NAB Amendments

1. Jurisdiction:
1.1 Through amendment in section 5(o) any alleged offence of less than 500
million has been removed from the purview of the ordinance.

1.2 Through amendment to section 4(2)(a) all matter pertaining to taxation

have been removed from the purview of the ordinance, further any amounts
which are covered under a government amnesty have also been removed from
the purview of the ordinance. The amendment’s required that all cases involving
these matters be sent back to the concerned authorities, 50 major corruption
references including the Ramzan Sugar Mill reference involving Prime Minister
Shabaz Sharif and the USF reference involving ex-Prime Minister Yousaf Raza
Gilani.

1.3 Through amendment to section 4(2)(b) decisions taken by Federal/provincial

cabinets various other associated bodies and state bank of Pakistan have been
removed from the purview of the ordinance unless monetary gain has resulted
from the decision.
1.4 Through amendment to section 4(2)(d) and (e) procedural lapses in
performance of public work or decisions, advice, reports and opinions provided
by public office holders have been removed from the purview of the ordinance
unless monetary gain has resulted from the decision.
1.5 Through insertion of section 4(2)(g) NABs jurisdiction with regard to any matter
not concerning funds, property or interest connected with the government has
been omitted, this will impact all ongoing cases where private parties have
defrauded public at large.
1.6 Through insertion of section 5(s) definition of public at large has been provided
and thus NAB is only to have jurisdiction in cases with at least 100 victims,
previously NAB SOPs allowed for jurisdiction but Supreme Court later held that
22 victims were sufficient to satisfy the public at large requirement. According
to media reports this amendment will directly affect the case of Paragon
housing society as the victims numbered 76 and NAB has assumed jurisdiction
per the previous definition of public at large.

2. Definitions:

2.1 Through amendment in section 5(a) the meaning of accused has been
changed, the first line previously stated “Accused‖ shall include a person
in respect of whom there are reasonable grounds to believe 2[that he] is or
has been involved in the commission of any offence 1[triable] under this
Ordinance….” the word include has been replaced with “shall mean”. The
previous definition seems to have allowed room for anyone who did not fall
precisely under this definition to be an accused if the circumstances and facts

1. Amended through amendment no.2 of

 NAB Amendments

allowed it, but this change means that whoever does not satisfy this
definition is not an accused for the purposes of the ordinance.
2.2 Through amendment to section 5(c) the definition of asset has been
changed. The previous definition was “ Assets‖ means any
property owned, controlled by or belonging to any accused,
whether directly or indirectly, or held benami in the name of his
spouse or relatives or associates, whether within or outside
Pakistan which cannot reasonably account , or for which cannot
prove payment of full and lawful consideration.” The new definition
removes the words “controlled by” and “indirectly of directly” and while
retaining benami removes reference to spouse, relatives and
associates. It further removes the words “which cannot reasonably
account, or for which cannot prove payment of full and lawful
consideration”
2.3 Through amendment to section 5(e) the definition of benamidar has
been changed, the previous definition stated “―benamidar‖ means
any person who ostensibly holds or is in possession or custody of
any property of an accused on his behalf for the benefit and
enjoyment of the accused;]” the amendment has removed reference
to control or possession and further an explanation has been added
which requires that the accused paid consideration for the property
and holds the title documents
2.4 The meaning of judge and court previously contained in section 5(g) and (h)
has been altered to exclude reference to appointment by president in
consultation with chief justice, the amended definitions contained in 5(i)
and (j) simply refer to section 5A which has itself been amended to remove
the option available to the judge who retires before completion of tenure to
complete his tenure, further the authority to establish courts has been
vested in the federal government and the pool of perspective judges has
been enhanced by allowing for the appointment of additional session judges.
2.5 Through section 5(q) the definition of private person has been introduced as
someone who does not hold public office, read with the amended section 4 2(c)
the inclusion of this definition seems to have an impact with regard to private
persons who may be alleged benamidars for a public office holder.

3. Chairman NAB:
3.1 Through amendments to Section 6(b) the authority to set the terms and
conditions of the chairman’s employment have shifted from the President to the
Federal Government, the term of the Chairman has been reduced from four to
three years.
3.2 Through newly inserted 6b (2) and (3) a process has been introduced to
deal with a situation where the Leader of the house and the opposition leader
cannot reach consensus, the process requires a parliamentary committee be

