CCP actively investigating key sectors: MoF advertises 4 vacant positions of members

ISLAMABAD: The Ministry of Finance has advertised four vacant positions of members of the Competition Commission of Pakistan (CCP), but the commission is actively pursuing investigations in various key sectors including telecom, chemical, cement, wheat, banking, and poultry.

Sources told Business Recorder here on Friday that the industries and sectors have committed violations of sections 3, 4, and 10 of the Competition Act, 2010.

In accordance with the law, the Commission is mandated to comprise 5-7 members, albeit in practice, five members are typically appointed. Currently, the Commission is operating with only one member, who also serves as the chairperson. The addition of four members will ensure that the Commission is fully constituted and functioning optimally.

After advertising three vacant positions of the Members of the CCP in December 2022, the Ministry of Finance has announced a job opening for position of the 4th Member.

Out of the three advertised positions in December 2022, two had fallen vacant in March 2022 with the term completion of ShaistaBano and BushraNaz Malik while the third one was an old vacant position. The 4th position fell vacant with the appointment of Mujtaba Ahmed Lodhi as SECP Commissioner in December 2022.

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The CCP is entrusted with the crucial responsibility to promote competition and correct anti-competitive behaviour. Sources told Business Recorder that the CCP’s crucial work largely remains unaffected and work on several enquiries is underway. In line with its mandate under the Competition Act, 2010, the CCP has persevered in its efforts to enforce penalties against vested interests and cartels, despite their attempts to delay enforcement through court-issued stay orders.

Over the past two years, the CCP has taken record-breaking enforcement actions, with concluding over 37 inquiries, initiating over 38 new ones, and issuing 15 orders against 134 undertakings, resulting in total penalties of approximately Rs45 billion.

The major sectors where the law has been enforced include sugar, cement, cooking oil and ghee, poultry, automobile (including tractors), paint, lubricants, real estate, steel, fast-moving consumer goods, milk, food and beverages, electronic goods, glass, and e-commerce.

In the area of cartels and trade abuse, the CCP has initiated 22 new inquiries, concluded 14, and issued 5 orders against 93 undertakings.

The largest penalty of Rs43.59 billion was imposed on the Pakistan Sugar Mills Association and its 84 member sugar mills, while Haier Pakistan (Pvt) Limited was fined Rs1 billion for downstream cartelization. In the area of deceptive marketing practices, the CCP concluded 23 inquiries and initiated 15 new ones. Additionally, two Policy Notes on the sugar and wheat sectors were issued to the government during the same period.

The CCP’s enforcement work involves an elaborate legal procedure from the initiation of the inquiry to the passing of the order. To this end, the CCP issued 175 show cause notices to undertakings, giving them a full opportunity to be heard. In 10 inquiries, the CCP also conducted searches and inspections on the premises of different undertakings.

Over the same period, the CCP approved 171 mergers and acquisitions in phase 1 and three in phase 2, and granted 131 exemptions under the law. It also continued to take advocacy initiatives to create awareness and held capacity-building programs for its employees.

As part of its mandate to review policy frameworks, the CCP’s draft pilot study on the “Assessment of Supply Chain from Farm gate to Retail” recommends policy measures to enhance economic efficiency and eliminate distortions in the supply chain of essential commodities. Similarly, its report on the SME sector will offer recommendations for improving the economic efficiencies of SMEs.

Consultative sessions have commenced on the CCP’s draft “E-Commerce Policy Guidelines” and the pilot study for deliberations with stakeholders. Furthermore, several policy and research initiatives are in different phases of completion, sources added.

Copyright Business Recorder, 2023