EXTRAORDINARY PUBLISHED BY AUTHORITY ISLAMABAD, THURSDAY, OCTOBER 17, 1996 PARTI Acts, Ordinances, President’s Orders and Regulations NATIONAL ASSEMBLY SECRETARIAT Islamabad, the 17th October, 1996 ‘The following Acts of Majlis-e-Shooca (Parliament) received the ascent of the President on the 13ih Ociober, 1996, and are hereby published for general informiation :-—62 1396 _THE GAZETTE OF PAKISTAN, EXTRA., OCT.17, 1996 __ [Part ‘ACT No. XVIL OF 1996 An Act to provide for re-organization of televommunication system 'WHERUAS it is expedient to provide for re-organization of telecommunication system in Pakisian by establishing the Pakistan Telecornmimication Authority, the Frequency Allocation Board, National Telecormmunication Corporation and the Pakistan Teleconymunicetion Employces Trust, regulation of ielecortimunication industry, transfer of telecamimunication services to private sector and for matter connected therewith or incidental uxerewo 5 It is hereby enacted as follows > CHAPTER | PRELIMINARY °° 1. Short title, extent and commencement —(I) This Act may be celled the Pakistan Telecomimunication (Re-orgavization) Act, 1996. (Q) “Teexteads to the whole of Pakistan, 3) I shall come into force at once. 2. Definitions-—In this Act unless there is anything repugnant in the subject (or content, — : (@)_ “Authority” means the Pakisten Telecommunication Authority established under section 3; : (b) “basic tetepone service” means the provision of any telecommunication service which consists of — (two-way live voice ielephone service, in digital form or otherwise, over any public fixed switched network or between base stations or Switches or modes of any public mobile stwitehed network ; Gi) real-time tranemission or reception of facsimile images over « public fixed switched network : Gil) internatienaljelephony service j and (iv) " the lease of circuits for the provision of the services specified in sub- clauses (), (i) and Gi) (©) “Boaré” means the Frequency Allocation Boald established .urder quency section 42 5PARTI 3. THE GAZETTE OF PAKISTAN, EXTRA! OCT. 17, 1996 1307 © © 6 @ th) @ @ a a (m im o wp @, ‘Company meats the Pekistan Telecommunication Company ‘established end incorporated in eccordance with section 34 ; ited “Corporation” means the Pakistan Teleconumnunication Corporation estab- lished under the Paiistan Telecoimunication Corporation Act, 1991 (AVI of 1991) ; “effective date" forthe Authority, Board, Company, National Telecommu: nication Corporation, or the Trust means the date on which property, right ‘and liabilitics of the Corporation are yested under section. 35 in the ‘Authority or, as the’ vase may be, Board, Company, National Telecom- ‘munication Corporation or the Trust “intelligence” means any speech, ssund, dara, signal, writing, image or video ; “licence” means an authorization granted by the Authority for the estab Tishment, operation or malmenance of any telecormunication system or provision of any telecommunication'service ; “international telephoiiy service” means any dteet oF inditecttelecoramu- nication servicé, whether or aot in digital form, conveyed by any means betnec a pont in Pasta onda point i aneherecunty, other tan tadiofbroadcasting or television brosdcastng ; ‘icensee” means the grantee oc holder of a licence : “network termiration point” mesns any point of tsrminaticn oa a telecom ‘munication system at which ‘erminal equipment may be connected ‘National Telecommanication Corporation” meaits the corporation 10 be ‘established under section 41 ; “prescribed” means prescribed by rules made under this Act : “public switched network” means a telecommunication system which allows intelligence be switched betweea memabers of the public : “public fixed switched nerwork" means any public switched network other than a public mobile switched network ; “public mobile switched network” means 4 publie switched netwerk using Wiroless telegraphy where the terminal equipment used forthe emission or reception. intelligence may be connected tothe network and used while in motion ; “yegulations’ mans the regulations made under ths Act ;oh é 1398_ THE GAZETTE OF PAKISTAN, EXTRA, OCT. 17, 1996 _ {Parr (®)“telecormmurication eguipment” means switches, equipment, wires, ‘cables, apparatus, poles, structures, duets, man-toles ard other tangible property, software and deta, other then terminal equipment, comprising any telecommunication sysiem or used in connection with any talecom- ‘munication service 5 * ()_ “terminal equipment” means any apparatus directly ot indirectly connected 10 any network termination point and used for sending, processing. or receiving intelligence (0. “telecommunication employees" means she employees of the Corporation ‘who are transferred to the employment of she Company under this Act, ‘other than those to whom sub-section (3) of section 36 applies, and all por sons who, om the eflective date for the Company, were employees oF the Corporation, the former Telegraph and Telephone Department of the Federal Government and are receiving, or arceatitled to receive, pension- ary benefits from the Corporation ; (4) “telecommunication sysiem’-means any electrical, electro-magnetic, elec- "tronic, optival or optio-ekictronic system for the emission, conveyance, switching or reception ,of any. intelligence within, or into, or from, Pakistan, whether or roy that intelligence is subjected to re-arrangement, ‘computation or any other process in the eourse of operation of the system, and includes a ‘cable transmission system, a cable television transmission system apd termina equipment ; ()“telecommunication service” means a service coasisting in the emission, conveyance, switching or