Pakistan’s trade regulator has ordered all unauthorised organisations illegally using protected titles such as “Chamber” or “Association” to cease their activities immediately, warning of severe legal repercussions for non-compliance.
According to a statement today, in a public notice, the Directorate General of Trade Organizations (DGTO), operating under the Ministry of Commerce, affirmed its exclusive authority to license and regulate trade bodies as mandated by the Trade Organizations Act, 2013 (TOA 2013).
The regulator cited Section 3(1) of the Act, which stipulates that no organisation can function as a trade body without obtaining a valid licence from the Federal Government.
Furthermore, the directive highlighted Section 5(3) of the legislation, which explicitly forbids any entity from incorporating the terms ‘Federation,’ ‘Chamber,’ or ‘Association’ into its name unless it is formally registered with the DGTO.
According to the commerce ministry”s regulatory body, the action was prompted by the observation of numerous groups and individuals operating illicit organisations with these protected titles, which has led to market confusion and has misled the business community.
The DGTO also dispelled a common misunderstanding regarding an exemption clause, specifying that while organisations promoting Art, Science, Religion, Charity, or Sports are exempt, this provision does not extend to any group involved in commerce, trade, industry, or services.
The notice issued a stern warning that failure to comply with the “cease and desist” order will result in stringent penal measures under the 2013 Act. These penalties may include substantial fines, the imposition of personal liability on individuals involved, and disqualification from holding office in any legitimate trade organisation.
In a concluding advisory, the directorate cautioned the business community against acquiring membership in such unlicensed entities, reiterating that they possess no legal standing. Businesses have been strongly encouraged to verify the licensing status of any trade body with the DGTO before establishing any official engagement or dealings.