| December 31, 2006 | Sunday | Zilhaj 09, 1427 |
| December 31, 2006 | Sunday | Zilhaj 09, 1427 |
LAHORE, Dec 30: The Trade Organisations Ordinance 2006 has come into force, revoking all licences granted under the Trade Ordinance 1961 and requiring existing trade bodies to apply for the licence afresh within three months.
This was stated by Federal Commerce Minister Humayun Akhtar Khan at a press conference here on Saturday. The government would take decision on the grant of fresh licences within three months, he said, adding that in case of pending decisions, existing trade bodies would continue to function for six months.
“The new law will help eliminate fake, dummy and dormant trade bodies” used in the past for the manipulating FPCCI elections, he said, adding that the old law provided for a licence granted on perpetual basis – that is, a trade body, once licensed, continued to exist regardless of its performance or functionality.
The minister said there had been widespread manipulation of elections of trade bodies. The system of monitoring of elections of trade bodies and disposal of election complaints under the old law needed improvement, he added.
He also pointed out anomalies in the membership criterion for the trade bodies.
“Now every district could have its own chamber of commerce and industry (CCI) while Women Chamber of Commerce and Industry (WCCI) will be established, initially at the provincial level,” he said.
He said the new law had been prepared in light of the recommendations of a committee headed by Justice (retd) Saleem Akhtar.
The committee included the president of FPCCI, additional secretary of the Ministry of Commerce, chairman of the Securities and Exchange Commission of Pakistan, Country Manager of the Centre for International Private Enterprise (an affiliate of US Chamber of Commerce and Industry), chairman of a trade association and a retired member of the Central Board of Revenue.
Replying to a question, Mr Akhtar said the tenure of all the trade bodies and CCIs, including FPCCI, had been reduced to one year.
The new law envisages the following significant changes and improvements over the old law:
Term of licence has been limited to three years, renewable after every three years subject to satisfactory functioning.
The law establishes a self-run mechanism of purging the inactive, non-functional and ghost trade bodies.
Services sector has been included in the scope of law.
Women entrepreneurs have been allowed to form trade bodies.
Territorial jurisdiction of chambers has been defined at the district level.
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