Beyond factional politics: Reclaiming Pak trade chambers

Advocate Bassam Ahmed Siddiqi IN a country, where GDP growth has remained largely constrained between 3% and 4% for nearly a decade, the standing of trade organizations and business community cannot be overstated. Baffling with the regional conflicts, political uncertainty, economic challenges and socio-cultural issues, Pakistan seems to be struck in a loophole, from where there is no way out. GDP growth rate for the year 2026 has been projected to be 3.6% by the IMF, while the forecast rate for 2027 is 3.5%. Decision-makers and relevant stakeholders are lost in power struggle; completely overlooking the situation of a common man, who is living at an average income of $4.5-$5 per day. Those who are responsible for increasing the financial standing of the country are also involved in power politics in their respective chambers of commerce and trade organizations. The state of affairs is dire, while the relevant institutions fail to realize the gravity of the situation. The business community is the backbone of any state, driving economic activity, creating employment and contributing to the overall economic growth. The situation in Pakistan is otherwise. Internal Politics and Alliances/Groupings has become the core agenda of chambers in the recent times. While formation of alliances is not unconstitutional, rather democratic competition can strengthen institutions. Yet, the problem arises when the interests of one particular group become so dominant, that the chamber begins to be perceived primarily as a platform for one faction rather than as an institution representing the collective interests of business community. Unfortunately, this trend has been prevalent in chambers across Pakistan. From Karachi Chamber of Commerce and Industry (KCCI), Lahore Chamber of Commerce and Industry (LCCI) to Sarhad Chamber of Commerce and Industry (SCCI); elections in chambers across Pakistan has actually transformed into a tug of war between different rival factions. The modus operandi remains almost similar in all the chambers. A relatively small set of organized groups dominates the outcomes, while large segments of the membership remain unrepresented in practice. If the objective of a chamber's leadership is merely to invite government ministers, carry out photo ops without focusing on their basic responsibilities of generating economic activity; how the business community of Pakistan can be expected to contest in the global arena. How can a farmer, an innovator or an entrepreneur be expected to contribute to the economy when those entrusted with strengthening the system are more concerned with securing the limelight for themselves than serving the very community they are meant to represent? These tendencies demonstrate that group politics is a harsh reality within the chambers. However, the important question in this regard is whether such competition is beneficial for the business community or if it weakens the institutions. A chamber cannot become an arena where electoral victory is treated as an end in itself. Its real purpose is to convert the collective concerns of the business community to the government and transform the challenges into constructive policy advocacy. That responsibility is particularly imperative, given Pakistan's present economic circumstances. Pakistan cannot afford prolonged institutional distractions within its trade bodies. At a time when businesses are struggling to deal with energy costs, taxation, export competitiveness and changing international markets, the chambers must focus on practical and concrete economic outcomes. An important responsibility in this regard lies with the Ministry of Commerce and Director General Trade Organization (DGTO). The Directorate General of DGTO is not a mere cosmetic or ceremonial authority. DGTO's role as an impartial statutory regulator is fundamental to maintaining a transparent, credible and effective regulatory framework for chambers. Its engagement with chambers should continue to be guided by clarity and applicable legal framework. Where matters arise concerning elections, membership, licensing and governance, it is important that all concerned parties are afforded appropriate due process and regulatory decisions are supported by relevant legal considerations. Pakistan needs strong chambers because it needs a strong private sector. It needs a credible DGTO because credible regulatory authority creates confidence in institutions. The test of every chamber and leadership in the respective chambers should, therefore, be whether it serves the business community as a whole. The test of the DGTO should be whether it exercises its statutory powers fairly, transparently and strictly in accordance with the law. If both institutions meet these tests, competition can become constructive rather than divisive and chambers can play the role they were created to perform, giving the business community a unified and credible voice in shaping the country's economic future. —The writer is an Advocate by Profession, Legal Advisor to various Chambers of Commerce & Industry and leads the Chamber of Legal Consultants. ([email protected])