, bribe, internet usage and cyber security.

Leave Policy

Lack of proper leave management can lead to unauthorized absence of employees from duty, lower productivity, fall in productivity hours, missing of important targets and so on. These types of issues can be resolved with a proper Leave Policy Manual for employees in workplace. Leave Policy when implemented in the company it provides a common understanding between the employer and employee that how leave can be taken while in service. The Casual, sick and Annual Leaves can be granted in accordance with relevant law.

Travel Policy

The Purpose of travel policy is to ensure that the travel expenses of the company is controlled by establishing certain standards. Employees must control business travel expense by making the sound judgment with respect to use of company funds. Travel is an important aspect for carrying out the business, it is expected from employees that they will follow the “travel guidelines for employees “while travelling and would provide documentation in support of the same. It is also meant to reimburse the amount spent by an employee when on international or domestic travel.

Employee Referral Policy

The employee referral policy simply means a process of recruitment wherein an existing employee refers a candidate for an opening in the organization. It is one of the most prominent sources of recruitment. Some other categories may be added like, Workplace behavior, Sexual harassment, Dress Code and Health and Safety.

6. LAND ACQUISITION LAW, ACQUISITION LAWYERS & PROCEDURE IN PAKISTAN

Acquisition is the act of becoming the owner of certain property, the act by which one acquires or procures the property. The law relating to land acquisition is referred to in England as the law of “compulsory purchase” and it is an expression of what is known in Pakistan, as the “power of eminent domain”. This law empowers the state, as an exception to the general rule, to compel an owner of property to sell it to the state or to an agency or entity authorized by the state because the same is required for the use of the state or such agency or entity. The law also provides that a proper price be paid to such owner.

Land of the public may be acquired by the State for a public purpose meaning hereby for the use of the public or people at large, or, for a company. Acquisition of land needed for public purposes and for companies and for determining the amount of compensation to be paid on account of such acquisition. The purpose of land acquisition is two-fold: firstly to fulfill the needs of Government and companies for land required by them for their projects, and secondly, to determine and pay compensation to those private persons or bodies whose land is so acquired. The exercise of the power of acquisition has been limited to public purposes.

We at Asghar & Sons Jurists have a very vast experience in acquisition laws and our attorneys are very well conversant with the acquisition procedures due to the enormous work done in range of acquisition projects ranges from acquisition for private entities e.g. private housing societies to the acquisition legal advisory assistance to the Government departments including but not limited to Lahore Development Authority, Defense Housing Authority etc. Even otherwise we are also legal advisors to a very broad range of private housing schemes including but not limited to Al-Rehman Garden, Jaleel Garden, Golf Residentia, Engineers Town, Aitchison Housing Society, Punjab Govt Employees Coop Housing Society, Fazaiya Housing Society, Al-Kabeer Town, Al-Sadaq Garden Etc. If you wants to acquire any Land for development then feel free to contact us, our team of dedicated acquisition lawyers will discharge our services in a very professional manner.

The principles laid down for the determination of compensation, as clarified by judicial pronouncements made from time to time, reflect the anxiety of the law-giver to compensate those who have been deprived of property, adequately enough in the sense that they are to be given gold for gold and not cooper for gold. In other words, the compensation has to be adequate compensation.

The Land Acquisition Act, 1894 deals with the acquisition of land in Pakistan by the State for public purpose or for company or for temporary period. The procedure for acquiring land both by Government for public purposes and for company has been described in the Land Acquisition Act.

Acquisition by Government

Whenever it appears to any Provincial Government that land in any locality is needed for public purpose, a notification to that effect shall be published in the official gazette. In a notification issued under the Act, the particulars of the land necessary for defining and identifying it need not be stated. All that is necessary is that the notification should mention that the land is needed for a public purpose. But the notification issued under subsequent sections must contain sufficient description of the land to be acquired and must indicate precisely the particulars and the identity of the land sought to be acquired. A notice which is vague, ambiguous and uncertain cannot be a valid notification. The purpose of a notification is only to enable the authorities to carry out a preliminary investigation for deciding whether the land intended to be acquired is suitable for the purpose for which it is needed. It is sufficient if the notification only mentions that the land is needed for a public purpose without specifying the boundaries or the cadastral numbers of the land.

The object of the service of the substance of the notice is to afford an opportunity to the interested persons to file objections under Section 5(a) of the Act which confers valuable rights on the interested persons. Purpose of issuance of notification is that landowners be vigilant and on alert. Such notification has to be published and its copies affixed at conspicuous places on the land to be acquired or at conspicuous place in the village where land was situate. Concerned agency after publication of such notice could proceed further or withdraw further proceedings in peculiar circumstances and situations.

Collector / Revenue Officer is required to take immediate necessary steps to have the area surveyed and submit his report to the Commissioner not later than 60 days from the date of publication of the notification.

After issuance of a notification, landowners are to be on alert that their lands are likely to be acquired. At that time they may raise objections within 30 days after the issue of the notification. Every objection shall be made to the Collector / Revenue Officer in writing, and the Collector/ Revenue Officer shall give the objector an opportunity of being heard either in person or by pleader and after hearing the objections, the Collector/ Revenue Officer shall make further inquiry and submit the case for the decision of the Provincial Government, together with the record of the proceedings held by him and report containing his recommendations on the objections. The decision of the Provincial Government on the objections shall be final.

Recital in notification under section 6 is a declaration which is conclusive evidence that land was needed for public purpose or for company. Requisition of property already in occupation of Government in such cases would be acquiring of property under Land Acquisition Act, 1894.

The Collector / Revenue Officer after all the process of notices shall thereupon cause the land to be marked out. He shall also cause it to be measured, and if no plan has been made thereof, a plan to be made of the same.

Section 9 prescribes the next step to be taken by the Collector/ Revenue Officer and its object is to ascertain who are the persons interested in the land and to give them opportunity to put their claims to compensation for their respective interests, and their objections (if any) to the measurements made under section 8. With this view he must issue two notices. The one is a general or ‘public notice’ to be given in the locality, intimating the fact of the proposed acquisition and inviting claims for compensation from all persons interested in the land. The other is a special or personal notice to be served on the occupant and on all other persons believed to be interested in the land, and to the same effect. The former thus throws a duty on all persons interested, to apprise the Collector/ Revenue Officer of his interest and claim within the specified time; and the latter enjoins the Collector / Revenue Officer to ascertain with all reasonable means, the names of persons interested. The issue of a notice to requiring any person to make a statement containing the name of every person possessing any interest in the land or any part thereof as co-proprietor, sub-proprietor, mortgagee and tenant or otherwise is discretionary and not compulsory. Section 10 of the Land Acquisition Act, 1894 requires the amount of rents and profits to be given for a period of three years next preceding the date of the statement. It is not possible to assess claim for compensation on the rents and profits for one year only. Three years is the period taken in Government estimates; hence a statement for three years was considered as fair. The Collector/ Revenue Officer may also require information about the person or persons interested in the land or any part thereof.

On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector/ Revenue Officer shall proceed to enquire into the objections (if any) which any person interested [and a Department of Government, a local authority, or a Company, as the case may be] has stated pursuant to a notice given under section 9 to the measurements made, and into the value of the land [at the date of the publication of the notification under section 4, subsection (1)], and into the respective interests of the persons claiming the compensation and shall make an award under his hand of:

The true area of the land;
The compensation which in his opinion should be allowed for the land; and
The apportionment of the said compensation among all the persons known or believed to be interested in the land, of whom, or of whose claims, he has information, whether or not they have respectively appeared before him; and
The costs which, in his opinion, should be allowed to any person who is found to be entitled to compensation and who is not entitled to receive the additional sum of fifteen percent, mentioned in subsection (2) of section 23 as having been actually and reasonably incurred by such person in preparing his claim and putting his case before the Collector/ Revenue Officer:

Provided that the Collector/ Revenue Officer may disallow wholly or in part the costs incurred by any person if he considers that the claim made by such person is extravagant. (Clause (iv) as mentioned above only applies to Karachi city).

An award shall be final and conclusive evidence as between the Collector/ Revenue Officer and the person interested and not between co-claimants. Inquiry should not be of summary character. Persons effected should be heard and given opportunity to adduce evidence. Collector’s functions cannot be delegated. Land Acquisition Collector/ Revenue Officer while making inquiry and award is not bound by any particular procedure or mode of inquiry. In making award, Collector/ Revenue Officer does not act as a Judicial Officer and is only bound to exercise his own judgment in respect of assessment of compensation. Proceedings before Collector resulting in award are administrative and not judicial in nature. Award would become final when filed in the office of Collector unless it was modified, reversed or annulled by the Court in a reference or appeal. Finality is attached to the award in so far as the parties before the Collector or District Judge are concerned but a person who is not a party to the proceedings would obviously be at liberty to file a suit as he would not be bound by the award. It refers to an interested person whether he has appeared before the Collector or not, to be bound by the award in relation to the specified matters. Award under section 11 is final and conclusive evidence as between Collector and persons interested and not between co-claimants.

Collector/ Revenue Officer though is not a judicial officer but he is empowered by section 14 to exercise certain quasi-judicial functions and he has the powers to summon and enforce the attendance of witnesses including the parties interested or any of them and to compel the production of documents by the same means as is provided for Civil Courts, under Code of Civil Procedure. Collector’s jurisdiction in acquisition cases under the Act is dependent upon prior publication of notice under section 4(1). A Collector/ Revenue Officer, in the performance of his functions under the Act, would appear to be simply an Inquiry officer charged with the duty to acquire land for public purposes, to ascertain its value and to deliver his award from which no appeal/ revision would lie to any Court.

When the Collector has made an award then he may take possession of the land, which shall vest absolutely in the Government and the land will be free from all encumbrances.

In cases of Urgency

Question whether urgency to acquire land for a particular purpose existed or not, was a matter for sole determination by the Government and concerned authority and was not subject to review by Courts. The scope of the provisions deals with this procedure is limited in its operation to case of emergency. The purposes mentioned in that section cannot be turned into a general definition of what are public purposes.

The existence of urgency is a matter solely for the determination of the Government and is not a subject of judicial review. In case of acquisition of land in cases of urgency the acquiring authority has to apply its mind in deciding whether urgency clause is to be made use of.

In case of urgency, the procedure will remain the same except the notice under Section 5-A. The Government, if satisfied that the urgency exists then they are entitled to pass an order to suspend the application of Section 5-A (i.e. hearing of objections after the issue of notification within 30 days). The period of 30 days will be excluded in cases of urgency; the procedure will remain the same. Urgency procedure does not apply to cultivated land. The urgency procedure applies not only to arable or waste land but to all lands.

Acquisition of land for Companies

The procedure taken for the acquisition of land for Companies is very simple. Of course, the first step to be taken by a Company desiring to acquire land under the Land Acquisition Act is to apply to the Collector giving particulars of the lands it needs and the work which it proposes to do on it, explaining that it is one which will be useful to the public. If, on the report of the Collector, the Provincial Government is satisfied that the work is apparently so, a notification including invitation of objections would be published; or, the Provincial Government may direct that an enquiry should be made according to the special procedure laid down for it.

The Company should satisfy the Provincial Government that (i) the acquisition is needed for the construction of some work; such work is likely to prove useful to the public (ii) that the purpose of acquisition is to obtain land for the erection of dwelling houses for workmen employed by the Company or for the provision of amenities directly connected therewith. Industrial concerns employing not less than 100 employees shall be considered as Company for the purposes of acquisition.

The enquiry shall be held by the officer (who is appointer by the Provincial Government to conduct enquiry) at such time and place as the Provincial Government shall appoint and will make a report on it and if the Provincial Government is satisfied after considering the report, if any, of the Collector that the purpose of the proposed acquisition is the same as mentioned in the Notification then it will require the Company to enter into an agreement with the Provincial Government for the following matters: (1) the payment to the Provincial Government of the cost of acquisition; (2) the transfer, on such payment, of the land to the Company; (3) the terms on which the land shall be held by the Company; (4) where the acquisition is for the purpose of erecting dwelling houses or provision of amenities connected therewith, the time, within which, the conditions on which and the manner in which the dwelling houses or amenities shall be erected or provided; and (5) the time within which and the conditions on which the work shall be executed and maintained, and the terms on which the public will be entitled to use the work.

Every such agreement will be published in the official Gazette as soon as it is executed.

Acquisition of land for Railway Companies

In case of acquisition of land for use of Railway Company, the same procedure will be adopted as for Companies except the mode to prove the existence of agreement with the Railway Companies, existence of agreement for such acquisition may be proved by production of a printed copy thereof purported to be printed by order of Government.

Temporary Acquisition

This kind deals with the temporary occupation of waste or arable land as distinguished from permanent acquisition of land in general. When such waste or arable land is needed for any public purpose or for a Company the Provincial Government may direct the Collector to procure the temporary occupation and use of the same. It obliges Collector to issue public notice of substance of direction to be given and normally requires compliance of such provision of law nevertheless does not confer any right upon owners or persons interested in land, since such persons not required to do any particular act on issuance of such notice. There must apparently be an agreement in writing in all cases; such temporary occupation may not exceed three years from the commencement of the occupation. The Collector/ Revenue Officer has also to give in writing to the persons interested which virtually takes the place of a declaration, and should pay the amount agreed upon to them either in a gross sum of money or other periodical payments as may be agreed upon.

Acquisition of part of house or building

Government in proceedings under Land Acquisition Act, is bound to acquire all interest of owner of building including land. Where notification is for acquisition of a portion of certain land, but claimant desires acquisition for whole land and Collector/ Revenue Officer proceeds to make an award without fresh declaration whole proceedings beginning with Collector’s award are void and question is illegal.

Reference to Court

Under Section 18 the reference is of a dispute with regard to the area or the quantum of the compensation or as to the apportionment of the same amongst the persons interested. This reference is strictly limited to the above matters. The Act provides for two classes of references, one under section 18 and the other section 30 of the Act. The scope and the object of the two sections are quite distinct. A person who has not accepted the award has an absolute right of reference to the court provided he conforms to the formalities laid down in the section, the reference under section 30 may be made suo motu by the Collector/ Revenue Officer and is confined to cases where a question of title arises or the dispute is as regards the apportionment of the compensation money.

The conditions prescribed by the section must be complied with before the Collector / Revenue Officer can make a reference and for the Court to exercise jurisdiction and entertain the reference. Those conditions are: (1) a written application to the Collector (2) by a person interested who had not accepted the award (3) stating the grounds of objection as to the measurement of the land or to the amount of compensation or as to the persons to whom it is payable or as to the apportionment of the compensation money among the persons interested (4) within the period of time prescribed therefore. These formalities are matters of substance and their compliance is a condition precedent to the exercise of the power of reference under the section.

Matters to be considered in determining compensation

According to Land Acquisition Law, there are certain matters to be taken into consideration by Collector / Revenue Officer in determining the amount of compensation to be awarded for land acquired under the Law. These are as: (1) The market value of the land at the date of publication of the notification; (2) the damage sustained by the person interested by reason of the taking of any standing crops or trees which may be on the land at the time of the Collector’s taking possession thereof; (3) the damage (if any) sustained by the person interested, at the time of the Collector’s taking possession of land, by reason of severing such land from his other land; (4) the damage (if any) sustained by the person interested, at the time of the Collector’s taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; (5) if in consequence of the acquisition of the land by the Collector, the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; and (6) the damage (if any) bona fide resulting from diminution of the profits of the land between the time of the publication of the declaration and the time of the Collector’s taking possession of the land.

Matters to be neglected in determining compensation

But the Court shall not take into consideration: (a) the degree of urgency which has led to the acquisition; (b) any disinclination of the person interested to part with the land acquired; (c) any damage sustained by him which, if caused by a private person, would not render such person liable to a suit; (d) any damage which is likely to be caused to the land acquired, after the date of the publication of the declaration or in consequence of the use to which it will be put; (e) any increase to the value of the land acquired likely to accrue from the use to which it will be put when acquired; (f) any increase to the value of the other land of the person interested likely to accrue from the use to which the land acquired will be put; or (g) any outlay or improvements on, or disposal of, the land acquired, commenced, made or effected without the sanction of the Collector/ Revenue Officer after the date of the publication of the notification.

Power to Withdraw from Acquisition

Government alone is at liberty to withdraw from acquisition proceedings of any land of which possession has not been taken. Secretary, Revenue Department, can competently pass order on behalf of the Government for withdrawal of acquisition. Withdrawal only takes place before the possession of party who acquires it. Where the Government withdraws from any such acquisition, the Collector / Revenue Officer shall determine the amount of compensation due for the damage suffered by the owner in consequence of the proceedings taken under the first notification to acquire it.

Exemption from Stamp Duty and Fees

Award and Agreement made under Land Acquisition Act have been exempted from stamp duty and any person claiming under such award or agreement can get copy of same without paying any fee thereon.

Notice in case of suit or other Proceedings

If a person or body of persons, having statutory authority for the construction of works, exceeds or abuses the powers conferred by the Legislature, the remedy of person injured in consequence is by action or suit, and by a proceedings for compensation under the statute which has been so transgressed. A notice of one month as a condition precedent is required before the institution of certain suits or proceedings.

Appeals in Proceedings before the Court

Establishment for whose benefit land in question has been acquired has no locus standi to file appeal against referee Court’s award. The right to appeal has been conferred to the person who is effeted by Award or proceedings taken under notification.

In short, if no steps were taken within one year of publication of first notification, acquisition proceedings would come to an end according to the rules framed under Land Acquisition Act, 1894.

6. MORTGAGE LAW, MORTGAGE LAWYERS & SERVICES IN PAKISTAN

Mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.

The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage-money, and the instrument (if any) by which the transfer is effected is called a mortgage-deed.

We at Asghar & Sons Jurists have a very vast experience in Mortgage laws and our attorneys are very well conversant and acquiesced with the practical application and procedures of Mortgage laws in Pakistan and beyond. If you have any Mortgage Issue or Mortgage related dispute regarding any moveable or immoveable property then feel free to contact us, our team of dedicated attorneys will discharge our services in a very proactive manner.

Transfer of Interest

The first requisite of a mortgage is that there should be a transfer of an interest in immovable property, so where there is no actual transfer of some interest there is no mortgage. A mere agreement to transfer cannot create a mortgage.

Thus, when the borrower agrees not to alienate a specified property till the loan is repaid, the condition only imposes a restriction on his power of disposal of the property and does not amount to the transfer of an interest in it so as to create a mortgage of the property.

The mortgagee has an interest in the property as a security for his debt subject to the important limitation, that so long as that interest subsists, the mortgagor has the right to redeem the property.

The Deed of Trust

The deed of trust is a deed by the borrower to a trustee for the purposes of securing a debt. In most states, it also merely creates a lien on the title and not a title transfer, regardless of its terms. It differs from a mortgage in that, in many states, it can be foreclosed by a non-judicial sale held by the trustee. It is also possible to foreclose them through a judicial proceeding.

According to Transfer of Property Act, 1882 there are mainly six kinds of mortgages:

Simple Mortgage

Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be supplied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simple mortgagee. The essentials of a simple mortgage are:

The mortgagor undertakes personal liability;
No possession is delivered;
There is no foreclosure;
No power of sale out of Court, but a decree for the sale of mortgaged property must be obtained; and
It must be effected by a registered document even if the consideration is below Rs. 100.

In the Punjab, registration, where the value is below Rs. 100, is not necessary because the Transfer of Property Act does not apply to the Punjab and under the Registration Act if an interest of the value of Rs.100 or more in immovable property is transferred, registration under the Act is essential.

In a simple mortgage two remedies are open to a mortgagee:

A suit for money decree; or

A suit for the sale of the property mortgaged.

If there is a provision in a simple mortgage that if default is made in payment of interest, the mortgagee will take possession of the property mortgaged, then this is not a simple mortgage but an anomalous mortgage combining in itself the incidents of both a simple and a usufructuary mortgage.

Mortgage by Conditional Sale

Where the mortgagor ostensibly sells the mortgaged property-

On condition that on default of the payment of the mortgage-money on a certain date the sale shall become absolute, or

On condition that on such payment being made the sale shall become void, or

On condition that, on such payment being made the buyer shall transfer the property to the seller.

The transaction is called a mortgage by conditional sale and the mortgagee by conditional sale:

Provided that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale.

In this mortgage:

The mortgagor ostensibly sells the mortgaged property;
The ostensible sale ripens into absolute proprietorship on default;
There is no covenant for the personal liability, unless expressly stipulated;
The remedy of the mortgagee is foreclosure and not sale; and
The document should be registered if the consideration is Rs. 100 or more. If less than Rs. 100 it can be effected by delivery of the property or by a registered instrument.

Usufructuary Mortgage

Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee and authorizes him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest, or in payment of the mortgage-money, or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called an usufructuary mortgage and the mortgagee and usufructuary mortgagee.

English Mortgage

Where the mortgagor binds himself to repay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.

Mortgage by Deposit of Title-Deeds

A mortgage by deposit of title-deeds is commonly known as an equitable mortgage. The essentials of such a mortgage are:

A debt;
Deposit of Title-Deeds; and
An intention that the title-deeds shall form security for the debt.

In a mortgage by deposit of title deeds, two questions are of importance: (1) What are title-deeds? (2) Where should they be deposited to create a valid mortgage?

When in a transaction of mortgage by deposit of title-deeds, such deeds are handed over accompanied by a document constituting a bargain between the parties, such document require registration but when it merely records an already completed transaction it does not require registration as law supposes that the scope of the security is the scope of the title.

Where a person in the town of Karachi, and in any other town which the Provincial Government concerned may, by notification in the official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds.

Provided that, where a mortgage by deposit of title-deeds is to be created in favour of a banking company as defined in the Banking Tribunals Ordinance, 1984, the same may also be created by an entry in the record-of-right against the entry relating to such immovable property.

Anomalous Mortgage

A mortgage which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage or a mortgage by deposit of title-deeds within the meaning of this section is called an anomalous mortgage.

Following are the kinds of sub-mortgage:

Pledge or Pawn

Pledge is a bailment to a creditor as security for some debt or engagement. A pledge, considered as a transaction, is bailment or delivery of goods or property by way of security for a debt or engagement, or as a transaction, is a bailment or delivery of goods or property by way of security for the performance of an act. Another definition is that a pledge is a security interest in a chattel or in an intangible represented by an indispensable instrument (such as formal, written evidence of an interest in an intangible so representing the intangible that the enjoyment, transfer, or enforcement of the intangible depends upon possession of the instrument), the interest being created by a bailment for the purpose of securing the payment of a debt or the performance of some other duty. A pledge is a promise or agreement by which one binds himself to do or forbear something.

Charge

Where immovable property of the debtor is used as security for the payment of money to the creditor, is said to have a charge on the property. It is different from the mortgage in that the charge does not involve the transfer of interest in the property, while the mortgage does.

Lien

Lien is a charge or security or encumbrance upon property. Lien is a charge against or interest in property to secure payment of a debt or performance of an obligation. Lien is a “right in one man to retain that which is in his possession, but belongs to another, till certain demands of the person in possession are satisfied.” It can arise in one of three ways: (1) By Common Law. (2) By express or implied contract. (3) By the general course of dealing in the trade in which to retain the property is claimed for a general balance of accounts while particular lien is a right to retain property “for a charge on account of labour employed or expenses bestowed upon the identical property detained.” It describes the right to retain property until some debt in claim is paid. Thus an inn-keeper has a lien on a lodger’s property until the bill for board and lodging is paid.

Registration of Mortgages, Charges etc.

Transfer of Property Act, 1882

According to the Section 59 of the Transfer of the Property Act, 1882, where the principal money secured is one hundred rupees or upwards, a mortgage other than a mortgage by deposit of title-deeds can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses.

Where the principal money secured is less than one hundred rupees, a mortgage may be effected either by a registered instrument signed and attested as aforesaid, or (except in the case of a simple mortgage) by delivery of the property.

Registration must be in accordance with the provisions of the Registration Act, 1908 and a defective registration would vitiate the mortgage transaction. The document will be inadmissible in evidence for want of registration, though it can be received in evidence for a collateral purpose to prove the nature of the possession of the mortgagee, or the personal obligation of the mortgagor for the purpose of granting a simple money decree.

Companies Ordinance, 1984

According to the Section 121 of the Companies Ordinance 1984, every mortgage, charge or other interest created by a company and being either:

a mortgage or charge for the purpose of securing any issue of debentures; or
a mortgage or charge on uncalled share capital of the company; or
a mortgage or charge on any immovable property wherever situate or any interest therein; or
a mortgage or charge on any book debts of the company; or
a mortgage or charge, not being a pledge, on any movable property of the company; or
a floating charge on the undertaking or property of the company, including stock-in-trade; or
a mortgage or charge on a ship or any share in a ship; or
a mortgage or charge on goodwill, on a patent or license under patent on, a trade mark, or on a copyright or licence under a copyright; or
a mortgage or charge or other interest based on agreement for the issue of any instrument in the nature of redeemable capital; or
a mortgage or charge or other interest based on a mushrika agreement; or
a mortgage or charge or other interest based on hire-purchase or leasing agreement for acquisition of fixed assets;

shall, so far as any security on the company’s property or undertaking is thereby conferred, be void against the liquidator and any creditor of the company, unless the prescribed particulars of the mortgage or charge, together with a copy of the instrument, if any, verified in the prescribed manner, by which the mortgage or charge is created or evidenced are filed with the registrar for registration in the manner required by Companies Ordinance within twenty-one days after the date of its creation, but without prejudice to any contract or obligation for repayment of the money thereby secured, and when a mortgage or charge becomes void under this section the money secured thereby shall immediately become payable.

Effect of Non-Registration

If a mortgage or charge, which requires registration under the Companies Ordinance 1984, is not registered, it does not mean that the transaction is altogether void or the debt is not recoverable. The only consequence is that the security created by the mortgage or charge become void as against the liquidator and other creditors. The omission to register does not prejudice any contract or obligation for repayment of the money secured by the charge, and where the charge becomes void for want of registration, the money secured by it immediately becomes payable. It must, however, be noted that as against the company itself, so long as the company does not go into liquidation, the mortgage or charge is good, and may be enforced.

PROHIBITION OF FLOATING, CHARGE ON ASSETS

According to the Banking Companies Ordinance, no banking company shall create a floating charge on the undertaking or any property of the company or any part thereof, unless the creation of such floating charges is certified in writing by the State Bank as not being detrimental to the interests of the depositors of such company.
Any such charge created without obtaining the certificate of the state Bank shall be invalid.
Any Banking Company aggrieved by the refusal of a certificate, may within ninety days from the date on which such refusal is communicated to it, appeal to the Federal Government.
The decision of the Federal Government where an appeal has been preferred to it or of the State Bank where no such appeal has been preferred shall be final.

At common law, an estate created by a conveyance absolute in its form, but intended to secure the performance of some act, such as the payment of money, an the like, by the grantor or some other person, and to become void if the act is performed agreeably to the terms prescribed at the time of making such conveyance. The mortgage operates as a conveyance of the legal title to the mortgage, but such title is subject to defeasance on payment of the debt or performance of the duty by the mortgagor.

The above definitions are applicable to the common law (i.e. estate or title) conception of a mortgage. Such conception is still applicable in certain states. But in many other states, a mortgage is regarded as a mere lien, and not as creating a title or estate. It is a pledge or security of particular property for the payment of a debt or the performance of some other obligation, whatever from the transaction may take, but is not now regarded as a conveyance. Still other states have adopted a hybrid or intermediate theory or category of mortgage.

The History of Mortgage Law

Mortgage Law originated in the English feudal system as early as the 12th century. At that time the effect of a mortgage was to legally convey both the title of the interest in land and possession of the land to the lender. This conveyance was ‘absolute’, that is subject only to the lender’s promise to re-convey the property to the borrower if the specified sum was repaid by the specified date. If, on the other hand, the borrower failed to comply with the terms, then the interest in land automatically became the lender’s and the borrower had no further claims or recourses at law. There were, back in feudal England, basically two kinds of mortgages: ‘ad vivum vadium’, Latin for ‘a live pledge’ in which the income from the land was used by the borrower to repay the debt, and ‘ad mortuum vadium’, Latin for ‘a dead pledge’ where the lender was entitled to the income from the land and the borrower had to raise funds elsewhere to repay the debt. Whereas at the beginning only ‘live pledges’ were legal and ‘dead pledges’ were considered an infringement of the laws of usury and of religious teachings, by the 14th century only dead pledges remained and were all very legal and very religious. And, apparently, they are still very religious in the 21st century.

A mortgage is an interest in land created by a contract, not a loan. Although almost all mortgage agreements contain a promise to repay a debt, a mortgage is not a debt by and in itself. It can be better characterized as evidence of a debt. More importantly, a mortgage is a transfer of a legal or equitable interest in land, on the condition sine qua non that the interest will be returned when the terms of the mortgage contract are performed. A mortgage agreement usually transfers the interest in the borrower’s land to the lender. However, the transfer has a condition attached: if the borrower performs the obligations of the mortgage contract, the transfer becomes void. This is the reason why the borrower is allowed to remain on title as the registered owner. In practicality, he retains possession of the land but the lender holds the right to the interest in said land.

In essence, therefore, a mortgage is a conveyance of land as a security for payment of the underlying debt or the discharge of some other obligation for which it is given. In a mortgage contract, the borrower is called ‘mortgagor’ and the lender ‘mortgagee’.

Express Contractual Terms of a Mortgage

Following is an analysis of the clauses contained in most mortgage contracts. It should be emphasized, however, that the wording varies from contract to contract, and that the types of clauses change to conform to the particular types of securities mortgaged.

Redemption

When the mortgagor fails to fulfill his obligations under the contract, the mortgage will be void and the mortgagee will be bound to recovery the legal interest to the mortgagor.

Transferability

All the covenants made by the mortgagor will be binding upon him, his heirs, executors and administrators. This is the case whether the legal interest is held by the mortgagee, or by the mortgagee’s heirs, executors, administrators or assignees.

Personal Covenant

The contractual promise made by the borrower is his personal covenant. Because of this, it does not run with the land, so that the lender can sue the borrower on his personal covenant even in the eventuality that the borrower has sold the interest in land to someone else who has assumed the mortgage. In practicality, this means that until the original mortgage contract is valid, in full force and effect the original mortgagor is always liable.

Title Integrity

The mortgagor confirms and guarantees that he is the owner in fee simple and holds all rights and powers that such ownership entails, including the right to convey the land to the mortgagee.

Free and Clear

This is the very essence of the security for the debt: the title must be free and clear of all encumbrances (subject to certain statutory rights, such as taxation), so that conveyance can take place. Upon conveyance, the interest is transferred to the lender while the borrower retains possession. But on default, the borrower will deliver also possession to the lender subject to any encumbrance in priority. This can be a tax lien or, in the case of default on a second mortgage, a first mortgage.

Further Assurances

In the event of default, the mortgagor promises to do all that is necessary to allow the lender to obtain title of the property.

Prior Encumbrances

Except for statutory encumbrances, the mortgagor must make a declaration of any and all charges that have priority over the mortgage being contracted, otherwise the lender expects and has the right to be registered in first priority.

Insurance

The mortgage covenants to either keep the buildings located on said land insured at all times or, in the alternative, to provide a cash bond covering the replacement cost of said buildings.

Release of all Claims

The borrower gives up any claims he may have against the lender with respect to the property, except the borrower’s right to demand reconveyance when the underlying debt is repaid.

Acceleration on Default

Acceleration is a proviso stipulating the on default the principal and interest of the underlying debt will both become due and payable forthwith at the option of the mortgagee.

Quiet Possession

A stipulation that, until default, the mortgagor shall have quiet possession of said lands.

Omnibus Clause

In default of any payment of money to be paid by the mortgagor under the terms of the mortgage contract, the mortgagee may pay the same and the amount so paid shall be added forthwith to the principal debt secured by the contract and carrying interest at the same rate stipulated by the contract.

Repairs

The mortgagor has a duty and an obligation to keep the lands and the buildings thereon in good conditions and in a reasonable state of repair and, furthermore, he will not abandon or commit waste anywhere on the mortgaged property. This clause is intended to safeguard the value of the lender’s security.

Advances

The mortgagee shall not be bound to advance any part of the money intended to be secured by the mortgage contract. For example, where part of the money has been advanced and subsequently a builder’s lien is filed against the land, the lender will require the lien to be removed before advancing further funds. Note that builder’s liens have priority over mortgages.

Sale Clause

Also known as ‘Due on Sale’ the mortgagor agrees to pay, at the option of the mortgagee, all principal and interest of the underlying debt upon sale of the property. This clause effectively prevents the mortgage from being assumed by anyone unacceptable to the lender. Obviously, the other option of the lender is not to call the loan if the mortgagor sells to a Buyer acceptable to the lender. In the absence of this clause, the mortgage is always assumable.