1. Amended through amendment no.2 of

 NAB Amendments

formed with equal representation of government and opposition, with 1/3

members from senate.
3.3 Through omission of section 6(c) and insertion of the amended 5(b)( V) the
authority to appoint senior officer of NAB as acting chairman in situations where
the chairman and deputy chairman are both not available has been taken from
Chairman NAB and given to the federal government.
3.4 Through the amended section 5(k) the appointing authority of deputy
chairman NAB has been taken away from the President (provided for in the
previous section 5(j)) and given to the federal government.
3.5 Through amendment to section 28 the power to set the terms and
conditions of service for NAB officers and staff has been removed.
3.6 Through amendment to sections 34 the chairman’s power to make rules
under the ordinance has been shifted to the federal government the mention of
the president’s approval has also been excluded.
3.7 Through amendment to section 37 the chairman’s power to issue orders for
removal of difficulties with the approval of the president has been shifted to the
federal government the mention of the president’s approval has also been
excluded.
4. Prosecutor General:
4.1 Through amendment to section 8(a)( i) the procedure for appointment
of prosecutor general has been altered, previously the President was the
appointing authority and was to make the appointment in consultation with
Chairman NAB, the amended section provides for appointment by the Federal
Government on the recommendation of Chairman NAB.
4.2 Through amendment to section 8(a) (ii) the requirement of
independent office has been removed, the restriction of not holding another
office has also been removed. Further the condition of providing fair and
consistent advice to the chairman has been added along with the duty to
protect the lawful rights of the accused.
4.3 The term of the prosecutor general has been converted into an
extendable term vide amendment to section 8(b) (iii) which removes the word
“non”.
4.4 Through amendment to section 8(b) (v) the prosecutor general must
address his resignation to the Federal government, instead of the President.
4.5 Through the insertion of section 8(e) the chairman NAB must provide
investigation report to the Prosecutor General and seek his concurrence
regarding starting or continuing prosecution.

5. Corruption and corrupt practices

Note : The amended section 4(2)(c) and the newly inserted 4(2) (g) prohibit
investigation of any person/funds not directly or indirectly connected to public
office holder/appropriate government as defined under section 5(b) except

1. Amended through amendment no.2 of

 NAB Amendments

where the offence falls under (ix)(xi)(x) of section 9, the said sections relate to
criminal breach of trust (405 ppc) cheating (415 ppc) and criminal breach of
trust in capacity of banker, merchant, attorney etc. (409 ppc),(xii) , which deals
with aid and abetting offence under 409 ppc or (i) which deals with offence
under 161 are also excluded when accused is not directly

5.1 Through amendment to section 9(a)(v) the word “substantially” has been
added to the offence relating to the possession of assets disproportionate with
sources of income, while the definition of asset is available (altered via
amendment to section 5(c)(2.2 of this document) the word substantially has
not been defined.
5.2 Two new explanations have been added after section 9(a)(v) the first
requires that the valuation of property must be calculated by taking the higher
figure amongst the price in the title documents or the FBR/District collector
record. The second explanation directs that whilst the bank balance of an
account may be treated as a movable asset, the sum total of credit entries shall
not be considered an asset, nor shall a banking transaction unless creation of
corresponding asset can be established. The process or requirements for
establishing a corresponding asset have not been provided.
5.3 Through amendment to section 9(a) (vi) the word “intentionally” has been
added before the offence of misusing authority to gain monetary benefit,
whereas the words “by disregarding the law” have been added afterwards,
further the rest of the section which made it an offence to willfully not prevent
the gaining of undue benefit have also been removed.
5.4 Three new explanations accompany the newly amended section 9(a)(vi) the
first provides indemnity to acts done in good faith, the second requires that
material evidence of gaining monetary benefit or other asset from the
beneficiary of his misuse of authority must be provided for an offence to be
constituted (note: There is no mention of such benefit being derived by
benamdiar or other associate in this explanation). The third explanation states
that the authority of a public office holder shall be clearly specified as per
applicable rules and regulations.
5.5 Section 9(a)(vii) which dealt with taxation or other losses caused through
misuse of SRO etc. has been omitted through the amendment’s, even though it
had already been rendered infructuous through various amendments to section
4(2).
5.6 A proviso has been added to section 9(a)(ix) which states (with regard to
cheating the public at large as defined in section 415 PPC) which states that for
the offence to be made out it must be established that there was an intention to
cheat “at the time of initiation of a transaction”
5.7 The section contains one explanation and two illustrations. The explanation
states that civil and commercial disputes shall not be tried under the ordinance,

1. Amended through amendment no.2 of

 NAB Amendments

whereas the illustrations differentiate between a Ponzi scheme (since inception)

and a lawful business which runs into losses and defaults on obligations.
Note: The second illustration when read with the proviso would indicate that
NAB cannot prosecute someone unless they can prove that the
business/scheme was based on fraud from initiation, thus if a scheme began as
a lawful business but later converted into a Ponzi scheme (or other fraudulent
venture) the amendment would prevent NAB from prosecuting.
5.8 (bail): Through an amendment to section 9(b) renders the offences bail able,
the original section stated that the offences were non-bailable
“notwithstanding” anything contained in… the amended sections state that no
court other than the court established under this ordinance shall have powers
to grant bail or order release of the accused.
5.9: Through insertion of section 9(d) the accused shall be informed of closure
and inquiry shall not be reopened without permission of the court.

