The Nawaz government introduced economic reforms which included privatization of nationalized industries, free movement of foreign exchange in and out of the country, and incentives to foreign and Pakistani entrepreneurs to invest in industry and other sectors of the economy.
The principal legislation concerning economic reforms introduced in August 1991 was Protection of Economic Reforms Ordinance, 1991 which was followed by two Ordinances in December 1991 and April 1992 in the same terms. (Protection of Economic Reforms Ordinance, 1991 (Ordinance XXVI of 1991) PLD, 1991 Central Statutes 494. Protection of Economic Reforms Ordinance, 1991 (Ordinance XXXIX of 1991), PLD 1992 Central Statutes 55. Protection of Economic Reforms Ordinance, 1992 (Ordinance III of 1992), PLD 1992 Central Statutes 166.)
Finally, an Act of Parliament in the same terms was passed in July 1992 called Protection of Economic Reforms Act, 1992 (Protection of Economic Reforms Act, 1992 (Act XII of 1992) PLD 1992 Central Statutes 250.) which covered the following economic reforms introduced by Nawaz:
One, all citizens of Pakistan resident in or out of Pakistan and all other persons would be entitled to hold, sell, transfer, and take out foreign exchange within or out of Pakistan in any form. All foreign exchange transactions were protected
Two, all citizens and other persons resident in or outside Pakistan and holding foreign currency accounts in Pakistan, would be immune from any enquiry from the Income Tax Department or any other taxation authority as to the source of financing of the foreign currency accounts.
Three, banks would maintain complete secrecy regarding transactions in foreign currency accounts.
Four, no restriction would be imposed on deposits in and withdrawals from the foreign currency accounts and all existing restrictions stood withdrawn forthwith.
Five, balances in the foreign currency accounts and income therefrom would be exempted from levy of wealth tax and income tax.
Six, fiscal incentives provided by the government through statutory orders from time to time could not be altered to the disadvantage of investors.
Seven, the ownership, management, and control of any banking, commercial, manufacturing, or other company, establishment, or enterprise transferred by the government to any person under any law would not be compulsorily acquired or taken over by the government for any reason whatsoever. No foreign industrial or commercial enterprise established or owned in any form by a foreign or Pakistani investor for private gain in accordance with law, and no investment in share or equity of any company, firm or enterprise and no commercial bank or financial institution established, owned or acquired by any foreign or Pakistani investor should be compulsorily acquired or taken over by the government.
Eight, secrecy of bonafide banking transactions was required to be strictly observed by all banks and financial institutions by whomsoever owned, controlled, or managed them.
Moeed sheikh 