Asghar & Sons Jurists Banking and Financial Services practice covers a broad range of transactional regulatory and technology matters. Attorneys in the practice help clients transact business in the financial marketplace and navigate the myriad rules and regulations governing the financial services industry. We also provide insight and guidance to enable clients to capitalize on new business opportunities. Services include providing counsel and representation on:

Bank regulatory matters
Bank operations technology outsourcing
Bond financings
Broker-dealer formation and product offerings
Commercial loans, participations, and syndications
Corporate trusts
Credit enhancement
Development of new loan and deposit products and services
Domestic and international financing transactions
E-Commerce
Letter of credit and banker’s acceptances transactions
Litigation
Mergers and acquisitions
Mortgage banking issues
Motion picture financings
Private banking matters
Project finance
Real estate lending
Strategic acquisitions and investments by financial institutions
Swaps and derivative products
Workouts, remedial action, and foreclosures
Attorneys in the Banking and Financial Services practice also work with the firm’s Commercial Litigation practice on a wide variety of litigation and enforcement matters.

To learn more about ZA-LLP Banking and Financial Services practice, please contact the following:

Mortgage Licensing for Banks, Lenders and Brokers

Asghar & Sons Jurists provides nationwide mortgage licensing expertise for banks, lenders and brokers.

Services Provided

Consultation regarding licensing requirements;
Certificate of Authority filings;
Assumed Business name (DBA) filings;
Registered agent registrations;
Nationwide mortgage lender and mortgage broker licensing filings;
License renewals;
Consultation concerning state requirements on advertising, disclosures, late fees and prepayment penalties;
Audit assistance;
Ongoing compliance solutions;
Expand your lending or brokering territory into new states;
Focus on your business while we handle your licensing and regulatory requirements; and
More affordable than using or hiring your own staff.

Financial Services Technology

Our attorneys at Asghar & Sons Jurists offer unparalleled experience in information technology and intellectual property with extensive financial services industry knowledge. Many of our attorneys have extensive backgrounds as systems analysts, software developers and computer consultants, and are uniquely capable to understand the technology-related needs of financial service organizations. With respect to Internet and e-commerce related matters, we at Asghar & Sons Jurists have been representing many of the largest users of, and investors in, Internet technology. As a result, our attorneys have an outstanding ability to provide insightful, value-added services in e-commerce transactional and compliance matters, including advising on electronic signature as well as compliance with federally mandated privacy policy requirements.

Mortgage Banking

Attorneys in the mortgage banking practice help clients with matters related to financing and the acquisition of residential loan portfolios, including reviewing loan documentation and procedures for compliance with federal and provincial law. Asghar & Sons Jurists and its attorneys have helped to develop many plain language consumer loan documents that have been used widely, including a plain language combined equity credit line agreement, disclosure, and mortgage deed. Our attorneys have extensive experience in counseling residential mortgage lenders in establishing residential first mortgage loan and home equity loan programs for regional and national lenders. Our attorneys have:

Assisted bank holding company subsidiaries and other corporate lenders in obtaining non-depository first and second mortgage lending licenses;
Designed consumer and commercial mortgage loan products, loan forms, and integrated operations and compliance manuals;
Developed procedures and forms for construction loan programs;
Prepared, reviewed, and negotiated whole loan sales and servicing agreements;
Provided ongoing assistance as outside counsel to troubleshoot operational and regulatory issues; and
Advised state, regional, and national mortgage lenders on state and federal laws affecting first and subordinate residential mortgage loan products.

Asghar & Sons Jurists have also been in the forefront of legal developments involving:

Alternative mortgage instruments;
Digital signature legislation;
Fair lending policies;
Manufactured housing finance;
Mortgage backed securities;
REMIC transactions; and
Secondary market activities involving, Residential Funding Corporation, and various Wall Street mortgage brokerage houses.

Regulatory Compliance

Our Dedicated Attorneys at Asghar & Sons Jurists involved in Banking and Financial Services practice since 2000, hence have an extensive experience in counseling institutions that must comply with consumer protection statutes and regulations. Our attorneys have advised numerous local, state, and national institutions on federal and state regulations affecting loan product development, credit advertising, loan origination and servicing, licensing, foreign branching, “doing business,” financial privacy and fair lending.

Our attorneys have also represented insurance companies on a broad range of regulatory matters, including licensing requirements, qualification to do business, development of product offerings, and review of form filings. In addition, Asghar & Sons Jurists have counseled insurance companies on matters involving electronic communications and data retention, privacy policy requirements, and electronic payment mechanisms.

Specialized Lending Practice

Asghar & Sons Jurists and its dedicated attorneys have represented numerous lenders and borrowers in commercial loan transactions, including structuring, negotiating, documenting, and closing commercial loans secured by or based on all manner of real estate and personal property. Our clients have included banks, insurance companies, commercial finance companies, corporations, partnerships, limited liability companies, and individuals throughout the United Arab Emirates, Kingdom Of Saudi Arabia and United States.

Representative matters that we have handled include but not limited to: Representation of national timeshare lenders in connection with timeshare receivable loans and lines of credit relating to resort projects throughout and outside of Pakistan.

Representation of national real estate lenders in connection with construction, short-term and permanent financing of shopping centers, office parks, industrial facilities, hotels, and residential and commercial real estate developments throughout Pakistan.

Representation of national lenders with respect to permanent and warehouse financing of mortgage loan and other consumer loan portfolio acquisitions, originations, and investor note receivable financing.

Review of commercial lending forms and development of procedures for institutional lenders designed to streamline commercial loan closing procedures and reduce costs.

Representation of financial institutions in connection with loans to non-profit corporations and health care facilities.

Representative experience includes

Litigated and counseled clients on Internet-based commerce, including jurisdictional and licensing issues, electronic payment systems, and emerging signature and document authentication technologies developed regulatory compliance strategies for financial institutions that are using emerging technologies, Drafted agreements for institutions and financial service providers preparing to enter into a consumer electronic payments system, including stored value and digital signature agreements. Assisted banks, insurance companies, mortgage lenders, and other financial services providers establish an Internet presence on the Web Counseled banks and insurance companies on intellectual property issues and information technology matters.

7. LEASING LAW, LEASING LAWYERS & SERVICES IN PAKISTAN

In accordance with Section 2 (15A) (b) of the Companies Ordinance 1984, Financial Institution includes a leasing company. The provision as to establishment and regulation of leasing companies is contained in Section 282-A of the Companies Ordinance 1984, which is enlisted in the Non Banking Finance Companies (NBFC’s). The Federal Government has made rules for establishment and regulation of NBFC’s which include the rules for leasing companies. It cannot be incorporated without prior approval of the Securities and Exchange Commission of Pakistan and license is issued by it. In view of the practical difficulties being faced by the NBFC’s, engaged in the business of leasing only (previously known as leasing companies), in giving effect to their business transactions and preparation of accounts, the Commission considering it necessary and expedient so to do, has decided to issue directions for the aforesaid NBFC’s. The Commission therefore, in exercise of the powers conferred by Section 282-D of the Companies Ordinance 1984 has directed all undertakings, the business of leasing only to conduct their business in conformity with the directions / regulations, called Prudential Regulations for NBFC’s undertaking, which are similar to the regulations prescribed through the Leasing Companies (Establishment and Regulations) Rules 2000.

We at Asghar & Sons Jurists have a very vast experience in leasing laws and our attorneys are very well conversant with the leasing procedures and practices due to the enormous work done in range of leasing projects ranges from private entities e.g. private housing societies to the legal advisory assistance to the Government departments including but not limited to Lahore Development Authority, Defense Housing Authority etc. Even otherwise we are also legal advisors for leasing matters to a very broad range of private enterprises to the Government enterprises. If you wants to inquire about any leasing related issue in Pakistan and Beyond then feel free to contact us, our team of dedicated leasing lawyers will discharge our services in a very professional manner.

Rule 2 (xxx) of the Non Banking Finance Companies (Establishment and Regulations) Rules 2003 prescribe that a leasing company means a company licensed by the Commission to undertake leasing. Rule 2 (xxix) Leasing includes financial services provided on operating lease or finance lease basis, in accordance with International Accounting Standard. The leasing company has separate tier of minimum equity of Rs. 200 million and the company is incorporated as a public limited company under the Ordinance. The company has to allow at least 15% of the paid up share capital to the promoters to have to undertake that they shall not dispose of their share for a minimum period of 3 years from the date of commencement of business except with the prior approval of the Commission. Other conditions regarding to the appointment of Chief Executive, Change in the Memorandum of Association and Board of Directors cannot be made without prior approval of the Commission.

TERMS AND CONDITIONS FOR UNDERTAKING LEASING BUSINESS

A Company licensed by the Commission to undertake leasing business shall invest at least 70% of its assets in the business of leasing unless it is duly licensed by the Commission to undertake any other form of business in addition to leasing. Cash and bank balances investment in government securities shall be excluded to calculate investment in leasing business for purposes of this definition. It has to provide facilities amounting to at least 5% of its funds based facilities to small entrepreneurs. It has also to acquire and maintain membership of Leasing Association of Pakistan and follow the code of conduct prescribed by the said Association.

The leasing company shall not hold, deal or trade in real estate except for use of itself and engage in leasing operations pertaining to open land, buildings other than factory buildings, warehouses, hospitals, educational institutions, office buildings and residential undertakings located within and outside factory premises to be used exclusively as such by a lessee, may be leased subject to a maximum of 120 square feet per employee provided that such investment does not exceed 20% of the overall lease portfolio of the company and furniture or furnishing of any type. In nutshell the NBFC’s (Establishment and Regulation) Rules 2003 apply to all functions of the leasing companies.

PROCEDURE

Under the provisions of Section 121 (K) of the Companies Ordinance 1984, every mortgage or charge or other interest based on hire-purchase or lease agreement for acquisition of fixed assets are void, if not registered.

For an application to the Commission seeking permission to establish a leasing company, a non refundable processing fee has to be paid at Rs. 100,000 under clause IX of the Sixth Schedule of the Companies Ordinance 1984.

Lease of Immovable Property

According to the Transfer of Property Act, 1882 a Lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

Lessor, lessee, premium and rent defined

The transfer is called the lessor, the transferee is called the lessee, the price is called the premium, and the money share, service or other thing to be so rendered is called the rent.

Ingredients of Lease

Transfer of right to enjoy immovable property;
The duration of the right of enjoyment must be fixed;
It must be for consideration either premium or rent or both; and
The transfer must be accepted by the transferee.

According to the provision of Section 106 of Transfer of Property Act, 1882 in the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six month notice expiring with the end of a year of the tenancy; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days’ notice expiring with the end of a month of the tenancy.

Every notice under this section must be in writing signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family, or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.

Difference between lease and licence

A licence confers a right to do or continue to do something in or upon immovable property of grantor which but for the grant of the right may be unlawful, but it creates no estate or interest in the immovable property of the grantor. A lease on the other hand creates an interest in the property demised.

Lease how made?

According to the Section 107 of the Transfer of Property Act, 1882 a Lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.

All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery or possession.

Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee.

Provided that the Provincial Government may, from time to time, by notification in the official Gazette, direct that leases of immovable property, other than leases from year to year, or for any class of such leases, may be made by un-registered instrument or by oral agreement without delivery of possession.

Lease Agreements

There can be no lease without a present demise. A mere agreement to grant a lease in future will not be a lease. Such an agreement will merely create a personal right and not an interest in the property. It is a matter of construction in each case whether the agreement is merely an executory one or a person demises and creates an interest in the property. The mere fact that an agreement provides that the lease is to commence from a future date or that there is a provision for the execution of a formal document does not make it a merely executory agreement and not a lease. Even where possession is allowed to be taken under the agreement it may amount only to a personal agreement not creating any present interest in the property, the right to take possession pending the grant of the lease being, in such cases, only a licence. But the circumstances of the case may show that apart from the lease that is agreed to be granted, there is another tenancy arising by implication from payment and acceptance of rent.

Ordinary leases at rack-rents are not generally preceded by a formal agreement, such as is common on a sale of land, or by an investigation into the lessor’s title. As a rule the principal terms are arranged between the parties, and embodied with various ancillary provisions in a draft lease, which is prepared by the lessor’s advices and submitted to the lessee, the ultimate form and contents of the instrument being adjusted by negotiation. If an intending lessee desires to examine the title he must make an express bargain to that effect, for under a contract to grant a lease the intended lessee is not entitled, in the absence of such express stipulation, to call for the title to the free-hold. By the Real Property Act, 1845, leases required by law to be in writing are void at law unless made by deed.

Lease Deed

There are reciprocal covenants to be undertaken by the lessor as well the lessee to be entered in the deed of lease.

The following are the implied covenants on the case of a Leasee:

To disclose material defects enhancing the value of the lessor’s interest;
To pay rent;
To keep and restore the property leased in good condition, reasonable wear and tear and damaged by irresistible force excepted;
To permit lessor and his agents to inspect the property;
To make good defects caused by his acts or default within three months or notice by the lessor;
To inform lessor of any attack of a stranger on lessor’s title;
Not to commit waste or use the property for a purpose other that that for which it is let; and
Not to construct.

7. LAW OF PERSONAL INJURY & NEGLIGENCE IN PAKISTAN

The fact that mishaps are fairly commonplace does not detract from the pain and confusion that can result when an accident or injury happens to you or a loved one. If you decide to take steps toward protecting your legal rights after an accident or injury, you may have a number of general questions about “personal injury” cases. Personal injury law refers to the legal remedies and defenses involved in civil lawsuits brought as a result of wrongful conduct. In fact, the word “tort” comes from a Latin term meaning twist, wrong, or harm. In contrast to criminal law, a tort action does not involve the government prosecuting the wrongdoer. Rather, these cases involve a private plaintiff seeking compensation (usually money) for the harm caused by the defendant’s actions.

Most personal injury cases are based on the doctrine of negligence. In essence, negligence requires every member of society to act responsibly and avoid putting others at risk. That is not to say that negligence will result each time someone gets hurt. The doctrine recognizes that some accidents are unavoidable. To establish liability, the plaintiff must show that a reasonably prudent person in the defendant’s position would have acted differently under the circumstances.

We at Asghar & Sons Jurists have a very vast experience in laws related to personal injury and negligence. As a matter of fact our attorneys are very well conversant with the broad range of legal remedies ranges from civil actions to the criminal course of actions in conformity with the to Pakistan Penal Code 1860 and Criminal Procedure Code 1898. If you wants to inquire about any issue pertaining to personal injury or negligence either at the part of any private entity or at the at the part of government agency in Pakistan and Beyond then feel free to contact us, our team of dedicated leasing lawyers will discharge our services in a very professional manner.

Common Intro and Historical Progress

The annual increase in the number of accidental injuries to life, limb and property as a result of the impact of modern civilisation, has become a major problem for exploration and study by lawyers, judges, politicians, economists and social workers all over the world. During World War II there were more casualties among human beings from accidents on the home front, than there were deaths and wounds inflicted on the battlefields. According to the estimates in USA alone, the number of infantry units killed was 313,000 but 386,082 civilians were killed in accidents during the same period. Although statistics on similar lines aren’t available in our own country.

Economic Effects

It’ll be observed that death and personal injury involve economic loss through loss of wages, loss of support, and payment of funeral and medical expenses. If the injury is permanent or fatal the economic loss is very severe; it may fall not only on the injured person and his family, but on his hospital, physician, tradesman, landlords, friends and the community at large. As most persons are members of a family group, the economic shock of an accident falls on the family which carries the injured person along as best as it can. If the injured person is sole bread-earner, the entire family group may face a severe crisis.

Accidental Claims and Scarcity in Pakistan

Despite this high toll of accidents and the resulting loss to individuals and society, it isn’t a matter for gratification to figure out that very few claims for compensation or damages are made and tried in our domestic courts. In our own law research, both official and non-official cases on Torts, more so on negligence, are few and far between. Negligence as a basis of liability for death or personal injuries has scarcely arisen for discussion before our Courts, except perhaps where negligence was alleged against Pakistan Railways in transportation of goods.

There are several reasons for lack of this class of litigation. In the first place, the public in Pakistan are generally unaware of their civil rights in the matters of making claims for compensation in respect of personal injuries, and victims of accidents through ignorance of their rights fail to prefer claims. It is true that potential claims are settled out of court for small sums, but even such instances are rare. Another deterrent factor is the heavy court-fees which a litigant has to pay on money claims in our courts. Yet another factor is the lack of liberal outlook on the part of our average mofussil Judge in awarding compensation in personal injury actions. The logical consequence of the inability or failure to get liberal compensation in such cases, is a great loss to the community. However, cases on medical malpractice are now on rise in Pakistan.

Foundation of Tortious Liability

There has been an age-long conflict of theories of tortious liability, centring round two basic, but opposing interests of individuals, viz., the interest of freedom of action. The first required that every person who causes injury to another must compensate that other regardless of his motives or intentions. That second required that the person causing injury should be called upon only if his action was intentionally wrongful, or was the result of an undue lack of consideration for the interests of others. The former is content with imposing liability for faultless causation, while the latter insists upon fault or culpability as a prerequisite for legal responsibility. But it’ll not be surprising to see that between these theories, a midway, a compromise has been found. “For somewhere the line must be drawn unless full rein be given to the doctrine that a man always acts at his peril that ‘coarse and impolitic idea'”.

Historical Antecedents of Negligence

In the field of accidental injuries, the legal right to receive compensation or damages today is however generally said to depend on “negligence”. Yet as an independent basis of tort liability, it is a very recent creation.

It isn’t therefore surprising to find that, neither the first book on common law attributed to Glanvill, Chief Justice to Henry II, nor the second great book on the same subject by Bracton written about the middle of the thirteenth century, contains any reference to negligence as a basis of liability. There was not even the title of “Negligence” in the year-books or any digest of English Law before Comyns (1762-67).

Even Addison who wrote on the more modern Law of Torts in 1860, hardly devoted any space to the subject of Negligence, except where he treated it as a mental element in tortious liability. It was only in the second quarter of the twentieth century that the concept for negligence became crystallised.

What is Negligence?

Negligence is the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man won’t do.

Negligence has been defined by Winfield as “the breach of a legal duty to take care which results in damage undesired by the defendant to the plaintiff”. It contains three ingredients:

A legal duty to take care;
Breach of that duty; and
Consequential damage to the plaintiff.

Lord Atkin in Donoghue v. Stevenson, put it thus:

“You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour. Who then, in law, is my neighbour? The answer seems to be persons who’re closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I’m directing my mind to the acts or omissions which are called in question.”

Lord Reid said that Lord Atkin’s dictum ought to apply unless there was some justification or valid explanation for its exclusion.

Foreseeability and Proximity

‘Foreseeability’ means whether a hypothetical ‘reasonable person’ would have foreseen damage in the circumstances.

‘Proximity’ is shorthand for Lord Atkin’s neighbour principle. It means that there must be legal proximity, i.e. a legal relationship between the parties from which the law will attribute a duty of care.

Note that a duty of care may not be owed to a particular claimant, if the claimant was unforeseeable.

Negligence as a State of Mind or Unreasonable Conduct

Theorists have differed as to whether negligence is a mental attitude or conduct. According to the mental theory negligence is merely a state of mind involving indifference or inadvertence: “a form of mens rea standing side by side with wrongful intention as a formal ground of responsibility” for certain nominated torts. Those who maintain the former theory do not admit that negligence may itself be a specific tort. Those who propound the latter theory say that negligence is conduct which falls below the standard established by law for the protection of others against unreasonable risk of harm and this is generally the accepted view. This conflict is referred to as one between objective and subjective negligence.

Tort of Negligence

The theory that negligence is conduct and not a state of mind has resulted in the development of the conception that negligence is a specific tort, and not a mere element in the commission of other torts. For a long time, the idea that negligence is itself a tort was never expressed in so many words, but there was a sub-conscious realisation of it. It took more than a century for English Law to arrive at the present stage of development. In Donoghue v. Stevenson, the House of Lords treats negligence as, “where there is a duty to take care, as a specific tort in itself, and not simply as an element in some complex relationship or in some specified breach of duty”.

Negligence in Law and in Common Parlance

In law ‘negligence’ means failure in a duty to take care.

Lord Wright in Lochegelly Iron and Coal Co. v Mullan, put it as follows:

“In strict legal analysis ‘negligence’ means more than needles or careless conduct, whether in omission or commission; it properly connotes the complex concept of duty, breach, and damages thereby suffered by the person to whom the duty was owing.”

The term “negligence” has been frequently defined by courts and text-writers in various terms, such as carelessness, want or absence of care, failure to exercise such care and skill as the circumstances require, want of diligence and care reasonably required under all the circumstances, failure to use ordinary precaution, failure of duty to take care, omission or disregard of a legal duty, and in many other cognate terms.

Benchmarks for Establishing Negligence

The standards for establishing negligence are:

The standard to determine whether a person has been guilty of negligence in the standard of care which in the given circumstances, a reasonable man could have foreseen;
The test is foreseeability, not probability;
The more serious the consequences if case isn’t taken, the greater is the degree of care which must be exercised;
While the initial burden of proof of negligence is on the claimant, barring exceptional cases the principle of res ipsa loquitur comes into play;
Having regard to the local conditions prevailing in the country, when res ipsa loquitur is attracted, it should be given as wide an amplitude and as long a rope as possible in its application to the case of a motor accident;
The defendant can’t escape liability by merely proffering hypothetical explanations, however plausible, of the accident.

Basic Problem in Negligence Law

Negligence is a matter of “risk”. This involves the two questions “Risk of what?” and “Risk to whom?”. In other words, the endeavour is to determine the nature of the risk and the scope of the risk. For this purpose, Courts in England have evolved a number of artificial technics like “duty of care” and “remoteness of damage” which are concerned with the basic problem of what harms are included within the scope of the unreasonable risk created by the defendant, and what interest the law deems worthy of protection against negligent interference in consonance with current notions of policy in that country.

Elements as to Cause of Action for Negligence

From the present state of law, the essential elements constituting actionable negligence may be summarised as follows:

A duty recognised by law requiring conformity to a certain standard of conduct for the protection of others against unreasonable risk of harm.This is commonly known as the “duty issue”.
Failure to conform to the required standard of care, or briefly, breach of that duty.This element usually passes under the head of “negligence”.
Actual loss or injury to the interests of the plaintiff.This is otherwise stating that “damage is the gist of the action for negligence”.
A reasonably proximate connection between the defendant’s conduct and the resulting injury.This is the question relating to the principle of “remoteness of damage” or “proximate cause”; and
The absence of any conduct by injured party disabling him from bringing an action for the loss he has sustained.This involves consideration of two specific defences to the action, viz. (1) voluntary assumption of the risk and (2) contributory negligence, which are properly within the question of “remoteness of damage” or “proximate cause” and falling within the scope of the third element as mentioned above.

The law of negligence in Pakistan is based largely on English law, although there are areas in which the Pakistani courts have chosen to depart from the principles espoused by the UK courts. While the law referred here will, wherever possible, be that applied by the courts in Pakistan (and occasionally India), reference will also be made to the jurisprudence of other jurisdictions – notably the UK, Australia and USA – which have influenced, or are influencing, the development of the law of negligence in Pakistan.

Establishing the due standard of care: whether reasonable care has been taken to avoid reasonably foreseeable harm

The basic question in every case is whether reasonable care has been taken to avoid reasonably foreseeable harm. Factors which are relevant in this determination include:

the likelihood or probability of the risk eventuating;
the seriousness or gravity of the foreseeable risk;
the practicability of avoiding or minimising the risk;
the justifiability of taking the risk;
the time for assessing the risk;
the relevant characteristics of the foreseeable plaintiff

The test used is that of the reasonable person in the circumstances. It is an objective test, under which a defendant is judged not by his own characteristics and attributes but by the nature of the task he is performing and the circumstances in which he is performing it. For a clear illustration of the balancing of factors – including the magnitude of the risk inherent in an activity, the social utility of that activity, the seriousness of the harm should the risk eventuate, and the cost of taking precautions against the risk, see National Logistic Cell (NLC) vs Irfan Khan (2015 SCMR 1406 SC).

Medical Negligence

In his decision in Bolam McNair J. laid down a specific test for determining the standard of care applicable to the medical profession. Under this test, a doctor “is not guilty of negligence if he has acted in accordance with a practice accepted as proper by a responsible body of medical men skilled in that particular art.”

The Bolam test forms the basis for assessing medical negligence in Pakistan and in the UK, although in the latter its application is now confined to negligent treatment and diagnosis. Even though the question of whether or not a doctor has been negligent is ultimately for the court to decide (Bolitho v City and Hackney Health Authority [1998] AC 232), the significance which the courts place on the opinions of fellow doctors when determining the issue of negligence tends – particularly in Pakistan – to make it more difficult for claimants to succeed in medical actions than might be the case in actions against other professions. See Dr Professor M.A. Cheema, Surgeon, PIC, Lahore vs Tariq Zia (2016 SCMR 119 SC).

MIGRATION & NATURALIZATION

IMMIGRATION LAW & IMMIGRATION LAWYERS IN PAKISTAN

Asghar & Sons Jurists was founded in 1990 by the vision and wisdom of Honorable Sir Asghar Malik but its immigration section was created in 2009, with the sole purpose of helping aspirants and our clients to achieve their migration aspirations with maximum ease, by commencing interactive immigration services. Along with the excitement of changes, migration to a new country can sometimes be a daunting process filled with enormous challenges. We at A & SJ exacerbate our sincere efforts to ease these challenges, particular defuse the confusion and confrontation i.e. often associated with the visa application process. Our goal is to allow you the freedom to focus on the excitement of migrating to another country.

Our services extends right around the world, with association of emigration consultants and lawyers for providing emigration services for entry to USA, UK, Canada, European Countries, Middle East, Australia and Newzeland etc. We provide a wide range of services for many visas types and categories. Our global emigration services are specifically tailored to assist our clients in traveling or migration to another country. Our qualified migration consultants are ready and willing to provide our clients with valuable emigration advice.

Over the years, we have assisted many satisfied customers with their emigration applications and helped them to make their emigration goals reality. Our team is highly trained and a dedicated group of professionals who are devoted to providing excellent services to our customers. Apart from the emigration services for other countries we also have the clients all over the world who intends to come to Pakistan on Tourist, Business or Work Visas. We also arrange extension of their stay in Pakistan and help them to solve their other relating problems. We render this service to the Consultants and Experts of many trades including but not limited to Telecommunications, Oil & Gas, Agriculture, SMEs, Infrastructure, Chemicals, IT, Energy, Mining, Tourism and Engineering sectors.

Our dedicated and experienced Emigration Attorneys and Staff provide effective and quality legal services to our clients and we are committed to represent Employees, Employers, Companies, Corporations and Individuals – the full spectrum of those who need us. We also handle Appeals for every facet of emigration law to the relevant Appeal Department in each country and handle every kind of emigration problem through Immigration Law Firms in the respective country. It is the motive of our law officers at Asghar & Sons Jurists to serve our clients, our community, our country at national level and beyond.

It is through the use of technology that we are able to make our services more affordable then other Migration Services Organizations or Consultants. Using the power of internet communications we have streamed lined the information gathering and assessment process and in turn pass the corresponding costs savings on to our customers. We like to add that we are not part of any Government but are a Private Company and do not have the authority to grant you a visa of any kind. We can only assist and advice people who want to emigrant to any country. The final decisions on all visa applications rest with the appropriate Government Authority in the Country to which some is seeking to migrate.

Asghar & Sons Jurists is a truly global company having association with the world class Immigration Law Firms around the globe which are the largest Immigration Firms worldwide and are pioneer in technology and service innovation thus we offer a unique concept of providing global capabilities and locally responsive service. Our dynamic team of International Emigration Experts takes an innovate approach to their work that results in the formulation of highly successful emigrant strategies and the delivery of real value to clients.

BUSINESS VISA

ENTRY BUSINESS VISA BY MISSIONS FOR BUSINESSMEN

To facilitate travel to and staying in Pakistan for foreign business persons and investors, government business visa policies have been considerably relaxed. Missions abroad are authorized to grant five years validity (Multiple) visa within 24 hours to businessmen of 66 countries of Business Visa List (BVL), with the duration of each stay would be restricted for three months, on production of any of the following documents:

Recommendation letter from Chamber of Commerce & Industry (CC&I) of the respective country of the applicant.
Invitation letter from business organization duly recommended by the concerned Trade Organization/Association, in Pakistan.
Recommendatory letter by Honorary Investment Counselors of BOI.

Recommendatory letter from Pakistani Commercial Attache posted in Pakistan High Commissions / Embassies / Consulates General abroad.

01. Argentina
02. Australia
03. Austria
04. Azerbaijan
05. Bahrain
06. Belgium
07. Bosnia
08. Brazil
09. Brunei
10. Canada
11. Chile

12. China
13. Cyprus
14. Czech Republic
15. Denmark
16. Egypt
17. Estonia
18. Finland
19. France
20. Germany
21. Greece
22. Hungary

23. Iceland
24. Indonesia
25. Iran
26. Ireland
27. Italy
28. Japan
29. Jordan
30. Kazakhstan
31. Kuwait
32. Latvia
33. Lithonia

34. Luxembourg
35. Malaysia
36. Malta
37. Mauritius
38. Mexico
39. Morocco
40. Netherlands
41. New Zealand
42. Norway
43. Oman
44. Philippine

45. Poland
46. Portugal
47. Qatar
48. Romania
49. Russia
50. Saudi Arabia
51. Singapore
52. Slovakia Republic
53. Slovenia
54. South Africa
55. South Korea

56. Spain
57. Sweden
58. Switzerland
59. Thailand
60. Turkey
61. Turkmenistan
62. U.K.
63. U.S.A.
64. U.A.E.
65. Ukraine
66. Vietnam

Table: Consulates Abroad

ENTRY VISA TO BUSINESSMEN OF REMAINING 123 COUNTRIES

Missions abroad can grant one month validity and stay (Multiple) entry visa to the businessmen of remaining 123 countries (except countries not recognized by Government of Pakistan) subject to the production of afore-mentioned requisite documents. Such applicants can apply from their own country or place of legal residence to Pakistani Ambassador / High Commissioner / Head of Mission.

VISA ON ARRIVAL (VOA) TO BUSINESSMEN OF 66 COUNTRIES

Visa on Arrival for 30 days validity and stay will be given to the businessmen of 66 countries of Business Visa List (BVL) mentioned above on production of any of the documents as for entry business visa by Missions for businessmen.

WORK VISA

Work visas will be granted to foreign technical and managerial personnel for the purpose of transferring skills and know-how. Companies requiring employment of foreign nationals or extension in their visa should submit the request on the prescribed application form to the Board of Investment (IF Wing) Islamabad, enclosing the following documents:

Work Visa Application Form;
Passport Photocopies (Information / Entry / Visa Pages);
Six Photographs;
Company Covering Letter Stating the Period of Visa Required;
Company Profile;
Employment Agreement; and
Company’s Incorporation / Registration Certificate.

A Committee under the Chairmanship of the Secretary of BOI periodically considers and decides the cases of granting or extending work visas to foreign personnel. The entry Work Visas will be issued by BOI recommended to the Ministry of Interior for authorization of visa to concerned Mission abroad on the receipt of application alongwith the confirmation / guarantee of the credentials of the expatriates by the company. However the extension / conversion of business visas into Work visas will be authorized and issued by the Ministry of Interior on the basis of the decision of the Committee.

The work visa may be issued for a period up to 2 years with multiple entries by Pak Missions abroad on the recommendation of BOI or for the life of the applicant’s passport, which one is earlier. Whereas extension in work visa will be endorsed by the Regional Passport Office of the city where the expatriate is working after the recommendation of BOI upon authorization by the Ministry of Interior.

The extension / conversion of business visa into work visa applications will be processed expeditiously by BOI within 4 weeks. Extension of three months provisional work visa, on application, recommended by BOI would be endorsed by the RPOs instead of Ministry of Interior. In case of multiple entry visas, the number of entries will not be restricted.

Conversion of Business Visa

Conversion of Business Visa into Work Visa and vice versa has been allowed on payment of conversion fee of $100/, in addition to visa fee.
Multiple entry resident visas for up to 3 years will be issued to business persons of all countries, except those not recognized by Pakistan, who bring in an amount of US$ 200,000.

Registration of Foreigners with the Police

It has been decided by the Government to exempt all foreigners who have been issued work visas from registration with the police, except for nationals of countries on the negative list.

Even in the case of countries on the negative list (except for Indians and foreigners of Indian origin), foreign nationals in the managerial category who are issued work permits/visas will also be exempted from police registration.

Indian working in World Bank /ABD/IMF/UN Agencies and Multinational Companies

Indian passport holders working in World Bank/ADB/IMF/UN Agencies and Multinational Companies would be facilitated visa by the respective Pakistan’s Ambassador after clearing with Link Offices.

NGOs VISAS

Embassies are empowered to grant short term visa for one month to the expatriates working with Non Government Organizations in Pakistan.

For long term visa, the NGO is required to be registered with Government of Pakistan. In such cases, Mission abroad refers the applications for prior clearance from Ministry of Interior before granting visas.

