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Business Recorder
13-06-2025
- Business
- Business Recorder
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
Express Tribune
15-03-2025
- Business
- Express Tribune
Torkham closure costs $60m in trade
Torkham, a key border crossing between Pakistan and Afghanistan in the Khyber District of Khyber Pakhtunkhwa, remained closed for the 21st day on Friday amid rising concern of the businessmen of both the countries who are suffering huge losses due to the closure. The crossing was closed on February 21 after escalation of tensions between the border forces of the two neighbors due to construction of some structures close to the border by Afghan authorities in violation of an agreement. During subsequent exchanges of fire, three Afghan soldiers died while eight Pakistani paramilitary troops also sustained injuries. Last week, the two countries formed their respective jirgas which met at the border crossing and enabled a ceasefire at the border crossing. The Afghan jirga, however, did not hold a meeting with its Pakistani counterpart on Thursday after the inclusion of dozens of new members in the Pakistani delegation. According to sources, no meeting between the jirgas took place on Friday because of a public holiday in Afghanistan. However, the jirgas are likely to meet today (Saturday) to resolve the crisis. Customs sources said trade suspension is causing an estimated daily loss of $3 million in bilateral trade. They said imports from Afghanistan average $1.6 million daily, while exports amount to $1.4 million. Over the last 20 days, approximately $60 million in trade has been lost. Torkham Border Crossing facilitates the daily movement of around 10,000 people to Afghanistan. However, all movement and trade has been suspended since February 21 and over 5,000 trucks, including those carrying perishable goods, are stranded, causing heavy financial losses. Junaid Makda, president of the Pak-Afghan Joint Chamber of Commerce (PAJCCI), warned that if trade barriers are not removed, Pakistan risks losing its potential as a key trade corridor in the region and missing out on vast economic opportunities. "There is a need for immediate measures to resolve the growing trade crisis between Pakistan, Afghanistan, and Central Asian countries. The ongoing border closure, rising transportation costs, and increasing trade restrictions are not only damaging cross-border business but also hurting Pakistan's economy," he said. Makda said Khyber Pakhtunkhwa's government has recently reduced the Infrastructure Development Cess (IDC) to 1% on both forward and reverse transit trade with Afghanistan. He argued that any form of IDC on transit trade is unjustified, as it discourages legitimate businesses and violates international commitments. The imposition of IDC and the border closure are forcing Afghan traders to shift from Pakistani routes to Iranian ports, causing long-term damage to Pakistan's trade network. He said despite continuous efforts by PAJCCI, the situation has worsened. "The prolonged closure has diverted trade towards Chabahar and Bandar Abbas, making them more competitive routes. Uncertainty and long delays are eroding traders' confidence and discouraging investors." Makda said under international protocols, Pakistan is responsible for facilitating trade for landlocked countries like Afghanistan.
