Question 1

Is a child born in Pakistan a citizen by birth?

Accepted Answer

Yes. Under section 4 of the Pakistan Citizenship Act, 1951, a person born in Pakistan after the Act commenced on 13 April 1951 is generally a Pakistani citizen by birth.
This is subject to statutory exceptions, including where, at the time of birth, the child’s father had diplomatic immunity as an envoy of a foreign sovereign power accredited in Pakistan. The provided extract does not list the remaining exceptions in full. (Source: Pakistan Citizenship Act 1951, section 4)

Question 2

What does the Competition Act 2010 say about abuse of a dominant position?

Accepted Answer

Under section 3 of Pakistan’s Competition Act, 2010, no person may abuse a dominant position.
Abuse occurs when a dominant person or undertaking engages in practices that prevent, restrict, reduce, or distort competition in the relevant market. The Act’s examples include:
- limiting production or sales;
- making unreasonable price increases or imposing other unfair trading conditions;
- charging different customers different prices for the same goods or services without objective justification;
- making the sale of one product or service conditional on buying another (“tie-ins”); and
- requiring contractual obligations that have no connection with the contract’s subject matter.
The listed practices are examples and are not exhaustive. Where abuse is established, the Competition Commission may require the undertaking to take specified action to restore competition and not repeat the prohibited or similarly harmful practice. (Source: Competition Act 2010, section 3)

Question 3

What conduct does the Official Secrets Act 1923 criminalise?

Accepted Answer

The Official Secrets Act, 1923 criminalises conduct involving official secrets and national security, including:
- Espionage-related offences;
- Taking photographs or making sketches of prohibited or notified areas in breach of restrictions;
- Wrongfully communicating official information;
- Communicating or dealing with enemy or foreign agents as addressed by the Act;
- Unauthorised disclosure of protected identities or related information;
- Unauthorised use of official uniforms;
- Falsifying reports, forgery, personation, and using false documents;
- Falsely claiming to hold government office or employment;
- Knowingly making a false statement to obtain an official document, secret official code, or password;
- Interfering with police officers or members of Pakistan’s Armed Forces;
- Failing to provide required information about offences;
- Attempting or inciting offences under the Act; and
- Harbouring spies.
The Act extends throughout Pakistan and also applies to Pakistani citizens and persons in government service wherever they may be. (Source: Official Secrets Act 1923, section 3)

Question 4

How often must a company hold an annual general meeting under the Companies Act 2017?

Accepted Answer

Under section 132 of the Companies Act, 2017, every company must hold:
- Its first annual general meeting within 16 months of incorporation; and
- Thereafter, one annual general meeting in every calendar year, within 120 days after the close of its financial year.
For special reasons, the Commission (for a listed company) or the registrar (for any other company) may grant an extension of up to 30 days. (Source: Companies Act 2017, section 132)

Question 5

Who must register under the Sales Tax Act?

Accepted Answer

Under section 14 of the Sales Tax Act, 1990, the following persons carrying on taxable activities must register if not already registered:
- A manufacturer not operating a cottage industry;
- A retailer liable to pay sales tax, excluding retailers who pay it through electricity bills under section 3(9);
- An importer;
- An exporter intending to claim a sales tax refund on zero-rated supplies;
- A wholesaler, dealer, or distributor; and
- Anyone required by another federal or provincial law to register for a duty or tax collected or paid as a sales tax levy.
Additionally, every person—including a non-resident—selling digitally ordered goods from within Pakistan through an online marketplace, website, or software application must register, except cottage industries and retailers paying sales tax through electricity bills.
An online marketplace or courier involved in supplying such goods cannot facilitate e-commerce transactions unless the seller has an NTN and, where applicable, sales tax registration. (Source: Sales Tax Act 1990, section 14)

Question 6

What does PECA say about unauthorised use of another person's identity information?

Accepted Answer

Under section 16 of Pakistan’s Prevention of Electronic Crimes Act, 2016 (PECA), anyone who obtains, sells, possesses, transmits, or uses another person’s identity information without authorization may be punished with:
- Imprisonment for up to three years;
- A fine of up to five million rupees; or
- Both.
The affected person may also apply to the Authority to secure or destroy the identity information, block access to it, or prevent its transmission. The Authority may take measures it considers appropriate. (Source: Prevention of Electronic Crimes Act 2016, section 16)

Question 7

Can the tax department amend a completed assessment, and under what provision?

Accepted Answer

Yes. The tax department may amend a completed assessment under section 122 of Pakistan’s Income Tax Ordinance, 2001, including under section 122(1) or 122(4).
Where amendment follows an audit under section 177(6A), the Commissioner must first issue the audit report and provide the taxpayer an opportunity to be heard under section 122(9). A complete return is itself treated as a deemed assessment order under section 120(1). (Source: Income Tax Ordinance 2001, section 122)

Question 8

What is a single member company under the Companies Act 2017?

Accepted Answer

Under Pakistan’s Companies Act, 2017, a single member company (SMC) is a private company limited by shares whose membership is limited to one person.

An SMC:

- cannot invite the public to subscribe for its shares;
- cannot register shares jointly in the names of two or more persons; and
- is generally governed by the provisions applicable to private companies limited by shares, unless the Act expressly provides otherwise.

Its sole director may be the sole member or, where permitted under the Act, a nominated non-member director. (Source: Companies Act 2017)

Question 9

What does PECA provide about offences against the dignity of a natural person?

Accepted Answer

Under section 20 of Pakistan’s Prevention of Electronic Crimes Act, 2016 (PECA), a person commits an offence against the dignity of a natural person if they:

- intentionally and publicly exhibit, display, or transmit information through an information system;
- know that information to be false; and
- thereby intimidate the person or harm their reputation or privacy.

The offence is punishable with imprisonment for up to three years, a fine of up to one million rupees, or both.

This provision does not apply to material aired by broadcast media or a distribution service licensed under the Pakistan Electronic Media Regulatory Authority Ordinance, 2002. An aggrieved person—or their guardian if they are a minor—may apply to the Authority to have the information removed, destroyed, or blocked. (Source: Prevention of Electronic Crimes Act 2016, section 20)

Question 10

What is the punishment for cyber stalking in Pakistan?

Accepted Answer

Under section 24 of Pakistan’s Prevention of Electronic Crimes Act, 2016, cyber stalking is punishable by:

- Up to three years’ imprisonment, or
- A fine of up to one million rupees, or
- Both.

If the victim is a minor, the punishment may extend to:

- Up to five years’ imprisonment, or
- A fine of up to ten million rupees, or
- Both. (Source: Prevention of Electronic Crimes Act 2016, section 24)

Business, Tax and Cyber Law in Pakistan — Answers With the Section Cited