The scrapping of Competition Ordinance would not only endanger World Bank's future funding but also Friends of Pakistan Funds. It may also further lower Pakistan's ranking in Transparency International's Corruption Perception Index (CPI) 2010, according to Transparency International Pakistan.
In a statement here on Tuesday, TI Pakistan has noted with concern that the Competition Commission of Pakistan (CCP) Ordinance 2007 has neither been approved by the National Assembly as a bill nor it has been re-promulgated.
The recently released TI CPI 2009 is the combined average index of six independent surveys carried out by various donor agencies/rating houses, including the World Bank.
IDA Resource Allocation Index (IRAI) based on corruption, conflicts of interest, diversion of funds as well as anti-corruption efforts and achievements and ADB conducts Country Performance Assessment Ratings (CPAR) for all developing member countries (DMCs) eligible for the ADF. The CPA exercise assesses a DMC's policy and institutional framework for promoting poverty reduction, sustainable growth and effective use of confessional assistance.
Each country's performance is assessed based on the (i) quality of its macroeconomic management, (ii) coherence of its structural policies, (iii) degree to which its policies and institutions promote equity and inclusion, (iv) quality of its governance and public sector management, and (v) performance of the ADF project portfolio in the country.
ADB CPAR comprising corruption, conflicts of interest, diversion of funds as well as anti-corruption efforts and achievements. TI Pakistan Chairman Syed Adil Gilani said that within the preview of the Prime Minister, Committee formed on November 17 under chairmanship of the Finance Minister, comprising secretaries of cabinet, establishment, finance, planning and development, industries and production, interior, health and information technology, which includes Chairman TI Pakistan also, to review the causes of TI CPI 2009, and future programmes.
TI Pakistan stresses upon GoP that the requirement of the existence of CCP is crucial for meeting the commitments made to the donors, the growth of Pakistani economy. Competition brings productive efficiency that helps increase jobs, brings quality in production and reduces prices, and that competitive environment also encourages foreign direct investment.
Syed Adil Gilani also said TI CPI 2010 would depend on the ratings for 2009-10 declared by the WB, ADB, Economist Intelligence Unit, World Economic Forum etc, which would reflect the position of reform carried out by each country according to the donor agencies previous funding.
The good actions recently taken by CCP like Pakistan Steel inquiry, Cement cartel, PIA, Sugar cartel, and inquiry into TCP affairs have resulted in improving the governance perception of GoP in general, but strong opposition from the vested quarters were trying to curtail powers of CCP.
He said the CCP Ordinance was result of the WB initiated Poverty Reduction Support Programmes (PRSPs), signed in 2004 for the year 2005-06, under which the Monopoly Draft Act 1978 was to be replaced with CCP Ordinance by 2007, and in case the CCP Ordinance is not re-promulgated, under pressure from the vested interest, the WB future funding, as well as endanger the Friends of Pakistan Funds, for the reversal of reforms carried out under previous WB funding. The WB IDA IRAI and ADB CPAR scores of Pakistan are deemed to fall lower.-PR
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