reception of aay intelligence within, or into, or from, Pakistan by any electrical, eleciro-magnetic, electronic, optical or optio-olectroni system, whether or not the intelligence is subjected to re- surangontcnt, computation o any other proccss in he course ofthe services (v)- “Trust” means the Pakistan ‘Telecommunication Employees Trust estab lished under section 44 (Go). “trustees” means the board of trustees of the Trust : (¥) “Video” means-aiy visual images which are such that sequences of ther snay be sen as moving images (2) “wireless telegcaphy apparatus” shall have the same meaning as assigned to itin Tee Wireless Telegraphy Act, 1933 (XVM of 1933). CHAPTER IT PAKISTAN TELECOMMUNICATION AUTHORITY 3, Establishment of Pakistan Telecommunication Authority—(1) As sodn as may be, after the commencement of this Act, the Federal Government shall, byoF ; Part I]__ THE GAZETTE OF PAKISTAN, EXTRA... OCT. 17, 1996 __1399 notification in the official Gazette, establish an authority to be known as the Pakistan ‘Telecommanieation Authority which shall be-a body coxporate; having perpetual succes- sion and a common seal with powers, subject to the provisions of this Act, to acquire and hold property, both moveable and immoveable, and to sue and be sued by its nan, (2) * The Authority shall consist of three members one of whorn sball be a pro fessional telecommunication engineer and other shall be a financial expert, t0 be appointed hy the Federal Goverament for a term of four years and shall be eligible for appointment fora similar term or terms. (2) The Federal Government shall, from amongst the members appointed under sub-section (2), appoint a mémber to be the Chairman of the Authority (4) A member of the Authority shall not have any direct or inditect financial interest in, or have business connection with any pefsoa, any establishuneat oF firm which, renders telecommunication services in Pakistan or abroad or supplies telecommmunication equipment to any telecomumunication, Sector in Pakistan or abroad. Explanation.—For the purpose of this sub-section, any involvement of the ‘spose or blood relation of auy member of the Authority with any telecommunication establishment or firm shall be considered as a direct financial interest or connection of the ‘member with such establishment or fim, (5) A memter of the Authority may resign fram hie office by writing in his hand addressed to the Federal Government, or may be removed from bis otfie if, on an inquiry by the Federal Public Service Commission, he is found unable to perform the functions of his office because of mental or physical disability or misconduct, including, corruption and dishonesty. (6) In case of death, resignation or removal of a member of the authority, nother person may be appotnted as suet member forthe term specified at sub-section (2), (The: momber of the Authority shall be entilled to the same satary and privileges as are available Srom time'to time'té an officer in Basis Pay Scale 21 and the CChaisnnan shail be eniided (o the salary ané privileges as are admissible to an officer in Basic Pay Seale 22 or such higher emoluments os the Federal Government may determine. (8) The powers of the Authority’in the matters relating to ite administration ard the staff of the Authority shall be exercised by the Chairman, (9) » The decision of the Authority shall, subject to sub-section (8); be taken With ihe concurrence of the majorily ofits members, (10) Noact or proceeding of the Authority shall be invalid by reason only of the existence of a vacancy in, or a defeer in, the constitution of the Authorily.oe E a 1400 _ THE GAZETTE OF PAKISTAN, EXTRA., OCT. 17, 1996" _[Part I 4. Funetions’of the Authority.—(1) The Authority shall— (@) regulate the establishment, operation and maintenance of telecomnmunicae tion systems and the provision of telecommunication services in Pakistan ; +) receive and expeditiously dispose of applications for the use of radio-fre- quency spectrum; (©) promote and proteet the interests of users of teleccmmunication services in Pakistan : é (@) promote the avsilability of a wide range of high quality, efficiont, cost effective and competitive telecommunication services throughout Pakistan : (©) promote rapid modernization of tslecommunication éystems and telecom- ‘munication services : © investigate and sdjudicate on complains aad other claims made agaiet licensces arising out of alleged costraventions of te provisions ofthis Act, the ‘rales made” and licences issued ‘thereunder end take action accordingly ; (@ make recommendations to the Federal Government on policies with respect to international telecommunications, provision of support for’ pacticipation in intemmationel meetings and agreements 1 be executed in relation to the routing of intemational traffie and accounting settlements ; and (h) perform such other functions as the Federal Government may, from time to time, assign to i ‘ ‘5. Powers of the Authority.—(1) The Authority shall exercise all powers as shall enable it to effectively perform its functions specified in section 4. @) Wn panicule, and witnout prejudice 10 the generality. of the foregoing power, the Authority shall i @ grant and renew licences for any wlecormmunication system and any telecommunieation service on payment of such feos as iemay, from time totime, specify (b)._ monitor and enforce licences ; (©) receive applications forthe ue of vaio frequency spectrum and, subject, where applicable, t grant of licences under clause (a), refer such applications (o the Board for assignment of spectrum within a pericd of thirty days:Parti] THE GAZETTE OF PAKISTAN, EXTRA.,OCT. 17,1996 1401 @ ©. 