In case of extension of visa, the registered NGOs may apply to Ministry of Interior which in turn authorizes the concerned RPOs for grant of extension of visa, if all the formalities are met.

Asghar & Sons Jurists provide the legal services to NGOS not only for getting their visas endorsed on their Passports but also for their registration with respective Government Departments.

TOURIST VISA

Pakistan Missions abroad are authorized to grant visit / tourist visa for three months validity and stay with double entry to foreigners of 175 countries.

RPOs have been authorized to extend tourist visa up to a maximum period of six months including the initial visa period and condone overstay up to 15 days on payment of visa fee.

For Northern Areas, the Deputy Commissioners Gilgit & Skardu have been authorized to allow extension in visa for three months and one re-entry to the tourists in Northern Areas, charging visa fee as per policy.

GROUP TOURISM THROUGH DESIGNATED TOUR OPERATORS

Visa On Arrival (VOA) will be allowed for one month validity and stay (Multiple) to Group Tourists of 24 Tourists Friendly Countries (TFC) through designated Tour Operators in Pakistan subject to the following conditions:

The case will be submitted through designated / authorized tour operators only;
The concerned tour operator will also submit undertaking to the effect that the tourists will be their responsibility and that they will not illegally overstay beyond validity of visa;
If required, the same tour operators will apply, before expiry of visa for further extension upto 30 days; and
The concerned tour operators will submit a confirmation about exit of the said tourists, after their actual leaving the country.

HOUSE MAID VISA

Entry visa to work as housemaid / domestic servant in Pakistan will be granted by Missions abroad only with prior approval of the Ministry of Interior. Applications for grant of fresh visa as housemaid/domestic servant etc., to a foreigner will be forwarded by the employers in Pakistan to Ministry of Interior with following documents:

Visa application form duly completed with two photographs of the applicant;
Computer clearance Performa;
NOC and Acknowledgement from the foreign mission concerned (in Pakistan) about proposed employment of the foreigner by the said employer;
Employment Contract on stamp paper, duly signed by the employee and employer and two witnesses;
Photostat copies of passport pages; and
Passport photostat copy of the employer (in case the employer is a foreigner).

Extension in Housemaid Work/Domestic servant visa cases is granted by the Ministry of Interior on year to year basis subject to the validity of passport of the applicant with one or two re-entries per year.

MISSIONARY WORK VISA

The applications for grant of initial visa/extension for missionary work Christian Missionaries in Pakistan is processed by the Ministry of Interior. Entry visas are not granted to foreign missionaries desirous of opening new missions or strengthening existing one engaged in proselytizing activities. Foreign missionaries can apply for entry visa through Pakistan missions abroad who will refer the cases to Ministry of Interior with following documents of the applicants:

Visa application form, duly completed with two photographs;
Computer Proforma;
Letter from a Missionary Organization certifying that he/she is a bonafide member of the said Organization, which takes full responsibility for his / her maintenance, boarding / lodging and return journey in case repatriation from Pakistan was required;
Declaration to respect and abide by the laws of Pakistan and that he / she will refrain from indulging in internal politics and will comply with all the regulations of Pakistan;
Biodata for last 10 years;
Photostat copies of his / her educational degrees diplomas / certificates (with English translation, if required)
Letter from the Organization in Pakistan inviting the said missionary worker; and
Complete details of the person being replaced showing the exact date of his final exit, and visa position at that time alongwith photo copies of passport pages indicating final exit, final visa as well as the cancellation of un-utilized visa( if any).

The Ministry of Interior after obtaining the views of the Provincial Government Clearance authorizes missions abroad for entry visa for one year with one re-entry. Missionary workers shall apply for extension in visa one month before expiry of visa to the nearest Regional Passport Office. In case, the documents furnished are in order, visa extension for two years with 2 re-entries per year (not valid for India) will be granted by RPO concerned.

DIPLOMATIC-UN VISA

Gratis Visa of diplomats/non-diplomats assigned to the foreign missions and expatriate staff of UN agencies working in Pakistan and their families are granted by the Ministry of Interior on the recommendations of Ministry of Foreign Affairs. Visa to domestic servants of diplomats is issued free of charge, on the principle of reciprocity. All foreign missions are required to furnish their applications for visa extension, well before the expiry of their visas, through the Ministry of Foreign Affairs. Visa extension authorization will be sent to the Ministry of Foreign Affairs for onward transmission to the foreign mission concerned.

STUDENT VISA

Request of the students is received by the MOI and Ministry of Education. Student visa is granted after obtaining NOC from Ministry of Education /Economics Affairs Division/Ministry of Health (as the case may be) and foreign Mission in Pakistan of the respective country and security clearance. NOC is granted of the security cleared students for entry visa to the Mission abroad for three months with single entry.

Foreign Students studying in Pakistan on proper student visa are granted visa/visa extension for one year with one re-entry. The same procedure is applied to foreign teachers of International Islamic University, Islamabad.

AFGHAN VISA

Afghan nationals holding Afghan passport, living in Pakistan since long are allowed visa/visa extension for a period of six months with one re entry. Afghan origin / third country passports holders are initially granted 45-days visa by our missions abroad except Pakistan Mission in Afghanistan. They are allowed further extension for 45-days. Afghan nationals coming from Afghanistan are granted six months visa with one re-entry by Pakistan Mission in Afghanistan.

JOURNALIST VISA

ACCREDITED AND BASED IN PAKISTAN

Pakistan Missions abroad are authorized to grant visa to the journalists accredited and based in Pakistan for duration of assignment in consultation with Press attached & and verification of the credentials except for Indian journalists without referring to the Ministries of Interior or Information and Broadcasting for Karachi, Lahore and Islamabad. If they wish to travel to other cities, they will apply through Ministry of Information and Broadcasting.

NON BASED

Missions abroad will grant three months validity and stay (Multiple) visa for Islamabad, Lahore and Karachi after verification of the credentials of the journalist. Non based foreign Journalists for short visits are allowed one-month visa extension with two re-entries by RPOs on the recommendation of Ministry of Information and Broadcasting.

Their requests to visit additional places received through Ministry of Information and Media Development are considered on case to case basis.

FAMILY VISIT VISA FOR PAK ORIGIN FOREIGNERS

Foreigners of Pak Origin are granted visa with multiple entries up to one year or validity of their passport, whichever is less by Missions abroad. RPOs may grant Extension in visa to foreigners of Pak Origin for one year with multiple entries and up to 5 years without entries, subject to validity of their passport. A period of overstay up to six months can be condoned by RPOs in such cases. Foreign wives of Foreigner of Pak Origin are also issued the same visa extension as to Pak Origin foreigners, subject to production of copy of Nikkah Nama / Marriage Certificate and NIC of husband.

Landing Permit for 72 hours can be granted by Airport Immigration staff, with prior approval of the Zonal Director (FIA) concerned, to the foreigners of Pak Origin and their families only in emergency cases on production of documentary proof of Pak Origin.

PILGRIMAGE VISA

Sikhs of foreign passport holders (other than the Indian passports) are granted entry visa by the Missions for a fortnight for the following places: Lahore, Sheikhupura (Nankana Sahib), Rawalpindi / Hasan Abdal (Punja Sahib).

IMPOSITION OF ‘OVERSTAY SURCHARGE’ ON FOREIGNERS

Period of Overstay	Overstay Surcharge
Up to 2 weeks	–
Above 2 weeks to 1 month	US$ 20/-
Above 1 month to 3 months	US$ 50/-
Above 3 months to 1 year	US$ 100/-

Table: Foreign Nationals

Period of Overstay	Overstay Surcharge
Up to one month	–
Above 1 month to 6 months	US$ 10/-
Above 6 months to 1 year	US$ 20/-
Beyond 1 year	US$ 40/- per year

Table: Foreigners of Pak Origin

All powers of externment etc. available with MOI will apply in addition to the above surcharge.
No surcharge shall be payable in case of children up to 12 years of age.
50% surcharge shall be payable in case of children up to 18 years of age.
Rs. 20/- per day shall be charged for any period of overstay.

The above schedule of surcharge shall be effective after one month of amnesty from the date of publication of this notice. During amnesty period, visa extension will be allowed on payment of normal visa fee and thereafter all extensions in visa will be subject to payment of surcharge as per above schedule.

REGISTRATION OF FOREIGNERS WITH POLICE

All foreigners are exempted from registration with the Police except the nationals of Algeria, Bangladesh, Bhutan, India, Iraq, Israel, Libya, Nigeria, P.L.O, Somalia, Sri Lanka, Sudan, Serbia, Tanzania, Uganda and Yemen; as well as such other foreign nationals who are directed by the immigration authorities to report to FRO for registration and a stamp is affixed to this effect, on their passports.

However, nationals in the managerial category, who are issued work permit/visa from these countries, will be exempted from Police registration except Indians and foreigners of Indian origin.

Visa Policy (For Indian Nationals)

All Indians wishing to visit Pakistan must obtain a valid visa. The basic requirements for obtaining a visa are as follows:

Valid passport. The passport should be valid for at least one year.
Visa application form duly filled in.
Visa application forms for getting visas either through the Interior Division or Pakistan Mission abroad are annexed.
Payment of prescribed Visa Fee, visa fee is realized through cash on the visa counter or through bank challan.

For business visa, a letter from the company/organization in Pakistan sponsoring the applicant stating the purpose of visit is required.

The Embassies/High Commissions for Pakistan deal with visa matters on all the working days of the week (Monday to Friday). While in Gulf countries, the Pakistani Missions remain open from Saturday to Wednesday. None of the Missions is however open on any of the Gazetted holidays of the government of the Islamic Republic of Pakistan.

The following types of visas are granted to the resident/Non-resident Indian by the Government of the Islamic Republic of Pakistan:

Visitors Visa

Visitors visa are issued to Indian Nationals to meet relatives, friends or for any other legitimate purpose. This type of visa is also issued to bonafide Indian businessmen for six months with three entries.

Transit Visa

Transit visa valid for up to two entries for stay in the city/port of entry for 72 hours issued to Indian nationals, proceeding to Indian by air or sea through Pakistan.

Tourist Visa

A non-extendable tourist visa valid for 14 days is issued by Pakistan High Commission, New Delhi through approved tour operators/travel agents.

Check Post

Following are the designated entry/exit check posts for Indian nationals, coming to Pakistan:

By Air Karachi / Lahore / Islamabad
By Sea Karachi
By Road Wagha

Instruction for Obtaining Pakistani Visa

Please fill in the visa Application Form in CAPITAL LETTERS. No column to be left blank.
Please fill in the Computer Performa in CAPITAL LETTERS (Four Copies).
Prescribed Visa fee should be deposited in cash and receipt obtained. Passport will be returned on presentation of receipt. The fee is non-refundable.
Two copies of the form will be returned to the applicant with visa. One each should be handed over to Pakistan Immigration Officer on arrival and Police Registration Office.
The applicant should be in possession of US $45 or equivalent in Foreign Exchange at the time of entry.
The visitors may enter Pakistan by Air, Train, Road but the point of exit and mode of travel for their return journey will remain the same. However, the persons entering By Air may exit from different Airport with Prior permission.
The visitors must repot for Police Registration within 24 hours of entry in Pakistan and prior to Departure/Arrival at each subsequent place of visit in Pakistan.
Provide copy of N.I.C of the sponsor of Indian National(s).
Provide copy of the Passport of the applicant(s).
Valid Passport. The Passport should be valid for at least one year.

Pakistani Citizenship

1. Pakistani Citizenship to Old parents of Pakistanis nationals who are residing in India:

Documents required

Application on prescribed form duly attested by oath commissioner / notary public (in quadruplicate) on their behalf by their sons/daughters is to be submitted to the Directorate General Immigration & Passports Islamabad.
Government Fee for grant of Emergency certificate in the applicant’s name to be deposited in the nearest passport office branch of the National Bank of Pakistan.
His / Her own affidavit on Stamp Paper regarding facts of the case.
Six color photographs with light blue background of India Dependant, one duly attested on back side bye oath commissioner / notary public.
Documentary evidence to confirm his/her national status as citizen of Pakistan other than Pakistan Passport, affidavit and National Identity Card, such as two certificates from two different officers of Grade 17 or above of central of provincial government.
List of close relations residing in India.
A certificate from government officer in BPS-17 of above confirming the relationship of the applicant with his /her Indian Dependent.
Five specimen signatures and thumb impressions of the Indian dependent attested by the applicant.

Note: Emergency certificate is granted followed by Pakistan Citizenship Certificate.

2. Pakistani Citizenship to Commonwealth Citizens who transfer Rs.5 million worth of foreign exchange:

Documents required

Application on form “R” duly attested by the mission (in quadruplicate) is to be submitted to the Directorate General Immigration & Passports Government of Pakistan Islamabad through Pakistan Mission abroad.
Five photographs with blue background.
Original bank proceeds certificate regarding transfer of Rs 5 million to Pakistan through normal banking channel.
Photocopy of present passport.
Prescribed Government Fee.
List of close relations residing in India.
A certificate from government officer in BPS-17 of above confirming the relationship of the applicant with his /her Indian Dependent.
After confirmation from State Bank for bank transaction of Rs. 5 million, Immigrant visa for Pakistan is issued. Pakistan Citizenship certificate is granted after arrival in Pakistan.

3. Pakistani Citizenship to the nationals of countries other than Commonwealth after they have resided in Pakistan for a period of five years under the Naturalization Act, 1926. i.e. 12 months continuous stay preceding to the date of application and four years aggregate stay during the 7 years preceding to the said twelve months:

Documents required

Application on form “A” duly attested by Notary Public (in quadruplicate) is to be submitted to Ministry of Interior, Government of Pakistan Islamabad.
Prescribed Government Fee is to be deposited in parts i.e. at the time of submission of application and at the time of grant of certificate.
Affidavit on Stamp paper regarding facts of the case.
Six colored photographs with light blue background.
Photocopies of passport along with a statement showing stay of the applicant in Pakistan for five years.

4. Pakistani Citizenship to Foreign Ladies Married to Pakistani Nationals:

Documents required

An affidavit on non judicial stamp paper from the applicant and her husband regarding detail facts of the case.
A similar affidavit from the husband on non judicial stamp paper.
Photostat copies of relevant pages of applicant’s foreign passport.
Photostat copy of residential permit.
Photocopy of marriage certificate.
Photostat copy of domicile certificate of the applicant ( in case of applicant other than commonwealth Citizen)
List of close-relations residing in India on the prescribed form.
Photostat copies of Pakistan Citizenship Certificate/Domicile Certificate of the applicant’s husband (in case the husband has been issued such certificate).
Six color photographs with light blue background size 2X1 1/2. One attested on front and one on back by Notary public/Oath Commissioner.
Photostat copies of the relevant pages of the Pakistani passport and national identity card of the husband.Note: All of the mentioned documents may be attested by Notary public/Oath Commissioner except the photographs which have to be attested in a manner specified.
Bank Chalan of Government described Fee.
Oath of allegiance taken before 1st Class Magistrate (in case of citizen other than Commonwealth).
Attested copy of domicile of the lady (in case of citizens other than commonwealth).
Two certificates form two different Government Officers not less than B-17 confirming the date national status of the applicant’s husband. Such certificates must also indicate the date and place of birth of the applicant’s husband and his income.
Applications form can either be submitted to Directorate General Immigration & Passports Islamabad or its RPO at Lahore & Karachi or in the offices of Deputy Commissioners of other Districts in Pakistan.

5. Pakistani Citizenship to Minor children (below 21 years of age) of Pak Ladies Married to Foreigners:

Documents required

Application on form M (in quadruplicate) form Pakistani parents/Guardians.
Four photographs.
Affidavit from Pakistani parents/Guardian regarding fact of the case.
Documentary evidence proving the national status of Parents/Guardians as Citizen of Pakistan.
Government Fee.
Application form can either be submitted direct to Directorate General Immigration & Passports Islamabad or its RPOs at Lahore & Karachi or in the offices of Deputy Commissioners of other Districts in Pakistan.

6. Children born to Pakistani mother and foreign national father after 18.04.2000 are to be treated automatically as citizens of Pakistan

7. Grant of Pakistan Citizenship to Foreign Nationals (Investors)

Any person of a country recognized by Pakistan may obtain Pakistani Citizenship by investing a minimum of US$ 0.75 million in tangible assets and $ 0.25 million (or equivalent in major foreign currency) in cash on a non-repatriable basis and by fulfilling the conditions of the Pakistan Citizenship Law. Investment on a non-repatriable basis means that the amount is brought to Pakistan through normal banking channels, converted into rupees, and never remitted back through the free market.

Dual Nationality

Government of Pakistan has dual nationality arrangements with the following 16 countries:

Country Name	Country Name
01. USA	09. Italy
02. England	10. Ireland
03. Syria	11. Iceland
04. Switzerland	12. France
05. Sweden	13. Egypt
06. New Zealand	14. Canada
07. Netherlands	15. Belgium
08. Jordan	16. Australia

Table: Dual Nationality

The nationals of these countries are not required to renounce their nationality while acquiring Pakistan Citizenship.

Renunciation of Pakistan Citizenship

Any citizen of Pakistan residing outside Pakistan, who is not a minor and is also a citizen or national of another country or has been given by the competent authority of another country any valid document assuring him/her of the grant of citizenship or nationality of that other country, shall make a declaration of renunciation of citizenship of Pakistan in Form X (in duplicate) to the Directorate General Immigration & Passports Islamabad through Pakistan Mission abroad.

The person concerned will cease to be citizen of Pakistan from the date of such registration of renunciation of Pak citizenship.

Where a male person ceases to be a citizen of Pakistan under Section 14-A (I) of Pakistan Citizenship Act, 1951

Every such minor child of that person as is residing outside Pakistan shall thereupon cease to be a citizen of Pakistan provided any such child may, within one year of his completing the age of 21 years, make a declaration that he wishes to resume the citizenship of Pakistan and shall upon making of such declaration become a citizen of Pakistan.
Every such minor of that person as is residing in Pakistan shall continue to be a citizen of Pakistan.
The fee for renunciation applications is Rs. 500/- only.

Registration of Birth of a Child of Citizen of Pakistan Born in Country Outside Pakistan.

The birth of such children may be reported by the parents or guardians on Form S to the Pakistan Mission abroad within a period of six months.

Annual Registration by a Citizen of Pakistan Resident Abroad

Citizens of Pakistan are required to get themselves registered with Pakistan Mission abroad annually on form I.

Legalisation of Documents and Attestation

Asghar & Sons Jurists also provides the legal services to our multinational clients for making the legalization of educational certificates, Marriage Certificates, Birth Certificates and any other document by the Foreign Embassies after the attestation of Higher Education Commission, Ministry of Foreign Affairs and other related Ministries. We also make the translation of such documents into English or into any other language, if required by any Embassy.

2. CITIZENSHIP / RESIDENCY BY INVESTMENT

Citizenship by Investment (CBI) is a legal process that allows the individuals and their families. You can have the second citizenship in exchange of a monetary contribution to the economy of other country. Many countries are in our list, which you may find below.

Every country has different slabs of rates of investment for individuals and family consisting of number of defendants, below 30 years of age. Our approval rate is up to 99%, therefore there will be no uncertainty and you will be able to secure your family’s future.

Asghar & Sons Jurists are very well recognized and well equipped experts who provide advice for residency and citizenship by investment to our clients in Pakistan and beyond the shores of Pakistan. You can have the best suited advice from our Attorneys. In this way, you can secure your family’s future and may avail more personal freedom of mobility. Residency can give you the right to live in a country and conduct business, while citizenship may give you the rights as any other citizen of that country may have. You can give the right of citizenship to your children. These rights may give you the global mobility, economic opportunities in key business hubs and access to better education and health care.

While residence is granted to investors and wealthy individuals in most of countries, there are eight nations e.g. Antigua, Cyprus, Dominica, Grenada, Malta, Montenegro, Moldova and Turkey, they offers citizenship-by-investment programmes, they provide a direct route to citizenship based on investment and Asghar & Sons Jurists are well conversant with these programmes in order to help our clients in Pakistan and beyond: Specially the programmes of Canada, Australia, Cyprus and Turkey have been designed by Asghar & Sons Jurists through a wide range of collaborations with the leading Emigration Firms around the Globe.

Citizenship
Antigua
Cyprus
Dominica
Grenada
Malta
Montenegro
Moldova
Turkey

Residency
Australia
Canada
Greece
Germany
Ireland
Portugal
UK
USA (EB-5)

Investment
Australia
Canada

Citizenship by Investment

Citizenship by investment is the procedure of obtaining an additional citizenship and passport by making investment in the economy of the host country. Citizenship by investment programmes legally confer citizenship status faster than the traditional immigration procedures and do so without requiring investors to put their lives on hold.

About Citizenship

Citizenship is a relationship between an individual and a state whereby the state grants the citizen certain rights, such as the right to vote, work and own property, and in return the citizen accepts the responsibility of upholding the laws and customs of that state. Citizenship unites different people under a common identity.

Traditional means of acquiring citizenship and the corresponding passports have been birth, naturalisation and marriage. Naturalisation is the process by which a resident of a country can acquire citizenship usually by residing in that country for a certain number of years. Since 1984, investment in the host country has been another way of acquiring citizenship.

Why Do People Invest For Citizenship

There are many reasons of investment on account of second citizenship, from personal safety to increased global mobility. Applications can be approved in as little as three months, resulting in citizenship for life, a valid passport, visa-free travel and more. Economic citizenship opens up a world of possibilities to high net worth investors.

Safety & Security

A second passport from a stable, peaceful country can be a life-guard in the event of any kind of political unstability in one’s home country. This type of assurance is priceless for investors and their families.

Global Movement

Many passports are quite restrictive in their visa-free mobility, forcing citizens to obtain visas whenever they need to travel abroad. A second passport can offer an individual from these countries increased global mobility. For instant, the passport of Pakistan allows visa-free entry into only 40 countries, whereas the passport of Cyprus allows visa-free entry to 164 countries. The difference in global mobility equals an incredible amount of time saved filing visa applications and is priceless to businesspeople all over the world.

Trade & Business

New corporate opportunities open up to participants in citizenship by investment programmes as they can now do business in the host country as well as to travel abroad more freely.

Tax Planning

Dual citizenship may prove advantageous for tax optimisation purposes. For instant, some countries only tax income earned from that country and do not subject capital gains to taxes either. This allows investors to manage their wealth more efficiently and effectively.

Family Support

Most citizenship by investment programmes are available to the family members of the main applicant. This means that investors can secure a better future for their spouse and children. Second citizenships offer access to world-class health care, education and an improved lifestyle.

Education

Education is the foundation of a successful life as a global citizen. Investing in a second citizenship can open up access to the best schools in the world for applicants and their children by qualifying them for domestic rather than international tuition fees.

Residency by Investment

Residency by investment is the procedure of obtaining a permanent residency status in another country by investing in the economy of that country. Permanent resident status is then conferred at an accelerated rate compared to traditional applications.

About Permanent Residence

Permanent residency is a visa status that allows the bearer of the permanent resident card to legally reside in the host country without being a citizen of that country. Permanent residents are entitled to live, work, go to school and access health care in the host country. However, they are not typically entitled to vote or run for office.

In order to qualify for permanent residency status in any given country, the applicants usually have to meet certain requirements, likewise having work experience in the country, having studied in the country and speaking the language. Since 1986 investment has been another way to gain permanent residency. Permanent resident status can also lead to citizenship by naturalisation provided the resident has lived in the country for a certain number of years.

Why Do People Invest For Permanent Residency

There are many reasons to invest in a permanent residency, from personal safety to increased global movement. Permanent residency opens up a world of possibilities to high net worth investors.

Safety & Security

Permanent residency in a stable, peaceful country can be life-saving in the event of any kind of political instability in one’s home country. This type of assurance is priceless for investors and their families.

Global Movement

Many passports are quite restrictive in their visa-free mobility, forcing citizens to obtain visas whenever they need to travel abroad. Permanent residency can offer individuals from these countries increased global mobility. For example, the passport of China allows visa-free entry into only 58 countries, whereas permanent residency in Portugal allows uninhibited travel throughout the Schengen zone, which comprises 26 European states. The difference in global mobility equals an incredible amount of time saved filing visa applications and is priceless to businesspeople all over the world.

Trade & Business

New business and trade opportunities open up to participants in residency by investment programmes as they can now do business in the host country as well as to travel abroad more freely.

Tax Planning

Permanent residency may prove advantageous for tax optimisation purposes. For instance, Bulgaria has one of the lowest income tax rates in Europe. This allows investors to manage their wealth more efficiently and effectively.

Family Support

Most residency by investment programmes are available to the family members of the main applicant. This means that investors can secure a better future for their spouse and children. Permanent resident status offers access to world-class health care, education and an improved lifestyle.

Education

Education is the foundation of a successful life as a global citizen. Investing in a permanent residency can open up access to the best schools in the world for applicants and their children by qualifying them for domestic rather than international tuition fees.

OTHERS

1.ADMINISTRATIVE LAW & LAWYERS IN PAKISTAN

Administrative law encompasses laws and legal principles governing the administration and regulation of governmental authorities (both Federal and Provincial) in Pakistan. Such authorities are delegated power by Parliament (or in the case of a provincial authority, the provincial legislature) to act as agents for the executive. Generally, administrative authorities are created to protect a public interest rather than to vindicate private rights. Governmental authorities must act within Constitutional parameters. These and other limits have been codified into statutes such as the Constitution of Pakistan and provincial analogs like wise Law of Writs.

The Administrative Law Team of Asghar & Sons Jurists represents a variety of private and public sector clients in regulatory matters before federal, provincial, regional and district agencies. Our Team of Dedicated Attorneys at Asghar & Sons Jurists Administration wing headed under the guidance and patronage of Honorable Sir Asghar Malik had an enormous experience and involvement in Administrative laws ranges from environmental and land related administrative Laws in Pakistan during their long and distinguished careers. In addition, members of our Administrative Law Team are recognized as leaders in the fields of taxation, commercial, governmental procurement, and white collar crime prevention.

The Administrative Law Team frequently is called upon to educate our clients on a wide variety of regulatory requirements and the most effective methods of maintaining compliance. Our lawyers are frequently asked to visit clients facilities to assess and evaluate compliance and to assist clients in formulating and auditing compliance policies. Permitting and licensing, policy and procedure development, bid preparation, and land development regulations are but a few of the types of issues on which our Administrative Law Team members regularly offer counsel. The compliance skills of our team extend beyond administrative counseling, however, as our Team advises clients regarding the prevention of criminal conduct and criminal victimization.

In addition, the members of the Administrative Law Team have worked hard to develop strong contacts with other regulatory professionals in a variety of disciplines, both within the province and without, that can be called upon to provide optimal service to our clients.

And yes, the Administrative Law Team stands ready to assist should things go wrong. Our lawyers understand the importance of a prompt and thorough response to an enforcement action, environmental discharge, license or permit revocation, bid dispute or other adverse ruling by a governmental agency. The members of the Administrative Law Team are well-respected members of the regulatory community due in large part to their abilities to resolve complex regulatory matters through expert negotiation, mediation and, if necessary, litigation. The teams working knowledge of law enforcement and nationwide law enforcement contacts are significant assets in the development of successful compliance programs and defensive strategies to enforcement actions.

The Administrative Law Team also provides effective assistance in governmental relations matters and regularly assists clients in the promulgation, review and tracking of legislation, rules and policies affecting their businesses. Our lawyers have substantial experience in the drafting and passage of statutes and regulations and have a unique understanding of and appreciation for the legislative process. The Administrative Law Team works with a variety of lobbyists on the federal, provincial and district levels to help ensure our clients needs are addressed and their goals achieved.

The Administrative Law Team members have a well-earned reputation for providing our clients with creative and effective advice and counsel in administrative law matters.

2. ALTERNATIVE DISPUTE RESOLUTION IN PAKISTAN

Alternative Dispute Resolution (ADR) or external dispute resolution (EDR) refers to any means of settling disputes outside of the courtroom. ADR / EDR typically includes early neutral evaluation, negotiation, arbitration, mediation and conciliation. Public courts may be asked to review the validity of ADR methods, but they will rarely overturn ADR decisions and awards if the disputing parties formed a valid contract to abide by them. Arbitration and mediation are the two major forms of ADR. While the two most common forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute. It is the foremost mode of dispute resolution. Negotiation allows the parties to meet in order to settle a dispute. The main advantage of this form of dispute settlement is that it allows the parties themselves to control the process and the solution.

The rising popularity of ADR can be explained by the increasing caseload of traditional courts, the perception that ADR imposes fewer costs than litigation, a preference for confidentiality, and the desire of some parties to have greater control over the selection of an individual or individuals who will decide their dispute. Some of the senior judiciary in certain jurisdictions in Pakistan are strongly in favour of this ADR use of mediation for settlement of disputes.

Asghar & Sons Jurists are de-facto pioneers in alternate dispute resolution. we at Asghar & Sons Jurists have provided alternative dispute resolution services throughout the Pakistan since 1990. With its network of professional mediators, arbitrators, administrators and training staff, Asghar & Sons Jurists provides a wide range of dispute resolution services to the legal community, insurance industry, private businesses and government agencies across the country.

Asghar & Sons Jurists provides ADR Services including but not limited to mediation, arbitration, settlement conferences, neutral fact-finding, statutory discharge hearings, grievance-based hearing procedures, mini-trials, class action administration, dispute resolution system design and consulting, negotiation skills, conflict management and mediation training, and discovery management.

ARBITRATION

Arbitration is a legal process which takes place outside of the courts, but still results in a final and legally binding decision similar to a court judgment. Parties involved in arbitration are effectively opting out of the court system and submitting their case for resolution by a neutral, third party arbitrator. The reasons for selecting arbitration vary from case to case. Arbitration is generally faster, less expensive and more informal than going to court. It also has the advantage of being private and confidential.

Within the limits permitted by law, parties are free to negotiate the ground rules under which they want the arbitration to take place, such as the number of arbitrators or whether formal rules of evidence will apply. Binding arbitration clauses can be written into most kinds of contracts, requiring that in the event a dispute arises in conjunction with the contract, the parties will go to binding arbitration instead of to court. The cost of arbitration is generally shared by the parties.

The decision of an arbitrator is as binding on the parties to the arbitration as a court judgment, and it can be enforced by the courts, if necessary.

What is arbitration?

Arbitration is a method of dispute resolution in which a neutral third party, an arbitrator, conducts an evidentiary hearing and/or reviews written submissions from the parties. Upon consideration of the evidence, the arbitrator makes a legally binding decision which can be enforced in the same manner as a civil court judgment.

Arbitration differs from mediation in that once you enter the arbitration process, you are bound by the arbitrator’s decision. Mediation is a negotiation process, in which the mediator helps the parties negotiate a mutually acceptable solution.

How does arbitration work?

Arbitration provides distinct advantages over the court system in many different types of disputes. Because arbitration is a private method of settling disputes, parties can tailor the arbitration proceeding in almost any manner they choose. For example, parties involved in arbitration can agree to limit the number of witnesses each side will present, set parameters on the amount and type of evidence that will be presented, and pre-determine what issues the arbitrator’s award should cover.

Another important benefit of arbitration is its ability to provide the parties with an arbitrator experienced in the subject matter of the dispute. Many cases involve complex evidence, testimony, and documents. The arbitrator’s knowledge allows for a quick understanding of the issues, which in turn saves time and expense.

Because they are conducted by private agreement, arbitration hearings are not open to the public and the decisions reached are generally not matters of public record.

What is high-low arbitration?

In High-Low arbitration, the parties mutually establish, prior to the hearing, a range in which the award must be. lf the arbitrator’s decision is between the high and the low figures, that amount is the final award. However, if the award is above the pre-set maximum, it automatically moves down to the previously agreed-upon high figure. Conversely, if the arbitrator’s decision is below the established minimum, the award moves up to the predetermined low figure. In most instances, the parties agree to not inform the arbitrator of the range of their High-Low agreement.

Is arbitration final?

Arbitration awards are final and binding on all parties to the arbitration, and may not be appealed except under very limited circumstances provided by statute. Awards may be confirmed in any court having jurisdiction and, thereafter, carry the same force and effect as an original court decision. Rules of Arbitration include an Internal Appeal Procedure, but it does not apply unless the parties specifically so state in their Contract to Arbitrate.

MEDIATION

Mediation is a process in which a neutral third person, the mediator, encourages and facilitates the resolution of a dispute between two or more parties. It is an informal and non-adversarial process which has the objective of helping the disputing parties reach a mutually acceptable and voluntary agreement. With non-binding mediation, decision-making and authority rest entirely with the parties. The mediator acts as a facilitator, guiding the parties in identifying issues, engaging in joint problem-solving, and exploring creative settlement alternatives. Although the process is voluntary and nonbinding, it results in a strikingly high settlement rate. There are a variety of reasons to select mediation, rather than litigation or arbitration, and it has become increasingly common for courts to order parties to mediate in cases in which they have not engaged in settlement negotiations prior to trial.