6. Punishment:
6.1 : Through amendment to section 10(a) while nothing has been removed
from the existing provision, the accused has been provided the benefit of 382-B
CRPC (which casts a duty upon the court to be mindful of any time the accused
has already spent incarcerated while sentencing)
6.2 : Section 10 (d) which prohibited remission in sentence has been omitted
from the amended ordinance.

7. Fine: Through omission of section 11 the condition that a fine imposed may
not be less than the gain derived by an accused/relative/associate has been
removed.

8. Burden of proof: Section 14 of the ordinance, which dealt with burden of

proof has been omitted from the ordinance, while 14(1) and (2) dealt with
unwarranted gratification 14(3) stated that the presumption would arise as to
any asset or income which could not be justified by the accused. Thus by
implication the burden of proof has shifted onto NAB with regard to the
ordinance.

9. Disqualification: Through amendment to proviso of section 15(a) reference

to section 25(b) has been omitted, the said proviso ensured that any accused
who made a plea bargain deal would have to forfeit any public office they held
and would remain disqualified from public office for ten years, from the date
they deposited the agreed amount, further this amendment has been given
retrospective effect.

10. Trial :

1. Amended through amendment no.2 of

 NAB Amendments

10.1 Through amendment in section 16(a) the requirement for day to day
hearing has been removed, the time period for disposing of the trial has been
extended to one year from the previous 30 days.
10.2 Through insertion of section 16(e) empowers Chairman NAB (if satisfied
with regard to facts and circumstances) to file a reference in any court of the
country and that court will have jurisdiction.

11. Transfer of cases: Through insertion of section 16A (d) the application of this
section has been extended to Islamabad capital territory.

12. Application of code of criminal procedure: Through omission of section 17(c)

the power of the court to dispense with any provision of the code has been
removed.

13. Cognizance of offences:

13.1 Through amendment to section 18(c) it is has been mandated that

material evidence is required for an inquiry to be converted into an
investigation with the proviso that the inquiry report will be provided to the
accused.
13.2 Through omission of section 18(e) the authority of NAB to arrest any
person for purposes of inquiry or investigation, the mandate to exercise
powers of police under the code (powers of SHO) and the duty of all
government officials and agencies to cooperate with NAB have been
removed.
13.3 Through amendment to section 18(f) an inquiry or investigation must be
completed within six months, previously there was no time bound
“expeditiously as may be practical and feasible”.

14. Power to call for information:

14.1 Through amendment to section 19(a) the power of chairman NAB or
authorized officer to call for information has been qualified; the amendment
restricts the information to subject of the inquiry or investigation.
14.2 Through amendment to section 19(b) the power to ask for production of
documents has similarly been restricted to the subject of the inquiry or the
investigation.
14.3 Through amendment to section 19(C) the power to examine witnesses
has been restricted to the subject of the inquiry or investigation
14.4 Through amendment to section 19(d) the duty of banks to cooperate
with NAB has been restricted to the subject of the inquiry or investigation.

1. Amended through amendment no.2 of

 NAB Amendments

14.5 Section 19(e) has been substituted; the previous section allowed
Chairman Nab to order surveillance of a reasonable suspect and seek assistance
of governmental agencies for the purpose with permission of the concerned
High Court, the information obtained was to be confidential aside from usage as
evidence in court. The substituted section requires NAB to inform anyone called
for information if they are an accused and the information should be such as
enables him to prepare his defense.

15. Reporting of suspicious financial transactions: An explanation has been

added after section 20(b) whereby an unusual or large transaction has been
defined as a transaction in cash over two million PKR.

16. Evidence : Through Omission of section 21(g) all evidence collected

from a foreign government are inadmissible. Media reports allege that the
omission does not only affect the evidence transferred by a foreign government
but results in the exclusion of evidence from foreign jurisdictions all together.
Note: This exclusion possibly affects the evidence collected during the Panama
cases and the JIT investigation report, aside from rendering the Trust deed
submitted by the defendants inadmissible.

17. Disposal of property: Section 23 of the ordinance which prohibited an

accused from disposing off his property without permission from the court has
also been omitted.

