District Chambers in Karachi to Boost Business and Tax Base

The National Assembly Standing Committee on Commerce learned on Monday that establishing district chambers in Karachi could significantly improve business facilitation and broaden the tax base, given the city’s over 350,000 registered businesses.

The committee met at Parliament House in Islamabad, presided over by Muhammad Jawed Hanif Khan, MNA.

According to a statement from the NA Secretariat, the creation of district chambers would decentralize services, enhance business support, and expand the tax base in Karachi, which has more than 350,000 registered enterprises.

Members from across party lines voiced their support for granting districts the authority to form chambers, while also agreeing that the Karachi Chamber of Commerce & Industry (KCCI) should have the chance to present its viewpoint.

Review of Legal Framework

The committee examined the legal structure governing the establishment of chambers of commerce, emphasizing the introduction of women’s chambers through amendments made in 2006 and 2009, as well as the stipulations outlined in the Companies Act of 2013.

The members noted that the centralization of representation within the KCCI has presented challenges for the business community, with many business owners being forced to travel considerable distances to obtain services.

The committee chairman instructed the Director-General of Trade Organizations (DGTO) to invite representatives from the KCCI to the upcoming session, underscoring the committee’s general support for district chambers, with a definitive decision to be reached following KCCI’s presentation.

Representatives from various chambers that have submitted license applications also attended the session and were given the chance to voice their concerns, according to the NA statement.

Motor Vehicle Imports

Separately, the committee heard from representatives of the motor vehicle import industry.

Concerns were expressed regarding the Engineering Development Board (EDB) being responsible for licensing commercial imports, given that its main responsibility is manufacturing. Members suggested that this duty should fall under the Ministry of Commerce.

While highlighting the necessity of ensuring equitable competition between new and used automobiles in accordance with global norms, members also cautioned that opening up commercial imports might put a burden on foreign exchange reserves and negatively impact domestic industry.

The Secretary of the Ministry of Commerce updated the committee on suggested policy elements, including restrictions on the age of imported vehicles, tariff systems, environmental compliance standards, and the streamlining of current import schemes.

Following discussions, the committee decided to send the matter to the Ministry of Industries for thorough policy input, particularly on the effects of electric vehicle imports, and instructed the ministry to brief the committee at its next meeting.