The government is reported to have faced great embarrassment on June 23, as the National Assembly Standing Committee on Government Assurances expressed dismay over non-submission of Monopoly Control Authority (MCA) Bill as per commitment. The committee discussed the assurance given by the Minister of State for Finance, Omar Ayub Khan, on the floor of the National Assembly, regarding the submission of Monopoly Control Authority Bill.
Reportedly, taking serious note of non-implementation of the assurance given by the Minister of State, it directed the minister to accord top priority to the matter, and to submit the Bill without any further delay. The committee members viewed the Bill as very important in the present economic malaise and directly concerned with the interests of general public.
The committee members were unanimous in asserting that assurances given on the floor of the House should be taken care of promptly by the concerned ministries. It is, however, another matter that, clarifying his position, the Minister of State for Finance is reported to have pointed out that the Finance Ministry has decided to alter the 1970 MCA law, in view of the present economic situation.
However while thus explaining the situation, he told the committee that work on drafting the new law is in progress and that it would be tabled before the House for enactment by the end of the year.
The new law, he said, would more effectively regulate businesses and the market for the benefit of the consumer under the current economics conditions. However, seemingly sensing a great deal yet remaining to be desired, the committee asked the ministry to give periodical progress report on the new competition law and to complete the consultative process at the earliest.
Needless to point out, all this would impart more credence to a Business Recorderreport on the subject, as appearing only the other day. Quoting official sources, it pointed out that MCA had proposed some alterations in the 1970 Ordinance, and rules framed under it, with the aim to promote competition among producers and suppliers in a manner suited to post-WTO era free market and deregulatory requirements.
As such, while pointing to certain anomalies in the present dispensation vis-à-vis company laws, the reconstituted Authority was stated to have felt that instead of wasting its energies on minor issues, it should solely devote itself to protecting the interest of the common man.
Ostensibly, deriving inspiration from the changed economic philosophy of the present government on enhanced role of the private sector, and its emphasis on good governance and transparency, the MCA has submitted its proposals to the Finance Ministry to bring about uniformity in the relevant laws.
As such, irrespective of who initiated the move, it has been established that efforts for revitalising MCA are in process. However, be that as it may, the fact remains that the government has continued to place heavy reliance on MCA, rather unnecessarily, in efforts to ensure reduction in prices of a number of items of common use, sugar and cement, for instance.
More to this, it will also be noted that MCA has been indulgently dealing with such exigencies, more often without obtaining the desired results. Ready reference, in this regard, may be made to a news report appearing on June 24, revealing that MCA has taken serious notice of cartelisation of the cement industry, and of the hike in its prices, saying it has decided to take action against errant producers to protect the interests of consumers.
It has also quoted Syed Bilal Ahmed, its recently appointed Chairman, as saying that details are being collected, and that show cause notices would be issued in a couple of days. He said penalties would be imposed on all those who don't provide the required information in this regard, and also that strict action would be taken against those found involved in the price hike of cement.
However, he is reported to have also said that, prior to taking action against those found responsible for price hike, the matter of supply and demand would be taken into account.