A Power of Attorney (POA) is a formal legal document by which one person (the Principal or Donor) authorizes another person (the Agent or Attorney-in-Fact) to act on their behalf in financial, legal, business, or property matters.

In Pakistan, the creation, registration, and enforcement of a Power of Attorney are regulated by the Powers of Attorney Act, 1882, the Registration Act, 1908, and relevant provincial stamp laws.

1. General vs. Special Power of Attorney

There are two primary types of Power of Attorney, distinguished by the scope of authority granted to the agent:

General Power of Attorney (GPA)

• Definition: Grants broad, comprehensive powers to the agent to manage the principal's affairs, particularly regarding property, bank accounts, and legal representation.
• Scope: The agent can buy, sell, lease, or mortgage properties, file lawsuits, sign contracts, and perform almost any legal act the principal could do themselves.
• Risks: Because the authority is exceptionally broad, GPAs carry a high risk of misuse. Land disputes and fraudulent property transfers in Pakistan often stem from misused GPAs.

Special Power of Attorney (SPA)

• Definition: Restricts the agent's authority to a specific, single task or a narrow transaction.
• Scope: The powers are strictly limited to the task described. Once that task is completed, the SPA automatically expires.
• Examples: Authorizing an agent only to represent the principal in a specific civil suit, or only to collect a pension check, or only to sign a specific lease agreement.

2. Mandatory Registration and Execution Requirements

For a Power of Attorney to be legally valid and recognized by authorities (such as the Land Registry, banks, or courts):

1. Stamp Paper Execution: The document must be printed on non-judicial stamp paper of proper value under the Stamp Act 1899. The stamp duty varies by province and is significantly higher for GPAs involving property sale powers.
2. Witnesses: The POA must be signed in the presence of at least two credible witnesses, who must also sign the document.
3. Registration with the Sub-Registrar:
   • Under Section 17 of the Registration Act 1908, a General Power of Attorney that authorizes the sale, mortgage, or transfer of immovable property must be registered with the local Sub-Registrar of the area where the property is situated.
   • Unregistered GPAs cannot be used to transfer property ownership.
   • Special Powers of Attorney (e.g., for court representation) do not require registration but must be notarized by a licensed Notary Public.

3. Power of Attorney for Overseas Pakistanis

Millions of Pakistanis living abroad need to manage properties or legal disputes back home. They can execute a Power of Attorney without traveling to Pakistan by following this specific verification process:

• Step 1: Execution at the Embassy: The Principal must visit the nearest Pakistani Embassy, Consulate, or High Commission in their country of residence. They must sign the POA in the presence of the consular officer.
• Step 2: Consular Attestation: The consular officer attests and seals the document.
• Step 3: Dispatch to Pakistan: The Principal sends the attested document to the Agent in Pakistan.
• Step 4: MOFA Verification: Upon receipt, the Agent must present the document to the Ministry of Foreign Affairs (MOFA) in Pakistan for final verification and stamping. This must be done within 120 days of attestation by the foreign mission.
• Step 5: Local Registration (if applicable): If the POA involves selling property, the Agent must take the MOFA-attested document to the local Sub-Registrar in Pakistan to complete the local registration process.

4. Revocation of a Power of Attorney

A Power of Attorney is not permanent and can be revoked by the Principal at any time, provided they are of sound mind.

Methods of Revocation

• Express Revocation Deed: The Principal executes a formal Deed of Revocation on stamp paper. If the original POA was registered, the Revocation Deed must also be registered with the same Sub-Registrar.
• Public Notice: It is highly recommended to publish a notice of revocation in at least one widely circulated newspaper to notify the general public and prevent third parties from dealing with the agent in good faith.
• Written Notice to Agent: The Principal must send a formal written notice of revocation to the agent, preferably through registered post with acknowledgment due.
• Automatic Revocation: A POA is automatically terminated upon:
  • The death of the Principal or the Agent.
  • The mental incapacity or bankruptcy of the Principal.
  • The completion of the specific task (in case of an SPA).