logo
Formation of multiple chambers in Karachi: KCCI irked by ‘cold' response from Senate body

Formation of multiple chambers in Karachi: KCCI irked by ‘cold' response from Senate body

ISLAMABAD: The Karachi Chamber of Commerce and Industry (KCCI) is facing a potential erosion of its influence in government policymaking and within the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), following a cold response from the Senate Standing Committee on Commerce to its leadership's recent appeal.
On June 11, 2025, KCCI President Jawed Bilwani and President of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), Junaid Makda, appeared before the Senate Standing Committee on Commerce — chaired by Senator Anusha Rahman — at the behest of Senator Saleem Mandviwala, Chairman of the Senate Finance Committee and a member of the Commerce Committee. Their aim was to convince the committee that the proposed formation of district-wise chambers in Karachi would compromise the performance and unity of existing chambers.
The KCCI leadership informed the committee that they had already submitted an application to the secretary Commerce objecting to actions initiated by the Director General of Trade Organizations (DGTO). However, the chairperson criticized the delegation for raising an issue already under judicial review and made it clear that the committee could not intervene in internal organizational matters. She subsequently announced that the Committee would discontinue proceedings on this issue.
During the session, the secretary Commerce and DGTO explained the rationale behind initiating the process for establishing chambers in each of Karachi's districts.
In response, Junaid Makda argued that KCCI had not been given a fair hearing on the matter since 2009. 'If we're not allowed to present our case, where else can we go?' he asked — prompting surprise from the secretary Commerce, who admitted that stakeholders should ideally have been consulted before Parliament passed the relevant legislation.
On May 15, 2025, the DGTO issued a letter to three district chambers — Karachi Central, Karachi Malir, and Karachi Korangi — stating that their applications submitted in 2021 for the establishment of new chambers were still under active consideration. The regulator emphasized that the applications are being processed under the Trade Organizations Act, 2013, and the corresponding rules, subject to all necessary verification and eligibility checks.
DGTO Bilal Khan Pasha further disclosed that legal representatives of the proposed district chambers have threatened legal action should their applications continue to face delays. He also noted that KCCI was given an opportunity to submit comments or appear before the regulator but did not do so.
In a letter dated June 4, 2025, KCCI President Jawed Bilwani and Businessmen Group Chairman Zubair Motiwala wrote to Senator Saleem Mandviwala arguing against the formation of multiple chambers in Karachi. They maintained that the city, with its seven districts, already has robust and dynamic industrial town associations.
'Karachi is too large, too vital, and too interconnected to be fragmented into smaller representative units,' the letter read, warning that such fragmentation would dilute the business community's collective voice and undermine the effectiveness of economic policymaking.
The DGTO has indicated that a final decision on the pending applications is expected in the coming days.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Procurement rules: govt seeks Law Ministry's views on SIFC powers
Procurement rules: govt seeks Law Ministry's views on SIFC powers

