'TOO 2007 must be scrapped'

"In order to do away with the multiplicity, overlapping and over regulation of authorities regulating trade bodies, Trade Organisations Ordinance, 2007 (TOO 2007) must be scrapped as it contains many anomalies and contradictions and creates hardships in smooth functioning and growth of trade organisations in the country and there should be only one regulatory body viz SECP, as it has inbuilt mechanism to monitor, supervise and guide their activities, functions and performance as per Companies Ordinance 1984.
There were about 150 trade bodies registered under the previous Ordinance 1961 and under the new TOO 2007 about 133 licenses have already been issued to trade bodies and other's applications are under process.
It has taken about three years for all trade bodies to get themselves again registered under the TOO 2007 and as such it has served no purpose, except diverting them to go through a cumbersome and lengthy procedure. The functions of DGTO such as issuance of trade licenses, submission of accounts, balance sheet, election results, resolution of disputes etc are catered by SECP as well".
This was unanimously resolved by the 60 representatives of the Sindh and Balochistan based Trade Associations and Chambers such as Larkana, Hyderabad, Sukkur, Dadu, Chaman, Quetta, Overseas Investors CCI, etc, during their meeting held under the Chairmanship of Sultan Ahmed Chawla, President, Federation Of Pakistan Chambers of Commerce & Industry (FPCCI) here with Amjad Nazeer, Director General, Trade Organisations (DGTO), Ministry of Commerce who visited FPCCI to seek comments and views of the stakeholders on TOO 2007 for onwards submission to the concerned quarters.
Tariq Sayeed, Leader of the Businessmen Panel & Former President FPCCI, SM Muneer, President, Indo-Pak Chamber of Commerce & Industry & Former President FPCCI and FPCCI's Vice Presidents, M Mansha Churra, Zakaria Usman, Mumtaz Ali Shaikh, Engr Daroo Khan was also present in the meeting.
FPCCI Chief elaborated that incorporation of FPCCI member bodies with SECP is mandatory which regulates them through a well-defined administrative procedure and system such as submission of returns periodically, seeking detail of their membership, scrutiny of audited accounts, financial statements, annual election schedules and results etc, and in the presence of SECP, there is no need for any other regulatory authority. Tariq Sayeed said that the Trade Ordinance 2007 is in violation of Article 17 of the Constitution of the country, which guarantees the right of every citizen to form associations or unions subject to reasonable restrictions imposed by law in the interest of the sovereignty or integrity of Pakistan, morality or public order.
He disclosed that such type of over regulatory system is not being implemented in any part of the world except Pakistan. He added that TOO is hampering the business activities and is only playing the role to discourage the business activities and has contributed to closure of Chambers of small cities / rural / remote areas. In this respect he gave example of Japan where there are thousands of trade bodies.
Tariq Sayeed lamented that the provision of renewal of license or re-registration after every three years is very harsh and tantamount to discouraging trade bodies as no other representative organisation such as Pakistan Medical Association, Press / Journalist Associations, Chartered Accountants Association, Lawyers / Bar Association, Political Parties etc, is regulated under such law.
Tariq Sayeed recalled, "Before creation of Pakistan the trade bodies were independently functional without any controlling regulations by the then governments. After independence also the trade bodies continued to function independently in Pakistan till 1961. In 1961, during the regime of President Mohammad Ayub Khan, the Trade Organisations Ordinance, 1961 was promulgated to over-regulate trade bodies' activities".-PR