0 4g) hy o @ wo 0 OO) @) © 6 ‘modify licences or conditions thereof in accerdance with section 2| or sec. tion 22 establish or modify accounting procedure for licences and regulate tariffs for telecommunication service in accordance with sections 25 and 26 ; regulate the transfer of licences : prescribe standards for telecommunication equipment and terminal equip- ‘ment, certify compliance of such equipment with prescribed standards, and issue approvals of tcxmival equipment and of approved installers under section 29 : provide guidelines for, and: detecmine, the terns of Inter-connection arrangements between licensees where the parties to those arrangements are unable to agree upon such terms ; carry out inspections of telecommunication equipment and any premises owned or occupied by the licencees: and summon any person. for investigation and en enquiry ; appoint an Adminisuetor in circunstances provided in section 23 develop national telecommunication numbering plans; collect information with respect to telecommunications within and outsids Pakistan and review the impact thereof ; center into contracts acquire, lease, encamber, dispose of, exchange, vest or otherwise deal with any moveable of immovable property or any interest therein ; and. issue regulations for exercising ite powers and performance of its func tiors. Responsibilities of the Authority.—In exercising’ its functions and Powers uncer tis Act, tre Authority shall ensure tat— @) o) © @ ‘all applications made to it are disposed of expedi rights of licensees are duly protected ; all of its decisions and determinations are made promptly, in an open equk- table, non-discriminatory, consistent and transparent manner 5 cushy j the persons affected by its decisions or determinations are given a due notice thereof and provided with an opportunity of being heardog 1402_THE GAZETTE OF PAKISTAN, BXTRA.,OCT. 17,1996 [Pagr I < {clephone service, fair competition in the telecommunication sector ; and (the interests of users of telecommunication services ére duly safeguarded and protected. 7. Appeal and revision.—{(1) A person aggricved by any decision or order of the Authority on the ground that itis contrary to the provisions of this Act, may, within thirty days of the rééeipt of such decision or orcer, appest to the High Court in the man- ner prescribed by the High Court for filing the first appeal before that Court and the Court shall decide such appeal within ninety days. (2) Aperson aggrieved by any decision or order of any officer of the Authority acting under the delegated powers of the Authority may, withia thirty days of the rezeipt of the decisioa or orde=, appeal to the Authority in prescribed manner and the Authority shall Gecide such appeal within thirty days. GB) Notwithstanding anything contained’ in sub-section (2), any. person aggrieved by any decision or order of the Authority may, instead of filing an appeal under that sub-section, within thirty days oF such decision or order, make an application for a revision of the decision or, a the ease may be: order to the Federal Govemment, through the Secretary, Minist'y of Communications, Governinent of Pakistan who will dectde he appeal within sixty days. 8 Powers of the Federal Gorernment to issue policy directives—(1) The Federal Government may, as and when it considers nevessary, issue policy directives to the Authority, not inconsistent with the provisions of the Act, on the maiters relating to telecommunication policy referred to in sub-section (2), and the Authority shall comply ‘with such directives (2) the matters on shick the Federal Government may issue policy directives shell bo (2) the number and tevin of the licenses to be’ granted in respect of telocom- ‘murication systems which are public switched networks, telecommunica- tion services over public switched necworks and international telecommunisation servicos,/and the conditions on which those Licenses should be granted : and () the nationality, residence and qualifications of persons to whom licenses. for public switched networks may be issued or transferred or the persons by whom licensees may be controtied s and (©), requiremenis of national security and of felationships between Pakisian and the Government of any other couniry or territory outside Pakistan end other States or territories outside Pakistan @) The Federal Government may, from time to time, cal for reports on the“Part I]__THE GAZETTE OF PAKISTAN, EXTRA, OCT. J7. 1996 _ 1403 activities of che Authority and Board an provide for representation in meetings of intee~ national lelocommunication organizations. 9. Delegation of powers—The Authority may; by general or Special order, delegate any of its powers under clauses (g), [i).(k) andl (D of section 5 to any’ of its offi cer subject fo such conditions as it may think fit to impose. 10, Appointment of employees —1) For performance of its functions, the Auorty may, from time to uni employ, within the sancitoned stength, such persons ‘and oa such terms sn conditions as it may eonsider necessary. (2) Without prejudice to the generality of the foregoing powers, the Authority may— {@) appoint ard remove its employees and exercise ther: iccipline and contol over (b)__ regulate and shanage its internal organization, set up divisions within the ‘Authority and make appropriate appointments to those divisions : and (©) appoint advisory bodies, consultants and advisors on contrast to edvise the ‘Authority in relation to its fnetions or powers. 2). The Authority may make regulations for appointment, promotion, texmi nation and other terms and conéitions of employment of its employees. 