The final round of meetings of the "Committee on Revision of Trade Organisation Ordinance (TOO), 1961," headed by former Justice Saleem Akhtar will be held during the later part of August and first half of September.
The meetings of the committee will be held in Karachi on August 24 and 25, Quetta on September 2 and 3, Lahore on September 9 and 10, and Peshawar on September 11. In its initial recommendations, the committee, while suggesting establishment of an independent Regulatory Authority had desired that the Authority should develop a detailed system to weed out fake trade bodies.
Businessmen and industrialists have been asked to intimate the committee at least one week before the above dates in case they wish to make a personal presentation or send their proposals/suggestions to Justice Saleem Akhtar latest by August 21 preferably by e-mail.
Under the TOO 1961 all the associations and chambers have to complete their elections by September 30 and Federation of Pakistan Chambers of Commerce and Industry by December 31 for two-year term. The trade bodies elections, therefore, would be held under the prevalent system till such time the revised trade bodies law is finally approved and becomes effective.
The need for the setting up of a committee had arisen following widespread demand that the trade bodies need cleansing of bad influences and eliminate associations and chambers, which existed on paper only for election purposes and lay dormant for years.
This menace, it appears, the business community will have to bear for another year because the committee would complete its assignment of appointing a consultant: to develop a comprehensive legal and organisational frame work for functioning of trade bodies in Pakistan, and draft the new law, rules and regulations including bye-laws of the trade bodies by October 31, 2006. That to "provided necessary approval for appointment of the consultant and funds for this purpose are made available immediately."
The initial report of the committee's broad recommendations resulting from its interaction with civil society and business representatives, and the analysis of the issues/concerns expressed during its deliberations was sent to stakeholders on July 7, soliciting their comments.
The committee would prepare detailed report and, based upon the work already done, make recommendations on certain specific issues to facilitate drafting of the legal text and rules for the enforcement of the new law.
In annex 6 of the report on role of FPCCI, trade bodies and associations, and regulators, it has been pointed out that membership of FPCCI being fairly open with limited member obligations and benefits results in a large number of inactive members and counter productive to FPCCI's objectives and focused policy related initiatives/actions.
THE OTHER POINTS HIGHLIGHTED INCLUDE:
-- The absence of a strong 'core professional management' has deprived the FPCCI and regional chambers and associations of presenting well researched considered views/findings concerning the formulation of national policies facilitating trade and industry.
- The role and mandate of committee within FPCCI and regional chambers being unclear the desired actions are missing.
-- The present job roles at FPCCI and regional chambers/sector specific associations evolved with time in response to need as opposed to being designed to meet the mandated objectives have led to in-actions on vital issues of interest to the trade and industry as well as national economy.
-- FPPCI has not developed and implemented a member code of conduct to guide member behaviour for ultimate benefit of the business community at large and in line with the goals and objectives of the FPCCI, regional chambers and sector specific associations.
-- Contrary to having well defined goals and objectives, proper organisation structure and working system, the present system lacks these ingredients.
-- Contrary to the desired role of acting as think tanks to highlight the broad issues of economic policy confronting trade and industry, and the national economy at large, FPCCI, chambers and associations mostly focus on advocating the interact of persons or individual industry.
-- Managing committee of FPCCI is very large and cumbersome involved both in policy formulation and monitoring implementation as well as routine day to day activities. This has diluted its effectiveness. The large size makes decision making on important policy issues extremely problematic.
There are 10 annex to the report dealing with different aspects of the subject.
Based on detailed examination of the issues and concerns arising from the legal framework governing the licensing and registration of trade bodies, monitoring of their functions by the regulators, the development of trade bodies in Pakistan and their practical functioning under the given organisation, the committee is convinced that fundamental and comprehensive changes are necessary in all areas and initially made the following broad set of recommendations.
REGULATORY FRAMEWORK:
(a) replace the present Trade Organisation Ordinance, 1961 with a new law containing minimum controls.
(b) Establish an independent regulatory authority (Pakistan Trade Bodies Authority) for enforcement of the new trade organisations law with the powers to grant license, registration, suspension and cancellation of the trade bodies.
This recommendation was discussed by the FPCCI managing committee at its meeting held here on July 28 but did not find favour with the members. The committee has been, reportedly informed by the FPCCI of the disapproval of establishment of regulatory authority.
(c) The federal government shall provide necessary funds for the authority's operations through initial seed money and annual budgets. The license/registration fee, penalties, if any, and fees for any other services shall also constitute the Authority's revenues.
(d) The trade organisations law inter-alia shall:
(i) Define the purpose, role, responsibility and operational framework for all trade bodies.
(ii) Establish membership criteria for the trade bodies.
(iii) Ensure good governance by establishing procedures that promote transparency. This shall include development by the trade bodies of codes of ethics, corporate and financial management.
(iv) Transparent election procedures, including resolution of disputes arising there from. This shall include the prohibition of "grouping, block voting and campaigning."
(v) The newly registered trade bodies holding valid license shall be entitled to vote and contest election after completion of 24 months of their affiliation with the apex body.
(vi) The newly enrolled members of the trade bodies shall be entitled to vote and contest election after completion of twenty-four months of their valid enrolment.
(vii) Define circumstances and the mode of intervention by the Authority in the affairs of trade bodies.
(e) The trade organisation law shall empower the Authority to frame rules for the enforcement of the new law and achieve its objectives.
(f) The authority shall develop a detailed system to:
-- Weed out fake trade bodies on the basis of new criteria after giving them opportunity of being heard,
-- Merger of trade bodies, and
-- Representation of women at the trade bodies including apex body.
(g) The authority shall provide model Memorandum and Articles of Association for trade bodies. The trade bodies shall develop a clear vision, mission and implementation strategy.