Parties are generally more satisfied with a mediated resolution, rather than one imposed upon them such as happens with a court judgment, because the parties created the solution themselves. In recent years, the use of binding mediation has developed as an alternative to arbitration and incorporates the negotiation aspects of mediation with the certainty of an outcome. Mediation is also much less costly than protracted litigation or arbitration.

The use of binding and non-binding mediation has increased greatly in both the private and public sectors, particularly for legal and business disputes. Many companies have chosen to insert mediation clauses into standard contracts as a preliminary dispute resolution step before arbitration or litigation. Asghar & Sons Jurists is a leader in providing innovative uses of mediation to resolve disputes throughout the country. Asghar & Sons Jurists and their ADR Attorneys have developed standard mediation procedures which apply to all cases presented to A & SJ law officers.

What is mediation?

During the last 10 years, mediation has grown into one of the most popular alternatives for resolving civil disputes in the Pakistan. Many lawyers, insurance companies, risk managers and legal departments now use mediation on a day-to-day basis to help resolve claims and litigation as quickly and efficiently as possible. We at Asghar & Sons Jurists across the country and beyond, through our attorneys at our local offices, successfully mediates in hundreds of disputes each year in a wide variety of legal areas.

At a mediation session, the disputing parties meet with an impartial person, the mediator, to attempt to reach a mutually acceptable settlement. There are no formal court procedures or rules of evidence, although careful pre-mediation preparation and organization are crucial to a successful mediation outcome. Unlike a judge or arbitrator, the mediator has no authority to render a decision or force the parties to accept a settlement. Yet in the great majority of cases, the training and ability of a professional mediator can help achieve a final settlement of the matter which would not otherwise be possible.

What types of disputes can be resolved through mediation?

All kinds. Mediation has been successfully used for tort claims, commercial and business disputes, construction issues, employee grievances, environmental claims, professional malpractice allegations, product liability claims, maritime issues, insurance coverage disputes, real estate interpretations, partnership dissolutions, securities-related disputes, domestic relations matters, and workers’ compensation claims.

It makes no difference whether liability is admitted or hotly contested, whether the case is in litigation or not yet filed, or whether the dispute involves a few thousand dollars or many millions of dollars or issues other than money–mediation has proven effective in all of these situations.

What are the benefits of mediation?

Settle disputes now. Almost every case will settle prior to trial. So the real issue is not if a case will settle, but when. A mediation session has the effect of getting settlement negotiations focused much more quickly than if the case proceeds to trial. Proposing mediation is an excellent way to get settlement discussions moving in the right direction and away from court.

Save money. An early settlement naturally saves litigation expenses and other costs related to managing the dispute.

Maintain control. Mediation differs from arbitration or trial because the mediator does not make a decision or force any party to accept a settlement. When you agree to mediate a dispute, you are only agreeing to attend the mediation session and participate in a good faith effort to settle the matter. Consequently, you are always in full control of the outcome.

Improve everyone’s understanding. The mediation session is designed to educate everyone about the legal and factual issues involved in the dispute, and this can be particularly helpful to people who are unfamiliar with the litigation or claims process. For example, many attorneys have told us that their clients would not have accepted a reasonable settlement offer had they not attended a mediation session.

Informally explore settlement options. Because of the confidential nature of private meetings, often referred to as ‘caucuses’, the mediator can explore settlement options without exposing your final position. This can remove the “posturing” that takes place during traditional negotiations.

Organize multiple party negotiations. The mediator can play a major role in simply organizing the discussions. The mediator can work closely, and confidentially, with each side to explore settlement possibilities and put a settlement package together.

Preserve continuing relationships. Mediation is particularly appropriate in situations in which the disputing parties will be working together after the dispute is resolved. Some examples include construction projects, commercial leases, partnerships, business suppliers, and employment relationships. Mediation allows the parties to stay on the best terms possible by doing everything they can to settle their dispute as quickly and easily as possible.

What takes place at the mediation session?

All parties to a dispute will be present at the mediation session. For example, participants in a typical personal injury case usually include the plaintiff and the plaintiff’s counsel, an insurance company representative, possibly a defense attorney, and the mediator. In a commercial case, the owners and/or managers would attend, along with their attorneys.

All parties, representatives and the mediator first meet in a joint meeting format. After introductory remarks by the mediator and the signing of the Agreement to Mediate (if not already signed earlier), each party is given the opportunity to explain its position in the presence of the other participants. These short and informal opening statements, typically no more than ten to twenty minutes long, are a starting point for the mediator to gain an understanding of the case.

After the joint session, the mediator will meet with each side individually. These separate meetings, called caucuses, are confidential. In each caucus, the mediator will discuss the risks of the case — best and worst outcomes, quality of evidence and the costs of litigation. The mediator will also explore possible settlements. It is common for the mediator to go back and forth between the parties for a number of private meetings, just as the mediator may bring the parties back together for joint discussions. If the mediation results in a settlement, the parties may choose to draft a formal settlement agreement.

What if the case doesn’t settle?

Most cases will settle at the mediation session or shortly thereafter. If a settlement is not reached at the mediation session, the mediator may continue the discussions by telephone, and in some cases the parties may elect to have a second session. If a full settlement is not reached, the parties are free to pursue other options such as arbitration or litigation. Parties whose cases don’t settle in mediation at Asghar & Sons Jurists do not pay any additional administrative fee to proceed with arbitration through Asghar & Sons Jurists.

How to prepare for a mediation session?

Preparing for a mediation session is much easier than preparing for an arbitration or a trial:

There are no pre-session pleadings required, although in a more complex case the parties may wish to furnish the mediator with a short brief or explanatory documents that were prepared for another purpose.
Prior to the mediation session, all parties should have obtained sufficient information to make settlement decisions. It is common for the attorneys of Asghar & Sons Jurists and/or the mediator to help with informal information exchanges. Please make us or the other parties aware of any information you need prior to the mediation session.
A critical element of a successful mediation is that each side must be represented by a person with adequate authority to settle the case. This typically means that clients, business managers, etc., should attend.
A ten to twenty minute opening statement should be prepared. Keep in mind that this is an excellent opportunity to talk directly to the other side. Representatives should consider whether their clients should participate in this presentation (e.g., how the accident or dispute has affected them).
Obviously, you need to be prepared to discuss the details of your case. Have quick access to needed information.

How much will mediation cost?

No filing fee is required upon initial submission of a case. Asghar & Sons Jurists legal offices charge a basic administrative fee and hourly or per diem fees for the mediator’s time, which will be pre-collected at the time of scheduling or billed after the mediation is concluded.

In many cases, the parties agree to divide the mediation costs, although it is not uncommon for one party to pay the entire cost. There must be a clear fee agreement prior to the mediation session taking place.

How is mediation different from arbitration and settlement conferences?

Arbitration involves the presentation of evidence to an arbitrator for a legally binding decision. Arbitration can be effective, but it is generally more time consuming and expensive than mediation, plus the parties give up control of the outcome (although high-low agreements can be used to provide a limited range for the decision).

In a judicial settlement conference, parties submit informal evidence to a judge for an advisory decision. However, any time an outside party is rendering an opinion, particularly about case value, there is a risk that one party will strongly disagree with the opinion and the other party will be locked in to a settlement at that figure. This can actually impair further settlement efforts. Remember that almost every case settles anyway, so the role of the neutral should be to help parties move toward settlement. For this reason, mediation is often preferred to arbitration or settlement conferences.

What cases should be sent to mediation?

As discussed in previous sections, any type of case can be mediated, and there are often many benefits to mediating. Asghar & Sons Jurists have developed a checklist of characteristics for selecting cases for mediation. Each Asghar & Sons Jurists office also provides in-house training in how to identify mediation cases.

How are mediation clauses used?

Many businesses and attorneys are routinely inserting mediation clauses into contracts. By using such a clause, the parties are pre-agreeing to use mediation in the event of a dispute.

We knew that disputes are inevitable and are infact arise from the sociological clog, and some of them can be settled by the parties without outside intervention. Other disputes may require a jury trial as the only viable option. Most disputes, however, can be resolved through the effective use of one or more of the Alternative Dispute Resolution (ADR) services provided by A & SJ.

Asghar & Sons Jurists provides consulting services to insurance companies, law firms, businesses and government agencies who are looking for cost-effective ways to manage claims and litigation. The services provided range from scheduling a single mediation, arbitration or fact-finding hearing to designing and implementing a multi-step, nationwide grievance process. Through consultation with Asghar & Sons Jurists, many businesses have developed dispute avoidance techniques such as mediation clauses, arbitration clauses or in-house training courses in conflict management.

Other services have ranged from designing Settlement Day mediation programs for large numbers of similar claims to orchestrating mini-trials and arbitrations for complex commercial disputes. Whatever the approach, we at Asghar & Sons Jurists maintains a staff of consulting ADR providers who can recommend the right approach for each particular situation.

3. INTERNATIONAL ARBITRATION LAW & LAWYERS IN PAKISTAN

The parties are able to preserve confidentiality which is imperative especially when they wish to protect their trade secrets and commercial interests. These factors are vital when dealing with cross border transactions involving foreign investment where neutrality in terms of place, the law and the arbitrators are considered prime by the parties in settling their disputes. The neutrality ensures that the arbitral tribunal deciding the matter at hand is separated from any direct national influence therefore giving loyalty mainly to the parties.

In today’s world, the most imperative area of international arbitration is foreign investment. The use of arbitration for resolving foreign investment disputes provides a safe haven especially for foreign investors involved in global economy due to its trusted, credible and workable system in place.

Asghar & Sons Jurists provides international Arbitration services to insurance companies, law firms, businesses and government agencies who are looking for cost-effective ways to manage claims and litigation. The services provided range from scheduling a single arbitration or fact-finding hearing to designing and implementing a multi-step, nationwide grievance process. Through consultation with Asghar & Sons Jurists, many businesses have developed dispute avoidance techniques such as mediation clauses, arbitration clauses or in-house training courses in conflict management.

ARBITRATION – Concept

The decision of an arbitrator is as binding on the parties to the arbitration as a court judgment, and it can be enforced by the courts, if necessary.

Arbitration in Pakistan

Pakistan is the signatory of United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards concluded in New York in June 1958 (also known as the New York Convention 1958) and of International Convention on the Settlement of Investment Disputes between States and Nationals of other States. In order to implement and incorporate these conventions within the law of land, two Acts have been passed by Parliament i.e.:

Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011;
Arbitration (International Investment Disputes) Act, 2011

Under the force of these Acts, the Courts of Pakistan get the jurisdiction to recognize and enforce the Awards rendered pursuant to these Conventions as binding and to execute the same within its territories in the same manner as the judgment passed by the Courts in Pakistan.

What is arbitration?

How does arbitration work?

Because they are conducted by private agreement, arbitration hearings are not open to the public and the decisions reached are generally not matters of public record.

What is high-low arbitration?

Is arbitration final?

Key Partners Associated with Arbitration

We at Asghar & Sons Jurists provides international Arbitration services to insurance companies, law firms, businesses and government agencies who are looking for cost-effective ways to manage claims and litigation under the Guidance and Wisdom of Honorable Sir Asghar Malik, other team members Ashraf Malik, Adnan Malik (Ex-Registered Legal Practitioner of U.A.E Govt), Irfan Malik.

Ultimate Role of Arbitration

There has been a significant improvement as to the adaptation of arbitration as a technique for the resolution of international trade disputes in accordance with the escalation in international trade over the last several decades. Parties in dispute must agree on the usage of arbitration as a mode of settlement of their trade / commercial disputes. Arbitration, however, contains many gains over litigation, the usual method for the resolution of trade disputes. Many of the key advantages of arbitration are as under:

The processes are flexible;
There is no issues as to jurisdiction;
Arbitrators are neutral;
On the basis of procedural corporate expertise, arbitrators can be appointed;
International treaties may enforce the arbitration awards;
Since the arbitration proceedings will not be conveyed, the parties should be able to avoid the adversative publicity which usually follows litigation, so they may keep it confidential;
Where a court judgment is commonly subject to rights of appeal to higher appeal courts, an arbitration award is normally final.

Institutions around the world have recognised the upsurge in the popularity of international arbitration. An increase in the number of arbitration centres for meeting the requirements is the possible outcome. Legislature have streamlined the arbitration laws and procedures and responded by establishing improved national courts, generally establish a readiness to deliver a sociable environment for arbitration and to necessitate the parties to observe with predetermined obligations for resolving disputes through arbitration. Local courts normally construe arbitration clauses extensively so that they shield a large number of disputes and will normally make it more problematic for parties to challenge arbitration awards in the courts.

Arbitration may be formal where disputing parties may move to an established foundation which is specialised in arbitration proceedings or ad hoc. Where disputing parties may establish their own rules and jurisdiction for the arbitration process.

For an ad hoc arbitration, there is a multitude of distinct institutional arbitration organisms as well as the established rules exist all over the world. These may be relevant to international franchisees established in Pakistan.

LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) – 1892

The LCIA is one of the world’s leading international institutions for commercial dispute resolution. The LCIA provides efficient, flexible and impartial administration of arbitration and other ADR proceedings, regardless of location, and under any system of law. The international nature of the LCIA’s services is reflected in the fact that, typically, over 80% of parties in pending LCIA cases are not of English nationality.

The LCIA has access to the most eminent and experienced arbitrators, mediators and experts from many jurisdictions, and with the widest range of expertise. The LCIA’s dispute resolution services are available to all contracting parties, without any membership requirements.

In order to ensure cost-effective services, the LCIA’s administrative charges, and the fees charged by the tribunals it appoints, are not based on sums in issue. A registration fee is payable with the Request for Arbitration and, thereafter, hourly rates are applied by the arbitrators and by the LCIA.

This deals mainly with construction projects, real insurance deals and commodity contracts. Unlike the ICC, it does not always ask for an advance deposit and it pays interest to the parties on any sums deposited with it.

STOCKHOLM CHAMBER OF COMMERCE (SCC) – 1917

Sweden has recently made a breakthrough on the international arbitration scene and the SCC applies its own rules, which have been recently revised to encourage the submission of transnational cases. In particular, it is now easier for parties to choose which system of law should be applied to a dispute and to use the rules in cases heard outside Sweden. The SCC deals particularly with maritime disputes, sales contracts, licensing agreements and construction projects. It is particularly popular in East / West disputes involving trade organisations from the Russia, Germany, Poland and Hungary on the one part, and from the UK, the US, Italy and France on the other. Western European corporations, and more recently Chinese trade organisations, often include arbitration clauses in their contracts referring dispute to the SCC.

The SCC is part of the Stockholm Chamber of Commerce since 1917 and has acquired extensive experience in dispute resolution over a period of nearly 100 years. During this time, the SCC has developed into one of the premier institutions globally for east-west-related disputes and is today an international centre for the settlement of disputes where parties from up to 40 countries choose to have their disputes settled each year.

INTERNATIONAL CHAMBER OF COMMERCE (ICC) – 1923

ICC Arbitration assures the best quality of service. That’s because it is delivered by a trusted institution and a process that is recognised and respected as the benchmark for international dispute resolution. From straightforward sales contracts to intellectual property matters, joint ventures, share purchase arrangements or state-financed construction projects, whatever the case, ICC can assist in resolving disputes of all sizes.

The ICC handles cases under all systems of law including civil law, common law and Islamic law. It applies the ICC Rules of Conciliation and Arbitration to its disputes. Under the ICC Rules if an arbitrator has jurisdiction over certain questions of law, and the parties do not specify a prevailing law or an arbitration centre, then the arbitrator will select the prevailing law and the arbitration centre.

The ICC is often criticised on cost grounds as the arbitrator’s fees are linked to the amount in dispute rather than being related to time as in the case of many other arbitration institutions. Furthermore, the ICC always insists on an advance deposit to cover costs, which can be paid in two instalments. No interest is awarded on that sum and the question of costs has recently made other institutions more popular.

AMERICAN ARBITRATION ASSOCIATION (AAA) – 1926

AAA cases are often settled prior to the arbitrator’s decision—and nearly half of those cases incur no arbitrator compensation. AAA panels comprise distinguished judges as well as leaders in the legal and business communities with industry-specific knowledge and expertise. Arbitrators are required to adhere to Codes of Ethics developed by the AAA and the American Bar Association (ABA). Select Expert Panels include Aerospace, Aviation, and National Security; Construction, Cybersecurity, Employment, Energy, Healthcare, Intellectual Property, Judicial, Labor, and Large and Complex Cases. The AAA has implemented best practices, policies, technologies, and procedures to help protect case data stored and managed on the AAA’s technology infrastructure.

AAA fees, easily available online, are due at specific times and are not tied to the length of the case or the arbitrators’ compensation. This is much cheaper than the ICC as some of the arbitrators work without a charge and there is a ‘bargain basement’ procedure for small claims. Although the AAA has not yet expanded sufficiently to take on many complex international cases now, it should be sufficient for resolving the majority of franchise disputes.

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID) – 1966

ICSID is the world’s leading institution devoted to international investment dispute settlement. It has extensive experience in this field, having administered the majority of all international investment cases. States have agreed on ICSID as a forum for investor-State dispute settlement in most international investment treaties and in numerous investment laws and contracts.

ICSID provides for settlement of disputes by conciliation, arbitration or fact-finding. The ICSID process is designed to take account of the special characteristics of international investment disputes and the parties involved, maintaining a careful balance between the interests of investors and host States. Each case is considered by an independent Conciliation Commission or Arbitral Tribunal, after hearing evidence and legal arguments from the parties. A dedicated ICSID case team is assigned to each case and provides expert assistance throughout the process. More than 600 such cases have been administered by ICSID to date.

CENTRE FOR ARBITRATION AND MEDIATION OF THE CHAMBER OF COMMERCE BRAZIL-CANADA (CAM CCBC) – 1979

Year after year, the use of arbitration as an appropriate means for settling disputes is growing, in which the parties define an impartial third party independent of the demand to analyze and judge the conflict. The parties may further define an institution to promote the administration of the proceeding through cost and document management, a service provided by centers such as the CAM-CCBC.

Another important step in Brazil was the ratification of the United Nations Convention on the Recognition and Enforcement of Foreign Arbitration Decisions of 1958 (known as the New York Convention). The document is considered to be the most important multilateral agreement on International Arbitration and has been ratified by more than 150 countries. By becoming a signatory to the convention in 2002, Brazil came to be recognized by the international community as favorable to the use of arbitration as an effective method for settling international disputes.

HONG KONG INTERNATIONAL ARBITRATION CENTRE – 1985

Hong Kong is ranked among the top five seats of arbitration worldwide by Queen Mary University of London and White & Case’s 2018 International Arbitration Survey. Founded in 1985, HKIAC is an independent and not-for-profit organisation. “Regional arbitration pretty much began with the HKIAC. No regional institution has been running for so long. Or with such success.” GAR Guide to Regional Arbitration 2018. HKIAC is a one-stop shop which handles arbitration, mediation, adjudication and domain name cases. HKIAC plays a leading role in developing innovative arbitration practices. Its practices have received numerous GAR awards and nominations for best innovation.

With offices in Hong Kong, Shanghai and Seoul, the Secretariat comprises individuals from diverse backgrounds, including nationals of Hong Kong, New Zealand, Morocco, mainland China, Singapore, Germany, Australia and Canada. Secretariat members are qualified in both civil and common law jurisdictions and speak 10 languages. A Secretariat member can be appointed as tribunal secretary under HKIAC’s detailed guidelines on the use of tribunal secretaries.

SINGAPORE INTERNATIONAL ARBITRATION CENTRE – 1991

Since commencing operations in 1991 as an independent, not-for-profit organisation, SIAC has established a track record for providing best in class arbitration services to the global business community. SIAC arbitration awards have been enforced in many jurisdictions including Australia, China, Hong Kong SAR, India, Indonesia, Jordan, Thailand, UK, USA and Vietnam, amongst other New York Convention signatories. SIAC is a global arbitral institution providing cost-competitive and efficient case management services to parties from all over the world.

The Court’s main functions include the appointment of arbitrators, as well as overall supervision of case administration at SIAC. SIAC has an experienced international panel of over 400 expert arbitrators from over 40 jurisdictions. Appointments are made on the basis of our specialist knowledge of an arbitrator’s expertise, experience, and track record. SIAC’s panel has over 100 experienced arbitrators in the areas of Energy, Engineering, Procurement and Construction from more than 25 jurisdictions.

WIPO ARBITRATION & MEDIATION CENTRE – 1994

Based in Geneva, Switzerland, with a further office in Singapore, the WIPO Arbitration and Mediation Center was established in 1994 to offer Alternative Dispute Resolution (ADR) options for the resolution of international commercial disputes between private parties. Developed by leading experts in cross-border dispute settlement, the arbitration, mediation and expert determination procedures offered by the Center are widely recognized as particularly appropriate for technology, entertainment and other disputes involving intellectual property. Since 2010 the Center has an office at Maxwell Chambers in Singapore.

The WIPO Arbitration and Mediation Center is a neutral, international and non-profit dispute resolution provider that offers time- and cost-efficient alternative dispute resolution (ADR) options. WIPO mediation, arbitration, expedited arbitration, and expert determination enable private parties to efficiently settle their domestic or cross-border IP and technology disputes out of court. The WIPO Center is also the global leader in the provision of domain name dispute resolution services under the WIPO-designed UDRP.

DUBAI INTERNATION ARBITRATION CENTRE – 1994

The Dubai International Arbitration Centre (DIAC) is an autonomous, permanent, non-profit institution that provides the regional and international business communities a high caliber of arbitration services and facilities at an affordable price.

Through DIAC’s associate membership, members could enhance their knowledge and experience international commercial arbitration by participating in seminars, training workshops and international conferences.

The services it offers include the overseeing of arbitral proceedings and commercial disputes, appointing arbitrators, choosing the venue for the arbitration and fixing the fees of arbitrators and mediators.

There are also other Regional Arbitration Centers in almost all countries, which the parties can choose in accordance with their convenience and can get the settlement through Award.

Asghar & Sons Jurists law firm give support and assistance to the clients to get their dispute settled domestically and worldwide through Arbitration Centers and also helps the clients to get the Awards rendered by these Arbitral Forums recognized and enforced in Pakistan.

4. ATTESTATION & LEGALISATION SERVICES IN PAKISTAN

Authentication would be referred as the procedure of verification as to official nature of a document or certificate. Authentication of a document ensures acceptance at its face value on a foreign land. On the other hand, confirmation of the genuineness of a seal or stamp or signature on a document by the Ministry of Foreign Affairs is regarded as legalisation. The legalisation process also validates the capacity in which the signatory entity has signed the document. Furthermore, attestation is the process of providing a witness to a signature on a document by another signature to verify the document has been duly signed by the entities bound by the document’s contents.

Asghar & Sons Jurists provides professional attestation and legalization services in Pakistan, since we have our branches in all major cities throughout the country. We provide professional document authentication, attestation and legalization services. Our legalization services help our clients in obtaining an apostille or an embassy legalization for their documents covering more than 100 jurisdictions across the globe. An apostille, attestation or embassy legalization certifies the authenticity of documents issued in one country, before they can be accepted by government and overseas corporate establishments. We provide finest document legalization services as well as the procurement of civil and commercial documents like police clearance certificate, single status certificate, duplicate degree certificate, marriage certificate from concerned authorities. We provide complete assistance to attest your documents quickly with affordable cost.

Authentication or attestation frequently involves several bureaucratic barriers, making it a tiresome and confusing process. Our experts have dealt with more than thousands authentication cases in different parts of the country and use their expertise to review the requirements of each document. They undertake authentication of documents on behalf of the clients, significantly reducing the turnaround time and making the entire process quick, efficient and effortless. Our experts are specialised in the legalisation of a wide variety of documents inclusive of educational degrees, diplomas, transcripts, personal and court documents.

We provide our clients, the guidelines on the Attestation / Legalisation procedures involved for verification of documents. We help them to attest their personal, educational, commercial documents from notary, state home department, embassy, consulate and other related departments. We aim to assist everyone with one stop solution for all their problems with minimal risk.

Ministry of Foreign Affairs, however, provided the following guidelines in each category:

Educational Documents

Educational certificates issued by Boards of Intermediate & Secondary Education are required to be countersigned by Inter Board Committee of Chairman (IBCC). Degrees issued by various universities should be attested from Higher Education Commission (HEC). Certificates of technical skills should be attested by the local technical board and National Vocational & Technical Training Commission (NAVTTC).

In case of Educational documents issued from abroad, their equivalence issued from concerned departments i.e. Inter board Committee of Chairman (IBCC) and Higher Education Commission (HEC) are also attested.

Association of Certified Chartered Accountants (ACCA) certificates are required to be attested by British Council & ACCA. Result cards and certificates of Institute of Chartered Accountant of Pakistan are required to be attested by the concerned authorized officer of the Institute of Chartered Accountant of Pakistan (ICAP).

Result cards and certificates of Institute of Cost and Management Accountants of Pakistan are required to be attested by the concerned authorized officer of the Institute of Cost and Management Accountants of Pakistan (ICMAP).

Certificate(s) issued from Madaris is/are required to be attested by Wafaqul Madaris and subsequently by IBCC and HEC, as required for each certificate.

Hifzul-Quran certificates can only be attested after prior attestation by Wafaqul Madaris Arabia Multan.

Banafide Certificate issued by Universities is required to be attested from Registrar / Deputy Registrar of the University. In case of regular students, photocopy of student’s card shall be provided by the applicant or in case of ex-student copy of the certificate / degree duly attested by HEC.

Bonafide Certificate issued by Schools / Colleges is required to be attested from District / Area Education Officer / Director School & Colleges. In case of regular students, photocopy of student’s card is required to be provided by the applicant or copy of the certificate (IBCC attested).

School leaving certificates issued from Government and Private schools are required to be attested from IBCC or District Education Officer / Private Educational Institutions Regulatory Authority (PEIRA).

School leaving certificates from educational institutions of Defence Forces (Army, Air force, Navy) should be attested by Commanding Officer of their Educational Directorate or authorized office/officer.

Educational degrees and Experience certificates issued from authorities abroad should be attested by the Pakistan’s Missions abroad.

Attestation of Nikkah Nama / Marriage Registration Certificate

Original Nikkah Nama issued by Nikkah Registrar with his signature / stamp along with Marriage Registration Certificate (MRC) and Computerized National Identity Card (CNIC) of bride with husband name is required or Family Registration Certificate (FRC) or Children Registration Certificate from NADRA (in case of children after the wedlock).

Nikah Nama of Azad Jammu and Kashmir should be signed and stamped by Tehsil Mufti can be attested after presenting Computerized National Identity Card of bride with Husband name or Family Registration Certificate (FRC) issued by National Database and Registration Authority (NADRA).

Nikkah nama & Marriage Certificate of wedding with foreign national must be supported with copy of Passport of foreign spouse, Pakistani visa and date of entry in Pakistan. No Nikkah nama & marriage Certificate will be attested without the provision of above mentioned documentary evidence.

In case, a Marriage took place abroad then Nikkah Nama / Marriage Certificate must be attested by the local Foreign Office and countersigned by the concerned Pakistani Diplomatic Mission in that country.

Divorce Certificate

Divorce certificates are required to be issued by Chairman of Arbitration Council / Secretary Union Council. Incase of photocopy it is to be attested by either issuing authority.

In case of Divorce deed, Computerized Divorce Certificate is mandatory.

Divorce papers can only get attested by the individuals themselves (anyone of both spouses), no blood relative, friend can get attested divorce certificate, except in the case of those who are residing abroad they can send their Power of Attorney in the name of blood relative / friend duly signed by the authorised officer of Pakistan Embassy / Consulate in that country.

Divorce proceeding papers must be attested by the Arbitration Council concerned.

Unmarried Certificate

Unmarried Certificate / single marital status certificate is required to be issued by the Secretary of the concerned Union Council.

Un-married certificate may please be got issued on the official letter head of the Union Council and signed / stamped by the Secretary of the Union Council. In future un-married certificate will not be attested by the Ministry which is on plain paper or letter head in the name of Chairman / Member of the Union Council.

Death Certificate

Such certificates if issued by NADRA, Union council or hospitals are required to be signed by MS / DMS of a Government Hospital. (Note: Death certificates should have ID card cancellation certificate).

Birth Certificates

In case of issuance from a hospital it should be duly signed and stamped by Medical Superintendent / Deputy Medical Superintendent (MS / DMS) and, in case of Union Council, by the concerned Secretary of the Union Council.

Police Character / Clearance Certificates

It is required to be issued by local District Police Officer (DPO) or, in case of tribal areas, by the concerned Political Agent.

Medical Documents

Papers regarding MBBS / PMDC / Experience Certificates of doctors, Pharmacists and Paramedics are required to be attested by Ministry of National Health Services. Nursing Diplomas and other health related diplomas / certificates are also required to be signed by Ministry of National Health Services.

Medical fitness certificates are required to be signed by MS / DMS / Civil Surgeon / Director Medical Board, District Health Officer.

Certificates for Bed rest on medical grounds are required to be signed by MS / DMS / Civil Surgeon / Director Medical Board or District Health Officer. Bed rest should not have medicine.

Driving License Attestation

Original driving license, along with No Objection Certificate (NOC) from the concerned licensing authority. In cases where original license is not available, a copy of license duly attested by the concerned licensing authority is required. (NOTE: License without NOC shall not be attested).

Bank Papers

Duly signed and stamped from the concerned Bank Officer. All such documents are also required to be re-verified from Islamabad branches of the respective Banks.

Commercial & Business Documents

Business / Commercial agreements or any other document on trade etc. are required to be signed by the company executives and countersigned by the local Chamber of Commerce & Industry. If there is any legal document like Power of Attorney etc. or documents mentioned above, it is required to be executed on stamp paper / Chamber / Company letter head, thereafter conditions of Power of Attorney will be applied i.e. the Executants are required to come in person for attestation.

Power of Attorneys, Agreement deeds and Authorization letter (Authority letters) of all kinds either on stamp papers’ Company’s letter heads or Chamber’s letter head should have the personal appearance of the Owner / MD / CEO of the firm / Company / Business enterprise.

The documents pertaining to International Air Transport Association (IATA) / Hajj-Umrah agreements are required to be attested by Department of Tourist Services (PTDC) from its regional offices and main office. The photocopies of these documents shall follow the same procedure.

The documents related to Protector of Immigration should also be attested by the same office before countersigned by the Ministry of Foreign Affairs, Islamabad.

License of overseas promoters are required to be attested by Protector of Emigration and photo copy is also required to be attested by the same.

License of manufacture, invoice, certificate of origin etc. should be attested or issued by concerned Chamber of Commerce on the letter head of the Company / business firm.

Commercial documents related to Securities and Exchange Commission of Pakistan (SECP) and Registrar of Firms are attested in original and the photocopies are required to be attested by the issuing authorities.

Experiences of Companies and firms involved in assignments across Pakistan are not attested until unless they are attested by the government agencies to which the enterprise is registered.

Attestation of Membership / License of Bar Council needs attestation by the President of Bar Council.

Experience Certificates

Experience certificates (Beautician, Cooking / Chef, Bus Hostess / Stewart) are required to be attested from Pakistan Tourism Development Corporation (PTDC)

Experience certificates (Electrician / Technician, Workshop / Mechanic) are required to be attested from National Vocational and Technical Training Center (NAVTTC) / National Training Bureau (NTB)

Experience certificates (Teaching) are required to be attested from District Education Officer / Director Schools & Colleges or Registrar of University concerned.

Experience certificate (Pilot, Air hostess / Stewart) are required to be attested from Civil Aviation Authority (CAA).

Any experience certificate issued outside Pakistan alongwith Birth Certificate / Death Certificate / Nikah Nama, Divorce Certificate etc. are required to be attested from the Embassy / High Commission of Pakistan that Country.

Experience certificate of Accountant etc. is required to be attested from ACCA Pakistan.

Engineering Diplomas, certificates, experience certificates are required to be attested from Pakistan Engineering Council, Islamabad.

Experience certificates of Rescue (EMT, Pre-hospital treatment, emergency preparedness etc.) and other relevant documents should be attested by both District and Provincial emergency services.

Experience certificates related to sports, coaching etc. should be attested from Pakistan Sports Board or its regional offices.

Power of Attorney from Abroad

Power of Attorney from abroad is required to be attested by Pakistan Embassy / Consulate in that country. After obtaining the confirmation of its genuineness from the concerned Embassy / Consulate, the Ministry will attest it. For this purpose, attorney appointed in Pakistan is required to come in person with original Computerized National Identity Card (CNIC).

Note: The validity of Power of Attorneys is 120 days from the date of attestation of Pakistan’s Missions abroad and re-attestation/verification by the Ministry of Foreign Affairs, Islamabad or its Camp offices in Lahore, Karachi, Peshawar and Quetta.

Power of Attorney for Abroad

Power of Attorney for abroad regarding sale purchase of property collection of dues etc. is required to be attested by local District Registrar and the executant is required to come in person with original identity card and passport size picture. In case of death case, the succession certificate / Guardian Certificate issued by Civil Judge / Judicial Magistrate, is essential for attestation of Power of Attorney.