11, Members and employees—Tho members and employees of the ‘Authority shall be public servants within the meaning oF section 2 of the Pakistan Penal Code (Act XLV of 1860). 12, Budget'statement-—(1) The Authority shall, in respect of each financi _year, propare its own budget and submit 16 the Federal Govererieat three months helore the coinmencement of every financial year for approval. (2) The budger statement shall specifically state the estimated receipts and expenditure and the’ sums which are likely to be required by the Authority from the Federal Government for the relevant fingheial year (3) Any-surplus ofreceipts over the actuat expenditure ina year shal! be remit- ted to the Federal Consolidated Pand and ny dofiit trom the actual expenditure shall be ‘made up hy:the Pederal Government. 13. Pakistan Telecormmunieation Author! Fand—(1) There shall be a fimnd to be kaowa as the “Pakistan Telecorimunication Authority Fund” which shall vest Lnshe Authority ane shall be-utlizéd by thé Autboriy co meet al its expenses and charges Jn connection with ite functions under this'Act, including the payment of salatics and other ‘remuneration to its employees, =- 1404__ THE GAZETTE OF PAKISTAN, EXTRA, OCT. 17,1996 [Parti (2) The bank accounts of the Pakistan Telecommunicaiion Authority Fund Shall be maintained with the Naifonal Bank of Pakistan, (@)_ The Pakistan Telecommumication Authority Fund shall he financed from the following sources, namely -— (@) fees and ther amounts received by the Authority (6) grants from the Federal Government and the Provincial Governments including an initial grant of fifty million rupees by the Federal Govern. sent (©) loans obtsired from the Federal. Government (@). sale proceeds of bonds issued under the permitholder stall be a licensee under this Act «ll the expiry of the term of the autho- tization, licence or permit with such modifications thorero as the Authority may consider appropriate. (8) If the Authority is not satisfied that an authorization, licence or pormit referted to in sub-section (5) was validly Tssued forany reason, i shall, by an orcer, direct. that the deemed licence shall expire from the date of such order. (9) The Authority shall maintain a cegister of licences, showing applications for licences received, enforcement orders relating to licences issued and details of licence revoked, (10) The regisier referred to ir sub-section (9) shall be* open to public inspection and a person may obtain «copy thereof subject to payinent of such fee as may be prescribed by regulations. 22. Modification of licence conditions.—(1) Subject to sub-section (2), the Authority shall Kave the right to modily a licence or its conditions with the consent ofthe licensee Provided that the licence for basic telephone service of the Company shall aot, except with its consent, be amended during the period of its exclusive rights. (2) I the Authority and a licensee eannio: agree to cay amendmént proposed by the Authority wa Jicence condition, either party may refer the issue to the Corporate Law Authority for reiolution, in azcordanco with the regulations and the decision of the Comporate Law Authority on the said issue shall be final Provided that no such amendment shall vary the tenure or scope of a lisence, 23, Issue of enforcement orders and penalties-—(1) Where a licensee con lravenes.any provision of this Act or the rules made thereunder o¢ any term or condition of the licence, the Authority may by a writen notice tequite the licensee to show cause: within thirty days as 10 why an enforeoment order may not be issued. (2) The notice referred to in sub-section (1) shall spectfy the nature of the con- teavention and the sieps to be taken by the licensee to zemedy the contravention, (3), Where a licenses fails to— (a). respond 16 the notice referred to in sub-section (1) : oF (b) _ satisfy the Authority about the alleged contravention : or (©) remedy the somiravention within ths tine allowed by tho Ault, the ‘Authority may, by an order in iting and giving reasors—eer, Patri] THE GAZETTE OF PAKISTAN, EXTRA. OCT.17, 1996” _ 1409 (levy fine which may extend to three hundred: and fifty million rupees; or Gi) suspend or terminate the licence, impose additional conditions or appoint an Administator to rnanage the affairs of the licensee, but only if the contravention is grave or persistent (4) Without prejudice tothe provisions of sub-section (1/'and sub-section @)y the Authority may, by an order in waiting, suspend or terminate « licence or eppoint an \ Administratcr, if the licensee— (a), becomes insolvent or a receiver is appointed in respect af a substantial part + Of the asseis ib) being an individual, become insane or dies. Explanation.— For the purpese of this scotion, the Administrator shall be appointed from amongst the persons having professional knowledge and cexpetience of telecommunication, 24. Powers of Administrator —(I) An Administrator appointed uncer sub- section (3) or sub-section (4) of section 23 stall have such powers relating to the ‘management ofthe licensee, the preservation of ssteis and forthe purpose of remedying any contravention of the conditions of any-licence and for ensuring compliance with any orders issued by the Authority as may be prescribed. ‘i (2) Having satistied that the. contravention leading to the appointment of Administrator has been remedied or the order of the Authority has been complied with, the Authority: shall_withdraw the order appointing the Adniinisirator tnd tho ‘Administrator shall forthwith hand over the management of the licensee to the person from whom such management was taken (3). The Authority or the Administrato? stall not-be liable’ for any loss or damages caused by any act or omission of the Administrator undertaken in good faith, 25, Accounting procedures, investments and contracts.