Business Recorder

time3 days ago

  • Business Recorder

Procurement rules: govt seeks Law Ministry's views on SIFC powers

ISLAMABAD: The government has sought the Law Ministry's opinion on whether the powers of the Special Investment Facilitation Council (SIFC) take precedence over the Public Procurement Rules in the hiring of consulting firms, sources close to the Secretary of Commerce told Business Recorder. This move follows a summary submitted by the Ministry of Commerce seeking to hire M/s Haider Global BVBA, a lobbying firm, to assist in the extension of Pakistan's Generalised Scheme of Preferences (GSP) Plus status with the European Union (EU). On June 17, 2025, MD (PPRA) Hasnat Ahmed Qureshi informed the Board that the Ministry of Commerce in a letter of June 12, 2025 had requested the Authority for exemption from application of Rules 20 & 21 of the Public Procurement Rules, 2004 and other applicable provisions of PPRA framework, for hiring the services of a lobbying firm in Europe, through direct contracting, in terms of Section 21 of the PPRA ordinance, 2002. The lobbying firm will help in the ongoing review and renewal of Pakistan's GSP Plus status. EU-Pakistan business forum in May: SIFC readying its strategy Adding background of the case, MoC explained that the current GSP Scheme was introduced by the European Union in 2012 through EU Regulation 978/ scheme was implemented on January 1, 2014, and initially intended to remain in effect for ten years, until December 31, 2023. The European Parliament has approved an amendment to the said EU Regulation, extending the validity of the existing GSP Regulation by four years, up to December 31, 2027, instead of December 31, 2023. The scheme provides zero duties on over 66% of EU tariff lines, and exports from Pakistan to the EU have increased from $ 4.6 billion in 2014 to $ 8.38 billion in 2024. Pakistan has undergone four biennial reviews of the GSP Plus, and the next review is now due, with a Monitoring Mission scheduled to visit Pakistan starting on June 22, 2025. However, the visit has been postponed due to the conflict in the Middle East and unpredictable travel logistics at that time. Now the Monitoring Mission is expected in November or December this year. According to the MoC, considering the significance of GSP Plus status for Pakistan's exports, the hiring of a lobbying firm is critical for the renewal and extension process. The Ministry highlighted that such a firm should: (i) possess expertise in EU law and conventions to support Pakistan in formulating appropriate legal responses; (ii) assist Pakistani businesses in adapting to evolving EU regulations affecting key sectors; and (iii) maintain access to experienced former EU policymakers who can provide insights on potential political and economic challen8es. The Ministry of Foreign Affairs (MoFA) has enclosed the proposal and payment schedule from M/s Haider Global BVBA regarding the ongoing review and renewal of Pakistan's GSP plus status. The proposal was received from Pakistan's s Mission in Brussels. According to the proposal, the contract term will be three years, with a total payment of Euro 6 million (approximately Rs 2 billion) to be made as per the payment schedule. In view of the upcoming visit of the Monitoring Mission of the European Commission, the MoC is of the view that it is imperative that a lobbying firm, as proposed by the Pakistan Mission in Brussels, may be hired on an urgent basis to safeguard our national interest. MD (PPRA) further stated that the MoC, in this regard, submitted a summary to the Prime Minister, through the Ministry of Foreign Affairs, Finance Division, and SIFC seeking approval for hiring the services of a lobbying firm by relaxation of the relevant provisions of the PPRA Rules and other financial codal formalities. The SIFC on June 10, 2025 endorsed the request of the Ministry of Commerce and decided 'given the extreme time constraint and criticality of GSP for national economy, SIFC endorses the request of the Ministry of Commerce for exemption from relevant clause of PPRA rules to enable it to go for direct contracting with a firm which has the required expertise, experience and standing to fulfil task, price reasonability be worked out by the Ministry of Commerce.' Subsequently, the Prime Minister's Office in a letter of June 12,2025, directed the MoC that the matter be placed before the PPRA Board along with recommendations of SIFC for consideration and approval. 'Before the case is submitted for the orders of the Prime Minister, Ministry of Commerce shall place the case along-with the recommendation of SIFC for the consideration and approval of the PPRA Board and resubmit the summary accordingly for the order of the Prime Minister.' Secretary Commerce Division, Jawad Paul and the Additional Secretary Europe (MoFA) were present in the meeting to defend the case, while the Deputy Head of Mission, Pakistan's Mission in Brussels, attended the meeting via video link. Responding to a query by a Board member, regarding the urgency of the matter, Secretary Commerce explained that the review Monitoring Mission of European Commission will be visiting Pakistan to consider the status of Pakistan, therefore it is critical for continuation of GSP plus scheme that the firm is hired on immediate basis. The Chair/ Secretary Finance, Imdad Ullah Bosal pointed out that the PPRA Board could only recommend exemptions from application of the procurement Rules, and that the finalization and hiring of a lobbying firm was to be done by the Commerce Division as a procuring agency in this case. During the discussion, the Secretary of Commerce also highlighted the need for clarity regarding the recommendation of exemption from application of PPRA rules, both by the SIFC and PPRA Board, as it leads to duplication and consumes considerable time. He was of the view that referring such cases to the PPRA Board should not be required when SIFC had already recommended the case. Most Board members also expressed similar views on the issue and recommended adopting a consistent and standardized approach for handling cases endorsed by the SIFC for exemptions from the procurement Rules. One member opined that it is a question of law and clarification should be sought from the Law Division as to whether the PPRA Board should consider exemption from application of procurement rules, already recommended by SIFC under 10-F of Board of Investment Act 2023 'power to relax or exempt from regulatory compliance' or otherwise? Secretary Commerce emphasized that in line with the recommendations and endorsement of the SIFC and direction of PMO, PPRA Board should recommend the case to the Federal Government, for grant of exemption from operation of Rules 20 and 21 of PPRA Rules, 2024, and other applicable provisions of PPRA Framework for hiring of M/s Haider Global BVBA through direct contracting under Section 21 of PPR Ordinance. After a thorough discussion on the importance of the matter and legitimacy of the recommendations of the PPRA Board decided to seek opinion from the Ministry of Law &Justice on the legal question as to 'whether exemption recommended/endorsed under Section 10-F of BoI (Amendment) Act, 2023 by the SIFC is sufficient for grant of exemption by the Federal Cabinet or matter is required to be referred to PPRA Board again for consideration of exemption under Section 21 of PPRA Ordinance, 2OO2 in addition to the exemption recommended by SIFC ?' Copyright Business Recorder, 2025

