DGTO Law Violated: Another fake federation exposed
Another severe violation of Pakistan’s trade organisation regulations following the emergence of a private business promotion group operating under the names of a “Federation” and a “Chamber” in the presence of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), despite concerns over the legal authorisation required to use such titles in Pakistan.
The issue concerns the Pakistan Southern African Development Community (SADC), which claims to have been operating since 2015 and conducting trade-related activities, including conferences and engagement with government officials. However, according to documents cited in connection with the matter, the organisation is allegedly operating in Pakistan under the names of a chamber and a federation without the requisite licence from the Directorate General of Trade Organizations (DGTO).
The development has raised questions about regulatory compliance, the legal status of trade bodies and the potential implications for Pakistan’s organised business community, particularly as established chambers and business associations are already working to expand trade relations with African countries.
The controversy has emerged at a time when the issue involving the Employers’ Federation of Pakistan has yet to fully subside, bringing renewed attention to the authorisation and recognition of organisations using representative trade titles.
Under the Trade Organizations Act, 2013, and the applicable regulatory framework, the licensing and recognition of trade organisations fall within the DGTO’s jurisdiction. Documents cited in the matter state that the use of the title “Chamber” requires a licence, while the legal framework provides for a regulated structure governing trade bodies and their representative functions.
The allegations have also prompted questions about the distinction between an organisation registered abroad, a business promotion platform and a trade organisation legally licensed to operate in Pakistan under a regulated title.
Meanwhile, Pakistan already has established institutional channels for promoting commercial relations with African markets. The FPCCI has active business councils representing Pakistan and African countries, while the Karachi Chamber of Commerce and Industry (KCCI) is also in contact with African diplomatic missions to explore trade and investment opportunities.
The Trade Development Authority of Pakistan (TDAP) has also facilitated Pakistani business delegations and roadshows across Africa. Industry sources say these initiatives have helped Pakistani exporters secure substantial orders from African markets, highlighting the importance of coordinated efforts to promote exports and develop commercial partnerships.
Business circles fear that the activities of parallel organisations using the titles of a chamber and a federation could create uncertainty among exporters, investors and foreign counterparts over the status and representative authority of different business platforms.
They argue that clarity regarding licensing, legal recognition and the mandate of trade organisations is essential to protect the credibility of Pakistan’s business representation abroad and prevent confusion among international partners.
However, the matter also involves claims by the SADC leadership that its activities are intended to promote trade and economic cooperation between Pakistan and southern African markets.
Speaking on the issue, SADC Chairman Rafiq Memon said the organisation had been holding trade conferences since 2016 and had remained in contact with the government to advance its objectives.
Memon said the SADC Chamber was registered in South Africa and that an application had been submitted to obtain a licence for its operations in Pakistan.
He maintained that despite holding meetings with government representatives, the organisation had not achieved the desired results.
His statement places the licensing issue at the centre of the controversy, with the organisation maintaining that it has pursued formal authorisation while continuing its trade promotion activities.
The key question now is whether the organisation’s operations and use of the titles “Chamber” and “Federation” in Pakistan comply with the applicable legal and regulatory requirements, and what action, if any, the relevant authorities may take to clarify its status.
The issue also raises broader questions about the enforcement of trade organisation regulations and the need to ensure that business promotion activities are conducted through legally recognised channels.
A clarification from the DGTO regarding the organisation’s licensing status, the scope of its application and the applicable rules would help establish the facts and determine whether any regulatory breach has occurred.
Until the relevant authorities clarify the matter, the controversy is likely to remain a concern for business circles seeking transparent and credible institutional representation in Pakistan’s trade relations with Africa.