—(1) The Authority | May require any licensze to establish and maintain specified accounting procedure in order to enable the Authority to obtain all relevant information required fer determining. the tarff- under section 26 or for exercise any other power of the Authority under section 5. (2) Accounting procedures once established! may only: be modified by the ‘Authority after providing reasons and an opportunity of being heard to the licensee. (3) No licensee shall enter into any agreement or arrangement which is incon sistent with any obligation of te licdasee unde this Act, the rules or any condition atiach- ing to its licence ; and any such agreement or arrangement shall to such extent be void1410 _THE GAZETTE OF PAKISTAN, BXTRA., OCT. 17, 1996 _[Pari'I taste \eleprOne service shall be reguiatea by the AULhONIy mn EeeOrdANGe wth he regula ions and the following general principles, amely — = (a) the regulations shall be made with a view to achieving the greatest possible degree of pricing Mexibility and stability compatible with site guarding and protecting the interests of consumers ; (b) che regulations shalt apply: equally.to comparable providers or users of any regulated telecommurication service ; (©) the criteria ised forthe establishinent of tailf shall roids bea three moaths before the criteria is adopteds (@) tariffs shall be at a level which provides a seasonable rate of return on investments taking into aecount the cost of operation and (©) these shall be id cross-subsidization of oiher wlecommunication services, by basic eleghone service. 27, Pevlegs ot eensee of public steed nctwork —(1) Even lcensee Gf public cwitched network chal subject othe condone ofthe conc, bo ened © such rghs and prieges as wore avilable to the Federal Goversment and the Corporation om the commencing day in rape of tlecommuniaton sevice and teleconnnunication system under the Easement Act, 1882 (V of 1852), Telegraph Act, 1885 (XII of 1885), the Pakisian Telecommunication ‘Corporation, Act, 1991 (XVI of 1991), oc any ther aw forthe time Being in fore: @)_ For the purpose of Land Acquistion Act, 1894 (1 oF 1894), acquisition of Jad or any interes in land by a licensee ofa public switshed nctwork forthe purposes of the licence shall be détmed to be acquisition for 2 “public purpose" 28. National standards.—(1) The Authority may, with the approval of the Federal Government, notify regulations for establishing national standards for telesom= munication equipment Provided that the Autbority inay specify different standards for different classes cof telecommunication equipment and mnay establish procedure for testing thereof : Provided further that subject to the national standarcs established under this suh= section and the conditions of the Ticence, the Authority shall not restrict the type of telecommunication equipment that may be used for the establishment, maintencnee or ‘operation of telecommunication systems or the provision of telecommunication services 2) _ In determining the standards referred ie ia eub-kzction (1), the Authorigy shall have regard t0 the need for 2 safe, modem and efficient telecommunication envi- ronment and interoperability of network,“> Parr lj ‘THE GAZETTE OF PAKISTAN, EXTRA..OCT.17, 1996 __1411 29... Terminal equipment and approved installers —(1) No terminal equip- ment shall directly or indireily be connected to «public nwitehod network unless it has been approved by the Authority or an agency ppoired by the Authority in thts beta subject fo such conditions as ic may impose, including conlkions limiting its connection to spesified types of telecommnunieation systems @) The Authority’ may, by regulations, specify technical stendards for terminal equipment and procedure for approving test equipment and fer testing any {etminal equipment and to certify that it complies with the relevant technical standards. (3) Noperson may install any telecommunication equipment as part of, or con- ect terminal equipment (other than by a plug-into-socket connection) 10 any public switched network except in accordance with regulations made by the Authority. (4) ‘The Federal Government may make rules requiring manufacturers, innporters and dealers in terminal equipment to mark such equipment and indicate in advertising therefor whether or rot the terminal equipment is approved for connection 10 a public switched network. (5) The Authority’ shall maintain a register of all terminal equipment and installers thereo! approved Under this section and shall be open to public inspection. 30, Recovery of arrears, ete.—All fees, fines or other amounts due or payable to the Authrity may be recovered as arrears of land revenue. 31, - Offences and penalties.—(1) Whoever— (@)__establisbes, maintains or operates 4 telecommunication system or tetecom- munication service or possesses any wireless telegraphy apparatus or ‘carries on any other activity in contravention of this Act or the rules oF regulations made thereunder, the Wireless Telegraphy Act, 1933 (XV of 1933) or the conditions ef licence 5 (b) knowingly or having reason to believe that any telecommunication system cr telecommmunication service has been established or is maintained or is, being operated in contravention of this Act, tansmits or receives any intelligence by means thereof, or performs any service incidental thereto + © ishonestly cbiaint any telecommunication service, with the intent to avoid payment of a charge applicable 9 he provision of hat service 5 (@) _unauthorisedly transrgits through a televommunication system or telecom- ‘munication service ary intelligence which he knows or fais reason to believe to be false, fabricated, indeceat ar obscene 5 (©) engeged in the operction of a public switched network etherwise than in the course of his duty intentionally modifies or interferes with tae contents of a message sent by means of that network ;1412 _ THE GAZETTE OP PAKISTAN, EXTRA. OCT. 17,1996 [Part (prevents or obstructs the transmission or delivery off any intelligence througa a telecorimunication system or telecommunication service 8 (g) intercepts, acquaints hiniself with the contents of ‘any intelligence or Lunauttiorisedly disctoses to any person the contents of sueh intelligence ; (b) commits mischiet 43) damages, removes, interferes. or tampers with any. telecommunication ‘equipment; Gi) unauthorisedly deciphers the contents of atiy message transmitted over a * public switched network y.