Pakistan to introduce new licensing policy for bilateral business chambers

The government is set to introduce a new licensing policy aimed at regulating bilateral business chambers to enhance transparency, credibility, and trade partnerships with foreign countries. 

As per reports, the Ministry of Commerce, in collaboration with the Directorate General of Trade Organisations (DGTO), is working on a framework that outlines stricter eligibility, financial, and governance requirements for chambers seeking official recognition.

The new framework mandates that each bilateral chamber maintain a minimum of 50 active members from Pakistan and an equal number from the partner country. 

The membership must include a balance of corporate organisations and small and medium enterprises (SMEs) to ensure broad representation. Flexibility in foreign membership thresholds may be granted for countries with limited chamber infrastructure but significant economic interest in Pakistan.

The proposed policy introduces a rotating leadership structure for each chamber, with the chairmanship alternating between Pakistani and foreign nationals. This system is designed to promote fairness and equal participation. 

Furthermore, chambers will be required to sign a legally binding Memorandum of Understanding (MoU) with a recognized counterpart in the partner country or provide written confirmation from the relevant foreign ministry if an MoU is not possible.

Financial sustainability will be another key feature of the reforms. Tier-I chambers must maintain a reserve fund of at least Rs10 million, while Tier-II and Tier-III chambers will need a minimum of Rs5 million. 

All chambers will also be required to submit a sustainable business plan and audited financial statements. Licenses will be issued for a three-year term, with renewal contingent upon performance indicators such as investment facilitation, business promotion activities, and member support.

To ensure the legitimacy of bilateral chambers, the DGTO will verify applications with Pakistan’s foreign missions abroad, ensuring the legal status, reputation, and credibility of foreign counterparts. The partner country’s embassy in Pakistan will also verify the standing of proposed member enterprises.

Additionally, the policy includes provisions for dispute resolution, with any disagreements between a chamber and the DGTO to be adjudicated under Pakistani law. 

According to the Ministry of Commerce, these reforms aim to professionalize bilateral chambers and establish measurable standards of performance and accountability, reinforcing Pakistan’s trade diplomacy efforts.