PESHAWAR, March 22: Signing of an agreement by the business communities of Pakistan and Afghanistan for setting up of a joint chamber of commerce and industry in the presence of a similar body has created controversy in the business circles of Frontier province.

A Memorandum of Understanding (MoU) for setting up Pakistan-Afghanistan Chamber of Commerce and Industry (PACCI) was signed on March 15 here at the regional office of Federation of Pakistan Chamber of Commerce and Industry (FPCCI).

FPCCI former vice president Faiz Rasool Khan and Afghanistan Chamber of Commerce and Industry chief executive Hamidullah Farooqi signed the agreement on behalf of their respective organisations.

The body, as per the agreement, would be governed through a 30-member executive committee having equal representation from both the countries. President of the chamber will be elected for two years on rotational basis, as first one will be from Pakistan.

However, existence of a similar body with the same objectives and goals is causing confusion about the legality of the new body. The MoU for a same kind of joint chamber of commerce was signed on March 23, last year by Sarhad Chamber of Commerce and Industry (SCCI) and Afghanistan International Chamber of Commerce (AICC).

The then SCCI president Liaqat Ahmad Khan and AICC chairman Azarakhsh Hafizi had signed the agreement on behalf of their chambers.

The APCCI, having main secretariat at SCCI, have an executive committee comprising 12 members each from Pakistan and Afghanistan besides an equally represented general assembly of 48 members.

Businessman Forum leader Senator Ilays Ahmad Bilour is the founding chairman and Azarakhsh Hafizi of AICC is co-chairman of the body.

The Terms of References (ToRs) of the two bodies outline similar objectives, as they are supposed to help exchange of information pertaining to government policies, rules and regulations concerning trade, investment and other allied areas between the two countries.

Two different bodies with same goals have raised questions about the validity of each body, as both the sides claimed of being on the right side.

Talking to Dawn, FPCCI former president Faiz Rasool Khan said that the joint chamber for which he had signed an agreement with Afghan counterpart last week was legal one as the body formed earlier had no official backing of the two governments.

According to him, only FPCCI was the appropriate forum to form joint bodies with other countries as it was not the prerogative of the SCCI.

He clarified that decision for establishment of a joint chamber was taken some three months ago in a meeting of Joint Business Council, which also have officials of various ministries from Pakistan and Afghanistan as its members.

Afghan President Hamid Karazai would formally announce the establishment of the body in his visit to Pakistan scheduled for April 26, he said.

On the other hand, SCCI former president Liaqat Ahmad Khan, who had signed earlier agreement on behalf of the chamber, has different story to tell.

He said the joint chamber, which has its headquarters at SCCI, was formed with the consent of Afghan President Hamid Karazai. He argued that Afghans representatives in the joint chamber, headed by Mr Bilour, were reputed and leading businessmen with official recognition.

“In my opinion, ours’ joint chamber is legal one,” he remarked and opined that the Afghan government could exactly verify that which one was their officially recognised body.