- (&) "assaults or intentionally obstructs person engaged in the operation of a public switched network or the establishment, maintexance of operation of telecommunication, services over a public switched network or intertionally obstructs the course of business of that person : () _inteetionally contravenes the rules made under sub-séction (4) of section 3 : (10). intentionally obstructs an officer of the Authority or the Bonn! in tne exer cise of bis faneiions or powers under this Act in rcluton to the inspoction of any premises or telecommunication equipnen| or who, afer ten days ‘written notice, Tails or refuses without due cause (o provide any informa tion which the Authority or the Board is ented to obiain under this Act ‘or the rules or regulations made thereunder, shall be guilty of an offence under this Act. (2)- Every offencé specified in sub-section (J) shall be_ punishable with imprisonment which may extend to two years, oF with fine which miay extend to en million rupees, ot with bot. (2) Whosoever conspires to'commit or attempts io commit or aids or abets the ‘cominission of any offence punishable under this Act shall be liable to same punish- Feent as is provided iu su-section-(2) 4) Where the edurt imposes fine under sub-seciion (2), 1t may tect that whole or uny part thereof shall be paid to the person who hes suffered any mental or monetary loss because of commission of any offence specified in sub-section (1) (No Court shall take cognizance of any offerce punishable under his Act except on a complaint in wring by an officer authorized by the Authority or the Board, iiPast I] __ THE GAZETTE OF PAKISTAY XTRA, OCT. 17,1996 1413 © Where the accused is si company registered under the Companies Ordinance, 1984 (XLVIT of 1984),every Executive Director, Chie! Executive, Principal Officer and Secretary of such Company shall be liable lo the punishment specified in sub- section (2) ard the summons for the trial of the case shall be served on the Chief ‘Executive; Principal Olficer or the Secretary of that Company in accordance with the pro- Visions of the Code of Criminal Procedure, 1898 (Act V of 1898), 32, Warrants for searsh—{1) Where on information furnished by the Auorigy of Board, dhe Court hs reason to believe that emy ulisenoed telecommunicn- tion system, wireless teletaphy apparatus ot unpproved termi equipment is being kept or concealed o any unlicensed oleoommaricaton srvise is provided t may iste a seateh warrant + and the person (o-whom such warrant is diected, may enter the promises, vessel acral, or overeat where such telecormuncation sistem, wireless {sleraphy appertus of torial equinmt allegedly hep or sonceales or unkcorsed telecommunication service is provided therefrom carry out search and inspection thereof ann seve such elecommrication system, wireless ilegraph apparatus o enc euip- et, (2) Any telecommunication’ equipment, wireless telégraphy apparatys oF ter sminalequipment seized under sub-section (1) having no ostensible owner shall vest to the ‘Authority, of as the case may be, the Boar. 33, Indemnity.—No suit, prosecution or other legal proceedings shall ie against the Authority o¢ any member or employes of the Auoriy in respect of anything years, unless earlier removed by the appointing authority, (4) The uustees shall be eligible for re-appointment for a similar term or terms specified in sub-section (3). (3) The tastes, may appeint— (@) 4 Chaitman of he Board of Trustees from amongst (©) the Manager of the Trust (©) an Actuary Provided hut the fist Cheinthan of the Bound of Trustees shall be selected vom ‘mongst the «usoes appointed by the Fedoral Goverament and shall, unless removed on the charges of physical or rienial iabirmuty or miscordaet, including corruption and di honesty, remain in the office of Chaiuman for the Trst twelve menths of bis tenure as a trustee, -{6)_ A Trustee may resign fhom his office by writing in bis Rand addressed to the Board af Trustees (7) Incascof'a yacaney being ercuted duc tothe death, resignation or removal of-a trustoo, the appointing authority referred to in sab-seetion (3) may’ appoint another Person in his place as trustee for the unexpired termi. “18) The Manager and Actuary of the Trust shall be entitled to such remunera- sion and perquisites as the Board of Trustees may determine. (9) The Board of Trustees may, with the approval of the Federal Government and by nctification in he official Gaceit, make rules for the management aud conduct of busines: of the Trust.45. Pension Fund.