18. Arrest: Section 24 of the ordinance has been substituted.

18.1 The previous section 24(a) allowed Chairman to order arrest at any
stage of inquiry or investigation without any qualifications or restrictions, the
amended 24(a) requires that the accused was intentionally avoiding
investigation, attempting to abscond, tampering with evidence or there is
credible information that the offence will be repeated or is continuing.
18.2 The previous section 24(d) gave NAB the right inform an accused of the
grounds and substance of charges “as soon as may be”, in the substituted section
this has been replaced with” at the time of arrest”. The substituted section has
reduced the time of remand from 90 to 14 days.

19. Plea Bargain :

19.1 Two provisos have been added to section 25(b) the first proviso states that the
statement/witness/plea bargain or voluntary return of an accused shall not prejudice the case of any
other accused and that failure to pay amount will render plea bargain inoperative, restoring parties to
their previous position. The second states that if an accused challenges the plea bargain and the court

1. Amended through amendment no.2 of

 NAB Amendments

believes that the plea bargain was a result of exertion of illegal pressure, the plea bargain may be
recalled to the extent of that accused.
19.2 Through amendment to section 25(c) the time limit of one month previously stipulated for the
amount deposited to be transferred to the intended receiver has been removed (federal
government/provincial government/bank etc.)

20. Tender of pardon: Through the Amendments section 26 (a) and (b) have been substituted.
20.1 The amended section 26(a) retains the wording of the previous section with the inclusion of the
condition that the disclosure of the witness should be based on ‘material relating to the said offence’,
further a proviso has been added which disqualifies the confessor from any public office for a period of
ten years.
20.2 The amended section 26 (b) retains the language of the previous section, with the addition that
the accused shall be present and provided the chance of cross-examination when the witness is being
examined by the magistrate.

21. Power to seek assistance: Through amendment to section 27 while the chairman’s power
and sole discretion to seek information/document/assistance from governmental or private
organizations has been retained whereas the previous section stated that in any instance
where secrecy of the information sought was at issue the chairman’s decision shall be final,
the amended section 27 qualifies the power by exempting
documents/information/assistance the secrecy of which is protected under the law.

22. Appointment of officers and staff : Section 28 has been substituted by the amendments
22.1 The previous section 28 allowed Chairman NAB or authorized officer to appoint
officers and staff, Chairman NAB with approval of the President had the authority to set
terms and conditions of service, salary and allowances and restricted the employment of
civil servants, barring those on deputations. The amended section 28(a) states that NAB may
appoint officers considered necessary to efficiency on terms and conditions prescribed
under the rules.
22.2 The amended section 28(b) allows NAB to appoint advisors, consultants and experts on
terms prescribed under the rules.
Note : Vide amendment to section 34 the power to make rules has shifted from Chairman
NAB to the Federal Government.

23. Section 31A has been omitted through the recent

amendments, the section dealt with the penalty for attempting to
abscond or avoiding the process of court/investigation/inquiry.
23.1 Section 31B has been substituted both the previous and
amended sections deal with withdrawal from prosecution. The
previous section did not contain guidelines as to when this
should happen and provided discretion to the prosecutor
general and Chairman NAB in this regard, whereas the

1. Amended through amendment no.2 of

 NAB Amendments

amended section provides that they may withdraw wholly or

partially, with or without condition if they feel on the totality
of facts, circumstances and evidence that such proceedings are
unjustified.

23.2 Inquiry, investigation or proceedings in respect of

imprudent bank loans: A new section 31DD has been
inserted through the recent amendments which prohibits
inquiry or investigation into a decision of the board of any
bank or financial institution without the prior approval of
the Governor State Bank of Pakistan.

24. Annual report : Through the amendment to section 33D the

annual report of NAB is to be presented to the National assembly
and senate whereas the previous section required the report to be
submitted to the President.

25. Public statements:

25.1 Through insertion of section 33(F) NAB officials have been

prohibited from making any public statements with regard to any
inquiry or investigation till a reference has been filed

25.2 The newly inserted section 33 (G) provides the punishment

for contravention of 33F which is a maximum imprisonment of one
year and a fine of PKR one million.

26. Indemnity: indemnity was provided to officers under

previous section 36, the previous section allowed immunity
for all actions undertaken in good faith, while this immunity
has not been removed the amendment has added a
qualification which will render any officers involved in an
investigation which was overturned on grounds of mala fide
intent liable to five years imprisonment.
27. Removal of diffilculties : Vide the recent amendments the
power to pass orders for removal of difficulties has been
shifted from Chairman NAB to the Federal government.

1. Amended through amendment no.2 of

 NAB Amendments

1. Amended through amendment no.2 of