All life members and patron members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have been stripped off their status in the apex trade body.
The Directorate-General of Trade Organisations (DGTO), Ministry of Commerce, has informed the FPCCI Secretary-General that the Trade Organisations Ordinance (TOO)-2006 "specifically prohibits" existence of any nomenclature such as life members, patron members, etc.
There are around 100 life members and a large number of patron members who would lose their position in FPCCI, following the elimination of their memberships. Life membership was granted by the FPCCI against payments which ranged from Rs 100,000 to Rs 300,000. Members losing their position would now be demanding return of the amount which they had paid. This would result in a burden on the FPPCI to the tune of approximately Rs 25 million.
The DGTO has also forwarded 'final list' of trade organisations which have been granted licences, and assured the FPCCI that the federal government has not extended the date for the grant of licences to existing trade organisations. The last date for the issuance/renewal of licences was September 30, 2008.
The status of grant, denial and cases of lapse of licences to the existing trade organisations was notified by the Federal Government in terms of Trade Organisations Ordinance 2006 on October 10, 2008.
Besides FPCCI, licences have been granted to 66 associations, 29 chambers, and five 'town associations'. The total comes to 100. Those denied licences include 12 associations and three chambers: total 15.
The lapsed cases include 33 associations, seven chambers and one town association: total 41. This means that total 56--15 denied cases and 41 lapsed cases--have ceased to exist from October 1, 2008. Commenting on this situation, business leaders said that representatives of trade organisations which have not been issued licences would lose their representative character for seeking any assistance from, or presenting their problems before, the government and other statutory bodies which entertain representations of groups formed by composing associations allowed under the constitution of Pakistan.
Several associations have been issued licences in the same trade/sector, which is a gross violation of TOO - 2006 and Rules - 2007. The DGTO's office has violated clause 3(2)(d) and TOO Rule-8 and issued licences to trade bodies which belong to the same trade sector. In this clause it has been enacted that licence shall not be granted to more than one trade organisation in the same sector and further as per TOO Rules, Government can direct trade organisation to merge it in same or similar trade.
Abdul Rasheed Abro, a former vice-chairman of Pakistan Ship Agents Association (PSAA) which has been denied licence, said that looking at the associations which have been granted licences, one could see that the concept of same trade as envisaged in the law has been violated by the DGTO. He said that in the iron and steel sector alone several associations have been granted licence under the same trade/sector. Similarly, duplication is also seen in freight forwarding where another segment licence has been issued.
Associations whose activities otherwise are not understood and they particularly do not have any size share in the economy have also been granted licences, he said. It appears that FPCCI is again hostage of numerical advantage gained by professional leaders, Abro said, adding that like trade unions "we also see the continuation of professional encroachment in the apex trade body".
He said that before the FPCCI office-bearers' elections, which are due in December, an effort is being made to defame the present government, which has hardly lived for few months with ownership of several years of bad management.
Abro has demanded that the government should thoroughly investigate whether the grant of licences was as per rules or has been purchased through present influence of FPCCI. In such situation, he warned that there would be 'selection' and 'no election' in the FPCCI. He said it is the turn of Sindh, and once again conspiracies are being hedged to deprive the real representation of Sindh to clinch the position of FPCCI president's slot. He claimed that no real representation has ever been accorded to Sindh in the past in the election of FPCCI president. The position is filled on the basis of rotation among the provinces and the new president, who will be inducted in office on January 1, 2009, has to come from Sindh.