—(1) The Federal Government shall, by notification in the official Garette, order that from the éffective date, all’ assets of the Pakistan ‘Telecommunication Corporation Employces Pension Fund as ercated by a Trust Deed wt dated, the 2nd April 1994, hereinafter referred to as the “Pension Fund”, and such liabilities as are specified in the notification, shall vest ix and shall become the assets and 1 Provitied that five per cent of the accrued liahility deterrnined on the 30th Inne, 1999, specified in such aetification stull be paid to the Federal Government in twelve monthly. instalments in respect of tclucommunication employses or Transferred sployees transferred to the Pakistan ‘Telecommunication Authotity, Frequency Allocation Boun, National) Telecommunication Corporation and Federal Government (©) The Company shall contribute tothe Pension Fund the amount determined by the Actuary repfesenting the sanfunded. proportion of the accrued pension Tiabelities ‘which shall be assumed by the Company from the elfective date. specified in the order ‘made under sectian 35. : = (@) The Pension Fund shall consist of — (@ amounts-receivel from ihe Pakistan Telecommunication Corporation Employees Pension Fund referred to in sub-seotion (1) ; > (b) contribution w be paid by the Company under sub-seztion (2); (©) annual contribution to-be paid by tae Company at the. commencement of ‘cach financial year ; 4 (4) investments and the profits; gains and other retums accrued on such invest mens sand (©) donations and other contributions by individuals or ary aid-giving 45. Functions and powwors of the Trust.—{1) Por carrying oat the purposes : of the Trust, the Board of Trustees shall— 1 (2) take over and assume the liability of the Pension Fund, including eontti- tutions of the Company to the Pension Fund ; (6). cbiain payment from the Company of che amount determined by Actuary 2 representing the unfunded proportion of the accrued pension Habilides 1 be discharged by the Company (©) determine, at te commencement of each financial year, the amount to by contributed to the Pension Fund by the Company 5 and: : eRe. Pace t] THE GAZETTE OF PAKISTA EXTRA, OCT. 17,1996 __.1423 (@)’ make provision for the payment of pensions to. telecommunication emipleyees to the extent oftheir entitlement @) In performance of its functiors, the Boar of Trustees shall— (@) have the exclusive right to determine the amounls, if any, payable. in respect of pension benefits tothe telecommunication emaployces 5 (©) administer and cperate the Peiision Fund ; (©) specify and cenity the requirements t be falilled for payments ofthe pen- sons to be made fiom te Pension Fund ;, (@) appoint, promote, remove and exeteise discipline and control over its cxiployces 5 (e) enter into contracts + ®__acauire, lease, encumber, dispose of, exchange, invest or otherwise deal with any moveable or immovable property or any interest therein + and (@) _exereise all such powers’ as may be necestary or incidental to the pecfor munice of any of fs functions oF the excreise,of any of its powers, 63) The Mamiger ofthe Board of Trustes shall be responsible For adminit. tive contiol of he eraployees ofthe Trust acl day tp day working ofthe Trust as Mey DE assigned to im by the Board of Trastoos. 47, Dediston of the Trust, efe—(1) The decision of the Board of Trustees: shall be taken by majority of the votes of the trustees present in a meeting lo be ealled by the Chatman of the Trust : Provided that such majority vous shall include at least one trustée appoinied by the Federal Government and one trustee appointed by the Company. (2) All meetings of the Board of Trustees shall be -presided over by its Chairman or, in his absence, by another trustee selected by the trustees amongst them- celyen. The quorum of the meeting of the Boord of Trustees shall be Four trustees out of ‘which two shall represent the Federal Government and tke ather twa by the Company Provided that the Chairman of the Board of Trustees shall have no casting vote: (3)_No act or proceeding of the Trust shull be invalid by feason only of the existence of a vacuney in, or a defect in, the constitution of the Board of Trustees. (4) The Board of Trustees. shall, hy resolution, determine-the procedure for appointment, promotion, and: termination and other lerms of employment of the employees of the Trust.w y 1424__‘THE GAZETTE OF PAKISTAN, EXTRA. OCT. 17, 1996 _ [Paki 48. Delegation of Powers—The Boaid of Trustees any, by a resolution, delegate 10 any officer of the ‘Trust any of iis powers of funetions under this Act, subject rosuch conditions ag it may deem Fit to impose. 49, Budget—(1) The Board of Trustees shall, in respect of each financial year, prepare ite own budget specifying the estimated rozeipts and the sums which are likely to bé required by the Trust for the.payments to be made int the relevant Financial vyear. : (2) "Any surplus of teceipts over the amount specified in the budget ina fiman- cial year shall be credited to the Pension Fund and any deficit fro the estimates! amount specified in the annaal budget shall be made up from the Pension Fund, 50, Audit.—(1) The accounts of the Tus: sball be audited at the elose of each financial year by independent ausitors (2) ‘The Trust shall produce such accounts, taoks anc! documents and fi explanations and information as the auditors may requite for the purpose of audit. (3) , Copies of the auditer’s report on the, accounis shall he furnished t© the Federal Government, Company and the Trust 51. Exemption from Taxes—Nowilthstanding anything contained in any cil law for the time being in fore, the Trust shal! not be liable to pay, an shall be ‘exempt from ths payment of, all kinds of taxes, duties, levies. charges, and fees payable ‘under of pursitant to any Federal o¢ Provincial law, on ils investments, income, assets or wealth, : 52. Application of Trusts Act, 1882—(1) The rovisions of Chapters il IV. ¥. Vi (other than section 60 thereof, insole a it provides hata person deiniiled abroad is ota proper person forthe