'CCP needs complete financial autonomy'

The Competition Commission of Pakistan (CCP) is facing financial constraints mainly on account of non-payment of three percent of the fee and charges by the five regulatory bodies - SECP, Nepra, Pemra, Ogra and PTA. The CCP Chairperson Rahat Kaunain Hassan stated this while speaking at the 11th meeting of the Competition Consultative Group here Thursday. The CCP needs complete financial autonomy rather than seeking one-time grant from the government, she said.
The CCP needs sustainable financial independence to deliver properly, she said and added the Commission would be saving Rs 30 million annually on different accounts following moving from the diplomatic enclave to an accessible place-ISE Tower, Jinnah Avenue in the federal capital", she added. She was of the view that the regulatory bodies should contribute their surplus in consolidated fund.
While briefing the CCP achievement during the period of July 27, 2010 to June 13, 2011, Rahat Kaunain Hassan said the Commission had issued 75 No Objection Certificates for merger and granted exemptions in 49 cases as compared to 161 and 216 of the last three years. The Commission has also issued 49 show cause notices, as compared to 32 of last three years while conducted enquiry reports against five associations, including jute mills, poultry, RITS, ships agents, and ghee & cooking oil manufacturers during the year. The Commission has completed study on aviation and power sector of Pakistan and going to take up oil and gas sector for this purpose in near future, she maintained.
The Commission's role is to enhance economic efficiency and providing level-playing field by checking deceptive marketing tactics rather than creating hurdles in businesses. "We are not here to disturb commercial activities or intervene in contracts, but to curb anti-competitive practices, she said.
While complaining about the behaviour on the part of some corporate entities, she said the CCP staff has to face physical resistance during search and inspection. Rahat Kaunan Hassan also talked about the concession agreements, which are used in areas, such as electricity, water, sanitation, telecommunication, roads, ports, airports, oil and gas. Since, a concession agreement vests a state-sanctioned dominant position, the stages of the granting and implementing a concession agreement have clear competition law implications in Pakistan. She was of the view that these companies must pass on benefit to the consumers.
CCP Member-Competition Policy and Research, Mueen Batlay gave a detailed presentation on "How Competitive is the aviation sector in Pakistan", and pointed out weak areas of the sector. He also gave a comparison between the domestic and UAE based airlines. He said the Emirate Airlines started its operation with PIA assistance in 1985 with single aircraft but now it is 9th largest airlines of the world.
Speaking on the occasion, the Commission's Member (Office of Fair Trading and Budgetary Affairs) Shahzad Ansar said that he received a complaint from Karachi that legally imported drinks and other eatable items were no more economically viable, as some elements were involved in import/smuggle of such goods whose date has been expired and thus needed to be dumped in sea but unfortunately the goods were being marketed after re-wrapping, he said.
The Unilever Pakistan's Advisor on Corporate Affairs Basharat Ahmad said that Pakistan consumes 190,000 tons of tea out of which 80,000 tons is imported legally while remaining 110,000 tons of tea is being supplied through Afghan Transit Trade. The government receives Rs 111,500 per ton on account of import duty on tea but Afghan Transit Trade is depriving the public exchequer of Rs 12 billion annually. He also pointed out that people in Afghanistan who only use green tea thus there is no justification of import of black tea under Afghan Transit Trade and sought the CCP co-operation to get rid of this menace.