Public Investments (Financial Safeguards) Ordinance, 1960

This Ordinance gives the relevant government (federal, provincial, or jointly, depending on which government's revenues funded the entity) financial oversight powers over corporations, institutions, and undertakings that were set up using public money. Section 2 defines which government counts as the "appropriate Government" depending on whether federal, provincial, or combined public funds were used to establish the entity.

Section 3 gives the appropriate Government the power to prescribe financial procedures (including internal financial controls), issue general or special financial directions, and depute officers to scrutinise the finances of these publicly-funded bodies, regardless of what any other law, deed, or founding document says. The body concerned must comply with these procedures and directions and cooperate with deputed officers.

Section 4 extends similar oversight to corporations not established directly by government but where government (or another such body) has contributed capital and is therefore entitled to appoint directors; those directors must follow any financial directions given. Section 5 lets the appropriate Government call for documents, books, accounts, or other records from these bodies or their government-appointed directors.

Section 6 makes failing to comply with a duty, direction, rule, or order under this Ordinance punishable with simple imprisonment up to three months, a fine up to ten thousand rupees, or both. Section 7 extends liability to every director, manager, or officer of a corporation that commits an offence, unless they prove they had no knowledge or exercised due diligence. Section 8 similarly penalises furnishing false information. Section 9 restricts prosecutions to a Magistrate of the First Class or higher, on a written complaint by the appropriate Government. A later-inserted Section 9A exempts specific privatised entities named in the Schedule (the Pakistan Telecommunication Company Limited and Pakistan Steel Mills Corporation) from the Ordinance once privatised.

This is an old law from 1960 that has been amended over time (including a 2006 amendment adding Section 9A); the penalty amounts (fine up to ten thousand rupees) reflect 1960s-era values and should be checked against current figures before relying on them.