Section 21: Government business

21. Government business.—(1) The Bank shall undertake to accept monies for account of the 6[Federal Government and Provincial Governments] and to make payments up to the amount standing to the credit of their accounts respectively and to carry out their exchange, remittance and other banking operations, including the management of public debt. (2) (a) The 7[Federal Government] and Provincial Governments shall entrust the Bank, on such conditions as may be agreed upon between the Government concerned and the Bank, with all their money, remittance, and banking transactions in Pakistan, and, in particular, shall deposit free of interest all their cash balances with the Bank. (b) Nothing in this sub-section shall be deemed to prevent the 7[Federal Government] and any Provincial Government from carrying on money transactions, at places where the Bank has no office, branch or agency or from holding at such places such balances as they may require. (c) The 1[Federal Government] and each Provincial Government shall entrust the Bank, on such conditions as may be agreed upon between the Government concerned and the Bank, with the management of the public debt and with the issue of any new loans. (d) In the event of any failure to reach agreement on the conditions referred to in this section, the 1[Federal Government] shall decide the conditions and its decision shall be final.

Effective date: 1956-04-18

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