purposes of tht section) and VIT ofthe Trusts Act, L882 (I ct 1882) to the extent not inconsistent with the provisions ofihis Act, shall apply to the Trost and the Boot of Trustees io the same extent that ahey apply to a “rat” and Sinustees” as defined in ection 3 oF the said Act (2) _ For the purposes of the “Trust Act, 1882, the “author of the trust shell be the Federal Goyemunent and"Conpany, the “trustees? shall be the trustees appointed under section 45, “benefieiaries” shall be the telecommunication employees. the “Iust property” oF “trust money” shall be the Pension Fund, “bene‘icial interest” shall be the tight of the telecomyrmunication employees specified in the rules made under this Chapters ane the “instrument of trast” shall be this Aot and such rales. G3} The accounts of the Trust shall he Kept anc maintained with the National ‘Banik of Pakistan or such other bank as the Board of Trustees may determine 53. Winding-up of the Teust.—(1) The Trust shall be wound up ry the Federal Goverameni on the recommendation OF the Booed of Trustees and she certtiew- tion hy the Actuary that no pension payment is required to be-made from the Pension PunePart I} THE GAZE 2) The balance of the Persion Fund shall, oa the winding up of the Trust, be paid to the Federal Government sind the Company pro-rata of the assets of the Pakistan ‘Telecommunication Corporation Employees Fund and conteibutions made from timo to time by the Company? CHAPTER VII MISCELLANEOUS 54, National Seeurity.—(1) Notwithstanding anything contained itt any’ faye {og the tine being in fore, ithe inlerest OF national security oF in the apprehension of any offetice, the Federal Government may authorise any person or persons to intercept -ealls and inessages or (o trace calls through any felecormmunication system, (2) During & wat or hostilities against Pakistan by any foreign power or intecnal agzession or for the defence or sectity of Pakistan, the Fedesal Government sball have preference and prierity in telecommunication systen ‘over any licensee. (3) Upon proclamation of emergency by the President, the Federal Government may suspend cr modily al orany order or Fcenees made or issued under this + ‘Roter cause suspension of opeatin, functions cr services of any licensee for such time fs ie may deem necessary Provided thot the Federal Government may compensate any licensee whose facilities 0 services are affected by ary aetion under this sub-section. 55. Liability of the Federal Government—The Federal Government shall not he responsible for any less or damage which may occur as a consequence of any act (or omission of a licensee: ‘59, Tax Exemption of the. Corporation. —Noiwithstaniling any other law fe the time boing in Force; from ths date ofits eaablishruent and until itis dissolved ander this Act, the Crporation shall enjoy tocal exemption from the payinent of any tax under the Income Tax Ordinance, 1979, he Wealth Tax Act, 1963, and the Sales Tax Act, 1990, 57. Pewer fo make rules. (I) For catrying out ihe purposes of this Act anc where provided for hereinbefore, the Federal Governmentaney, érom time 10 time, by roiilication in the official Gazette, make rules not inconsistent with this Act Sh (2) Without prejudice to the foregoing powers; lke Federal Government nny rake rules (a) “extending the categories of telecommunicalion systems or telecommunica sion services for which x licence is not requiced under section 20 ; (o) regulating the use of eneryption apparatus or software by requiring use of approved apparatus or sollvvare or such appropriate apparatus or software ‘pe lodged with the Authority free of cose 5 and(426 THE GAZETTE OF PAKISTAN, EXTRA, OCT. 17, 1996 [Parr I (c} restricting or probibiting the use of any public switched network for sig nnalling purposes eiscumstances in which chaigos otherwise payable may ‘ be avoided o° reduced, or the advertising of means or servives far such uss 58. Ordinance to override other laws.— The provisions of this Act shall have effect notwithstanding anything contained in the Telegraph Act, 1885 (XIIT of 1885), the: Wircless Telegraphy Act, 1923 (XYTL of 1933);or any other law containing uny provision - inconsistent to this et. 59. _ Repeal and Savings—(1) The Pakistan Telecoynmutivation Corporations Act, 1991 (XVII of 1991); The Pakistan Telecommunicaticn (Re-organization) < Ordinance, 1986 (LXXVI of 1996), und the Ministry of Communications. Government of Pakistun, Notifications numbering 54)/95-PTC, dated the Tih August, 1995, are here by repealed J 2) Nowwithsanding anything contained hereinbefore, all orders made, actions “ taken, vesting ordeis or notifications issued, proponty, essels and abilities of the Corporation vested ar transferred and the eniployees of the Cocporation uaasferred to the Pakistan Telecommunication Authotity, Frequency Allocation Bosrd, Pakistan Hy ‘Telecommunication Company Limited, National Teleccmmunicetion Corporation ot Pakistan Telecommunicatten Employees Trust, under any of the powers conferred or “ ested under the Pakisten Telecommunication (Re-organization) Ordinance, 1995 (CXV cof 1995), the Pakistan Telecommunication (Re-orginization) Ordinance, 1996 (XXX of 1990), the Pakistan Telecommunication (Re-organization) Ordinance, (996 (LXXVIT of J 1996) shall be deemed always to have been lawfully ané validly made, taken, issued, vested cr tmysferred under the provisions of this Act and shall continue to be in force: bonless amended, varied, withdrawn, rescinded or annulled by a person or authority ‘competent to do so under this Act - ABDUL RAUF KHAN LUGHMANI, Seeretars, PRINTING COPFORATION OF PAKOTAN PREIS, BLAMABAD PUBLISHED BY JHE MANAGER OF PUELICATIONS, KARACH