ISLAMABAD: The Directorate General of Trade Organizations (DGTO), operating under the Ministry of Commerce, on Thursday warned individuals and groups against the illegal use of protected trade body titles such as “Federation,” “Chamber,” and “Association.”
In an official notice, the DGTO reminded the public that it is the sole regulatory authority mandated under the Trade Organizations Act, 2013 (TOA 2013) to license, regulate, and oversee trade bodies operating in Pakistan. Citing Section 3(1) of the Act, the regulator emphasised that no organization is permitted to function as a trade body without obtaining a valid license from the federal government through the DGTO.
The DGTO further referred to Section 5(3) of TOA 2013, which strictly prohibits the use of the terms “Federation,” “Chamber,” or “Association” in the name or title of any entity unless it is duly licensed and registered with the DGTO. The regulator noted that it has observed several individuals and groups operating unauthorized bodies while using these protected titles, thereby misleading the business community and creating confusion in the market.
Addressing a common misconception, the DGTO clarified that the exemption provided under the proviso to Section 5(3) applies only to organizations established for the promotion of art, science, religion, charity, or sports. This exemption does not extend to entities involved in trade, commerce, industry, or services.
“All such unauthorized entities are directed to cease and desist immediately,” the notice stated, warning that failure to comply would result in strict penal action under the Trade Organizations Act, 2013. Such action may include financial penalties, personal liability of office-bearers, and disqualification from holding any position in a registered trade organization.
The DGTO also advised members of the business community to refrain from joining or engaging with unlicensed trade bodies, stressing that such entities have no legal standing. Businesses were urged to verify the licensing status of any trade organization with the DGTO before seeking membership, entering into dealings, or engaging in any official interaction.
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