Repeal of FBR arrest powers demanded
Repeal of FBR arrest powers demanded

Express Tribune

time4 days ago

  • Express Tribune

Repeal of FBR arrest powers demanded

Listen to article President of the Karachi Chamber of Commerce & Industry (KCCI) Jawed Bilwani and Chairman of the Businessmen Group Zubair Motiwala, while strongly criticising the newly enacted Sections 37A and 37B of the Sales Tax Act — which grant sweeping arrest powers to FBR officials — urged the government to immediately repeal these draconian sections. They warned that such excessive overreach not only undermines Pakistan's image as a business-friendly destination but also severely discourages both local and foreign investors from undertaking any investment initiative. Addressing a press conference at KCCI on Thursday, the KCCI president and chairman said that, keeping in view the sheer lack of government interest, the Karachi Chamber initiated large-scale protest campaigns, beginning with the widespread display of banners across Karachi and now escalating with today's high-voltage press conference. The KCCI president stated that several other Chambers of Commerce have already held press conferences on this critical issue, and there is a unanimous consensus that Section 37A is completely incompatible with doing business in Pakistan. The entire business community firmly opposes the law and fervently demands its repeal, and KCCI fully aligns itself with this collective stance. He said that KCCI continues to receive an overwhelming number of complaints and expressions of concern regarding these sections, wherein business owners are repeatedly asking: How can we continue operating under the constant threat of Section 37A, which looms over our dignity like a sword? The KCCI president noted that this law unfairly targets compliant taxpayers rather than addressing the core issues plaguing Pakistan's taxation system. These controversial sections primarily target individuals who are already within the tax net instead of acting only against those involved in fraudulent practices such as issuing fake or flying invoices. He pointed out that the reality is that only 40% of Pakistan's economy is documented, while the remaining 60% operates informally. Among the documented 40%, barely 2% might be involved in such malpractice, whereas 98% of registered taxpayers are fully tax-compliant. Yet, instead of focusing on a few culprits, the entire community of taxpayers will be harassed under the contentious Sections 37A and 37B. Highlighting the failure of enforcement by FBR, Jawed Bilwani stated that whenever FBR has filed cases against taxpayers, the majority of court verdicts have favoured the taxpayers, while a meagre number of decisions were given in favour of FBR's tax collectors. Ironically, it is these FBR officers whose actions have proven baseless in the majority of the cases, yet they are now being given sweeping and unchecked powers under Sections 37A and 37B. In such an environment, Bilwani asked, where should the honest taxpayer turn to for justice? While expressing dissatisfaction over the government's complete disregard for the established consultative process involving the Business Anomaly Committee, Bilwani explained that historically, the Business Anomaly Committee meets before the Finance Bill is passed. Once constituted, meetings are promptly held where members present their concerns and suggestions. These are then reviewed through majority consensus. Meetings are subsequently held with the Member Inland Revenue (Policy) and Member Customs (Policy), and a clean, revised document is forwarded to the FBR chairman. After the chairman's approval, a final meeting of the Anomaly Committee is summoned, which is also attended by the finance minister, chairman FBR and other senior FBR officials to give final touches to the document and approve all the recommendations decided by the Committee Members in consultation with FBR officials. These recommendations are then forwarded for final incorporation into the Finance Bill. This year, Bilwani informed, the standard procedure was completely ignored for the first time. No proper consultation was held, forcing the members of the Business Anomaly Committee to resign and walk out in protest. Despite this, the budget was hastily passed, completely devoid of input from the business community. It is a matter of grave concern that the anomalies identified were mostly ignored, he added.

