Addressing the Federation of Pakistan Chambers of Commerce and Industry in Karachi on Friday, Federal Commerce Minister Humayun Akhtar Khan said that the Federation's concerns regarding the newly promulgated Trade Organisations Ordinance (TOO), 2006, would be given due consideration.
Notably, President General Pervez Musharraf had promulgated the new TOO on December 30 to replace the antiquated one, which went as far back as 1961. The new law contains several positive changes.
In a bid to end mal-practices in the sector it has revoked all the licences granted under the old TOO. The existing trade bodies are required to apply for fresh licences within three months, while the licence period has been restricted to three years so that fake and non-functional bodies can be eliminated. The FPCCI is not happy with the three-year licensing limit.
Instead, as its president, Tanvir Sheikh, suggested, it would like the government to introduce a strict monitoring system that makes it binding for all the trade bodies to observe corporate rules compliance, and the licences of only those trade bodies are revoked that fail to do so.
The issue may come up for review when the government undertakes work pertaining to framing of TOO 2006 rules, which the minister had stated on an earlier occasion will be done shortly. Hopefully, any such review will not compromise the primary objective of the TOO provision that aims to eliminate fake or non-functional bodies.
Unfortunate as it is, various chambers and associations have been taken over, through systematic manipulation, by individuals who have little to do with business and trade. It is not uncommon to see several people claiming to represent the same sector without any thing to show for their claims. There is a purpose to this seemingly useless activity, which is to gain the eligibility to vote for the election of a relevant chamber's offices.
There have been instances where these votes have been sold to the highest bidders rather than being cast on the basis of candidates' ability to lead and promote the interests of the business community. No wonder most captains of industry have disassociated themselves from the various chambers' activities. Consequently there is hardly any productive work in evidence.
The main responsibility of the chambers and the FPCCI has been reduced to demands for representation in this or that economic planning or advisory committee as well as inclusion in the presidential/prime ministerial entourages during these leaders' trips abroad.
When such demands are not met, the government is accused of not giving due respect to the business community. Such practices must be brought to an end and the FPCCI and chambers of commerce and industry restored to the dignity they deserve. Respect, it goes without saying, needs to be commanded rather than demanded.
The new TOO takes care of most aspects of the problem. The membership criterion for trade bodies is to be clearly defined, and issue of multiplicity of organisations in the same sector, which present conflicting claims of representation, is to be duly addressed. This should help in ridding the trade bodies of spurious representatives.
While it is at it, the government must also place a minimum limit of 60-65 percent of the total functioning entities in a particular sector to be members of a trade body before it can be recognised as the representative association of such sector. Besides, these organisations must have decent amounts of funds, raised through membership fees and contributions, at their disposal to run their affairs in a dignified manner and also to conduct necessary research work.
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