Presentation to ECC: industries ministry must stop interference into CCP working

The Competition Commission of Pakistan (CCP) has pleaded before the Economic Co-ordination Committee (ECC) of the Cabinet that government departments particularly the Ministry of Industries and Production must stop interference into the working of the commission fighting cartelisation. The main industrial sectors where most of the units were owned by powerful lobbies are making windfall profits in the absence of a check and balance mechanism.
Sources told Business Recorder on Tuesday that CCP Chairman Khalid Mirza has given a detailed presentation to the ECC on the reported cartelisation by sugar, cement, milk and automobile sectors. He did not hesitated to say that government departments' intervention during inquiries/investigations must be stopped for taking action against powerful cartels and influential groups in Pakistan.
When the CCP chairman started his introduction, Federal Minister for Petroleum and Privatisation, Syed Naveed Qamar said, "You are already very popular and everybody knows about you. Give us latest data on these sectors as far as cartelisation is concerned," he added.
During the ECC meeting, it is learnt that the CCP chairman categorically stated that the government departments and ministries should not be involved in price fixation in consultation with the associations and trade bodies belonging to private sector. He referred to the Ministry of Industries meetings with the cement and ghee/cooking oil manufacturers on price fixation issues.
On the other hand, Minister of Industries Mian Manzoor Wattoo pointed out that the ministry had convened meetings with the stakeholders, industry representatives and associations to bring down prices of different commodities such as cement etc. The main purpose of such meetings is to reduce prices in consultation with the relevant manufactures etc. The prices of ghee and other commodities have been reduced as a result of such consultative meetings.
Responding to this, the CCP chairman strongly reacted that such meetings resulted in decrease of Rs 4 in ghee prices, but later the prices again jumped by Rs 8-10. Therefore, such kind of meetings between the Minister of Industries and associations for price fixation should not be convened which is against the interest of the general public. The CCP chairman also raised question that how the Ministry of Industries can talk with the concerned association for price fixation in the presence of market mechanism? The market system should freely work only under competition without influence.
When the ECC chairman asked about nature of government support required by the CCP, Khalid Mirza said that the government departments, ministries and agencies should not interfere in any way during the investigation process of the commission. The government departments should not try to influence the commission and allow the CCP to play its vital role within the limitations and procedures specified in the Competition Commission Ordinance 2007.
When the CCP conducted inspections of cement associations, the CCP cannot share such kind of information with the Ministry of Industries prior to such kinds of inspections. The CCP is ready to conduct discussions with the Ministry of Industries, but cannot share confidential information about physical inspections of the cement or sugar associations' offices, etc. The presentation was highly appreciated by the ECC members due to CCP's active role in checking cartelisation in a number of sectors in a short period of time since promulgation of the Competition Commission Ordinance 2007.