REPORT OF THE SUB-COMMITTEE ON COMMERCE

ON

THE PROCESS OF LICENSES GRANTED TO TRADE CHAMBERS AND ASSOCIATION OF PAKISTAN BY MINISTRY OF COMMERCE/DGTO

Presented by

SENATOR ZAFAR IQBAL CHAUDHARY

 (CONVENER OF SUB-COMMITTEE)

JANUARY 2009

 

SENATE SECRETARIAT

 

SUBJECT:     REPORT OF THE SUB-COMMITTEE ON COMMERCE REGARDING TO REVIEW THE PROCESS OF LICENSING GRANTED TO TRADE CHAMBERS AND ASSOCIATION OF PAKISTAN BY MINISTRY OF COMMERCE/DGTO.

 

                   The Senate Standing Committee on Commerce in its meeting held on 5th September 2008, constituted three members Sub-Committee in terms of Rule 162 of the Rules of Procedures and Conduct of Business in the Senate, 1988. The composition and terms of reference are given below:-

 

Composition

 

(i)                Senator Zafar Iqbal Chaudhary (Convener)

(ii)              Senator Muhammad Azam Khan Swati

(iii)            Senator Shuja-ul-Mulk

 

Terms of Reference

 

To review the process of licensing granted to trade chambers and association of Pakistan by Ministry of Commerce/DGTO.

 

1ST MEETING – 13-09-08

                   Committee was informed that under new Ordinance 39 applications of Chambers were received from existing chambers.  26 were licensed and 3 were turned down whereas 10 were pending.

                   These pending or turned down Chambers failed to file NTN of members/office bearers and financial statements.

                   Gawadar Chamber being run by a person living in Karachi.  It was decided to visit Gawadar Chamber to verify fact. Which is still not done.

                   Dadu, Jhang, Jhelum, Khaniwal, Sheikhupura, Lasbela, Mianwali, Mirpur Khas, Okara, Bahawalpur and Multan chambers were requested  to provide detail of members, date of incorporation, present status, their basic/general information.

                   Senator Shuja ul Mulk proposed that chambers should be classified in 3 categories i.e. industry, trade and company.

                   Senator M. Azam Khan Swati proposed that stake holders of Haripur and Hazara Chamber personally contacted and should be given a change to fulfill new legal requirements.

 

2ND MEETING – 20-09-08

                   DGTO was asked to provide record of :-

·        Pakistan Dry Battery Manufacturers Association

·        Engineering Components and Machinery Manufacturing Association of Pakistan

·        Waste Products

·        Karachi Merchant Association

·        Pakistan Bedsheet Association

·        Tyre Association

 

It was decided that License to Hazara Chambers or any other will not be issued till the completion legal requirements.

 

 

 

3RD MEETING – 26-9-08

                   The sub-Committee comprising Senator Zafar Iqbal Ch and Senator Shuja Ul Mulk paid a surprised visit of Jhelum Chamber and observed that record was not complete and office was not in good condition.  Web site was not operative.  DCO Jhelum was requested to provide place in Industrial Estate for construction of office.

 

4TH MEETING – 23-10-08

                   Committee discussed the over all situation of registration of all chambers and association and recommended to Commerce Ministry the following:-

 

(i)                If the Chambers of Commerce and Associations have submitted applications on or before 30th Sept 08 with all relevant documents having minor deficiencies, the date of removal of these deficiencies may be relaxed upto 30th October 08. However  no further date will be extended.

 

(ii)              Further decided that the Chambers of Commerce and Industry of Haripur, Hazara/Abbottabad, DI Khan and All Pakistan Flour Mills Association will be informed by the DGTO about the deficiencies in their respective applications immediately (the same day)

 

(iii)            Also decided that a list of deficiencies observed by DGTO in the applications of all chambers and associations of the country should be finalized and those should be informed accordingly

 

(iv)             that cancellation of licenses of chambers or associations is more of a punishment than promoting trade & commerce so due consideration should be given.

 

(v)               In addition, Dry Batteries Association documentation needs to be submitted to the sub-committee.

 

5TH MEETING – 4-12-08

                   Senator Shuja-ul-Mulk presented report on his visit to Pakistan Dry Battery Manufacturers Association Karachi.  The Units and office of association were closed. No activities going on through this association. The association only exists on papers.

                   Visit  of Engineering Components and Machinery Manufacturing Association of Pakistan Lahore revealed that the Association seems to be ‘fake’. DGTO informed that all formalities and documentations were duly fulfilled and no flow or shortcomings were found.  Physical verification of each association was not possible.

It was decided that :-

·        DGTO should issue show cause notices immediately to both the above associations.

·        Sub-Committee will review the issue of both the Associations in detail in its next meeting.

·        Heads of the associations/chambers should introduce such measures to enable their members to have easy access to them to know the activities & progress of the associations/chambers

 

6TH MEETING – 06-01-09

                   Pakistan Dry Battery Association were  called to attend the meeting on 20-1-09.

                   Sheikhupura Chambers Presidents briefed the sub committee about their status and activities.

                   Law & Justice Division be invited for meeting for 20-1-09 to discuss FATA Chamber.

 

7TH MEETING – 12 -01-09

                   Senator Ilyas Ahmed Bilour claimed that Trade Ordinance 2007 not extended to FATA Chamber.  Should not be allowed to take part in FPCCI elections.

                    Senator Azam Khan Swati said  FATA Chambers is eligible to cast vote as it is already working under the Ordinance 1961. 

                   Malik Hakim Khan, DM/Addl Secy.(Law) said – FATA Chamber member is  eligible to participate in the FPCCI elections.

                   Director Trade Organization – Summary for extension of Trade Ordinance 2007 to FATA, FANA and AJK has bee moved twice in March 2008 and April 2008 to the Prime Minister for his kind approval of the Honourable President of Pakistan but no response received so far.

                   Pakistan Waste Product Association Karachi should be approached to provide certain required document , proposed plan of their activities and justification of their establishment.

                   Committee perused the evidences sent by Manzoorul Haq Malik of Sheikhupura Chamber and found that the he was not eligible to contest the elections for 2007 and 2008. Since he was not member for 3 consecutive years as require by law.

 

 

8TH MEETING 20.01.2009

                   Committee interviewed officer of KIRAYANA Merchant Association Karachi. Committee observed that License under 2007 Ordinance was issued to this Association without fulfilling Legal requirement. Committee will get detail information from DGFTO. Committee also considered several letters written by DTO to different Association and Chambers seeking different information, Documentations in reviewing and evaluating their status.

                   Sub-Committee has also written and had given oral instructions to DGTO for further evaluations and status of different Chambers and Associations in Pakistan.

 

Senator Zafar Iqbal Chaudhary

(Convener)

 

Senator Muhammad Azam Khan Swati

(Member)

 

 

Senator Shuja-ul-Mulk

(Member)

 

Shahiq Ahmad Khan

(Secretary Committee/

Additional Secretary)