Checking cartelisation: CCP decided to conduct CIAS in different sectors, says Mirza

Competition Commission of Pakistan (CCP) has decided to conduct "Competition Impact Assessment Study" (CIAS) in different sectors to check possibilities and potential of cartelisation.
Talking to newsmen at a lunch hosted by Investment Banks Association of Pakistan (IBAP) here on Saturday, Chairman CCP Khalid Aziz Mirza said that Competition Impact Assessment Study was being conducted with the aim to curb cartelisation in the county and in first phase CCP had started study in banking and energy sector. "In the second phase we would conduct study in fertiliser and sugar, while study in edible oil, polyester and other sectors is also in the plan," he said.
He said as the CCP require sufficient funds for these studies, hence it recently approached World Bank for financing. "As per our expectations World Bank is likely to provide financing for the studies in the next few months", he added. He said that the CCP was performing well and had taken action against banks, cement manufacturers, stock exchanges, leading school, cellular and other companies.
Mirza said that CCP had fined country's three stock exchanges, as they imposed floor mechanisms on price for 111 days. However, he added, only Islamabad stock exchange has paid the fine, while Karachi and Lahore stock exchanges have filed appeal against the decision.
Regarding the inquiry against the cement cartelisation, he said that cement manufacturers had challenged the CCP role in the High court, while the inquiry was in process and CCP would soon announce the judgement after one or two hearings.
He said as recently CCP had been provided sufficient funds by government it came out from the financial crisis. In another development the federal government has directed all regulators to give three percent of their collections to CCP, he added.
He said that CCP was established in 2007 under the Competition Ordinance, 2007 with the aim to provide legal framework to create a business environment based on healthy competition towards improving economic efficiency, developing competitiveness and protecting consumers from anti-competitive practices.
Mirza said that prior to Competition Ordinance, 2007, Monopoly Control Authority (MCA) was working under 'Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance' (MRTPO) 1970. However, in the fast changing global and national economic environment, it was inadequate to address the competition issues effectively.
The Ministry of Finance and the MCA worked with the World Bank and the Department for International Development (DFID), UK launched Competition Ordinance, 2007 replacing the MRTPO. He said that CCP was working to maintain high standard of evidence for unearthing secret cartels and it has legal powers to conduct searches and inspections.
Mirza said that recently the Commission took the initiative of establishing the "Acquisitions & Mergers Facilitation Office" to facilitate those parties which are contemplating merger or acquisition (as defined in the Competition Ordinance 2007) and want to get informal and non binding view of the Commission.
On the occasion Maleeha Mimi Bangash, Head of Acquisition & Merger Facilitation Office (AMFO) said that merger facilitation service was also available for those law firms, consultants and third parties who want to obtain the commission's informal view about any specific matter in which they are advising their clients.
She said that AMFO office had been set up for the assistance of undertakings for submission of pre-merger applications and to facilitate the parties involved in the transaction, in submission of pre-merger applications. Rashid Mansur chairman Investment Banks Association of Pakistan and Rahat Kounain Hassan also spoke on the occasion.