ISLAMABAD: The Karachi Chamber of Commerce and Industry (KCCI) must revert to charging an annual membership fee of 1,200 rupees ($4.30) after a government regulator ruled its recent increase to 5,000 rupees ($18) was unlawful without proper approval.
The order, issued Monday by Bilal Khan Pasha, Pakistan’s regulator of trade organizations, sided with four KCCI member companies that challenged the fee hike. The complainants argued the increase violated the chamber’s Articles of Association, which had set the fee at 1,200 rupees unless amended with regulatory endorsement.
KCCI had raised the fee during its 2023 annual general meeting, citing inflation and financial sustainability, and submitted the amendment to the Directorate General of Trade Organisations (DGTO) for approval. However, the regulator had not sanctioned the change by the time 2025 renewal notices were issued.
Pasha’s ruling emphasized that trade organizations must follow legal procedures, including DGTO approval, before altering membership terms. “KCCI acted prematurely,” the order stated, noting the chamber’s failure to wait for regulatory endorsement rendered the fee increase invalid for the 2025–26 cycle.
The chamber was directed to:
– Accept renewals at the original 1,200-rupee rate.
– Refund excess payments to members who paid the higher fee.
– Restore membership for any individuals penalized for non-payment of the unapproved amount.
KCCI, which represents Karachi’s business community, argued the hike was democratically approved and that members had paid incremental increases in prior years without objection. But the regulator dismissed claims of laches, stating each renewal cycle constitutes a separate legal issue.
The order allows KCCI to seek retroactive approval for the fee amendment but mandates compliance with the original rate until then. A compliance report is due within 15 days.