Note: All Powers of Attorneys being submitted abroad are required to be prepared on stamp paper along with passport size photographs of the Executant.

Documents from Abroad

Other documents i.e. Educational certificates, Experience Certificates, Birth Certificate, Death Certificate, Life Certificate, Marriage Certificate and other Bank related documents (application for opening of dormant account) etc. issued from different authorities in abroad are required to be attested by Pakistan Embassy / Consulate in that country.

In case of Educational documents their equivalence issued from concerned departments i.e. Inter board Committee of Chairman (IBCC) and Higher Education Commission (HEC) are also attested.

Affidavits

Only three types of affidavits are attested by the Ministry i.e. family re-union (children visas), financial support, un-married status (by parents, incase parents are deceased then by close blood relatives).

The above-mentioned affidavits are required to be made on stamp papers. Attestation of a magistrate is compulsory and the signatory is required to come in person.

Affidavit(s) regarding no Government service, low pension and salary in favor of scholarship are required to be either attested by Federal Board of Revenue or their certificate is mandatory.

Miscellaneous Documents

Documents issued by Defense Organizations are required to be attested by designated officer of the Ministry of Defense.

Certificates regarding import of no-prohibited arms of yester years are required to be referred to Ministry of Commerce for verification their genuineness before their attestation by the Ministry.

This Ministry will only attest the documents in Urdu/English. Translations are required to have English in one column on the same page along with the language required i.e. Arabic, French, German, Italian etc.

Attestation of the documents of permanent nature i.e. birth certificate, nikkah nama, educational certificates, death certificates and all the documents issued by NADRA will always remain valid.

Documents attested by our Camp Offices in Lahore, Karachi, Peshawar and Quetta are treated at par with those attested by the Ministry. Specimen stamps and signatures of all authorized officials in Camp Offices are routinely provided to all Pakistan Missions abroad as well as to all Diplomatic Missions in Pakistan. Accordingly, these attestations have authenticity as the Ministry of Foreign Affairs, Islamabad and are not required to be re-attested.

Documents issued by NADRA are required to be directly attested from this office.

Documents issued by FBR will be sent to the respective offices for verification before their subsequent attestation by Ministry of Foreign Affairs, Islamabad and its Camp Offices. Only online FBR Tax Payer Certificate will be attested on the same day, provided it is either directly submitted by the applicant or his/her blood relative.

FIR relating to loss of passport will only be attested after the original verification by the concerned police station.

Photocopies of Pakistani passport will only be attested after verification by the concerned Passport Office.

Illiteracy certificate can be attested after attestation by NADRA or issuance of such certificate by NADRA.

Non Attestable Documents

Identity cards and its translation, criminal Judgments / FIRs, Political / Criminal Disputes, domicile, photographs, invitation letters, visa notes, insurance papers, charity documents of NGO’s and papers of registry and sale / purchase of land etc. will not be attested.

Halal Certificate, Slaughter Certificate, IELTS / TOEFEL etc. certificates, ISO standardization and all international certificates, Applications of all kinds will not be attested.

Reference letters from professors etc. both from abroad as well as national educational institutions and character certificates from educational institutions are not attested.

5. EMPLOYMENT & LABOUR LAW & SERVICE LAWYERS IN PAKISTAN

Employment law concept. Book and gavel on a desk.

We at Asghar & Sons Jurists deal in the matters of appointment of an employees or employers, cases of Civil Servants, regarding workers or workmen, appointment and termination matters, cases about recruitment appointment, promotion and reversion to a lower grade or service, removal form service, matters of pension, gratuity and provident fund, all kinds of cases regarding service and employment.

Labour Law in Pakistan is very comprehensive and contains several Ordinances, Acts, Rules & Regulations and all other statutes relating to Industrial, Commercial and Labour Establishments which are widely scattered and inaccessible statutes. These different laws give authentic guide to the Employers, the Employees, the Trade Unions and the concerned Agencies to realize their respective responsibilities and to become aware of their prescribed legal rights to be asserted. Our Law Firm has the main object to provide the legal services concerning these Labour Laws to the Employers and the Employees for the smooth running of the business in order to achieve the target of higher productively, reasonable profits and better wages. We have a list of landmark labour related disputes at our disposal. If you have any query, plz feel free to contact us.

Under the umbrella of labour laws, we understand that there may be diverse nature of issues and we offer the following legal services:

– Drafting & Vetting of Employment Contracts and Agreements;

– Legal Notices & Replies;

– Legal Opinion;

– Cases before Labour Courts;

– Cases before Labour Tribunals;

– Cases before Social Security Courts and Appeals;

– Cases before NIRC;

– Cases before High Courts; and

– Cases before Supreme Court

The different Labour laws are spread as under which are alphabetically given hereunder:

Apprenticeship Ordinance, Rules;
Boilers & Pressure Vessels Ordinance;
Children (Pledging) of Labour Act and Employment of Children Rules;
Companies Profit (Workers Participations) Act & Rules;
Cotton Cess Act, The Cotton Ginning and Pressing Factories Act and the Cotton Act;
Disabled Persons (Employment and Rehabilitation) Ordinance and Rules;
Dock Labourers Act, Regulations and Dock Workers Employment Regulation Act;
Employees Costs of Living (Relief) Act;
Employees Old Age Benefit Act and Rules;
Essential Personnel (Registration) Ordinance and Essential Services (Maintenance) Act;
Factories Act and Regulations & Rules;
Fatal Accident Act and Motor Vehicles Act and Ordinances and The Road Transport Worker Ordinance;
Hazardous Occupations Rules;
Immigrations Ordinance & Rules;
Industrial Relation Ordinance & Rules;
Industrial Statistics Act and Labour Welfare Statistics Rules;
Maternity Benefits Ordinance & Rules;
Merchant Shipping Ordinance;
Mines Act and Rules;
National Development Volunteer Program Act & Rules;
Pakistan Atomic Energy Commission Ordinance and the Compulsory Services in the Armed Service;
Payment of Wages Act, Procedure, Minimum Wages Rules;
Provisional Employees, Social Security Ordinance and Rules;
Railways Act and Railway Servants Rules;
Shops and Establishment Ordinance & Rules;
Tea Plantations Labour Ordinance;
Worker Children & Education Ordinance and Rules;
Worker Welfare Funds Ordinance & Rules and Housing and Plots Allotment Regulations;
Working Journalists Wages Board Rules and Newspaper Employees Condition and Services Act; and
Worksmen Compensation Act and Rules

6. DRAFTING, VETTING & CONTRACTUAL SERVICES IN PAKISTAN

Drafting and vetting of joint venture agreements, technical know-how agreements, share purchase agreements, sales representatives agreements, event management agreements, manufacturing agreements, sponsorship agreements, marketing agreement, advertisement services agreements, non-disclosure agreements, non-competition agreements, official channel / magazine agreements, licence agreements, trademarks user agreements, deed of assignment of trademarks, security and hypothecation agreements, employment agreements, franchise agreements, memorandum and rules & regulations of societies, trust deeds, trust rules, wills, etc.

We at Asghar & Sons Jurists law firm have considerable experience in the drafting and interpretation of a wide variety of contracts including Partnership and Association Agreements, Shareholders’ Agreements, Agreements for the sale of businesses and property, Licence and Agency Agreements, Franchise Agreements and Contracts of Employment. Our aim is to provide you and your business with the best contractual safeguards possible, and we encourage you to take advantage of our free, without obligation, audit.

We at Asghar & Sons law firm provide a range of Contract Management and Document Review services to clients in Aviation, BPO, Infrastructure, IT, Manufacturing and Telecom.

Drafting and Vetting of Legal Documents
Drafting and Vetting of Transaction Documents
Structuring of SPVs for Infrastructure Projects
Drafting of Master Services Agreements
Drafting of Service Level Agreements
Drafting of Non Disclosure and Confidentiality Agreements

Asghar & Sons Jurists have outstanding knowledge and experience in drafting and vetting of various kinds of Agreements, Contracts, Satellite Launching Service Agreements, Technology Transfer Agreements, Software License Agreements, Escrow Agreements, Property Lease Documents, Business Purchase Documents, Terms and Conditions for various types of business requirements, Memorandum of Understandings (MOUs), Policy Manuals, Regulations for Regulatory Authorities, Bye-Laws, Franchise Agreements, Employment Agreements, Office Leases, Trademark, Copyright and Patent Transfer Agreements, Joint Venture Agreements (JVAs), Non-disclosure / Confidentiality (NDC) Agreements, Partnership Agreements, Online Service / Product Provider’s Agreements, Website Use Agreement and other wide range of specific agreements suitable to every business, corporate and commercial concern.

Actually, we feel more excited when we are assigned to draft a new and challenging document. That we do it excellently well is evident from our repeat customers and from their kind words of appreciation. So far, we have received repeat orders from 100% of our clients.

After getting instructions from you about the agreement to be drafted, our team gets into action. We prepare the first draft and send it across. You give us the feedback and within days the agreement is ready to be signed.

Our agreements are simple to understand. We have deliberately done away with most of the jargon. Of course, we can draft in the toughest of legal language, but only on specific instructions. Our motto is to simplify all legal transactions in order to have transparent business environment.

We provide extensive guidance notes with all our agreements which will help you understand each and every clause in the agreements.

We also promise to provide you ongoing support in interpretation or any modifications of the existing agreements at nominal fee. Our team members include highly-qualified and experienced professionals who understand your requirements.

The firm has successfully represented its clients on negotiating and finalizing high stake financial, contractual and commercial arrangements. We assist our clients in preparation of legal documentation including drafting of contracts for establishing joint ventures in Pakistan and abroad, distribution, agency & franchise Agreements, manufacture and supply agreements, business purchase, brand acquisition, asset purchase, transfer of technology, licencing and assignment of Intellectual property, besides other commercial arrangements. We have advised a leading manufacturer of lighting products in Pakistan in setting up of their Joint Ventures in different parts of the world and also prepared legal documentation for Acquisition of a business undertaking of a renowned multinational company based in USA, UK, Europe and Middle East. The firm has also advised Asia’s largest manufacturer of sports goods on negotiating & settling their commercial agreements including distributorship agreements, manufacture- supply agreements, trademark Licence agreements, and technology sublicense agreements besides other commercial contracts.

7. APPELLATE & GENERAL PRACTICE IN PAKISTAN

Appellate procedure consists of the rules and practices by which appellate courts review trial court judgments. Appellate review performs several functions, including: the correction of errors committed by the trial court, development of the law, achieving a uniform approach across courts, and the pursuit of justice, more generally.

Appellate procedure focuses on several main themes: what judgments are appealable, how appeals are brought before the court, what will be required for a reversal of the lower court (e.g., a showing of “abuse of discretion,” “clear error,” etc.), and what procedures parties must follow.

Argument in appellate court centers around written briefs prepared by the parties. These state the questions on appeal and enumerate the legal authorities and arguments in support of each party’s position. Only a few jurisdictions allow for oral argument as a matter of course. Where allowed, oral argument is intended to clarify legal issues presented in the briefs. Ordinarily, oral arguments are subjected to a time limit extended only upon the discretion of the court.

The Appellate Practicing Attorneys Team at Asghar & Sons Jurists provides representation and advice on a wide variety of appellate matters, whether your goal is to reverse an adverse judgment or to protect a favorable judgment from reversal. The members of the Appellate Practice Group have decades of experience in the Pakistan Supreme Court, the High Courts of Pakistan, the Court of Appeal and other appellate courts in the region.

We represent a broad range of clients in diverse areas of law. Our recent appellate cases have included business-related contractual disputes, construction defects, insurance coverage, employment discrimination and harassment claims, eminent domain and inverse condemnation, government contracts, admiralty, products liability, premises liability and securities regulation. We possess the skill and experience to master any substantive body of law, however complex or subtle.

Our expertise extends beyond appeals from final judgments. Through our equally active writ practice, we help our clients to protect or attack significant rulings in advance of trial and judgment. We also maintain an amicus curiae practice, filing briefs and presenting oral argument in cases in which our clients are not direct parties, but which present important industry-wide issues directly affecting their interests.

Appellate attorneys provide special expertise and a fresh perspective that complement the different role of trial attorneys. Virtually every aspect of appellate practice differs from trial court practice. Trial attorneys are experts at developing factual records, examining witnesses and persuading juries. Appellate attorneys develop legal arguments to persuade judges, based upon the record made in the trial court. Appellate attorneys employ analytical and advocacy skills, based upon mastery of substantive law, appellate procedural law and independent analysis of the trial record. Appellate attorneys use these unique skills to fashion arguments that maximize the client’s opportunity for success on appeal. Appellate attorneys also provide candid and objective advice to clients on the important initial question of whether to pursue or resist an appeal.

The Appellate Practice Group provides these advantages in a cost-effective way. Appellate courts expect a focused presentation, which is exactly what we deliver. We understand that part of our responsibility is to exercise sound judgment and to raise only issues that are likely to persuade the court to rule in our clients’ favor.

As a client of the Appellate Practice Group, you will be actively involved at every stage of the appellate process. After analyzing legal theories and strategy, we consult with our clients as we prepare the written brief. Based upon our experience with the appellate decisional process, we understand the importance of well-written, concise and persuasive briefs. While oral argument sometimes can be pivotal in an appeal, there is no substitute for a well crafted brief. On appeal, as in most aspects of life, there is never a second chance to make a first impression. The written brief represents the first opportunity, and thus the most important opportunity, to advance our clients’ position.

8. ENERGY LAW, LAWYERS & LITIGATION IN PAKISTAN

We being experts as energy law attorneys can answer all your energy law questions and can defend you in courts. Attorneys specializing in Energy Law and related fields handle all cases involving all varieties of pollution, bio-energy, mining, oil spills, air and quality, and renewable resource cases. In recent years there has been a shift toward deregulation of various energy industries. Deregulation aims to increase market competition in order to ultimately serve the goal of cheap, reliable energy.

The Asghar & Sons Jurists law firm’s energy litigation practice encompasses virtually every aspect of oil and gas and energy-related disputes. Our lawyers in this practice area have vast experience in handling such matters before High Courts, Supreme Court of Pakistan and arbitrators, including a significant amount of experience in international and domestic arbitrations. Our clients include large integrated energy companies, independent oil and gas producers, purchasers and pipelines, as well as landowners, royalty interest owners and service companies.

Asghar & Sons Jurists is a full service de-facto pioneer energy law firm. We provide general business law counsel to independent oil and gas producers and interest owners, and handle general civil litigation and all other proceedings before any Commission.

Trial lawyers in each of our domestic offices practice in the area of oil and gas litigation. Our experience includes land and title disputes, working and royalty interest owner disputes, third party claims, joint operating agreement disputes, gas purchase contract litigation, products liability litigation, traditional tort and insurance defense litigation arising from oil and gas operations, antitrust litigation, Federal Energy Regulatory Committee (FERC) and other regulatory matters, false claims act litigation and energy-related environmental litigation. These disputes may arise in any aspect of the industry from the acquisition of leases, to the organization and administration of joint operating agreements, through all aspects of exploration, development, production and abandonment, and the sale, purchase and marketing of hydrocarbons.

Our clients have interests in virtually every oil and gas producing state and country in the world. Many of our trial lawyers practicing in the oil and gas and other regulatory matters, false claims act litigation and energy-related environmental litigation. These disputes may arise in any aspect of the industry from the acquisition of leases, to the organization and administration of joint operating agreements, through all aspects of exploration, development, production and abandonment, and the sale, purchase and marketing of hydrocarbons.

Some of the types of claims which our lawyers have handled–both from the plaintiff’s and defendant’s perspective–include the following. Results depend upon the facts of each case.

Energy law is the category of law encompassing usable power (as heat or electricity) and the resources for producing such power. Federal energy laws and regulations are designed to provide affordable energy by sustaining competitive markets, while protecting the economic, environmental, and security interests of Pakistan.

Issues associated with Energy Law include:

Bio-energy	Mining
Coal	Natural Gas
Electric Power	Nuclear Energy
Fossil Fuels	Oil
Fusion	Renewable Resources
Geothermal	Solar
Hydrogen	Wind
Hydropower

Table: Energy Law Issues

Asghar & Sons Jurists and their attorneys are well conversant to handle a wide variety of energy law matters:

Representation and advice for oil and gas operators, applicants and respondents on any proceedings, operating agreements and other energy contracts.
Civil and Complex Litigation involving contract disputes, class action lawsuits, gas marketing disputes, joint operating disputes, and all aspects of energy law.
Oil and Gas Litigation involving disputes over title, gas mis-measurement, surface damages, pollution, condemnation and all related issues.
Oil and Gas Title Opinions, Negotiation and interpretation of oil and gas contracts, including leases, joint operating agreements, exploration agreements, sales and purchase transactions surface damage agreements and other energy related contracts.
Environmental Law, including complaints of saltwater, oil or gas pollution, and compliance with state and federal regulations.
Employment Law Issues, including fair labor standards act claims and issues, discrimination claims, termination procedures and other employment law needs.
Expert advice, should you decide to participate with your interest in the drilling of a well.
Advice and counsel for working interest owners with gas balancing problems.
Advice concerning oil and gas acquisitions.
Royalty dispute resolution.
Advice and representation in probate proceedings involving oil and gas or other mineral interests.

Experienced Energy Law Attorneys

Asghar & Sons Jurists represents producers, operators, and adjacent land owners in contracts and disputes involving energy law and land use issues. If you are a mineral owner who needs advice on your oil and gas interests, we can help you resolve questions about your mineral title. We can help you to negotiate and draft oil and gas leases, as well as other contracts to protect your interests. We will negotiate on your behalf with oil and gas operators and offer skilled advice should you decide to participate with your interest in the drilling of a well.

Perhaps you are a working interest owner with gas balancing problems or you need representation in a dispute with an oil and gas operator. Asghar & Sons Jurists has successfully helped many people just like you with these important concerns. If you are an oil and gas operator, we have extensive experience with providing advice and representation in the following areas:

Banking & Finance Law
Business Organisations
Products Liability
Property Issues
Pakistan Real Estate Law

Contact the Energy Law Attorneys of Asghar & Sons Jurists and feel free to tell us about your case. We can begin resolving your energy concerns today!

Full Service Energy Law Firm

Our full service energy law firm practices oil, gas and mineral law, business law, civil litigation, and represents clients in proceedings. Asghar & Sons Jurists and their Attorneys have established a reputation as one of the potent energy law firms in Pakistan. Even the largest Pakistani law firms can’t match the number, experience, or quality of our energy law attorneys.

Our focused practice enables Asghar & Sons and their attorneys to confidently handle a wide variety of energy law issues:

All aspects of oil and gas disputes and mineral disputes
Oil and gas title opinions
Negotiating and drafting of oil and gas lease contracts and other energy law contracts
Representation before any Commission
Complex civil litigation
Negotiation on your behalf with oil and gas operators
Representation in disputes with oil and gas operators
Expert advice should you decide to participate with your interest in the drilling of a well
Advice and counsel for working interest owners with gas balancing problems
Advice concerning oil and gas acquisitions
Royalty dispute resolution
Advice and representation in probate proceedings involving oil and gas or other mineral interests

Perhaps you need advice and representation on employment matters, with respect to fair labor standards act or discrimination claims, termination procedures, and other employment law needs. In addition, we can help you with regulatory and governmental agencies.

The full service energy law firm of Asghar & Sons Jurists represents producers, operators, and adjacent land owners in contracts and disputes involving energy law and land use issues. We will provide you with sound legal advice, expert negotiating skills and effective dispute resolution in these matters.

The attorneys at Asghar & Sons Jurists are experienced in handling complex litigation. Our litigation teams can provide you with the knowledge and expertise required to protect your interests. Our attorneys are intimately familiar with the laws affecting the energy industry, as well as related areas of commercial law, real estate, employment law, products liability, and tort litigation. We also have experience in class action suits and multi-district litigation.

We consider ourselves very privileged to have such an excellent group of lawyers at Asghar & Sons Jurists. He or she has usually practiced law for many years, and is recognized for the highest levels of skill and integrity. This is their highest rating and cannot be purchased; it can only be earned from ratings by fellow lawyers and judges over a period of years.

Whether you are an individual with relatively simple legal issues or a company with a complex dispute, Asghar & Sons Jurists will be glad to serve your needs and vigorously pursue a successful result. Our attorneys care about serving you well and are responsive to your concerns. We promptly return your calls and regularly keep you up to date on the progress of your case.

9. ENVIRONMENTAL LAW, LAWYERS & LITIGATION IN PAKISTAN

We at Asghar & Sons Jurists understand the technical aspects of Environmental Law including toxicology, epidemiology, hydrogeology, biology and engineering. Many of attorneys have formal technical training in the area of Environmental Science. In addition, we consult with Environmental Analysts-both in-house and outside the firm. We also draw on the multidisciplinary resources of attorneys of the extended law team of the firm. We have played an important role in some of the most complex and influential cases of recent time.

The law firm, in competition with other firms, is a leader in the provision of civil law services to citizens, companies, local authorities and government bodies. Services in this field are provided, in particular, in civil, labour and family law relationships. Thanks to their long experience in this field, some attorneys lecture and publish on it. The law firm provides its clients with both advice and comprehensive solutions. It drafts legal documents, contracts dealing with legal relations between clients and agreements settling disputed issues, always attempting to find the best solution for the client which gives him the greatest legal certainty. For this reason, the law firm also represents estate agents, whom it provides with legal services during conveyancing and agreements resolving relations between property owners. As such relations are very wide-ranging, the skills of the law firm’s employees are constantly being perfected.

We proclaim with proud that our attorneys at Asghar & Sons Jurists have some of the world renowned accreditations and qualifications e.g

Advocate Adnan Malik

International General Certificate in Management of Health, Safety & Environment from NEBOSH United Kingdom.
Post-Graduate In Management of Healthy, Safety & Environment From United Kingdom.

Advocate Irfan Malik

International General Certificate in Management of Health, Safety & Environment from NEBOSH United Kingdom.

Environmental Law & It’s Enforcement

In many countries, environmental laws are weak or are not enforced. Government agencies make decisions about the environment without giving citizens an opportunity to participate in those decisions. Grassroots lawyers often work in isolation and cannot obtain information about legal tools to protect the environment. Many citizens want to build a sustainable future, but grassroots advocates lack the skills and resources to make their case. The Attorneys of Asghar & Sons Jurists works to even the odds and helps grassroots advocates, gain the skills and legal and scientific resources they need to challenge environmental abuses. Asghar & Sons Jurists and their Environmental Lawyers are very well conversant with the model statutes and regulations, information about polluters, and court decisions that protect the environment and we are in better position to represent our clients in Pakistan and abroad.

They also obtain information about the scientific questions that are at the heart of environmental challenges, including identifying the health risks of pesticides, providing model habitat restoration plans, and providing information about the best available technology to reduce industrial pollution.

ADVISORY SERVICES

In addition to giving local advocates, we at Asghar & Sons Jurists provide the Advisory Services in Environmental Management and related Technologies, Safety, Health & Environment, Audit and preparation of Hazards Management Plans; Water Resources Management for Environmental Development, Water Supply, Sewerage and Drainage, Solid Waste Management, Plumbing and Industrial Wastes. Pollution, Air and Noise, Pollution Control, Ecological Investigations, Environmental Risk Assessment, Environmental Planning and Management, Total Environmental Management; Environmental related Scientific and Technical Services; Environmental Monitoring of Stack Emissions and Ambient Air; Environmental Impact Statement; Environmental Impact Assessment; Cleaner Production; Wastes (solids) Analysis (Characterization); Laboratory Testing of Natural Gas and other Industrial Fuels and contaminated soils; Establishment of Environmental Laboratories, and Training of Staff; Environmental Surveys; Energy Audit; Quality Management also including ISO-9000 and ISO-14000 background data generation and preparation of background documents; GAP Analysis; Human Resource Development and Training; Technology Transfer; and General Public Awareness and Advice on Statutory and Legal Framework existing in Pakistan and the provisions of the major International Agreements / Conventions on Environments.

Asghar & Sons Jurists law firm works collaboratively with the clients to develop practical solutions to Environment, using legal skill and experience. We help clients formulate strategy to address Environmental issues of their concern. When Environmental matters become adversarial, our experienced Environment Litigators stand ready to defend the clients against enforcement proceedings may that be at the level of Environmental Protection Council, Environmental Protection Authority (at Provincial Level), Special Judicial Magistrates / Environmental Magistrates and / or otherwise before the Environmental Protection Tribunal.

We undertake analysis of both the risk of environmental liability and the best manner in which to eliminate or manage that risk in virtually every financing, acquisition, development, and leasing transaction. At the inception of a project, we counsel our clients to structure the transaction in a manner that minimizes environmental risks. During the negotiation process, we work with clients to understand and allocate remaining risks in ways that minimize client obligations and liabilities.

We advise a broad range of clients including corporate entities, industrial facilities, real estate developers, lenders and trade associations, non profit organization and local governments. Further, our clients including large and small companies engaged in manufacturing, mining, oil refining, hazardous and solid waste management and disposal.

Knowledge of environmental statutes and regulations, an understanding of remedial technologies and years of litigating experience have prepared our environmental litigators to handle everything from making feasibility report of the project with focus on environmental concerns and safeguards as well as making of initial Environmental Impact Statement (EIS), dealing matters at the level of District Officer (Environment), Environmental Protection Agency (EPA) and if the proceedings so require, before the Environmental Protection Tribunal against the complaints filed within the purview of Pakistan Environmental Protection Act, 1997.

The following Laws, Rules and Regulations have been issued under the Pakistan Environmental Protection Act, 1997.

RULES

National Environmental Quality Standards (self-monitoring and Reporting by Industries) Rules, 2001
Provincial Sustainable Development Fund (Procedure) Rules, 2001
Pakistan Sustainable Development Fund (Utilization) Rules, 2001
Provincial Sustainable Development Fund (Utilization) Rules, 2003
Pollution Charge for Industry (Calculation and Collection) Rules, 2001
Environmental Tribunal Rules, 1999
Environmental Tribunal Procedures and Qualifications Rules, 2000
Environmental Samples Rules, 2001
Hazardous Substances Rules, 2000
Hazardous Substances Rules, 2003

REGULATIONS

Review of IEE/EIA Regulations, 2000
Pakistan Environmental Protection Agency (Review of IEE/EIA) Regulations, 2000
National Environmental Quality Standards (Environmental Laboratories Certification) Regulations, 2000
National Environmental Quality Standards
Draft Hospital Waste Management Rules
Draft Composition of Offences and Payment of Administrative Penalty Rules, 1999

Policies & Strategies

National Environment Policy
National Resettlement Policy March, 2002 (Draft)
National Drinking Water Policy (Draft)
National Drinking Water Policy
Clean Development Mechanism (CDM)
National Operational Strategy

Pakistan Environmental Protection Act, 1997

Pakistan’s Environmental Policy is based on participatory approach to achieving objectives of sustainable development through legally, administratively and technically sound institutions. The Federal Environment Ministry was established in Pakistan in 1975 as follow up a Stockholm Declaration of 1972. The Ministry was responsible for promulgation of the environmental Protection Ordinance of Pakistan in 1983. It was the first comprehensive legislation prepared in the country. The main objective of Ordinance 1983 was to establish institutions i.e. to establish Federal and Provincial Environmental Protection agencies and Pakistan Environmental Protection Council (PEPC). In 1992 Pakistan attended the Earth Summit in state of Brazil (Rio-De Janeiro) and thereafter became party to various international conventions and protocols. This political commitment augmented the environmental process in the country. Same year, Pakistan prepared National Conservation Strategy (NCS), provides a broad framework for addressing environmental concerns in the country. In 1993 Environmental Quality Standards (NEQS) were designed. The Pakistan Environmental Protection Act 1997 was passed by the National Assembly of Pakistan on September 3, 1997, and by the Senate of Pakistan on November 7, 1997. The Act received the assent of the President of Pakistan on December 3, 1997 and was enacted on 6th December 1997, repealing the Pakistan Environmental Protection Ordinance, 1983. The PEPA 1997 provides the framework for implementation of NCS, establishment of provincial sustainable development Funds, Protection and conservation of species, conservation of renewable resources, establishment of Environmental Tribunals and appointment of Environmental Magistrates, Initial Environmental Examination (IEE), and Environmental Impact Assessment (EIA).

Pakistan Environmental Protection Council

The apex body was first constituted in 1984 under Sec. 3 of the Pakistan Environmental Protection Ordinance (PEPO), 1983, with President of Pakistan as its Chairman. In 1994, an amendment was made in the Ordinance to provide for the Prime Minister or his nominee to be the head of the Council. The Council was reconstituted after enactment of the new law i.e. Pakistan Environmental Protection Act, 1997. It is headed by the Prime Minister (Chief Executive) of Pakistan. The council is represented by trade and industry, leading NGOs, educational intuitions, experts, journalists and concerned ministries.

Establishment of Pakistan Environmental Protection Agency under Sec. 5

In 1993, the Pakistan Environmental Protection Agency (Pak-EPA) was established under Section 6 (d) of the Pakistan Environmental Protection Ordinance, 1983. The Agency started with meager staff and resources. However, number of action were taken which included notification of NEQS in 1993 for municipal and liquid industrial effluents and industrial gaseous emissions, motor vehicle exhaust, and noise. The functions and responsibilities of the Agency enhanced and it was strengthened technically and logistically to meet the environmental challenges. Pak-EPA also provides technical support to the Ministry of Environment. Salient feature of various Sections of Pak-EPA, 1997:

Functions of Pak-EPA under Section 6 (2)

The Federal Agency may

a) Undertake inquiries of investigation into environmental issues, either of its own accord or upon complaint of any person or organization.

Powers of Federal Agency under Section 7

The Federal Agency may

g) Summon and enforce the attendance of any person and require him to supply any information or document need for the conduct of any enquiry or investigation into any environmental issue;

h) Enter and inspect and under the authority of a search warrant issued by the environmental magistrate, search at any reasonable time, any land, building, premises, vehicle, vessel, or other place where or in which, there are reasonable ground to believe that an offence under this act has been or being committed;

Provincial Environmental Protection Agencies

In all four provinces, Environmental Protection Agencies were created under the provision of Pakistan Environmental Protection Act, 1997. Federal Government has delegated its powers to the provincial governments and they have further delegated powers to the provincial Environmental Protection Agencies.

Initial Environmental Examination and Environmental Impact Assessment under Section 12

Environmental Assessment (EA) is a process to examine the environmental risks and benefits associated with the developmental projects. IEE and EIA process has begun in the country in an organized manner. Section 12 explains that no proponent of a project shall commence construction or operation unless he has filed with the Federal Agency an Initial Environmental Examination or, where the projects is likely to cause an adverse environmental effect, an Environmental Impact Assessment, and has obtained from Federal Agency Approval. An IEE/EIA Regulations, 2000 has been notified under this section.

Prohibition of Import of Hazardous Waste under Section 13

The Pakistan Environmental Protection Act, 1997 requires that no person may import hazardous substances of which chemical activity is toxic, explosive, flammable, corrosive, radioactive, cause directly or in combination with other matters, an adverse environmental effect.

Regulation of Motor Vehicle under Section 15

Operation of a motor vehicle from which gaseous emission or noise exceeds the NEQS, or other standards established by Pak-EPA where ambient conditions so require, have been prohibited. To ensure compliance with the NEQS, the Pak-EPA has been empowered to direct that pollution control devices be installed in motor vehicles or fuels specified by Pak-EPA be used in them or specified maintenance or testing be carried out on them.

Establishment of Environmental Tribunals under Section 20

The Government is empowered to constitute Environmental Tribunals to hear cases relating to Pakistan Environmental Protection Act, 1997. The Federal Government has established four Environmental Tribunal one in each province.

Designation of Environmental Magistrates under Section 24

The Federal and Provincial governments have designated senior civil judges as Environmental Magistrates to take all contraventions punishable in respect of handling of hazardous substances and pollution caused by motor vehicles.

Penalties of Environmental Magistrate

The Environmental Magistrate has been authorized to award compensation for losses or damage under Section 17(5).

Endorse a copy of the order of conviction to concerned trade or industrial association;
Sentence him to imprisonment for a term which may extend up to two years;
Order the closure of the factory;
Order confiscation of the factory, machinery and equipment, vehicle, material or
Substance, record or document, or other object used or involved in contravention of the provision of the Act

Delegation of Powers to Provincial Governments under Section 26

Ministry of Environment, Local Government and Rural Development had delegated functions and powers of it and the Federal Environmental Protection Agency under Section 26 of the Act to the Provincial governments. The Provincial Governments have further delegated these powers and functions to Environmental Protection Agencies and also planning to sub-delegate selected powers to the local governments.

