Another parallel trade body emerges as DGTO licensing controversy deepens

A serious violation of DGTO laws has once again surfaced in Pakistan, with a private promotion group emerging under the titles of 'Federation' and 'Chamber' despite the presence of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The controversy surrounding the Employers' Federation of Pakistan (EFP) had not yet settled when another parallel organization came to light. The Pakistan Southern African Development Community (SADC) is claiming to have been operating as a 'Chamber' and 'Federation' since 2015. Documents reveal that SADC has been working in Pakistan without any legal license from the Directorate General of Trade Organizations (DGTO), the sole regulator mandated under the Trade Organizations Act, 2013, to license and regulate trade bodies. Legal experts point out that under Section 3(2)(a) of the Trade Organizations Act, 2013, there can be only one Federation of Chambers of Commerce and Industry in the country, organized on an all-Pakistan basis. The Act clearly states: 'Provided that a licence for registration as a Federation of Chambers of Commerce and Industry shall not be granted to more than one trade organisation.' Under this provision, FPCCI is the only apex federation representing chambers and associations across Pakistan. Similarly, Section 5(3) of the Act prohibits the use of protected titles like 'Federation,' 'Chamber,' and 'Association' without a valid DGTO license. In a public notice issued this year, the DGTO warned that illegal use of these titles is punishable with fines, personal liability, and disqualification from any registered trade organization. The regulator clarified that exemption applies only to bodies promoting Art, Science, Religion, Charity, or Sports, not to trade and commerce. The emergence of such parallel bodies is creating uncertainty in the business community. Sources said that FPCCI already has dedicated Business Councils for Pakistan and African countries, which are actively functioning. The Karachi Chamber of Commerce and Industry (KCCI) is also in regular contact with embassies of African nations to promote bilateral trade. Furthermore, the Pakistani business community, through the Trade Development Authority of Pakistan (TDAP), has already held several major roadshows across the African continent, resulting in substantial export orders for Pakistani exporters, industry sources confirmed. When Daily Times asked the question, Chairman SADC Rafiq Memon said they have been holding trade conferences since 2016 and are in contact with the government. 'The SADC Chamber is registered in South Africa and we have applied for a license in Pakistan. Despite meetings with the government, no concrete results regarding bilateral trade have been achieved so far,' he said. On one side, parallel federations are operating in the country, while the FPCCI stakeholders seem to be interested merely in the upcoming elections. Besides, the irony is, FPCCI SVP had recently attended the SADC conference creating further ambiguity in the business community, whereas, one of the FPCCI vice presidents who is considered as an expert on trade law, was contacted by Daily Times, was not even aware of the matter.