FAZAL ILAHI KHAN, J.---This is petition for leave to appeal against the judgment of learned Lahore High Court, Rawalpindi Bench, Rawalpindi dated 21-5-1995 passed in Writ Petition No.538 of 1995.
2. Petitioner in the name and style M/s: Rana Exchange International Money Changer, Shop No.6, 44-East Plaza Blue Area, Islamabad carried out the money changer business which was controlled by the State Bank of Pakistan by virtue of the Foreign Exchange Regulation Act, 1947. The State Bank of Pakistan is the supreme controlling authority of Foreign Exchange and as such issues licences on the prescribed fee authorising persons to deal in the foreign exchange.
3. Petitioner was granted Money Changer Licence No.FEI/75/34(25)/93 dated 11-2-1993 under section 3 of the Foreign Exchange Regulation Act (VII) of 1947 for the period up to 10-2-1995. The licence could be renewed for further period asked for. On the petitioner's failure to approach the State Bank for the renewal of his licence he was directed to surrender the licence in original vide letter dated 9-3-1995 and was restrained from undertaking the business.
4. The petitioner challenged the aforementioned direction of the State Bank on the contention that on coming into force of the provision of Protection of Economic Reforms Act (Act XII of 1992), which has overriding effect, business of foreign exchange no more remains under the control of the State Bank. The learned High Court repelled the contention and dismissed the writ petition by observing as under:-- "The petitioner was a licensee of the State Bank and he has to obtain a licence to deal in foreign exchange or to parry on the business of money changer. Liberalization of policy of Government to allow individuals to keep foreign exchange does not authorise the individual to do the business of money changer at will."
5. We find no infirmity in the judgment of the learned High Court. Section 4 of Act VII of 1947 apart from others provides that except with previous general special permission of the State Bank no person other than authorised dealer shall in Pakistan and no person resident in Pakistan other than authorised dealer or outside Pakistan, by or borrow from or sell or lend to, or exchange with, any person not being authorised dealer, in foreign exchange.
6. The above provision is not in conflict with section 4 of Protection of Economic Reforms Act, 1992 as the later simply provides that all citizens of Pakistan resident in Pakistan or outside Pakistan and all other persons shall be entitled and free to bring, hold, sell, transfer and take out foreign exchange within or out of Pakistan in any form and shall not be required to make a foreign currency declaration at any stage nor shall any one be questioned with regard to the same.
However, there is nothing in the Statute to debar the State Bank for regulating the financial institutions and dealers. The petitioner himself after the enforcement of the Protection of Economic Reforms Act managed to get the licence as a Money Changer for a specified period which in absence of its renewal was to be returned to the State Bank unless renewed or extended in accordance with law.
For the reason the petition is dismissed and leave to appeal refused.