Islamic Development Bank Ordinance, 1978

This 1978 Ordinance gives legal effect in Pakistan to the country's membership of the Islamic Development Bank (IDB), and is deemed to have taken effect retroactively from 23 April 1975. Section 3 authorises payments from the Federal Consolidated Fund to cover Pakistan's subscription and other sums owed to the Bank under specified Articles of its founding Agreement, and directs sums received from the Bank into that Fund. Section 4 names the State Bank of Pakistan as the depository for the Bank's Pakistan-currency holdings and other assets located in Pakistan.

Section 5 gives the force of law to Chapter VII of the Agreement, reproduced in the Schedule, covering the Bank's legal status, immunities, exemptions and privileges. Under these provisions, the Bank has full legal personality to contract, hold property and sue; it is largely immune from legal process except in cases connected with raising money or dealing in securities; its property is immune from search, confiscation or seizure, and its archives are inviolable; its assets are free from restrictions; its official communications get treatment no less favourable than for other international organisations; and its Governors, officers and employees enjoy immunity from legal process for official acts and from immigration and national-service requirements. The Bank, its income, and securities it issues or guarantees are broadly exempt from taxation and customs duties, subject to a proviso that it cannot import goods duty-free for unrestricted resale or claim exemption from genuine service charges.

Section 5(2) lets the Federal Government amend the Schedule to reflect future changes to the Agreement, and Section 6 grants general rule-making power.