Pakistan Environmental Protection Agency

Pakistan Environmental Protection Agency (Pak-EPA) an attached Department of the Ministry of Environment responsible for enforcement of the Pakistan Environmental Protection Act, 1997 and its enabling rules and regulations. It also deals with public complaints and carries out research and investigation in different fields of environment. Being the technical arm of the Ministry of Environment, it prepares reports on different environmental issues and prepares national environmental policies for approval of the Pakistan Environmental Protection Council.

The National Environment Policy provides an overarching framework for addressing the environmental issues facing- Pakistan, particularly pollution of fresh water bodies and coastal waters, air pollution, lack of proper waste management, deforestation, loss of biodiversity, desertification, natural disasters and climate change. It also gives directions for addressing the cross sectoral issues as well as the underlying causes of environmental degradation and meeting international obligations. The National Environment Policy, while recognizing the goals and objectives of the National Conservation Strategy, National Environmental Action Plan and other existing environment related national policies, strategies and action plans, provides broad guidelines to the Federal Government, Provincial Governments, Federally Administrated Territories and Local Governments for addressing environmental concerns and ensuring effective management of their environmental resources. The Provincial, AJK, Northern Areas and Local, Governments, however, may devise their own strategies, plans and programs in pursuit of this Policy.

The National Environment Policy aims to protect, conserve and restore Pakistan’s environment in order to improve the quality of life of the citizens through sustainable development.

The Objectives of the Policy are:

Conservation, restoration and efficient management of environmental resources.
Integration of environmental considerations in policy making and planning processes.
Capacity building of government agencies and other stakeholders at all levels for better environmental management.
Meeting international obligations effectively in line with the national aspirations.
Creation of a demand for environment through mass awareness and community mobilisation.

10. ENERGY PROJECTS, LEGAL EXPERTS & LITIGATION IN PAKISTAN

At the outset, the least that can be said is that one of the most excruciating crises in Pakistan’s economy today is the energy crisis. Pakistan’s economy has always been largely dependent on electricity generation and supply as a source of energy. From domestic to commercial usage this has been the only form of power that has been utilized since the foundations of this Country were first laid down. However with the overly prolonged shortfall of electricity, the economy is rapidly collapsing, as not only domestic / household activities are being affected, but more importantly, the primary and secondary sectors of our Economy, which form the backbone of our economic structure, those entrepreneurs that are engaged in extraction and production activities have faced a significant cumber stone in carrying out their business, leaving us in a state of tremendous economic depression.

Recognising Pakistan’s Economic need of the hour, there are various business entities that have already engaged themselves in research and development of renewable energy resources in Pakistan. This thought process has also encouraged setting up power plants in Pakistan as the current demand for power generation resources is at its boom and local as well as foreign investors are looking forward to cash on this opportunity by providing alternate power generation resources for domestic and commercial use.

Our Attorneys at Asghar & Sons Jurists have a great acquiescence of Laws related to Oil, Gas and Energy Projects and under the Patronage of Honorable Sir Asghar Malik, we are in a good position to even compete with international law firms. If you have any query about the building any energy related infrastructure, please feel free to contact.

Following is a list of non-exhaustive and most commonly known alternates that are used for renewable energy resources:

THERMAL POWER
WIND POWER
SOLAR POWER
BAGASSE POWER
BIOMASS
GEOTHERMAL POWER
WAVE POWER
TIDAL POWER
COMPRESSED NATURAL GAS
NUCLEAR POWER

While the concept is quite appealing and investors are looking forward to grasping onto such projects, the process can be quite tedious and time consuming. It requires multiple steps, which can only be conveniently completed by engaging a professional for this purpose.

Asghar & Sons Jurists, being a firm that has a long standing in legalization and incorporation of all forms of business entities, we have taken up the task of assisting investors and entrepreneurs who wish to incorporate any type of business entity, either public or private limited, or in form of a partnership, for the purpose of facilitating the economy by setting up research and development based projects and setting up actual power plants for generation of any form of alternate renewable energy.

The following services will be provided by us to those who wish to enter the field of power generation by utilizing alternate resources:

Preparation of Feasibility study of the project.
Environmental studies and approval from concerned authorities.
Tariff determination.
Obtaining approval from the Government of Pakistan.
Legal assistance in equipment procurement.
Legal assistance in business agreements and contracts with third parties.
Company incorporation and all related legal matters to setting up.
Land acquiring or leasing assistance.

Asghar & Sons Jurists has finalized many model documents used in Energy Power Sector in Pakistan and have also negotiated various reviews, vetting and drafting of Agreements / Contracts / MOU’s between various parties and rendered key legal opinion work, required to establish the regulatory and legal regime for energy sector in Pakistan. We are also capable to finalize standard Agreements and can draft the Letter of Support, Performance Guarantee, Letter of Interest, Prequalification Documents, Statement of qualification and Letter of Credit for each type of Power Plant including the Security Documents, Implementation Agreement, Power Purchase Agreement, Fuel Supply Agreement and Bid Bond and negotiations with NEPRA and other Agencies. We also help in formation / incorporation of Companies and their tax matters including exemption of Sales Tax, Customs Duty, Income Tax and Withholding Tax etc. on imports. Dispute resolution and the registration with NEPRA, Issuance of Licence for generation & Tariff determination.

Asghar & Sons Jurists deals with all surrounding operational strategy and implementation plans of Electricity Generation projects regarding power generation, transmission and distribution systems in a suitable and affordable manner as per policies of Pakistan’s Private Power Investment Board (PPIB) and to do all other acts ancillary to the Project.

Asghar & Sons Jurists aims to meet targets at both ends, by encouraging and assisting investors to encroach upon this highly profitable business opportunity, and at the same time, lending a hand, by contributing to Pakistan’s Economy, to help overcome one of the biggest catastrophes circulating in our Country in today’s time. Our team of experts advise international / local sponsors on all aspects of energy projects and ensures complete and proper execution of such ventures, rendering to our clients the highest quality of legal services in the energy sector of Pakistan.

11. INSURANCE LAW, INSURANCE LAWYERS & LITIGATION IN PAKISTAN

Insurance is a contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the “insurer” or “underwriter”, the other the “insured” or “assured”, the agreed consideration, the “premium”, the written contract, a “policy” the events insured against “risks” of “perils” and the subject, right, or interest to be protected, the “insurable interest”; A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event and is applicable only to some contingency or act to occur in future; An agreement by which one party for a consideration promises to pay money or its equivalent or to do an act valuable to other party upon destruction, loss, or injury of something in which other party has an interest.

Insurance transfers and allocates risks from the person taking the policy or “the insured” to the insurance company or “insurer.” An insurance policy is a special agreement between the insurer and the insured. To be enforceable, the insurance policy must meet all of the usual requirements of a contract and, in addition, the insured must have an “insurable interest” in the subject matter being insured, such as property, life, and health.

Asghar & Sons Jurists also provide legal services to any insurer or policy holder by representing before the Small Disputes Resolutions Committees for settlement of arbitrate disputes or before any Insurance Tribunal for trial of any application, High Court (Double Bench) and Supreme Court for appeal and Insurance Ombudsman for any Reference or for making any complaint of mal-administration on the part of any insurance company on behalf of aggrieved person.

Businesses usually carry basic property insurance and commercial liability policies. But they may also carry fidelity insurance, business interruption insurance, and directors and officers’ liability insurance.

Any time an insured individual is denied insurance benefits or offered less than what they believe to be adequate, there is potential for a coverage dispute. For example, an employer’s workers compensation insurance will normally cover an injured employees’ medical bills for injuries sustained in workplace accidents. But if one employee purposely causes the injury of another that may not be classified as an “accident”, and the employer, rather than the insurance company may be responsible for the medical bills. Similarly, a home owner may hire a contractor to build an addition onto his or her house and then offer to help with the construction to reduce costs. If the home owner is injured, whose insurance company has to pay?

If you’re involved in an insurance dispute, make sure your attorney has the experience and skill to make sure your rights are protected.

Insurance law services

When it comes to insurance, the right protection means everything. For most people it means peace of mind and the reassurance that when something goes wrong, they get the help and support needed to resolve the situation. We provide outstanding legal support for our clients. This is underlined by the fact you have may have been referred to us by your insurance company, as we work for some of the largest and most successful insurance companies in Pakistan and Worldwide.

We’re experts in insurance law services

Although you may be benefiting from our expertise in insurance law without realizing it, if you ever had to make use of your policy, you’d know the difference it can make to have one of the largest law firms in Pakistan on your side.

Of course, you can’t buy your insurance from us direct, but it’s good to know that there are real legal experts behind your policy; experts who not only know the insurance market, but are leaders in the legal field, able to pursue your claims with a comprehensive knowledge of the legal claims process.

Requesting legal representation

We also offer a legal representation service for motoring offences and “totting up”, which means we can represent you in legal matters where you are facing the loss of your driving licence or imprisonment for driving related offences.

Asghar & Sons Jurists and our Attorneys aims to provide you with practical, straightforward information to help you understand the issues, and how best to deal with them. We have broken down the subject matter as follows and we assist our clients in the following areas:

Accident Insurance
Accounts Receivable Ins.
Additional Insured
Air Travel Insurance
All-risk Insurance
Annuity Insurance
Assessment Insurance
Business Insurance
Business Interruption Ins.
Casualty Insurance
Co-Insurance
Collision Insurance
Commercial Insurance
Comprehensive Insurance
Concurrent Insurance
Convertible Collision Ins.
Convertible Insurance
Convertible Life Insurance
Co-operative Insurance
Credit Insurance
Crime Insurance
Crop Insurance
Decreasing Term Ins.
Deposit Insurance
Employer’s Liability Ins.
Endowment Insurance
Errors and Omissions Ins.
Excess Insurance
Extended Term Insurance

Family Income Insurance
Fidelity Insurance
Fire Insurance
First Party Insurance
Fleet Party Insurance
Floater Insurance
Fraternal Insurance
Government Insurance
Group Insurance
Group-term Life Insurance
Guaranty or Fidelity Insurance
Hail Insurance
Health Insurance
Homeowners Insurance
Indemnity Insurance
Inland Marine Insurance
Joint Life Insurance
Keyman Life Insurance
Level Premium Insurance
Liability Insurance
Life Insurance
Limited Payment Life Insurance
Limited Policy Insurance
Major Medical Insurance
Malpractice Insurance
Manual Rating Insurance
Marine Insurance
Mortgage Insurance

National Service Life Insurance
No-fault Auto Insurance
Non-Assessable Insurance
Old Life Insurance
Ordinary Life Insurance
Paid-up Insurance
Participating Insurance
Partnership Insurance
Product Liability Insurance
Public Liability Insurance
Reciprocal Insurance
Renewable Term Insurance
Retirement Income Insurance
Self Insurance
Single Premium Insurance
Social Insurance
Split Dollar Insurance
Step-rate Premium Insurance
Straight / Whole Life Insurance
Suerty and Fidelity Insurance
Term Insurance
Title Insurance
Trust Insurance
Unemployment Insurance
War Risk Insurance
Worker’s Compensation Insurance

Table: Insurance Law Services

Asghar & Sons Jurists provides the services to an insurer, newly Public Limited Company or a body corporate incorporated, in getting its Registration Certificate from the Commission under the Insurance Ordinance 2000 and also in Revocation of Registration, Solvency, Reinsurance Arrangements, making Accounts & Audit Report, Amalgamation Transfer of Insurance Business and Winding up.

INSURANCE BROKERS

We also help for making an application before the Commission for getting an Insurance Broker’s Licence and Insurance Surveyors according to prescribed manners.

APPLICATION OF PAKISTANI LAWS TO POLICIES ISSUED IN PAKISTAN

The holder of a policy of insurance issued by an insurer in respect of insurance business transacted in Pakistan have the right to receive payment in Pakistan of any sum secured thereby and to sue for any relief in respect of the policy in any Tribunal; and if the suit is brought in Pakistan any question of law arising in connection with any such policy shall be determined according to the law in force in Pakistan.

LAWYERS PROFESSIONAL LIABILITY INSURANCE

Legal malpractice insurance is the foundation of a law firm’s insurance program. Not surprisingly, this is our specialty here at Asghar & Sons Jurists.

OFFICE INSURANCE PACKAGE

This should include coverage for commercial general liability, office contents, computer equipment, software, data, client files, law library, etc. “Hint: If you lease office space from another firm, don’t make the mistake of assuming that their policy covers you!”

LIFE INSURANCE, DISABILITY INSURANCE, LONG TERM CARE INSURANCE

We maintain relationships with some of the best and most knowledgeable financial consultants, who specialize in the unique needs of professionals.

Automobile Insurance
Life and Health Insurance
Natural Disasters
Property Insurance
Reinsurance

Acts and Ordinances in Pakistan

The Insurance Act, 1938
The War Injuries (Compensation Insurance) Act, 1943
The Riot and Civil Commotion Risks Insurance Ordinance, 1947
The Pakistan Insurance Corporation Act, 1952
The Employees’ Social Insurance Ordinance, 1962
The War Risks Insurance Ordinance, 1965
The Federal Employees Benevolent Funds and Group Insurance Act, 1969
The War Risks Insurance Ordinance, 1971
Life Insurance (Nationalizations) Order, 1972
The Employees’ Old-Age Benefits Act, 1976
The National Insurance Corporation Act, 1969
The Insurance Ordinance, 2000

Rules and Regulations

The Pakistan Insurance Corporation Rules, 1953
The Pakistan Insurance Corporation (General) Regulations, 1953
The Pakistan Insurance Corporation Employees’ Provident Fund Regulations, 1954
Pakistan Insurance Corporation Staff (Medical Attendance) Regulations, 1955
The Pakistan Insurance Corporation (Compulsory Re-Insurance) Regulations, 1956
The Insurance Rules, 1958
Pakistan Insurance Corporation (Pakistan in the Share Capital and Underwriting of Stocks, Shares, Bonds or Debentures of Insurance Companies) Regulations, 1958
Pakistan Insurance Corporation (Staff) Service Regulations, 1959
The Export Credits Guarantee Scheme Rules, 1962
The War Risks Insurance Rules, 1971
The Life Insurance Nationalizations Rules, 1972
The State Life Insurance Corporation (General) Regulations, 1972
The National insurance Fund Rules, 1973
State Life Directors (Remuneration) Rules, 1973
The State Life Employees (Service) Regulations, 1973
The Insurance Settlement Board Rules, 1975
The Pakistan Insurance Corporation (Compulsory Surplus Reinsurance) Regulations, 1978

12. ESTATE PLANNING LAW, LAWYERS & LITIGATION IN PAKISTAN

From the ground-up construction project to the sophisticated financing transaction, our real estate attorneys at Asghar & Sons Jurists provide our prestigious clientele with a broad range of skills and experience vital to the business of the real estate industry. A significant practice area at our real estate group assists all who are involved in the dynamic real estate field from purchasers, sellers, and developers to borrowers and lenders. The strength of our attorneys’ knowledge in complex transactions ensures efficient and timely attention to those clients engaged in major real estate investment, development, and lending activities across the country. Tapping into the firm’s corporate, tax, and litigation practice areas, our attorneys can create teams designed for every type of real estate-related situation like Commercial and Residential Lawsuits, Buyer-Seller Disputes and Property Development Issues that might arise.

Our Real Estate Attorneys are very well Conversant with the Laws Governing Real Estate and are dealing with all kinds of Property cases including Transfer of Property by Parties, Transfer of Property (Moveable or Immoveable, Tangible or Intangible), Sale, Mortgage, Lease, Charge of Immovable Property and Exchange, Gifts and all kinds of Claims regarding Property, Accession, Occupancy Rights, Vested Interests, Contingent Interest and Conditional Transfer etc.

Property Law

Property is thing which is peculiar or proper to any person; that belongs exclusively to one. In the strict legal sense, an aggregate of rights which are guaranteed and protected by the Government. The term is said to extend to every species of movable right and interest. More specifically, ownership; the unrestricted and exclusive right to a thing; the right to dispose of a thing in every legal way, to possess it, to use it, and to exclude every one else from interfering with it. That dominion or indefinite right of use or disposition which one may lawfully exercise over particular things or subjects. The exclusive right of possessing, enjoying and disposing of a thing. The highest right a man can have to anything; being used to refer to that right which one has to lands or tenements, goods or chattels, which no way depends on another man’s courtesy. According to Transfer of Property Act 1882 “Property means (i) the thing itself, or (II) some or all the rights in a thing.”

Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items which would be personal property if not attached. The term is generally synonymous with real property.

Classification of Property

Absolute Property	Property of another
Common Property	Public Property
General Property	Qualified Property
Mislaid Property	Real Property
Mixed Property	Special Property
Movable Property	State Property
Personal Property	Tangible Property
Private Property	Intangible Property
Immovable Property	Unclaimed Property

Table: Property Classifications

Transfer of Property

Property can be transferred to the other persons with or without certain conditions. Transfer of Property Act defines certain modes where transfer takes place by act of the parties that are enlisted as follows:

Modes of Transfer

By act of parties
By operation of law

Transfer of Property Act 1882 only deals with those transfers that take place by the act of parties.

Transfer of Property by act of parties

Sales
Mortgages
Leases
Exchanges
Gifts
Transfer of Actionable Claims

Rights that may be Transferred

Spes Successionis (chance of succeeding to an estate);
A mere right to take back the land (right of re-entry) given on lease to another for breach of a condition;
An easement;
An interest meant to be personally enjoyed by the person to whom it was given;
A right to future maintenance;
A mere right to sue for damages for breach of contract or tort;
A public office;
Pensions and stipends;
Transfer of property for unlawful object or consideration;
Occupancy rights.

Person who can Transfer a Right

The transferor must be:

Competent to contract, i.e., neither minor nor lunatic, etc.;
Full owner of the property or legally authorized to transfer it on behalf of the person having title to the property.

The person who transfers a right is called the “transferor” and the person to whom transfer is made is called the “transferee”.

Absolute Transfer

Unless a different intention is expressed or implied, a transferor of property passes to the transferee all the interest in the property which the transferor is, at the time of the transfer, capable of passing and the accessories or legal incidents which follow the said property shall also be passed on along with the principal property. For instance, if a house is sold, the easements annexed thereto shall also stand transferred.

Oral Transfers

Unless expressly required by law to be in writing, a transfer may be made orally.

Conditions relating to Transfers

Where property is transferred subject to a condition absolutely restraining the transferee from disposing of his interest, the condition is void. A lease is an exception to this rule.
If a transferor creates an absolute interest in the transferee, any direction that such interest shall be enjoyed by him in particular manner is void. Such a condition shall however be valid if it is imposed for the benefit of transferor’s adjoining land.
A condition which makes interest determinable on subsequent insolvency or attempted alienation is void.

Conditions that can be imposed

A condition precedent can be imposed, i.e., a condition which must be performed before the transferee can take the property, but such condition must not be impossible or forbidden by law, or fraudulent, or involving or implying injury to the person or property of another, or immoral or opposed to public policy. A condition precedent shall be deemed to be fulfilled if it has been substantially (although not wholly) complied with.
A transfer may be made on the condition that in case a specified uncertain event shall or shall not happen such interest shall pass to another person.
A condition subsequent which has the effect of divesting an estate is subject to the rule of strict construction, the condition must be strictly fulfilled.
An interest may be created with the condition that it shall cease to exist in case a specified uncertain event shall happen or shall not happen.

Transfer in favor of an unborn person

A transfer can be made in favor of an unborn person by creation of prior interest in favor of living person subject to the condition that the transferor transfers his entire property to the said unborn person. The interest created in favor of the unborn person shall take effect and rest in the said person on birth only if he comes into existence before the termination of the last prior estate.

(1) Transfer of Property by way of Sale

According to Transfer of Property Act 1882, “Sale is a transfer of ownership in exchange for a price paid or promised”. Transfer by sale is effected by the following methods:

by delivery of possession if the tangible immovable property is less than Rs. 100 in value;
by registration in all other cases.

Rights and liabilities of Buyer and Seller

The seller is bound:

To disclose material defects in property or in his title to property;
To produce title deeds;
To answer questions regarding title;
To execute conveyance;
To take care of property between date of contract and delivery of property;
To pay outgoings, i.e. public charges, rents, etc., up to completion of sale.

Liabilities of seller after completion of sale:

To covenant for title;
To deliver documents of title; and
To give possession.

The buyer is bound to:

To disclose materially increasing the value of property;
Duty of paying.

Buyer’s liabilities after completion:

The buyer suffers risk of loss only from the date of conveyance;
The buyer has to pay principal and future interest accruing from the date of the conveyance.

(2) Transfer of Property by means of Mortgages and Charges

Section 58 of the Transfer of Property Act says that “A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.”

Types of Mortgage

Simple Mortgage
Mortgage by Conditional Sale
Usufructuary Mortgage
English Mortgage
Mortgage by Deposit of Title Deeds
Anomalous Mortgage

Mortgages of Movables

The transfer of Property Act deals with mortgages of immovable property only, while the Contract Act, 1872 embodies the law as to pledges of movables. But a mortgage of movables is also recognized in Pakistan.

Principles Applicable to the Mortgage

Doctrine of Redemption

It is the right of the mortgagor, on tender at a proper time and place of the mortgage money, to require the mortgagee to deliver the mortgage deed to him, to deliver possession if it is given and to transfer the property to him.

Doctrine of Foreclosure or Sale

According to Section 67 of the Transfer of Property Act foreclosure is the right of the mortgagee. By this remedy the mortgagor is directed by court to pay up the mortgage money within a certain period and it is decreed that if he fails to pay up the amount, the mortgagor would be absolutely debarred of his right to redeem the property. The result of such a foreclosure decree is that the mortgagor cannot claim back the property from the mortgagee, who becomes the owner of it. This doctrine is not applicable to the simple mortgage; it applies only in case of mortgage with conditional sale.

Concept of Marshalling Securities

If the owner of two or more properties mortgages them to one person and then mortgages one or more of the properties to another person, the subsequent mortgagee is, in the absence of the contract to the contrary, entitled to have the prior mortgage-debt satisfied out of the property or properties not mortgaged to him, so far as the same will extend, but not so as to prejudice the rights of the prior mortgagee or of any other person who has for consideration acquired an interest in any of the properties.

Concept of Subrogation

Subrogation is the right to step into the shoes of another, to acquire all his rights and to enforce them in his own names. It means substitution. When a subsequent mortgagee pays off a prior mortgagee he is subrogated to the rights of the prior mortgagee.

Charges

In a charge there is no transfer of property but the creation of a right of payment out of property specified. In a mortgage there is a transfer of an interest. A mortgage therefore good against subsequent transferee while a charge is only good against subsequent transferee with notice.

(3) Transfer of Property by way of Leases

Section 105 of the Transfer of Property Act defines lease. A lease is a transfer of a right to enjoy such property, made for a certain time, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

Forms of Lease

Periodic Lease
Perpetual Lease
Bemiadi Lease (without any term and period)

There are also other forms of leases but the important ones are mentioned above.

Distinction between tenancy and lease

Distinguishing factor between “tenancy” and “lease”is not the mode of payment of rent but the period for which land is rented out by landlord. In case of “lease” fixed period is stipulated while in case of “tenancy” occupier holds land till the same is terminated expressly or by implication.

Leases how made

According to Section 107 of TPA a lease of immovable property from year to year, or for any term exceeding one year can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. (See details in the article named as “Leasing”).

Rights and liabilities of lessor and lessee

To put it briefly the liabilities of the lessor are:

to disclose material defects in property;
to put the lessee in possession; and
to allow lessee uninterrupted enjoyment of property.

The rights of lessee are:

to terminate the lease in case of destruction of property;
to make essential repairs and deduct expenses from the rent;
to make payments which the lessor is bound to make and deduct same from the rent;
to remove his own fixtures;
to benefit by crops growing on land and planted or sown by him if lease determines unexpectedly for no fault of his own;
to assign his interest in the leasehold.

The liabilities of lessee are:

to disclose facts materially increasing the value of the property;
to pay rent;
to maintain property;
to give notice of encroachment upon or interference with property by others;
not to commit waste or injure property;
not to build, except for agricultural purpose;
to restore possession on determination of lease.

Determination of Lease

A lease may be determined by:

lapse of time;
happening of a specified event;
termination of the lessor’s interest;
merger;
surrender;
implied surrender;
forfeiture; and
expiration of time given in notice to quit.

Effect of holding over

After the determination of the lease:

the lessee retains possession; and
the lessor assents to the lessee’s continuing in possession

The concurrence being evidenced by either acceptance of rent paid by the lessee, or by other acts. The result is that there arises a new tenancy.

(4) Transfer of Property by means of exchanges

When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an “exchange”.

Exchange of money

On an exchange of money, each party thereby warrants the genuineness of the money given by him.

(5) Transfer of Property by gifts

Section 122 of TPA defined the property as a transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.

Acceptance when to be made

Acceptance of the gift must be made during the life time of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.

Transfer how effected

For the purposes of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.

For the purposes of making a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery. Such delivery may be made in the same way as goods sold may be delivered.

Gift of existing and future property

A gift comprising both existing and future property is void as to the latter.

Gift to several of whom one does not accept

Section 125 says that a gift of a thing to two or more donees, of whom one does not accept it, the gift is void to the extent of the share of the person who refuses it and the share reverts to the donor.

When gift may be suspended or revoked

The donor or donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked.

Universal Donee

Where a gift consists of the donor’s whole property, the donee is personally liable for all the debts due by and liabilities of the donor at the time of the gift to the extent of the property comprised therein.

Not applicable to Islamic law regarding gifts

The provisions of gift contained in the Transfer of Property Act 1882 are not applicable to any rule of Islamic law regarding gift.

Important doctrines regarding Transfer of Property

Transfer by Ostensible Owner under Section 41

Where, with the consent, express or implied, of the persons interested in immovable property, a person is the ostensible owner of such property and transfers the same for consideration, the transfer shall not be voidable on the ground that the transferor was not authorized to make it.

Fraudulent Transfer under Section 53

Every transfer of immovable property made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. This rule does not impair the rights of a transferee in good faith and for consideration.

Every transfer of immovable property made without consideration with intent to defraud a subsequent transferee shall be voidable at the option of such transferee.

Part Performance under Section 53-A

Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, the transferor or any person claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract.

Registration of Transactions made under Transfer of Property Act

The registration of transactions i.e. mortgage, sale, exchange, lease, gift etc. shall be made under Section 17 of the Registration Act 1908 if the value of the transaction is upto or more than Rs. 100. The documents have to be submitted to the Registrar after complying with all requirements of the Registration Act along with the prescribed registration fee. In the case of an assignment of a Mortgage the consideration for the deed of assignment shall be deemed to be the value for Registration.

Stamp Duty on Transactions

Schedule I of Stamp Act 1899 prescribes stamp fee / duty which is to be charged on the documents.

Article 23 of the First Schedule of the Stamp Act prescribes the fixed stamp duty on conyances which also includes sale of movable and immovable property according to Section 2 (10) of the Stamp Act 1899.

Article 31 of the first schedule prescribes the stamp duty on the documents of exchanges.

Article 32 describes the further charge on mortgaged property and the duty imposed on such instruments.

Article 33 prescribes the stamp duty on the instruments of gifts.

Article 35 describes the stamp duty on the documents of lease.

Article 40 talks about the duty on mortgage deeds.

13. LITIGATION DEPARTMENT & SERVICES IN PAKISTAN

Our litigation practice at Asghar & Sons Jurists includes all aspects of business litigation. We regularly represent our clients in administrative proceedings, trial and appellate courts throughout the country, as well as in arbitration and other alternative dispute resolution forums. Asghar & Sons Jurists have a wide well dispersed centeralized network of offices allows our Attorneys to provide clients with a cost- effective and coordinated strategy in matters involving multiple jurisdictions.

Asghar & Sons Jurists Litigation Department recognizes that business litigation has become increasingly more complex and expensive. To meet our clients’ needs and expectations, we have organized several groups with specialized areas of concentration. These groups promote experience and creativity while helping to control costs.

Before High Court & Supreme Court regarding Tax, Commercial disputes, Arbitration, Mediation & Conciliation, Construction, Real Estate, Banking, Insurance, Employment Disputes, Utilities, Securities, Intellectual Property, Civil Litigation, Communication Laws, Debt Collection, Bankruptcy, Consumer Law, Environmental Law, Media Law and Negligence & Damages.

14. INTERNATIONAL MEDIATION LAW & LAWYERS IN PAKISTAN

International arbitration is a procedure for settlement of dispute that works in the same way to arbitration in Pakistan. In international arbitration, disputes are resolved by a specific procedure that includes an arbitrator. The object of international arbitration is to provide a neutral forum for settlement of disputes for parties engaged in international business transactions. Mediation has developed into a mainstream dispute resolution process for commercial disputes. Business and commercial mediation has developed into a sophisticated form of managed negotiation, where the resolution has to satisfy the needs and interests of the parties and help to build great relationships. It has grown beyond the skills of the mediators alone.

In commercial mediation, the lawyer/consultant can play an active and useful role – he can assist his client throughout the process, by a problem-solving approach, usually in a collaborative and constructive manner, towards a consensus-building, satisfying and value-added outcome.

ARBITRATION – Concept

The decision of an arbitrator is as binding on the parties to the arbitration as a court judgment, and it can be enforced by the courts, if necessary.

Arbitration in Pakistan

Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011;
Arbitration (International Investment Disputes) Act, 2011

What is arbitration?

How does arbitration work?

Because they are conducted by private agreement, arbitration hearings are not open to the public and the decisions reached are generally not matters of public record.

What is high-low arbitration?

Is arbitration final?

Ultimate Role of Arbitration

The processes are flexible;
There is no issues as to jurisdiction;
Arbitrators are neutral;
On the basis of procedural corporate expertise, arbitrators can be appointed;
International treaties may enforce the arbitration awards;
Since the arbitration proceedings will not be conveyed, the parties should be able to avoid the adversative publicity which usually follows litigation, so they may keep it confidential;
Where a court judgment is commonly subject to rights of appeal to higher appeal courts, an arbitration award is normally final.

LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) – 1892

STOCKHOLM CHAMBER OF COMMERCE (SCC) – 1917

INTERNATIONAL CHAMBER OF COMMERCE (ICC) – 1923

AMERICAN ARBITRATION ASSOCIATION (AAA) – 1926

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID) – 1966

CENTRE FOR ARBITRATION AND MEDIATION OF THE CHAMBER OF COMMERCE BRAZIL-CANADA (CAM CCBC) – 1979

HONG KONG INTERNATIONAL ARBITRATION CENTRE – 1985

SINGAPORE INTERNATIONAL ARBITRATION CENTRE – 1991

WIPO ARBITRATION & MEDIATION CENTRE – 1994

DUBAI INTERNATION ARBITRATION CENTRE – 1994

There are also other Regional Arbitration Centers in almost all countries, which the parties can choose in accordance with their convenience and can get the settlement through Awareness. Asghar & Sons Jurists provides support and assistance to the clients to get their dispute settled domestically and worldwide through Arbitration Centers as mentioned above and also helps the clients to get the Awards rendered by these Arbitral Forums recognized and enforced in Pakistan.

15. OUTSOURCING & PAYROLL SERVICES IN PAKISTAN

Asghar & Sons Jurists and their Attorneys Payroll Management team offers you the best of both worlds, being a leading provider offers payroll, tax compliance, and human resource solutions for employers worldwide provides a broad range of services that help employers efficiently manage their internal processes, increase productivity, ensure compliance, improve employee retention, and control cost. Utilizing both traditional and Web-based outsourcing products and services. Asghar & Sons Jurists handles many difficult employment administration functions that require extensive expertise, processing and record keeping.

Our valued clients may avail our services regarding Payroll of their Employees Outsourcing and Management by assigning their duty to Asghar & Sons Jurists, who are highly qualified professionals, specialized in Management and HR consultancy. The relevant Team has a long track record of being associated with the business community since the inception of its Legal Services from 1975. The relevant Team possesses a rare blend of foreign education and culture, emerging of new technologies in the West as well as a keen awareness of the sub-continental and gulf markets, where these services are required to be introduced.

Business Process Outsourcing services cater to businesses which need to outsource those tasks which are mundane and voluminous requiring independent evaluation and reporting, or those tasks which can be executed more efficiently and cost effectively by an outside partner. These services help organizations achieve their growth and performance objectives through:

Achieving long-term cost savings
Allowing management to focus on core business
Achieving service quality improvements
Achieving IT-enabled business transformation
Gaining access to best in class skills and capabilities

In consequence our attorneys at Asghar & Sons Jurists are in a best position, for fulfilling EMPLOYEES OUTSOURCING and MANAGEMENT requirements. And therefore, is already rendering such services to many local and foreign clients and regret our inability to disclose their identity because of Confidentiality Agreement but can safely say that our clients include the Local and Foreign Companies in the field of Pharmaceuticals, FMCG, Banking, Insurance, Telecommunications, IT Software, Chemicals, Textile, Metals, Electronics, and leading Companies engaged as manufacturers of various other items etc. Our services range from Executive Search to Bulk Recruitment and from Outsource Management to Global Employment Verification.

