Karachi Chamber of Commerce Told to Backtrack on Membership Fee Hike
ISLAMABAD – The Karachi Chamber of Commerce and Industry (KCCI) has been asked to roll back its membership charge to 1,200 rupees ($4.30) after a regulator’s decision struck down the last fee hike to 5,000 rupees ($18) as illegal.
The decision, announced on Monday by Bilal Khan Pasha, the head of Pakistan’s trade organizations regulator, came in response to complaints from four KCCI member companies. These companies challenged the fee hike, arguing it violated the KCCI’s Articles of Association, which set the original fee at 1,200 rupees unless changes were approved by the regulator.
KCCI had raised the membership rate in its 2023 annual general meeting, blaming inflation and the desire for financial stability. The chamber then forwarded the amendment to the Directorate General of Trade Organisations (DGTO) for approval. The fee hike did not gain approval by the time KCCI sent out membership renewal notifications for 2025.
In his order, Pasha underscored that trade organizations have to comply with legal protocols, such as seeking DGTO approval, prior to modifying membership terms. “KCCI acted prematurely,” the order read, adding that the chamber’s failure to wait for regulatory approval rendered the fee hike null and void for the 2025–26 membership year.
Major Points of the Order:
KCCI has to receive membership renewals at the original 1,200-rupee rate.
The chamber has to repay any additional payments made by members who remitted the higher amount.
KCCI has to reinstate membership for people whose accounts were sanctioned for failing to pay the unauthorized higher fee.
Though KCCI contended the increase in the fee was democratically sanctioned and that such increases in fees have been done earlier in previous years without any complain, the regulator rejected these submissions. It clarified that every cycle of membership renewal is a standalone legal issue.
The order also permits KCCI to request retroactive approval of the new fee, but until such an approval is made, the existing 1,200-rupee fee has to be adhered to. The chamber has been directed to file a compliance report within 15 days.
