CCP asked to suggest amendments in Competition Act, 2010

The National Assembly's Standing Committee on Finance has asked the Competition Commission of Pakistan (CCP) to suggest amendments in the Competition Act, 2010 with the objective to strengthen competition in all spheres of economic activity and protect consumers from anti-competitive practices. A meeting of the Finance Committee of the National Assembly, which met with Qaiser Ahmad Sheikh in the chair, was of the view that Competition Commission of Pakistan should be vigilant against cartelisation and anti-competitive behaviours
The committee after receiving a briefing by the chairperson CCP suggested that Competition Act, 2010 needs amendments for effective functioning of the Commission, besides giving force of law to its punitive actions against anyone found in anti-competition practices.
Chairperson CCP Vadiya Khalil stated that the Competition Act, 2010 embodies the intent of the Parliament to protect and promote a competition-based economy in Pakistan. She further stated that the Act is pro-business and pro-growth, and it provides the framework to protect consumers from anti-competitive behaviour. She said that since October 02, 2007, the CCP has completed 69 enquiries, passed 83 enforcement orders, and imposed over Rs 26 billion in penalties in matters related to anti-competitive behaviour. She further stated the CCP has reviewed 579 merger and acquisition transactions, issued 666 exemptions, issued 29 policy notes and opinions, and held over 109 advocacy related events.
Khalil further added that in the past two calendar years, the CCP had completed 23 inquiries, conducted 53 hearings, issued 21 enforcement orders, imposed Rs 445,250,000 in penalties, gave 133 exemptions, reviewed 152 merger transactions, and held over 60 advocacy and capacity building events.
The committee further directed the CCP to adopt aggressive communication strategy to make the consumers aware against anti-competitive practices. The committee further directed the CCP to provide the list of the pending litigation of different economic sectors in the courts.
Committee members including Asad Umar, Daniyal Aziz and Chairman Qaiser Sheikh while commenting on the performance of the Commission emphasised the need for increasing the effectiveness of the CCP by resolving its pending issues, including the challenges faced in the courts.
They asked the CCP to come up with recommendations for the committee regarding the pending issues including the recovery of penalties of Rs 27 billion imposed by the CCP on various companies and associations.
They further commented that the CCP should target big sectors of economy to tackle cartelisation and abuse of dominance by big companies. They said the CCP should check anti-competitive activities in the banking sector and also remove entry barriers from various other sectors of economy.
Committee Chairman Qaiser Sheikh said that the committee will fully support the CCP in resolving its pending issues. Asad Umar said the role of CCP is extremely important in the economic growth of the country; therefore, it should be supported to play a more effective role in enforcing the law.
The committee members expressed their concern on the absence of Finance Minister and Secretary Finance, with Asad Umar stating that absence of minister and secretary from the committee meetings has become a routine matter. Earlier, additional secretary Statistics Division briefed the committee about the working and performance of the Division and its attached departments.
He also briefed the committee on the preparation for holding national census and stated that Rs 14.5 billion fund required for the exercise has been provided to them. The Pakistan Bureau of Statistics (PBS) has been mandated to conduct national census in March 2017 throughout the country in two phases.
He further informed that in compliance with the decision of Council of Common Interests (CCI), the PBS has geared up to take up this national assignment and has completed most of the arrangements that include co-ordination meetings with the provincial authorities, setting up of district census offices, appointment and training of field staff and publicity campaigns for the awareness of the general masses. A delegation from Lahore Chamber of Commerce and Industry (LCCI) also attended the meeting.