It is well known fact to our clients that we believe in integrity, honesty, confidentiality, professionalism and excellence. Comments given by some of our clients narrated in our website are sufficient to satisfy and win the trust of our new clients.

As you know that, Outsourcing of your personnel to us will be very cost effective way of protecting your business by reducing your exposure to the risk of legal complications, and accounts and financial related issues and at the same time achieving the best output from your personnel. Please allow us to deal with these issues while you can concentrate on your core business activities. Our Attorneys are however capable to offer these services in all important cities of Pakistan and have the capacity to manage about 5,000 persons.

The benefits which you can achieve are as under:

We will issue proper appointment and termination letters.
There will be no Legal obligation and requirement on your part.
Every aspect of Payroll will be properly taken care of, by us.
You can save time and money by outsourcing your employees and managed payroll services.
Changes in payroll legislation and statutory requirements are kept in view.
There is no IT and training cost, or software or hardware or stationary cost.
You don’t require any payroll expertise.
You can avoid the inconvenience and cost of payroll staff on leave.
Confidentiality, processing accuracy and meeting payment deadlines are ensured.
Monthly reports are sent to meet your requirements.
Every work is being done in accordance with Labour laws without your worry.
You’re also saved from the employees from their grievances.
The employees are issued identity cards.

It is very essential for every business company to ensure that timely and appropriate payments are being made to employees to maintain their level of satisfaction and increase motivation. It is known to all that the employees are the back bone of all business entities and their interests need to be properly fulfilled. For this very reason, payroll processing and payment thereof has its own importance.

You have only to provide data about the employees and the agreed remunerations package and you can give the responsibility to us to take care of your problems by following activities and only you have to furnish us the attendance record prior to the pay day. In case you pay us the whole payable salary on first day of each month then we’ll deduct the Tax from each salary, where applicable and send the pay cheque to his bank account prior to seventh of each month or the date given by you. Asghar & Sons Jurists also makes the appointment agreements keeping in view the Labour Laws involved in his particular case in order to avoid any dispute in future. Similarly, we will deal all resignation and termination process.

You’ll have to nominate a focal person from your company for communication with Attorneys of Asghar & Sons Jurists. His responsibility will be to communicate any amendments of employees regarding attendance, pay changes, deductions, according to your records.

Our service charges are quite nominal, which are Seven percent on the gross monthly salary of each employee subject to the negotiations. Other terms and conditions can be incorporated and finalized while making the mutual contract on this issue. At the end it is necessary to mention that we work hard to obtain and keep our customers. In a competitive world, customer service sets us apart. We believe that our customers deserve efficient services at competitive prices.

16. OIL & GAS LAW, REGULATIONS & LITIGATION IN PAKISTAN

Asghar & Sons Jurists have leading Oil & Gas legal practitioners and their Attorneys advises governments and NOCs (National Oil Companies), IOCs (International Oil Companies), Independent Oil and Gas Companies, and funders (debt and equity) on all aspects of the oil and gas supply chain, including upstream (exploration and production), midstream (storage and transportation), downstream (fuels and lubricants, marketing and refining, retail and chemicals) as well as the LNG and related productions.

Our integrated practice advises clients on transactions relating to project development, M&A (both public and private), funding (equity, debt and Islamic financing), energy and emissions trading and litigation and arbitration. All of these transactions are supported by our market leading experts in areas such as taxation, antitrust, regulatory, environment and employment, to name but a few.

Asghar & Sons Jurists have been at the forefront of this vibrant market since long, advising IOCs, NOCs and host governments, sponsors, funders (equity and debt), and contractors on market leading transactions globally.

History

Petroleum (L. petroleum, from Greek , lit. “rock oil”, first used in the treatise De Natura Fossilium published in 1546 by the German mineralogist Georg Bauer, known as Georgius Agricola[1]) or crude oil is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds.

Composition

The proportion of hydrocarbons in the mixture is highly variable and ranges from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumens. The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium. The exact molecular composition varies widely from formation to formation but the proportion of chemical elements vary over fairly narrow limits as follows:

ELEMENT	PERCENT RANGE
Carbon	83 to 87%
Hydrogen	10 to 14%
Nitrogen	0.1 to 2%
Oxygen	0.1 to 1.5%
Sulfur	0.5 to 6%
Metals	less than 1000 ppm

Table: Elements and their Percent Range

Octane, a hydrocarbon found in petroleum, lines are single bonds, black spheres are carbon, white spheres are hydrogen

Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and saline water which being heavier generally floats underneath it. Crude oil may also be found in semi-solid form mixed with sand as in the Athabasca oil sands in Canada, where is usually referred to as crude bitumen. In Canada, bitumen is considered a sticky, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow.Four different types of hydrocarbon molecules appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil.

Hydrocarbon	Average	Range
Paraffins	30%	15 to 60%
Naphthenes	49%	30 to 60%
Aromatics	15%	3 to 30%
Asphaltics	6%

Table: Hydrocarbon and its Quantity

MINISTRY OF PETROLEUM & GAS PAKISTAN

The Ministry of Petroleum & Natural Gas is entrusted with the responsibility of exploration and production of oil and natural gas, their refining, distribution and marketing, import, export and conservation of petroleum products and Liquefied Natural Gas. Petroleum & Natural Resources Division was created in April 1977. Prior to that Petroleum and Natural Resources was part of the Ministry of Fuel, Power and Natural Resources. To ensure availability and security of sustainable supply of oil and gas for economic development and strategic requirements of Pakistan and to coordinate development of natural resources of energy and minerals.

INVESTMENT POLICY FEATURES

Equal treatment to local & foreign investors
All economic sectors open for FDI
Foreign equity upto 100% allowed
No Government sanction required
Attractive incentive packages
Remittance of royalty, technical & franchise fee allowed
Network of Export Processing Zones
Export Manufacturing Zero-rated
Bilateral Agreements
- Investment Protection: More than 50 Countries
- Avoidance of Double Taxation: 64 Countries

OIL SECTOR

PETROLEUM PRODUCTS SUPPLY AND DEMAND

The petroleum products account for approximately 40 percent of modern energy consumption in Pakistan. Consumption of petroleum products grew sharply during the 1980s at about 7 percent per annum, but slowed to about 2.5 percent during late 1990s and has gained a momentum in 2004-05 of 9.31%. Oil products consumption is highly skewed, with nearly 83 percent in the form of high speed diesel (HSD) and fuel oil (FO). Only 18 percent of the liquid fuel supplies are met from local sources, and the balance is imported in the form of either crude oil or finished products. Over the past three years, gross imports of liquid fuels have averaged 23.1 million tons (MMT) per annum, generating an import bill of some US$ 5.8 billion.

The Petroleum Downstream Market

Port Facilities: Crude oil, white-oil products, and low sulfur fuel oil (LSFO) are received at the Karachi Port, while LPG and high sulfur fuel oil (HSFO) are received at the Fauji Oil Terminal at Port Qasim. The port facilities are connected to the tankage/storage facilities of the refineries and oil marketing companies (OMCs).

Transportation: Transportation: Most of the domestic crude oil and petroleum products are moved by road bowzers or tank lorries. The total number of tank lorries is estimated at 14,000-16,000, with various capacities (10-30 tons) and age, largely owned by private individuals and small firms. The road tanker fleet is used both for short-haul secondary distribution within cities, and medium to long-haul shipments around the country. Given the apparent high rates set by the government, there is a large excess of tankers, and this oversupply will become more acute when the WOPP is completed in 2004. In addition to the road-tankers fleet, Pakistan Railways (PR) transports mostly fuel oil, and operates 5,400 tank wagons for this purpose. However, its movement capacity is severely hampered by locomotive availability and other rail infrastructure constraints.

REFINING

Pakistan has three older hydro-skimming refineries plus the mid-country PARCO refinery which began operations in 2000 and Bosicor refinery which started operation in 2003. Together the five refineries have a total capacity of 12.82 million tones per annum, and processed 11.33 MMT of crude in the year 2004-05. The refineries produce a full range of products, including lube base oils and asphalt. However, only 60 percent of their production is HSD and FO, resulting in a significant mismatch between refined product output and market profile. Pakistan exports surplus gasoline and naphtha, and is self-sufficient in other petroleum products, such as kerosene and aviation fuels.

In the oil marketing sector, seven oil marketing companies (OMCs) namely, Pakistan State Oil Limited (PSO), Shell Pakistan Limited (SPL), Caltex Oil (Pakistan) Limited (COPL), Total-Parco Pakistan Limited (TPPL), Attock Petroleum Ltd (APL), Parco-Pearl and Admore Gas Pvt Ltd are operating in Pakistan with an overall market share of 64.2%, 19.9%, 7.3%, 4%, 2.6%, 1.3% and 0.7% respectively. New companies like Bosicor Pakistan Limited, Hascombe storage (Pvt) Limited, Overseas Trading Company, Askar Oil Services (Pvt) and Bakri Trading Company Pakistan (Pvt) Ltd have entered the market in the recent past which is an ample demonstration of the attractiveness of oil marketing business in Pakistan.

Supply And Demand

HSD (High Speed Diesel) is the main deficit product, with imports of about 4.5 million tons per annum in recent years. Fuel Oil has experienced reduction in demand in the last couple of years because of substitution with natural gas and Hydel power availability. There was a growth of about 5.5% in Gasoline demand in the country during 2004-05, however surplus local production is being exported in the shape of Naphtha by the Refineries. HSD growth rate during the 2004-05 was 5.5% and projected growth for 2005-06 is also 5.5% whereas Fuel Oil growth projected for the year 2005-06 is around 12%. The energy supply demand projections have indicated that total deficit of petroleum products mainly HSD and Furnace Oil will rise to about 8.89 million tons by 2010.

Availability Of Land For The New Refinery Project

The federal Government has approved land and incentives for setting up a new state of the art Deep Conversion Coastal Oil refinery at Khalifa Point, at Hub Balochistan near Karachi.

Incentives

All facilities will be provided as per Export Promotion Zone Authority (EPZA) Rules at Khalifa Point with the modification that land owned by State Petroleum Refining and Petrochemicals (PERAC) for the setting up of Refinery will be provided free of cost as per the requirement of setting up of a refinery, and will be used only for new Refinery and not as Government equity.
There will be no restriction on the import of crude oil.
Crude oil imports will be exempted from customs duties and taxes (all other incidental charges associated with the import will, however, be applicable).
The Government will facilitate installation of supporting infrastructure including Single Point Mooring (SPM), sub-marine pipelines, product pipelines and electric power supply from national grid.
Sales tax exemption will be allowed on the quantity of Petroleum Products exports while sales tax will be applicable on the products marketed locally.

Incentives already available in Petroleum Policy, 1997

No prior permission is required for setting up a new refinery or for expansion the existing ones.
Import parity price formulated for new oil refinery projects’ prices based on Singapore Mean FOB spot price along with all applicable local charges. There will be no minimum Rate of Return guarantee for new refinery projects.
The limit of 10 – 40% on the rate of return for existing refineries will be removed subject to agreements being executed with the Ministry of Petroleum & Natural Resources covering development and expansion plans.
Other income earned from non-refinery operations can be retained by the refineries.
Import of crude oil will be permitted from any source, subject to price economics after upliftment of local crude oil if so allocated.
Export of surplus products will be allowed freely.
GOP will not give any product off take right guarantee. Refineries shall be allowed to sell products to any marketing company or they can setup their own companies.
Custom / relevant authorities will accept instructions for release of equipment on the basis of the recommendations of Regulatory Authority. Import duties and taxes will be payable as per applicable SROs.

Terms & Conditions

The refinery will be designed and constructed in accordance with internationally acceptable technical codes and standards.
The refinery will have the capacity to produce at least 60% middle distillates.
Product Specifications for the refinery will be in accordance with EUR III specifications for both domestic as well as export markets.
There will be no guaranteed return for this new refinery.
The refinery will be required to optimized its own operations and thus responsible for its margins.
The refinery will be free to sell surplus products in the international market at internationally competitive prices.
The proposed refinery location will be declared as Export Processing Zone (EPZ) and the criteria / incentives offered by EPZA will be applicable.
The 80/20 rule (which requires export of 80 percent of total production to foreign countries) applicable for industries established under EPZ rules will be relaxed for this project to attract investment.
The refinery will be completed and commissioned by December 3, 2010.

Evaluation Criteria

Technical suitability (including experience in implementing an operating oil and gas sector projects, especially petroleum refineries, appropriateness of project execution plan etc.). The potential investor should have sufficient experience in developing and operating similar oil refinery (ies) based on technical standards and including efficiency and stipulation by the best international petroleum industry standards.
Financial soundness (ownership/ shareholding structure, annual revenues etc.). The potential investor should have financial capability and resources sufficient to meet obligations associated with development and operation of the proposed refinery.
Ministry of Petroleum and Natural Resources and OGRA will select the party for setting up the refinery through international competitive bidding, with the objective to bring in quality investors who has ability to set-up a state of the art brand new refinery within the stipulated timeframe.
Investors selected on the above mentioned criteria will have to obtain license from OGRA under OGRA ordinance, 2002.

Pricing formula for new refineries

The ex-refinery prices will be set on a calendar quarter basis.
The base price for each product will be the 3 month Average of the Singapore Mean Spot Prices as reported in an international Pricing Service. For price setting purpose, the 3 running months date ending on the 14th of the month; immediately preceding the month in which the prices will become effective, will be used e.g. The date for the period September 15th to December 14th will be used to establish the prices effective January 1st.
All local / landing charges applicable on import of crude oil is allowed to be recovered in the price build-up, calculated as if applicable at the same rate on each refined product. Such local/handling charges currently are:
- Letter of credit opening charges, 0.25% of C&F
- Marine insurance, 0.11% of C&F
- Ocean loss element, 0.5% of the C&F
- Wharfage at actual applicable on crude oil
- Local Handling Charges applicable on crude oil 0.15% of C&F
Crude imports will be exempt from customs duties and taxes. However, all other incidental charges are payable by the refinery.
The individual product price calculated formula will be as under:
LPG taken at Kerosene plus BTU premium of 5% i.e. 105% of kerosene.
Mogas. Current 80 Ron, 0.4g/l lead quality. Taken at S’pore 92 Unleaded (UL) less 0.5 Cents/AG (CAG) per RON Octane penalty i.e. penalty of 0.5 CAG = $0.21/barrels/RON X 12 RON = $ 21.42/mton.
Premium gasoline. Current 87 RON, 0.63 g/lead quality. Same octane penalty as Mogas i.e. $0.21 x 5 RON – $ 1.05/Bbl.= $ 8.925/mton.
HOBC Current 97 RON 0.84 g/lead quality. Taken at S’pore Mean for 95 UL(Lead penalty considered).
Regular Gasoline: 92 RON, 0.15 g/lead. Taken at S’pore mean for 92 UL.
Premium Gasoline: 97 RON at 0.15 g/lead. Taken at S’pore mean, 97 UL
Kerosene: Taken at S’pore mean, Kerosene.
HSD 0.5% S: Taken at S’pore mean, gasoil 0.5%.
HSD 1.0% S: Taken at S’pore mean, gasoil 1.0%
Fuel oil 180 cst, 3.5% S: Taken at S’pore mean, HSFO 180.

GAS SECTOR

Natural gas is a source of wealth for Pakistan. It is a clean fuel, there is a large market (and unmet demand), and given the country’s extensive use of fuel oil, the economic benefits of conversion from liquid fuels to natural gas are high.

Supply and Demand

Pakistan has limited natural gas deposits. At present, recoverable natural gas reserves in Pakistan are 32 Trillion Cubic Feet (TCF) and Reserve to Production (R/P) ratio based on current production of 3.7 Billion Cubic Feet per Day (BCFD) is 23 years. One of the significant developments in local gas market is the increase of natural gas share in primary energy supply mix from about 40% in 1999-2000 to over 52% in 2004-05 in about five years. If the demand/supply trend of past five years is maintained, the R/P ratio reduces significantly necessitating urgent need to increase natural gas supply. The Government of Pakistan has accordingly placed the highest priority to (a) enhance indigenous

Natural gas supplies through intensified exploration efforts, and (b) import natural gas through pipeline from neighboring countries as well as LNG.

LIQUEFIED PETROLEUM GAS (LPG)

Liquefied Petroleum Gas (LPG) is a colorless, odorless and environment friendly mixture of hydrocarbons (mainly propane and butane) which is gaseous at normal temperature and pressure, and lique fiable under reduced temperature or moderate pressure. A chemical ethyl mercaptan is added to impart a pungent odour for leak detection. Currently about 1600 tons/day LPG is being produced domestically contributing 0.4 % to the total energy supply mix. Because of its characteristics LPG is fast becoming a fuel of choice in the areas, where natural gas distribution network is not available. Currently out of 25 million households in Pakistan, 4.3 million are connected to natural gas network and the rest are relying on LPG and conventional fuels like coal, firewood, kerosene, dung cake etc.

There are eight (8) producers and 42 LPG marketing and distribution companies in domestic, commercial and industrial sector. They get their supplies mostly from the refineries, the gas processing plants, and to a minor extent, through imports.

Government of Pakistan has deregulated LPG allocation and prices. The Government therefore does not fix LPG prices for producers as well as consumers with a view to promote healthy competition and to improve safety and service standards. All the new producers of LPG are now free to market their product themselves or dispose it of through any LPG marketing company.

Import Of LPG And Duty Structure

According to government’s import policy, LPG is included in the free list of imports. However for its handling, storage and marketing in Pakistan there is a requirement of license from Oil and Gas Regulatory Authority (OGRA). LPG can be imported through sea and land routs on payment of 5% customs duty. LPG import facility is available at EVTL’s terminal at Port Qasim having storage capacity of 5000 M. Tons.

LIQUEFIED NATURAL GAS (LNG)

Pakistan’s Gas Demand and Supply Projections indicate a widening gap of approximately 600 MMCFD by the year 2010-11.

The gap starts to emerge in 2007-08 and built up to 1000 MMCFD by 2010-11. In order to address the projected shortage, strong emphasis is being laid on importing gas from neighboring gas-producing countries, through cross-border gas pipelines and also in the form of liquefied natural gas (LNG). It is expected that LNG receiving, storage, re-gasification, and distribution infrastructure, for the distribution and sale of regasified LNG in the domestic market, will be installed in the near future, and expanded periodically, as necessary.

COMPRESSED NATURAL GAS (CNG)

Government of Pakistan is encouraging the use of Compressed Natural Gas (CNG) as an alternate fuel for automotives in order to control environment degradation, save foreign exchange in import of liquid fuels and generate employment. Due to Government’s encouragement, Pakistan has become third largest CNG user in the world.

LAWS REGULATING THE PETROL AND GAS IN PAKISTAN

There are certain laws which deal with the petrol and gas in Pakistan. The purpose of these laws is to regulate the production, refining, blending, import, storage and marketing of the petroleum products in the whole of Pakistan as well as in the world.

Liquefied Natural Gas LNG POLICY 2006
LPG Production and Distribution Policy 2006
National Mineral Policy (NMP) 1995
Natural Gas Allocation and Management Policy 2005
Petroleum Exploration & Production Policy 2001
Petroleum Policy 1997
Petroleum Policy 2007

Pakistan Offshore Petroleum (Exploration and Production) Rules, 2003

The rules determine the steps and procedure for petroleum products on offshore areas. Offshore area means all the areas that lies completely seaward from the high water mark within the jurisdiction of Pakistan, and includes all areas within the territorial waters, the historic waters, the contiguous zone, the continental shelf and the exclusive economic zone as defined in the Territorial Waters and Maritime Zones Act, 1976.

The Liquefied Petroleum Gas (Production and Distribution) Rules, 1971

The object of the rules is to make rules for the regulation of Mines and Oilfields and Mineral Development. It includes the production, liquefaction, separation.

Stripping, transmission, processing, storage, filing or distribution of LPG. For the working of all these functions, corporation is entitled to a license.

PETROLEUM POLICY 2007

The Government of Pakistan (GOP) is committed to accelerate an exploration and development programs order to reverse the decline in crude oil production, to increase the domestic gas production and supply and to reduce the burden of imported energy which otherwise will have adverse effect on the balance of payments & trade.

The principal objectives of this Policy are

To accelerate E&P activities in Pakistan with a view to achieve maximum self sufficiency in energy by increasing oil and gas production.
To promote direct foreign investment in Pakistan by increasing the competitiveness of its terms of investment in the upstream sector.
To promote the involvement of Pakistani oil and gas companies in the country’s upstream investment opportunities.
To train the Pakistani professionals in E&P sector to international standards and create favorable conditions for their retaining within the country.
To promote increased E&P activity in the onshore frontier areas by providing globally competitive incentives.
To enable a more proactive management of resources through establishment of a strengthened Directorate General of Petroleum Concessions (DGPC) and providing the necessary control and procedures to enhance the effective management of Pakistan’s petroleum reserves.
To undertake exploitation of oil and gas resources in a socially, economically and environmentally sustainable and responsible manner.

The Petroleum Products (Development Surcharge) Ordinance 1961

The purpose of the Ordinance is to provide for the levy and collection of a development surcharge on petroleum products and for matters connected therewith.

Every refinery and every company shall pay to the Central Government a development surcharge equal to the differential margin in respect of petroleum products produced or, as the case may be, purchased by it for resale except for export.

Any amount or arrears due as development surcharge and not paid within the time allowed by the Central Government or any officer, authorized by it in that behalf shall be recoverable as arrears of land revenue.

The Central Government, in such general cases as it may prescribe by rules or in particular cases by special order may grant exemption from development surcharge to refinery or company on such conditions, limitations or restrictions as it may think fit to impose.

The Marketing of Petroleum Products (Federal Control) Act, 1974

The aim of the act is to provide for the management and development of marketing facilities in petroleum products.

The Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971

The purpose for the making of these rules is the regulation of Mines and Oilfields and Mineral Development.

COMPRESSED NATURAL GAS (CNG)

Natural gas is an important source of energy not only for domestic purpose but also for Commercial purposes. About 54% of the energy sources are meet through it.Pakistan’s total remaining gas reserves are estimated at 28. 51 TCF as on 30-06-2005 which are adequate for meeting gas requirement of Pakistan for 19 years at current rate of production. Pakistan possesses a well developed extensive system of gas supply, developed in Pakistan through Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).

NEW POLICY FOR ISSUANCE OF NOCs FOR INSTALLATIONS OF CNG STATIONS

The Federal Government has recently introduced the following policy regarding issuance of NOCs for installation of CNG stations:

For installation of a CNG station at existing petrol pumps, there is no need of any additional NOC except from the Department of Explosives and Third Party certification from HDIP including a reputable Private Sector Company of high standards.

For installation of a stand-alone CNG station at raw sites/new locations, NOCs only from the following authorities be obtained: Gas utility Company, Department of Explosives, Civil Defence, Tehsil Municipal Officer, and Third Party certification from HDIP including a reputable Private Sector Company of high standards.

All authorities concerned must decide for issuance of NOC(s) or otherwise within one month of the receipt of request.

SETTING UP OF CNG STATION: No person can set up CNG station without first obtaining license from the Authority i.e. Oil and Gas Regulatory Authority Islamabad under Rule 6 of CNG (Production & Marketing) Rules, 1992. Initially OGRA issues provisional license for a period of 2 years for setting up CNG station. After obtaining provisional license from the authority, the licensee is supposed to start construction of the station and also obtain NOCs from the local authorities and a license from DEPARTMENT OF EXPLOSIVES on Form B.

CNG MARKETING LICENSE: After completion of CNG station, the authority under Rule 7 of CNG Rules 1992, issues fifteen years Marketing License subject to submission of following documents: a. Valid explosive license on form B. and b. Satisfactory report of 3rd party inspector regarding construction of CNG works by the party in accordance with the CNG Rules

TYPE OF MACHINERY / EQUIPMENT ALLOWED FOR CNG: Only approved CNG equipment/ machinery can be imported and installed at CNG stations approved by the competent authority as amended from time to time. List of authorized Equipments

CNG RULES 1992: Government has promulgated CNG Rules 1992 for regulation of all CNG activities. The rules provide for the procedure for setting up CNG stations and safety code for practice etc.

Liquefied Natural Gas LNG POLICY 2006

National Mineral Policy (NMP) 1995

The Government of Pakistan is cognizant of the role of mineral industry in the overall economic and social development of the country and its importance in industrial and export promotion. It is also conscious of the unique characteristics of the mining industry like highly risk prone, capital intensive and subject to global competition with high volatility of prices. To harness the fairly adequate mineral potential with national and international investment, the Government of Pakistan has formulated National Mineral Policy offering appropriate institutional arrangements at federal and provincial levels; time bound investment friendly regulatory regime and internationally competitive fiscal incentives.

Asghar & Sons Jurists deal with all kinds of problems regarding petroleum products everywhere in Pakistan. We can also resolve your legal or otherwise administrative issues. If you are a foreigner and want investment in Pakistan in the petroleum filed like production, refinery, and marketing etc. of Petrol and Gas we can definitely have helping hands for you.

17. NON PROFIT ORGANIZATION SETUP IN PAKISTAN

A Non Governmental Organization (NGO) is any non-profit, voluntary citizens’ group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest. NGOs perform a variety of services and humanitarian functions, bring citizens’ concerns to Governments, monitor policies and encourage political participation at the community level. They provide analysis and expertise, serve as early warning mechanisms and help, monitor and implement international agreements. Some are organized around specific issues, such as human rights, the environment or health.

A Non-Governmental Organization (NGO) is a legally constituted organization created by private persons or organizations with no participation or representation of any government. In cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status insofar as it excludes government representatives from membership in the organization. While most of the NGOs work at the grass root level with the communities, some provides analysis and expertise, serve as early warning mechanisms and help monitor and implement international agreements.

The World Bank defines NGOs as “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services or undertake community development”. A World Bank Key Document, working with NGOs adds, “In wider usage, the term NGO can be applied to any non-profit organization which is independent from government. NGOs are typically value-based organizations which depend, in whole or in part, on charitable donations and voluntary service. Although the NGO sector has become increasingly professionalized over the last two decades, principles of altruism and voluntarism remain key defining characteristics.”

Our Attorneys at Asghar & Sons Jurists are well conversant with the prevailing laws and regulations in Pakistan for the Registration of Non-Government Organization (NGO) and further can play valuable legal advisory role for the swift management of affairs as to said NGO. We at Asghar & Sons Jurists under the guidance of Honorable Sir Asghar Malik have necessary infrastructure and Valuable knowledge in order to establish NGO for any purpose subservient.

TERMS USED FOR NON GOVERNMENTAL ORGANIZATIONS

Apart from ‘NGO’ often alternative terms are used as for example “Independent Sector”, “Volunteer Sector”, “Civil Society”, “Grassroots Organizations”, “Transnational Social Movement Organizations”, “Private Voluntary Organizations”, “Self-help Organizations” and “Non State Actors” (NSAs).

FREEDOM OF ASSOCIATION

Constitution of Islamic Republic of Pakistan, 1973 laid down the fundamental rights of the citizens of Pakistan and right to form an Association is the fundamental right. Every citizen shall have the right to form Associations or Unions, subject to any reasonable restrictions imposed by law in the interest of morality or public order.

HOW NON GOVERNMENTAL ORGANIZATIONS ARE GET REGISTERED?

Society
Trust
Company

NON GOVERNMENTAL ORGANIZATIONS ARE NOT FOR PROFITS. SO CAN THEY MAKE PROFITS?

Yes. It would be called as surplus and not profit. Like Companies, which can distribute profits in the form of dividends, NGOs can not distribute surplus.

NON GOVERNMENTAL ORGANIZATIONS ARE REFERRED IN MANY WAYS

NPOs as Not for profit Organizations
VOs as Voluntary Organizations
CSOs as Civil Society Organizations
CBOs as Community Based Organizations
Charitable Organizations
Third Sector Organizations

TYPICAL FORMS OF NON GOVERNMENTAL ORGANIZATIONS

Advocacy

These NGOs basically work on advocacy or campaigning on issues or causes. As a focus, they do not implement programmes. e.g. PETA works on advocating the cause of Ethical Treatment of Animals. It is not an animal shelter, which many expect.

Consultancy / Research Organizations

These NGOs work on Social and Developmental Research & Consultancy.

Training / Capacity Building Organizations

In the NGO Sector, training is usually called as Capacity Building. Some NGOs only work on Capacity Building of the other NGOs.

Networking Organizations

These NGOs provide vital network opportunities for NGOs in a specific field e.g. Association of Voluntary Agencies for Rural Development (AVARD) works on networking of NGOs working in the field of Rural Development.

Mother NGOs

These NGOs are recipients as well as givers e.g. large NGOs like CRY, Concern India receive funds as well as disburse funds. They have a work focus, but instead of implementing projects, they identify projects and monitor, evaluate and build capacities of participating NGOs.

Grass root Organizations

These NGOs work directly with the community.

City Based Organizations

These NGOs restrict their focus to cities.

National Organizations

These NGOs have national presence, e.g. CRY, Pratham, Concern India

International Organizations

These are part of International NGOs e.g. CARE India is an integral part of Care’s global operations. Like mother NGOs, these NGOs receive and disburse grants.

Self Help Groups

They are not typically terms as NGOs. These are formed by beneficiary communities, typically women who come together in a group of 10 plus.

Religious NGOs

Large percentage of NGO funding goes to religious based Organizations.

SOME PROMINENT INTERNATIONAL NON GOVERNMENTAL ORGANIZATIONS

These include:

INGO: stands for International NGO;
BINGO: is short for Business-oriented International NGO, or Big International NGO;
ENGO: short for Environmental NGO, such as Global 2000;
GONGOs: are Government-Operated NGOs, which may have been set up by governments to look like NGOs in order to qualify for outside aid or promote the interests of the government in question;
QUANGOs: are Quasi-Autonomous Non-Governmental Organizations, such as the International Organization for Standardization (ISO). (The ISO is actually not purely an NGO, since its membership is by nation, and each nation is represented by what the ISO Council determines to be the ‘most broadly representative’ standardization body of a nation. That body might itself be a non-governmental organization; for example, the United States is represented in ISO by the American National Standards Institute, which is independent of the federal government. However, other countries can be represented by national governmental agencies; this is the trend in Europe.)
TANGO: short for Technical Assistance NGO;
CSO: short for Civil Society Organization.

NGOs vary in their methods. Some act primarily as lobbyists, while others conduct programs and activities primarily. For instance, an NGO such as Oxfam, concerned with poverty alleviation, might provide needy people with the equipment and skills to find food and clean drinking water.

UNITED NATIONS AND NON-GOVERNMENTAL ORGANIZATIONS (NGOs)

Their relationship with offices and agencies of the United Nations System differs depending on their goals, their venue and their mandate.

Over 1,500 NGOs (with strong information programmes on issues of concern to the United Nations) are associated with the Department of Public Information (DPI), giving the United Nations valuable links to people around the world. DPI helps those NGOs gain access to and disseminate information about the range of issues in which the United Nations is involved, to enable the public to understand better the aims and objectives of the World Organization.

WORLD ASSOCIATION OF NON GOVERNMENTAL ORGANIZATIONS

The World Association of Non-Governmental Organizations (WANGO) is an International Organization uniting NGOs worldwide in the cause of advancing peace and global well being. WANGO helps to provide the mechanism and support needed for NGOs to connect, partner, share, inspire and multiply their contributions to solve humanity’s basic problems.

Initiated in 2000 by a handful of International NGOs and prominent visionaries, WANGO has quickly become one of the premier International bodies for Non-Governmental Organizations that are committed to the ideals of universal peace, justice, and well being for all humanity.

PUBLIC RELATIONS OF NON GOVERNEMTAL ORGANIZATIONS

Non-governmental organizations need healthy relationships with the public to meet their goals. Foundations and charities use sophisticated public relations campaigns to raise funds and employ standard lobbying techniques with governments. Interest groups may be of political importance because of their ability to influence social and political outcomes. At times NGOs seek to mobilize public support.

MANAGEMENT OF NON GOVERNMENTAL ORGANIZATIONS

Two management trends are particularly relevant to NGOs: “Diversity Management” and “Participatory Management”. “Diversity Management” deals with different cultures in an organization. Intercultural problems are prevalent in Northern NGOs which are engaged in developmental activities in the South. Personnel coming from a rich country are faced with a completely different approach of doing things in the target country. A “Participatory Management” style is said to be typical of NGOs. It is intricately tied to the concept of a learning organization; all people within the organization are perceived as sources for knowledge and skills. To develop the organization, individuals have to be able to contribute in the decision making process and they need to learn.

LEGAL STATUS OF NON GOVERNMENTAL ORGANIZATIONS

NGOs are not subjects of international law, as states are. An exception is the International Committee of the Red Cross, which is subject to certain specific matters, mainly relating to the Geneva Convention.

The Council of Europe in Strasbourg drafted the European Convention on the Recognition of the Legal Personality of International Non-Governmental Organizations in 1986, which sets a common legal basis for the existence and work of NGOs in Europe. Article 11 of the European Convention on Human Rights protects the right to freedom of association, which is also a fundamental norm for NGOs.

