Over 350,000 registered businesses in Karachi: creation of district chambers emphasised

KARACHI: The National Assembly’s Standing Committee on Commerce was informed on Monday that there were more than 350,000 registered businesses in Karachi and creation of district chambers in the metropolitan city would help improve business facilitation and expand the tax base.

The committee convened at the Parliament House, Islamabad, under the chairmanship of Muhammad Jawed Hanif Khan, MNA.

“It was highlighted that with more than 350,000 registered businesses in Karachi, the creation of district chambers would decentralise services, improve business facilitation, and expand the tax base,” the NA Secretariat said in a statement.

“Members across party lines expressed support for granting districts the right to establish chambers, while also agreeing that KCCI [Karachi Chamber of Commerce & Industry] should be given an opportunity to present its position.”

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The committee reviewed the legal framework governing the formation of chambers of commerce, noting the introduction of women’s chambers through amendments in 2006 and 2009 and the requirements under the Companies Act, 2013.

The members observed that centralisation of representation with the KCCI “has created difficulties for the business community, with many entrepreneurs compelled to travel long distances to access services”.

The committee chairman directed the Director General of Trade Organisations (DGTO) to invite KCCI representatives to the next session and emphasised that the committee was, in principle, supportive of district chambers, with a final decision to be taken after hearing KCCI’s stance.

“Representatives of various chambers that have applied for licenses also attended the meeting and were given the opportunity to present their concerns,” the NA statement read.

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Meanwhile, the committee also heard from representatives of the motor vehicle import sector.

“Concerns were raised that the Engineering Development Board (EDB), whose primary mandate relates to manufacturing, should not be tasked with licensing commercial imports, and members recommended that this responsibility lie with the Ministry of Commerce.”

While stressing the need to ensure fair competition between new and used cars in line with international practice, the members also cautioned that opening up commercial imports could place pressure on foreign exchange reserves and adversely affect local industry.

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The Secretary, Ministry of Commerce, briefed the committee on proposed policy features, including restrictions on the age of imported vehicles, tariff structures, environmental compliance requirements, and the consolidation of existing import schemes.

“After deliberations, the committee decided to refer the matter to the Ministry of Industries for detailed policy input, particularly on the impact of electric vehicle imports, and directed the ministry to brief the committee in its forthcoming meeting.”