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Chapter

2
Introduction to FPCCI

Chapter # 02 Introduction to FPCCI

2.1 CHAMBERS OF COMMERCE & INDUSTRIES IN PAKISTAN


Before discussing the KPCCI, it would be relevant to give a brief and comprehensive insight of the chambers of commerce and industries situated in Pakistan so as to help better understanding of the main theme of this research. The forthcoming paragraphs consist of the main chambers and their facilitating body Federation of Pakistan Chambers and Industries (FPCCI), which works as bridge between different chambers.

2.2 FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE & INDUSTRY


After the achievement of independence in 1947, the Muslim Chamber of Commerce in Karachi was renamed as Pakistan Chamber of Commerce. In 1959-60 this organization and the three other Chambers, including Buyers and Shippers Chambers and Pakistan Merchants Association (former Indian Merchants Association) in Karachi merged into one unified body, namely Chamber of Commerce and Industry, Karachi. Similar reorganization of trade bodies took place in the other business centers of PakistanLahore, Multan, Dacca, Narayanganj, Peshawar and Chittagong. Some place which had hitherto no Chamber came to have one for the first time and that was on the new basis, e.g. Sylhet, Khulna, (now in Bangladesh) Hyderabad, Sukkur and some other places. The Chambers consisting of foreign investors were renamed as the Overseas Investors' Chamber of Commerce and Industry with head office in Karachi and the Argabad Chamber of Commerce & Industry with head in Chittagong in former East Pakistan (now Bangladesh). The "Associated Chambers of Commerce of Pakistan", which was the Federation of the bodies of overseas investors ceased to exists and these two Chambers also joined the Federation of Pakistan Chambers of Commerce & Industry. The Federation of Pakistan Chambers of Commerce & Industry was originally formed in 1949 by Mr. G. Allana with headquarters in Karachi but its membership then was confined to a limited number of bodies. Reorganization of trade bodies in 1959-60 is the most important landmark in the history of Commercial and Industrial Bodies in Pakistan. The main idea underlying reorganization was to eliminate the multiplicity of trade bodies - some cities had as many as five Chambers of Commerce each and certain commodities/trades or industries were represented each by more than one Association and to make them fully representative of trade and industry so that they carried more
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Chapter # 02 Introduction to FPCCI

weight with the Government and international organizations. The government of Pakistan in the Ministry of Commerce launched the scheme for the reorganization of the trade and Industrial bodies in Pakistan, which was announced through a Government Resolution on 18th November, 1958. The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) is at the apex of all trade and industrial bodies in this country. It enfolds all Chambers and all countrywide Associations representing specific trades and/or industries. Indeed, it is compulsory for all Chambers and Associations of Commerce & Industry to become members of the Federation. Town Associations and Groups who have to become members of local Chambers of Commerce & Industry are not required to join the Federation as members. The head office of FPCCI is based in its own building, the Federation House spread over an area of 11,666 Sq. yards, which is located in a posh locality of Karachi, Clifton, overlooking the Arabian Sea.

FPCCI have Zonal offices in Lahore and Peshawar, which mainly deals with the Provincial Governments. FPCCI has a Branch office in Islamabad to liaise with the Federal Government. FPCCI has also a Regional office in Quetta to liaise with the other Offices of FPCCI. 2.2.1 Features of FPCCI The organization of trade bodies in Pakistan has many specific features which suit the conditions of the country's private sector. Only Chambers and Associations can be members of the Federation. However, there is provision for individual firms and companies to become Life Members and Patron Members without voting rights. The selection of Life and Patron Members is made by the Managing Committee. Also, the General Body of the Federation can elect "persons distinguished for social service and eminent in commerce and/or industry" as Honorary Members for one year "provided they are not otherwise eligible to present the Member Bodies on the Federation". Being Federal in its constitution the Federation takes up only such issues and matters as concern the country's trade and industry as a whole; in other words, the interests of all Chambers and Associations put together, e.g. economic planning, investment schedules, tax policy, money and credit transport and communication, export promotion, organization of general trade missions to foreign countries, receiving general trade missions form abroad etc. Matters concerning (i) specific trades and/or industries (e.g.,