Non Governmental Organizations (NGOs) have become increasingly influential in world affairs. They often impact the social, economic and political activities of communities and the country as a whole. NGOs address a host of issues, including, but not limited to, women’s rights, environmental protection, human rights, economic development, political rights, or health care. In numerous countries, NGOs have led the way in democratization, in battling diseases and illnesses, in promoting and enforcing human rights, and in increasing standards of living.

Twenty NGOs from Pakistan are currently associated with DPI, a figure that is gradually increasing. These NGOs are working in diverse areas such as education, the environment, human rights, health, care and women’s rights and naturally advocate the goals of the United Nations.

KEY INGREDIENTS OF NON GOVERNMENTAL ORGANIZATIONS

The key ingredients that make or break an NGO/NPO, of course, are its programmes and projects. It covers the issues and themes that the NGO/NPO addresses, the target areas or communities that it works in, funding available and the activity’s partners.

These are influenced by, among other things:

They felt needs of target community (what are the real problems faced by the target community? How can the NGO/NPO identify them, or create a forum where it can be expressed by the community?
Staff expertise available (what expertise and skills do the NGO/NPO staff possess? Are they full-time or part-time staff? How can external human resources be mobilized?)
Funding strategy (what sources of funding can the NGO/NPO tap into? Which of these are local and international? How can funds for short-term and long-term activities be mobilized?)

While it is critical that a new NGO/NPO ensure it is properly registered with the public authorities of the country, it is of even more importance to ‘register’ with its target community – in terms of ensuring acceptability, building trust, programme and project effectiveness, and bringing about real change.

STATUS OF NON GOVERNMENTAL ORGANIZATIONS IN PAKISTAN

Non Governmental Organizations also called as non profit organizations or charitable Institutions. Constitution of Pakistan, 1973 considers it the fundamental right of every citizen to form Associations. It is right and freedom of the citizens of Pakistan to form Associations. Non Governmental Organizations can be registered under the Companies Ordinance, Trusts Act, Societies Registration Act and Income Tax exempts such Associations from any sort of tax.

REGISTRATION OF NON GOVERNMENTAL ORGANIZATIONS UNDER COMPANIES ORDINANCE

Procedure for registration of Non Governmental Organizations under Sec. 42 of the Companies Ordinance and Companies (General Provisions and forms) Rules, 1985 is given as under. A license will be issued to the NGO’s under the Companies Ordinance as it will be registered as a Company with limited liability without the word “Limited”, “(Private) Limited”, or “(Guarantee) Limited”. These Companies applies or intends to use its profits for the promotion of its object and prohibit the payment of any dividend to its members.

18. PROVIDENT FUND LAW, LAWYERS & LITIGATION IN PAKISTAN

Provident fund is a very common retirement plan to benefit the employees, which is contributory in nature and yields a feeling of participation in employees. The Establishment settles the Provident Fund in form of Trust, required to be registered with the concerned Sub-registrar for getting the status of an independent Body. There are three types of Provident funds, which are known as:

Statutory Provident Funds, which are set up under the Provident Fund Act, 1925 and is maintained by the Government, semi Government organizations, local authorities and other such institutions. Payments from such funds does not need recognitions from the Commissioner Inland Revenue and are exempted from Income Tax.

Recognized Provident Fund, which is recognized by the Commissioner Inland Revenue under the Sixth Schedule of Income Tax Ordinance, 2001. This type of Provident Fund is maintained by private sector or organizations. Payments from such Provident fund are exempted from Income Tax.

Unrecognized Provident Fund No exemptions are available but there is no yearly taxability. Employer’s contributions and interest thereon will be taxable at the time of payments to the employees only.

The Trust is responsible for collection of contribution from employers and employees on monthly basis and to invest the same in various permissible schemes and securities.

The Provident fund is created by the employer in the form of irrevocable Trust, with the name, reflecting the name of the Company and containing the term Employees’ Contributory Provident Fund. At least three to five trustees are appointed for the management of the Trust who are named in the Trust Deed. The Provident Fund Trust Rules are separately prepared / drafted. The Trust Deed is written on the Stamp Paper. The Trust Deed and the Rules specify the terms and conditions pertaining to responsibilities, duties, rights and the liabilities of the company, employees, trustees, auditors, bankers, actuaries etc.

Asghar & Sons Jurists and their dedicated Attorneys are well conversant with the prevailing Laws, Statutes and Enactments as to the Provident Fund hence are in a great position to provide legal assistance to their clients. If you need any assistance as to Provident Fund, please feel free to contact our Attorneys. Asghar & Sons Jurists can help to write Trust Deed to create Provident Fund and Rules to administer it. We can also get it registered and further apply for Tax exemption.

The Trust Deed must broadly contain the information regarding administration and management of the Fund. The eligibility of the membership and companies roles and power in the administration of the fund should also be given. Apart from it the contributions and investments of the fund’s money should also be mentioned. The distributions of the profit among members and the terms regarding the dispute and arbitrations methods may be specified.

The Trust Deed should be registered with the Registrar of the Trust which is a mandatory requirement. One trustee can be authorized to appear before the Registrar and the copies of ID cards of all the trustees and 2 Passport sized photographs of each trustee have to be filed before the Registrar along with original Trust Deed and copy of the Rules. After its registration the Trust has to get its National Tax Number and all the trustees have also to get their NTNs.

After registration is done the application for tax exemption approval is to be filed under Part I of the Sixth Schedule of the Income Tax Ordinance, 2001 before the Commissioner Inland Revenue. Tax exemption’s approval is granted for lifetime of the Provident Fund. The conditions for the approval are also given in Part I of the Sixth Schedule of the Income Tax Ordinance, 2001.

The conditions for tax exemptions are that all the employees should be employed in Pakistan or being employed by the resident employer. However, the tax exemption’s approval can be given to non-resident employer if the total ratio of employees employed outside Pakistan is not more than 10%. The contribution of employer shall not be more than the employee’s contributions.

Profit is distributed at the year-end on the closing accumulated balance of the employees. It is advisable that the calculation is based on the average balance. The members of the Provident fund can have the facility of loan / temporary withdrawal. They can also have the facility of permanent withdrawal on certain grounds. Interest free loans can also be availed, however, they are certain limits to loans as given in the Rules. The guidelines for Provident fund and moneys are also given in the Rules.

Where the employer is not a company the employee’s contributions only and its interest shall be invested in the Securities according to the Section 20 of the Trust Act, 1882, Post Office Savings, Bank Account, National Savings, Federal Government Securities, deposits in NCB and NBP. Other Government securities or in other established financial institutions. On the contrary where the employer is a company, both employer and employee’s contributions and interest shall be invested in accordance with the provision of Section 227 of the Companies Ordinance, 1984. Provident Fund investment rules were issued in the year 1996 which specifies the discipline for investment in the listed Securities. These Rules have been amended from time to time specifically through SRO 261 of May 10, 2002. The Provident fund Rules of 2005 were re-issued regarding investment of Provident funds moneys. The Provident Fund Trust have to file its annual Tax Return each year treating itself as a company.

19. GRATUITY LAWS AND LAWYERS IN PAKISTAN

WHAT IS GRATUITY AND WHAT LAWS ARE GOVERNING GRATUITY IN PAKISTAN?

Gratuity is one of three prevalent retirement benefits in the private sector employment. The other two are “Pensions and Provident Fund”. It is a “lump-sum” amount of money payable to a worker on leaving service.

Gratuity is one of three prevalent retirement benefits in the private sector employment. The other two are “Pensions (approved Pensions Fund) and Provident Fund”. It is a “lump-sum” amount of money payable to a worker on leaving service (through retirement, death or termination of service) based on salary (highest or the final salary) and period of service (over and above six months). Our attorneys at Asghar & Sons Jurists are very well conversant with the prevailing laws, enactments and regulations about the provision of Mandatory Gratuity to employees by the employers hence we are in a best position to assist our clientele in order to get their Gratuity as per Law. If you Have any query; please feel free to contact us.

Gratuity is actually a benefit for services rendered in the past. It is a reward of good, efficient and faithful service for a substantial period of time. Before 1972, gratuity was paid by an employer either on voluntary basis or in consequence of an award by a labor court. However, the Labour Laws Amendments Ordinance, 1972 made payment of gratuity a legal obligation. Amendments were subsequently made in the Standing Order 12 of Industrial and Commercial Establishments (Standing Orders) Ordinance 1968. Gratuity is now a statutory right for workers who have worked at least twelve months in an organization. The relevant laws governing gratuity in private sector are:

Standing Orders Legislation

1. The Industrial and Commercial Establishments (Standing Orders) Ordinance, 1968 (applicable in ICT and Balochistan)
2. Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (adapted by the province of Punjab through Amendment Act of 2012)
3. The Khyber Pakhtunkhwa Industrial And Commercial Employment (Standing Orders) Act, 2013
4. The Sindh Terms of Employment (Standing Orders) Act, 2015

Payment of Wages Legislation

1. Payment of Wages Act, 1936 (applicable in ICT and Balochistan)
2. Payment of Wages Act, 1936 (adapted by the province of Punjab through Amendment Act of 2014)
3. The Khyber Pakhtunkhwa Payment of Wages Act, 2013
4. The Sindh Payment of Wages Act, 2015

Factories Legislation

1. The Factories Act, 1934
2. The Factories Act, 1934 (adapted by the province of Punjab through Amendment Act of 2012)
3. The Khyber Pakhtunkhwa Factories Act, 2013
4. The Sindh Factories Act, 2015

Shops and Establishments Legislation

1. The Shops and Establishments Ordinance, 1969
2. The Shops and Establishments Ordinance, 1969 (adapted by the province of Punjab through Amendment Act of 2014)
3. The Khyber Pakhtunkhwa Shops and Establishments Act, 2015
4. The Sindh Shops and Commercial Establishment Act, 2015

WHICH ORGANIZATIONS ARE LIABLE TO PAY GRATUITY TO THEIR WORKERS?

In accordance with section 1(4) of the Standing Orders Ordinance, 1968 (and its variant in Punjab), every commercial establishment (employing 20 or more workers) and industrial establishment (employing 50 or more workers) are required to pay gratuity to a worker once he/she has met the minimum criteria. The Khyber Pakhtunkhwa Act and the Sindh Terms of Employment (Standing Orders) Act, 2015 reduce the minimum number of workers in commercial establishments to 10 workers and in industrial establishments to 20 workers. The table below shows all the organizations liable to pay gratuity to their workers.

Commercial Establishments	Minimum Number of Workers	Industrial Establishments	Minimum Number of Workers
The Industrial and Commercial Establishments (Standing Orders) Ordinance, 1968 (applicable in ICT, Balochistan and Punjab)
Advertising/commission/forwarding Agency, clerical department of a factory, joint stock company	At least 20 workers must have been employed by the organization for continuous 12 months	Factory	At least 50 workers must have been employed by the organization for continuous 12 months
Insurance company, banking company, bank, broker office, stock exchange	Railways
Club, hotel, restaurant	Establishment of a contractor
Cinema, theater,	Establishment in connection with construction industry
The Khyber Pakhtunkhwa Industrial And Commercial Employment (Standing Orders) Act, 2013The Sindh Terms of Employment (Standing Orders) Act, 2015
Above establishments	At least 10 workers must have been employed by the organization for continuous 12 months	Above establishments	At least 20 workers must have been employed by the organization for continuous 12 months
private educational institutions,	tramway or motor omnibus service; dock, wharf or jetty; inland steam-vessel;
private health centres, clinicallaboratories,	mine, quarry, oil-field or gas-field;
private security agencies	plantation;
societies registered under the Societies Registration Act, 1860 (ActNo. XXI of 1860) and the Voluntary Social Welfare Originations (NGOs, NPOs)	workshop or other establishment in which articles are produced,adapted or manufactured, with a view to their use, transport or sale
Other organizations as declared and notified by the government

WHAT ARE THE QUALIFYING CONDITIONS FOR A WORKER TO EARN GRATUITY?

A worker is entitled to gratuity if the following four conditions are satisfied.

1. Industrial and Commercial Establishments (Standing Orders) Ordinance 1968 (or any of its variants) is applicable to that establishment (whether commercial or industrial) i.e. it must have the minimum number of workers as mentioned above

2. A person has to be a workman as defined in Standing Orders Ordinance 1968. A workman is “any person employed in any industrial or commercial establishment to do any skilled or unskilled, manual or clerical work for hire or reward”.

3. He/she must be a permanent workman. If a worker is temporary, badli, probationer or a contract worker, he/she is not eligible for gratuity under the law.

4. The minimum qualifying employment period is twelve months or above. However, if a worker has worked over six months in a specific year, he will be entitled to gratuity of one year. Thus, in essence, gratuity is payable for more than six months of employment.

WHAT ARE THE QUALIFYING EVENTS FOR PAYMENT OF GRATUITY TO A WORKER?

An employee is entitled to gratuity when:

He resigns from his service (voluntary retirement or voluntary redundancy in exchange for financial benefits like golden handshake schemes)
His organizations terminates his services due to reasons other than misconduct
He dies while in service of his employer (it is not necessary that employee should be on duty at the time of death)
He reaches the superannuation age and retires

However, if an employee’s services were terminated on account of misconduct (like harassment, theft etc.), gratuity would no longer be admissible to him.

In case of death of a workman, gratuity is payable to the legal dependents of a workman. As mentioned above, death may not necessarily occur on duty but the worker should be in continuous service at that time. The amount of gratuity, in this case, is transferred to “Workmen Compensation Commissioner” who will then allocate this amount to the dependents of a worker. The dependents of a deceased worker include “his widowed mother, his own widow, minor son and unmarried daughter”.

WHAT IS THE RATE OF GRATUITY AND HOW IS IT CALCULATED?

In accordance with the provisions of law, rate of gratuity is “thirty (30) days wages for every completed year of service or any period in excess of six months”. Any employment period exceeding six months will be considered as one year. Originally, gratuity was set at 15 days’ wages for every completed year of service. In 1973, the rate was revised to 20 days’ wages. In 1994, it was further revised to 30 days’ wages for every completed year of service or any period in excess of six months.

The basis for calculation of wages is “wages admissible to a fixed-rate worker in the last month of his service” or “the highest drawn pay by a piece-rate worker during the preceding twelve months”. Wages for gratuity calculation are the “gross wages” including all permanent and regular allowances (like house rent allowance, cost of living allowance and conveyance allowance), however, these don’t include any such contingent or unpredictable payments like temporary relief to workers (e.g. flood relief) or bonus provided by the employer. Other than wage rate, the second determining factor in gratuity calculation is the time period a worker has served with an establishment/organization. Any length of service higher than six months over the number of years of service is considered as one year for the purpose of gratuity calculation. Whereas any length of service less than six months is not included in the course of calculating gratuity.

Consider the following illustration:

Date of joining/first appointment in an establishment	01^st September, 1989
Date of voluntary retirement/resignation	30^th April, 2015
Gross salary paid in 2015	Rs. 30,000
Temporary relief (flood relief)	5,000
Bonus (at the end of year indicating profitable situation for firm)	10,000
Total length of service	25 years and 8 months
Admissible period for calculation of gratuity	26 years
To calculate gratuity, Last drawn monthly gross pay	Rs. 30,000
Pay per day	30,000/26(working days)=1153.85
One year gratuity (pay per day*30)	1153.85*30=34615.4
Gratuity for the whole period served i.e. 26 years	26*34,615.4=Rs. 900,000.4

Note: If the employment period in above example was 25 years and 4 months, gratuity would be payable only for 25 years.

Wages for workers are determined on a 26-day month basis as defined in the Minimum Wages for Unskilled Workers Ordinance, 1969. Minimum wage notifications, issued by the provincial governments, also determine wages for unskilled, semi-skilled and skilled workers on a 26-day basis.

Gratuity is calculated on the basis of gross wages including all those allowances and fringe benefits which are of permanent, regular and non-contingent in nature. The irregular and non-contingent payments (bonus, profit, payment for annual leave etc.) are not part of wages for the purpose of calculating gratuity. In the case of fixed-rated workers, gratuity is calculated on the basis of wages payable to a workers in the last month of service. In the case of piece-rated workers, gratuity is calculated on the highest pay drawn during the last 12 months.

WHAT IS THE DIFFERENCE BETWEEN GRATUITY, PROVIDENT FUND, AND PENSION FUND?

As mentioned before, gratuity and provident fund are two different retirement benefits under the Standing Orders Ordinance 1968. Workers don’t have legal right to both of these benefits. It is rests with an employer’s discretion to decide as to whether he wants to set up provident fund or provide gratuity at the end of employment or grant both of these benefits voluntarily. The law can’t force an employer to provide either of these benefits or both the benefits simultaneously.

Gratuity is usually awarded in addition to other benefits payable to an employee. However gratuity is not payable during the period an employer has set up a provident fund in his establishment with at least 50% of the contribution by the employer and the remaining by employee. The sum of both of these contributions would be payable to a workman even if he resigns or is dismissed from service for any reason including misconduct (remember gratuity is not admissible in case of misconduct). However, the law does not stop an employer to provide both gratuity and provident fund to its employees. What is provided in the law is the minimum legal protection i.e. floor and not the ceiling. Both the Khyber Pakhtunkhwa and Sindh Standing Orders Acts further provide that the amount paid to the worker under provident fund must not be less than the amount of gratuity admissible to such worker.

It must be emphasized here though that after a 2007 amendment, there is also a provisions for an Approved Pension Fund. If, agreed through collective bargaining, an employer offers and contributes to an “Approved Pension Fund” as defined in the Income Tax Ordinance, 2001 (XLIX of 2001), and where the contribution of the employer is at least 50% of the limit prescribed in the aforesaid Ordinance, and to which the workman is also a contributor for the remaining 50% or less, no gratuity is payable for the period during which such contributions has been made. The Pension Fund option is not provided under the Khyber Pakhtunkhwa and Sindh Standing Orders Acts.

It is interesting to note however that in the case of misconduct, an employer is not required to pay gratuity however if a Provident Fund is maintained, the workman is entitled to receive the amount standing to his credit in the provident fund, including the contributions of the employer to such fund, even if he resigns or is dismissed from service.

IF AN EMPLOYER REFUSES TO PAY GRATUITY OR IS PAYING LESS THAN THE DUE AMOUNT, WHAT SHOULD A WORKER (OR HIS DEPENDENTS) DO?

The first step to get gratuity is to apply to the employer for payment of the due amount. If there are delays on the employer side or employer is paying less than the due amount, the aggrieved party (worker or his dependents, in case of his death) can file a claim to the Commissioner appointed under section 15 of the Payment of Wages Act 1936. The complaint to the Workmen Compensation Commissioner’s office can be filed within three years of the incidence of the act. A Workmen Compensation Commissioner is the officer of directorate of labor welfare and every district has a designated Commissioner for labor related matters.

HOW IS GRATUITY PAID TO THE WORKER’S DEPENDENTS IN THE CASE OF WORKER’S DEATH?

In the event of a worker’s death, gratuity is payable to the legal dependents of a worker. The amount of gratuity, as calculated above, is transferred to the Workmen Compensation Commissioner, appointed under the Workmen Compensation Act 1923. The Commissioner then allocates the amount to the worker’s dependents who are defined as the widow, minor son (under 18 years), and unmarried daughter, or a widowed mother. The amount of gratuity is allocated among the dependents in accordance with the provisions of section 8 of the Workmen’s Compensation Act, 1923 (or its provincial variants).

SOME POINTS TO REMEMBER

1. Gratuity is payable on completion of 12 months of service after first day of employment. It is not related to calendar year (January to December) or fiscal or financial year (July to June) or any other arbitrary period.

2. Gratuity is payable for more more than six months of employment. If the period of employment is less than 6 months, no gratuity is payable.

3. As stated above, employer is required to provide only one benefit: Gratuity or Provident Fund or Pension Fund. However, under a collective agreement/memorandum of understanding, the employer may provide multiple benefits or the rate of gratuity may be raised from 30 days’ wages to 40-45 days’ wages.

4. Unlike Bonus or workers’ participation in profits, gratuity has no connection with the financial position of the employer. It must be paid to an eligible worker at the end of service, whether by superannuation or resignation or death or termination (for any reason other than misconduct).

20. REAL ESTATE LAW, LAWYERS & LITIGATION IN PAKISTAN

From the ground-up construction project to the sophisticated financing transaction, our real estate attorneys at Asghar & Sons Jurists provide clients have an enormous experience and juristic skills, vital to the business of the real estate industry. A significant practice area at Asghar & Sons Jurists, our real estate specialist Attorneys assists all who are involved in the dynamic real estate field from purchasers, sellers, and developers to borrowers and lenders. The strength of our attorneys’ knowledge in complex transactions ensures efficient and timely attention to those clients engaged in major real estate investment, development, and lending activities across the country. Tapping into the firm’s corporate, tax, and litigation practice areas, our attorneys can create teams designed for every type of real estate-related situation like Commercial and Residential Lawsuits, Buyer-Seller Disputes and Property Development Issues that might arise.

We deal with all kinds of Property cases including Transfer of Property by Parties, Transfer of Property (Moveable or Immoveable, Tangible or Intangible), Sale, Mortgage, Lease, Charge of Immovable Property and Exchange, Gifts and all kinds of Claims regarding Property, Accession, Occupancy Rights, Vested Interests, Contingent Interest and Conditional Transfer etc.

Property Law in Pakistan

Classification of Property

Absolute Property	Property of another
Common Property	Public Property
General Property	Qualified Property
Mislaid Property	Real Property
Mixed Property	Special Property
Movable Property	State Property
Personal Property	Tangible Property
Private Property	Intangible Property
Immovable Property	Unclaimed Property

Table: Property Classifications

Transfer of Property

Modes of Transfer

By act of parties
By operation of law

Transfer of Property Act 1882 only deals with those transfers that take place by the act of parties.

Transfer of Property by act of parties

Sales
Mortgages
Leases
Exchanges
Gifts
Transfer of Actionable Claims

Rights that may be Transferred

Spes Successionis (chance of succeeding to an estate);
A mere right to take back the land (right of re-entry) given on lease to another for breach of a condition;
An easement;
An interest meant to be personally enjoyed by the person to whom it was given;
A right to future maintenance;
A mere right to sue for damages for breach of contract or tort;
A public office;
Pensions and stipends;
Transfer of property for unlawful object or consideration;
Occupancy rights.

Person who can Transfer a Right

The transferor must be:

Competent to contract, i.e., neither minor nor lunatic, etc.;
Full owner of the property or legally authorized to transfer it on behalf of the person having title to the property.

The person who transfers a right is called the “transferor” and the person to whom transfer is made is called the “transferee”.

Absolute Transfer

Oral Transfers

Unless expressly required by law to be in writing, a transfer may be made orally.

Conditions relating to Transfers

Where property is transferred subject to a condition absolutely restraining the transferee from disposing of his interest, the condition is void. A lease is an exception to this rule.
If a transferor creates an absolute interest in the transferee, any direction that such interest shall be enjoyed by him in particular manner is void. Such a condition shall however be valid if it is imposed for the benefit of transferor’s adjoining land.
A condition which makes interest determinable on subsequent insolvency or attempted alienation is void.

Conditions that can be imposed

A condition precedent can be imposed, i.e., a condition which must be performed before the transferee can take the property, but such condition must not be impossible or forbidden by law, or fraudulent, or involving or implying injury to the person or property of another, or immoral or opposed to public policy. A condition precedent shall be deemed to be fulfilled if it has been substantially (although not wholly) complied with.
A transfer may be made on the condition that in case a specified uncertain event shall or shall not happen such interest shall pass to another person.
A condition subsequent which has the effect of divesting an estate is subject to the rule of strict construction, the condition must be strictly fulfilled.
An interest may be created with the condition that it shall cease to exist in case a specified uncertain event shall happen or shall not happen.

Transfer in favor of an unborn person

(1) Transfer of Property by way of Sale

According to Transfer of Property Act 1882, “Sale is a transfer of ownership in exchange for a price paid or promised”. Transfer by sale is effected by the following methods:

by delivery of possession if the tangible immovable property is less than Rs. 100 in value;
by registration in all other cases.

Rights and liabilities of Buyer and Seller

The seller is bound:

To disclose material defects in property or in his title to property;
To produce title deeds;
To answer questions regarding title;
To execute conveyance;
To take care of property between date of contract and delivery of property;
To pay outgoings, i.e. public charges, rents, etc., up to completion of sale.

Liabilities of seller after completion of sale:

To covenant for title;
To deliver documents of title; and
To give possession.

The buyer is bound to:

To disclose materially increasing the value of property;
Duty of paying.

Buyer’s liabilities after completion:

The buyer suffers risk of loss only from the date of conveyance;
The buyer has to pay principal and future interest accruing from the date of the conveyance.

(2) Transfer of Property by means of Mortgages and Charges

Types of Mortgage

Simple Mortgage
Mortgage by Conditional Sale
Usufructuary Mortgage
English Mortgage
Mortgage by Deposit of Title Deeds
Anomalous Mortgage

Mortgages of Movables

Principles Applicable to the Mortgage

Doctrine of Redemption

Doctrine of Foreclosure or Sale

Concept of Marshalling Securities

Concept of Subrogation

Charges

(3) Transfer of Property by way of Leases

Forms of Lease

Periodic Lease
Perpetual Lease
Bemiadi Lease (without any term and period)

There are also other forms of leases but the important ones are mentioned above.

Distinction between tenancy and lease

Leases how made

Rights and liabilities of lessor and lessee

To put it briefly the liabilities of the lessor are:

to disclose material defects in property;
to put the lessee in possession; and
to allow lessee uninterrupted enjoyment of property.

The rights of lessee are:

to terminate the lease in case of destruction of property;
to make essential repairs and deduct expenses from the rent;
to make payments which the lessor is bound to make and deduct same from the rent;
to remove his own fixtures;
to benefit by crops growing on land and planted or sown by him if lease determines unexpectedly for no fault of his own;
to assign his interest in the leasehold.

The liabilities of lessee are:

to disclose facts materially increasing the value of the property;
to pay rent;
to maintain property;
to give notice of encroachment upon or interference with property by others;
not to commit waste or injure property;
not to build, except for agricultural purpose;
to restore possession on determination of lease.

Determination of Lease

A lease may be determined by:

lapse of time;
happening of a specified event;
termination of the lessor’s interest;
merger;
surrender;
implied surrender;
forfeiture; and
expiration of time given in notice to quit.

Effect of holding over

After the determination of the lease:

the lessee retains possession; and
the lessor assents to the lessee’s continuing in possession

The concurrence being evidenced by either acceptance of rent paid by the lessee, or by other acts. The result is that there arises a new tenancy.

(4) Transfer of Property by means of exchanges

When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an “exchange”.

Exchange of money

On an exchange of money, each party thereby warrants the genuineness of the money given by him.

(5) Transfer of Property by gifts

Acceptance when to be made

Acceptance of the gift must be made during the life time of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.

Transfer how effected

For the purposes of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.

Gift of existing and future property

A gift comprising both existing and future property is void as to the latter.

Gift to several of whom one does not accept

When gift may be suspended or revoked

The donor or donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked.

Universal Donee

Not applicable to Islamic law regarding gifts

The provisions of gift contained in the Transfer of Property Act 1882 are not applicable to any rule of Islamic law regarding gift.

Important doctrines regarding Transfer of Property

Transfer by Ostensible Owner under Section 41

Fraudulent Transfer under Section 53

Every transfer of immovable property made without consideration with intent to defraud a subsequent transferee shall be voidable at the option of such transferee.

Part Performance under Section 53-A

Registration of Transactions made under Transfer of Property Act

Stamp Duty on Transactions

Schedule I of Stamp Act 1899 prescribes stamp fee / duty which is to be charged on the documents.

Article 31 of the first schedule prescribes the stamp duty on the documents of exchanges.

Article 32 describes the further charge on mortgaged property and the duty imposed on such instruments.

Article 33 prescribes the stamp duty on the instruments of gifts.

Article 35 describes the stamp duty on the documents of lease.

Article 40 talks about the duty on mortgage deeds.

21. PROCESS SERVERS & SERVICE OF PROCESS IN PAKISTAN

What’s the Service of Process

Service of process is the practise by which a party gives a notice of primary legal action to another party (a defendant), court, or authority in an effort to exercise jurisdiction over that person so as to enable that person to respond to the proceeding before the court, body, or tribunal. Notice is furnished by delivering a set of court documents (called “process”) to the person to be served.

When legal documents likewise summons, complaints, orders, writs and other court documents are sent to an individual to whom the legal document is directed. Service of Process must be served by an individual who is not a party to the instance.

Our dedicated team of professional process servers best assists their clients as to process service in Pakistan. Our Attorneys at Asghar & Sons Jurists have been serving civil documents since 1990. We operate the largest and most experienced process serving division throughout Pakistan and offer fully staffed offices in Lahore, Karachi, Islamabad, Peshawar and Quetta. With a network of reliable contacts across Pakistan, Asghar & Sons Jurists can arrange for service of documents on all cities. All services receive same day attention with 24 hour availability. Skip tracing provides a present point of contact as we employs expert skip tracers. We are so confident in our skip tracers that if we are unsuccessful in locating the specified person we will waive our fee, only disbursements charged to us will apply.

We at Asghar & Sons Jurists provides a one-stop solution for your document retrieval service and process serving requirements. Asghar & Sons Jurists process servers are committed to providing you with professional and reliable service of process in the ever changing process serving industry. According to our clients, our customer service and our process servers are the best in Pakistan. You’ll be speaking with proactive, honest, friendly, knowledgeable professional representatives who know how to serve process and will enter your subpoenas, summons, complaints or document retrieval order quickly and monitor its progress through to completion of service.

What does a Process Server Do?

A process server serves legal documents to a defendant or an individual involved in a court proceeding. The process server must serve the documents in accordance with the jurisdiction of the area of service. This means handing the documents to the defendant personally or performing substituted service to someone in the same household or business. Once the documents are delivered, the process serving agent must provide proof that the papers were served successfully. This is done through a document called an Affidavit of Service, also known as a Proof of Service, which must be notarised and submitted to the party who requested the service. Process servers will also file relevant papers with the courts, can do document reclamation and may offer various types of investigations i.e. skip trace, people localises and stakeout etc.

Our Attorneys at Asghar & Sons Jurists serve the documents personally on the relevant person in the presence of a witness and date and time of service is mentioned on it without any mistake. The process server also give his affidavit regarding the service of documents which is being notarized. The hard copy of affidavit is being sent to party through courier.

Do We Really Need A Process Server?

Contracting a Process Server is a vital step in arranging with court proceedings. In some cities, somebody who performs service of process is required by law to be licensed, so if clients are in one of these cities, the answer is certainly “Yes!” Even if a process server does not need to be licensed in a city where clients need the required service, they should keep in mind that a process server is someone who is experienced in serving legal documents proficiently. More significantly, professional process servers are well-informed as to jurisdiction surrounding service of process in their cities or county. There are several necessities and constrictions connected with serving legal documents that vary from city to city, or county to county. If the service is not performed in accordance with the law, this may hamper clients’ proceedings from moving ahead or may result as to dismissal of their issue. Primary features, however are Desired Benefactor, Swift Service, Client Service, Laws Familiarity, Triumph Ratio and Ordinary Price.

In today’s process serving business marketplace, we know that we have to earn your business each and every day. We do it to perfection. Next time you need service of Asghar & Sons Jurists or any other process in Pakistan, remember us for Process Serving. Whatever your legal and time sensitive needs are, our attorneys can help you. Whether your documents need to go to court, opposing counsel, witnesses or defendants, we are ready. We can pick up your documents from your office or you can fax, e-mail or overnight them to our office. We have associates in every corner of the country as ready as we are. We are experts and specialize in many areas including class action and complex litigation court and process services.

We DO	We DON’T
Rely on accredited and experienced process servers	Sub-contract outside our proven network
Provide nationwide coverage	Operate within tight geographical boundaries
Work to a fixed fee arranged at the start	Calculate fees using hourly rate plus mileage
Work unsociable hours to get the job done	Just work 9-5 office hours
Turn routine work around promptly	Leave anything until the last minute
Make extra efforts in difficult cases	Give up trying
Keep clients informed as the matter progresses	Keep you in the dark
Deal with all necessary administration correctly	Fail to provide correct proof of service

Table: Service of Process

We effect and execute service of legal documents on defendants and respondents personally residing in Pakistan, regardless of location and issue Sworn Affidavit of personal service. In this respect, our integrity and commitment are second to none in carrying out this work. In our organisation service means service. We serve:

Domestic Violence Injunctions
Non-Molestation Orders
Occupation Orders
Assault & Trespass Injunctions
Injunctions Relating to Harassment
Divorce Documents
Court Notices
Recovery Notices
Freezing Injunctions
Statutory Demands
Winding Up Orders
Witness Summons
Property Related Injunctions and Process Serving
Copyright and Trademark Infringement & Seizure

We are effective, expedient and reliable process servers in Pakistan.