KARACHI, March 26: The leaders of Karachi Chamber of Commerce and Industry and those of the Federation of Pakistan Chambers of Commerce and Industry are back on warpath on the issue of compliance of recently enforced Trade Organisations Ordinance (TOO-2006) and operational rules under which all chambers and trade associations are instructed to get fresh registration by April 15 next.

The 100-member managing committee of FPCCI in a meeting on Saturday rejected the new law on the plea that “it strangulates rather than regulate” and announced that no trade body, including FPCCI and its affiliated chambers and traders will seek fresh registration till the law and rules are amended on lines of the proposals to be given by businessmen.

In an immediate rebuttal, the leadership of Karachi Chamber of Commerce and Industry (KCCI) on Monday condemned the FPCCI decision and termed it a move that “encourages formation of dummy and fake chambers and trade associations”.

Siraj Kassam Teli, a former president of the KCCI, who now heads a business group that pushed out by power of vote Tariq Sayeed from the Karachi chamber, questioned the legitimacy of the FPCCI managing committee decision taken on Saturday.

As he put it in a telephonic conversation on Monday, there was no representation of Karachi, Lahore and Islamabad chambers on the FPCCI managing committee. “That meeting was attended by representatives of more than two dozen bogus chambers and more than three dozen trade associations,” he alleged.

Ironically, the federal commerce ministry is in the centre of this fresh controversy between two powerful groups of businessmen, which has put the government in a very awkward position at a time when it is deeply involved in rescuing itself from a crisis situation caused by a presidential decision on March 9.

At present, the commerce ministry is also struggling hard to go ahead with much trumpeted Expo-2007 in which Pakistani businessmen are showing extreme reluctance to set up their stalls because the majority of the foreigners, who are being invited are “free loaders” to quote a businessmen.

The Exp-2007 is expected to be formally inaugurated at the PAF Museum, about 1.5 km away from the actual site, where the exhibition is being held. In these circumstances, when tempers are running high and tension is mounting, Prime Minister Shaukat Aziz met a team of FPCCI leaders on Monday in Islamabad to hear their complaints against the new TOO and its operational rules.

“We will submit our proposals to amend the TOO 2006 and its rules by next Saturday,” Tariq Sayeed, a former president of KCCI and FPCCI who now heads the Businessmen Group that controls the affairs of FPCCI.

His adversaries in KCCI contend that Tariq Sayeed has under his control leaders of more than two dozen fake chambers of commerce and three dozen trade associations.

KCCI President Majyd Aziz in a statement faxed on Monday condemned “all moves that encourage, in any form or way, the formation of dummy and fake chambers and trade associations.”

“In no way business activities are confined to Karachi, Lahore and Islamabad only,” retorted Tariq Sayeed, who heads a group that claims to represent majority of 42 chambers and more than 100 trade associations and hence is maintaining a firm hold on the FPCCI.

Conceding that Karachi and Lahore are big business centres but business activities, on a big or small scale, is happening in small cities like Mirpurkhas, Dadu, Khairpur, Thatta, Kasur, Faisalabad, Sialkot, Haripur and many other small places.

In all these small cities and towns, where business activities by way of trading, manufacturing or services are going on, there is a need for a business forum to voice their issues and problems, he contended.

Tariq Sayeed and his business group are of the view that there is a lot of ambiguity in the new law that needs to be removed and amended. For example, he said under the law there is no room for Site Association or trade and Industry and other such associations in presence of the Karachi chamber.

Under the rules there are 26 conditions of compliance, which are difficult to observe. Tariq Sayeed’s argument is that let there be as many chambers and trade associations as the businessmen wants to set up. There should be compliance of corporate rules, transparent voters list and free and fair elections on schedule.

According to him places like Hong Kong, Japan and many other countries have countless chambers and trade associations. His main argument is “Do you have some regulatory authority on formation and functioning of political parties, lawyers associations, journalists’ bodies and other allied organisations. If not, why should there be a separate law for trade bodies,” he asked.

Siraj Kassan and his supporters say that the entire business leadership including those from the FPCCI were involved in debate and discussion on framing of the draft of new law. Even after the draft has been finalised, the business leaders were invited to suggest amendments in the law.

All trade associations and FPCCI leaders were involved in framing of rules under the new law. He said that the KCCI was in forefront to demand cancellation of licences of fake chambers and bogus trade associations.

The KCCI leadership is now making preparations to apply for getting fresh registration under the new law.