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cotton or steel) or (ii) individual firms and companies are left to Associations and local and regional Chambers. 2.2.2 Functions and Activities After independence, particularly after re-organization in 1959-60, there has been a significant shift in the functions and activities of our trade bodies towards positive work to help industrialization and export promotion. The Government has given representation to the trade organizations on a large number of consultative and advisory councils and committees, and these bodies are, therefore, closely associated with the framing as well as implementation of the Government's policies on trade, commerce and industries. Trade bodies are no more a sort of semi-political "Trade Unions" of businessmen and industrialists, but technical and professional organizations with positive tasks in their programmes. A lot of technical work has been undertaken during these years and completed with satisfactory results. FPCCI, in consultation with its member bodies has made extensive and intensive studies of economic planning, finance and credit, taxation, economic controls, foreign trade, industrial investment, transport and communication, laws affecting economy such as customs law, income tax law etc., and furnished comprehensive proposals and suggestions to the Government. It has held national exhibitions and single-commodity fairs, organized Pakistan's participation in international and foreign exhibitions, and organized and handled numerous trade delegations. The FPCCI performs a number of export & investment promotional activities and functions, which can be summarized as follows: 1. Sponsoring general and specialized business & investment delegations to foreign countries. 2. Organizing Pakistans participation in international fairs & exhibitions. 3. Maintaining constant liaison with Pakistan Diplomatic and Commercial Missions abroad. 4. Exchanging information relating to trade, industry and economy with foreign Chambers and Institutions. 5. Encouraging and infusing competition among leading exporters of the country by giving them Export Awards every year. 6. Mediating in the resolution of commercial disputes between the Pakistani and foreign businessmen.

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Chapter # 02 Introduction to FPCCI

2.2.3 Membership FPCCI has under its umbrella, 36 Chambers of Commerce and Industry, 81 all Pakistan Associations, representing Industry, Trade and Service sectors.

2. 3 KARACHI CHAMBER OF COMMERCE & INDUSTRY (KCCI) Karachi, the only port city in Pakistan, serves as principal gateway to Pakistan. Almost all external trade handled by its two major operating ports via Karachi Port and Port Qasim. It is the biggest metropolis of Pakistan, having population of about 11.5 millions. Over the years, it has emerged as the industrial, financial and commercial capital of the country. The Chamber of Commerce & Industry Karachi enjoys singular distinction of being the premier Chamber of the country, representing the mainstream of economic activities by virtue of its location in industrial and commercial hub of the country. It was formed in 1959 through the amalgamation of four trade bodies in Karachi at that time, namely, the Pakistan Merchants Association, Buyers and Shippers Chamber, Chamber of Commerce Pakistan and All Pakistan Chamber of Commerce and Industry.

2.4 LAHORE CHAMBER OF COMMERCE & INDUSTRY (LCCI)


The Lahore Chamber of Commerce and Industry was established by the businessmen and industrialists of Northern India in 1923 under the name of "Northern India Chamber of Commerce and Industry". In 1947 on creation of "The Islamic Repulic of Pakistan", its name was changed to "West Pakistan Chamber of Commerce and Industry". In 1960, the present name, "The Lahore chamber of commerce and Industry" was adopted. Today, the chamber stands out as the First ISO-certified Chamber of Pakistan.

2.5 SIALKOT CHAMBER OF COMMERCE & INDUSTRY (SCCI)


SCCI-The Sialkot Chamber of Commerce & Industry (Pakistan) is a trade body, which was established in 1982. Late Mr. A.D. Bhutta was the founder President of this esteemed organization. It comprises of industrialists, importers and exporters belonging to various fields.

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