Sections 37A & 37B: Business community threatens to go on nationwide strike
Sections 37A & 37B: Business community threatens to go on nationwide strike

Business Recorder

time4 days ago

  • Business Recorder

Sections 37A & 37B: Business community threatens to go on nationwide strike

KARACHI: In a strong show of resistance, the major representative trade bodies of business community including Karachi, Lahore, KPK, and Faisalabad Chambers of Commerce have threatened a nationwide business shutdown in protest against Sections 37A and 37B ofthe Sales Tax Act, if the federal government does not immediately withdraw the controversial laws. Addressing a press conference at KCCI Auditorium on Thursday alongside representatives of dozens of trade bodies, Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani stated that all chambers across the country are holding consultations on a potential strike and may soon jointly announce a nationwide shutdown of businesses. However, he said that first priority is table talk to resolve this issue. Jawed Bilwani and Chairman Businessmen Group Zubair Motiwala, while strongly criticizing the newly enacted Sections 37A and 37B of the Sales Tax Act which grant sweeping arrest powers to FBR officials and urged the government to immediately repeal these draconian sections, warning that such excessive overreach not only undermines Pakistan's image as a business-friendly destination but also severely discourages both local and foreign investors from undertaking any investment initiative. 'Keeping in view the sheer lack of government's interest, the Karachi Chamber initiated large-scale protest campaigns, beginning with the widespread display of banners across Karachi and now escalating with today's high-voltage press conference,' President KCCI said. The presser was also attended by Vice Chairmen BMG Anjum Nisar & Mian Abrar Ahmed, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil Ahmed, Presidents of seven industrial town associations, former presidents KCCI, prominent business figures along with KCCI Managing Committee Members and a large number of businessmen and industrialists. President Lahore Chamber Mian Abuzar Shad and President Faisalabad Chamber Rehan Naseem Bahrara also addressed the press conference via Zoom. Bilwani said several other Chambers of Commerce had already held press conferences on this critical issue, and there was a unanimous consensus that Section 37A was completely incompatible with doing business in Pakistan. 'The entire business community firmly opposed to this law and fervently demanded repealing of the same and KCCI fully aligns itself with this collective stance,' he added. He said 'KCCI continues to receive an overwhelming number of complaints and expressions of concern regarding these Sections as they believed that business cannot run under the constant threat of Section 37A.' President KCCI noted that 'this law unfairly targets compliant taxpayers rather than addressing the core issues plaguing Pakistan's taxation system.' 'These controversial sections primarily target all the individuals who are already within the tax net instead of acting against only those involved in fraudulent practices such as issuing fake or flying invoices,' he mentioned. He pointed out that the reality was that 60 percent economy was informal. Among the documented 40 percent, barely 1-2 percent might be involved in such malpractice whereas 98 percent registered taxpayers were fully tax-compliant, yet instead of focusing on a few culprits, the entire community of taxpayers will be harassed under the contentious Section 37A and 37B. Bilwani said whenever FBR had filed cases against taxpayers, majority of the court verdicts have favoured the taxpayers. Ironically, it is these FBR officers whose actions have proven baseless in majority of the cases yet they are now being given sweeping and unchecked powers under Sections 37A and 37B. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store