Confusion is getting more confounded as a result of incredible delay in the grant of licenses under the Trade Organisations Ordinance Rules (TOO), 2007 by the Ministry of Commerce to trade bodies. Would these associations and chambers be allowed to continue under the existing licenses or their functioning would come to a halt? is the question worrying the trade bodies throughout the country.
Needless to mention that the President of Pakistan had promulgated TOO-2006 on December 30, 2006 revoking all the licenses granted under TOO-1961. Subsequently TOO Rules were announced in early 2007. The then Commerce Minister had explained that: "on promulgation of new law, all licenses granted under TOO-1961 shall stand revoked and existing trade bodies to apply for licenses under the new law within three months." This would help eliminate fake, dummy and dormant trade bodies.
It was further explained that the government would be bound to decide the applications for grant of new licenses within three months. While pending decision on grant of fresh license, existing trade bodies shall continue to function for six months. "TOO-1961 did not provide an effective mechanism for purging of such ghost trade bodies," he had said.
A total of 119 associations and 42 chambers had applied for license as required under the law by June 30, 2007 which was the last date for submission of applications. However, till around May 15, 11 associations and 10 chambers were issued licenses.
The Ministry of Commerce is proceeding at snail''s pace and unless the work is speeded up, several of the chambers and associations who have applied for license may be eliminated, it is feared. Trade bodies elections are due in September and that of the apex trade body ie, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in December. The newly created office of Director General of Trade Organisations, under TOO-2006 is not yet fully functional for want of staff which is causing nagging delay in the implementation of rules and affecting the smooth functioning of trade bodies.
Although FPCCI was issued license on March 15, 2008 under TOO-2007 following submission of its Memorandum and Articles of Association, incorporating amendments as per TOO-2007, to the Ministry of Commerce, its managing committee at its meeting held last week expressed reservations on certain articles which need to be redrafted.
A committee was formed under Tariq Sayeed to review these articles and a presentation would be made to the Commerce Minister to seek rectification of certain anomalies. Tariq Sayeed is unhappy with TOO-2006 and TOO Rules 2007 and wants them to be scrapped. According to the list available here on Monday following associations and chambers have been issued licenses:
ASSOCIATIONS: Pakistan Overseas Employment Promoters Association, Pakistan Software Houses for IT & ITES, Pakistan International Freight Forwarders Association, Pakistan Petroleum Exploration Production Companies Association, Rice Exporters Association of Pakistan, Surgical Instrument Manufacturers Association, All Pakistan Cement Manufacturers Association, Air Cargo Agents Association of Pakistan, Insurance Association of Pakistan, All Pakistan CNG Association and All Pakistan Contractors Association.
CHAMBERS: Federation of Pakistan Chamber of Commerce and Industry, Karachi Chamber of Commerce & Industry, Sahiwal Chamber of Commerce & Industry, Islamabad Chamber of Commerce and Industry, Faisalabad Chamber of Commerce and Industry, Lahore Chamber of Commerce & Industry, Sialkot Chamber of Commerce and Industry, Jhelum Chamber of Commerce and Industry, Larkana Chamber of Commerce and Industry, and American Business Council, Karachi.
Leading members of the business community feel that a committee comprising members from private sector and Ministry of Commerce is formed to decide about the grant of license to trade bodies. The matter should not be left to the discretion of Ministry of Commerce alone because business community is directly related to the issue. Already questions are being raised on the eligibility of at least three associations who have been granted licenses.