Prime Minister Syed Yousuf Raza Gilani on Friday assured the Competition Commission of Pakistan (CCP) that secured source of funding would be provided to the Commission through provision of 3 percent of fee/charges collected by regulatory authorities to ensure the CCP''s financial and administrative autonomy.
Addressing the key session of 2nd International Conference on "Competition Enforcement Challenges and Consumer Welfare in Developing Countries," the Prime Minister said People''s expectations from the government are understandable and justified. However, for two years in a row, floods, energy and security situation have slowed down the economic growth. Nonetheless, due to timely interventions of the government, the country has been able to build strong economic fundamentals, he added.
The PM said that the international recognition and evaluation is a valuable barometer for judging performance of an entity. He said that he is aware that due to the critical matter of funding the Commission''s operations remain unresolved. Let me take this opportunity to assure you that in the same manner the government supported the passage of the law through the Parliament and it will focus attention on providing the Commission a secured source of funding to carry on its important work.
This is one of the fundamental outcomes of globalisation. In highly competitive environment, the role of governments is to create enabling conditions for businesses to operate with maximum ease. To prevent market failures, cartelisation and the abuse of dominance, institutions like the Competition Commission have been created around the globe, PM added.
"I believe, competition laws must reflect national priorities and take national peculiarities into consideration. Obviously, our main national priority is economic development of the country, the ability to provide goods and services to our people at affordable prices and to create better opportunities for their livelihood", he stated.
In 2011, the government released the New Growth Framework after taking the relevant stakeholders into confidence. The Framework document underscored the importance of competitive markets as an element of economic governance. It also identified competitive markets as the starting point towards increasing efficiency and bringing about innovation to promote and sustain economic growth, he maintained.
Prime Minister added that the Competition Commission has been quite active since its inception in addressing manipulation of the market. And like most countries, it has also faced opposition as it has challenged powerful vested interests. The emergence of a competitive market is an evolutionary process. Mere deregulation will not achieve this goal. Building the culture of competition and an effective competition regime is a long-term endeavour. Competition must be ''mainstreamed'' in all sectors, he said.
There is a need to overcome the fear of and opposition to competition by emphasising its benefits and by creating a good pro-investment climate. Thus, pro-competition policies must not only be well constructed but duly maintained to guard against anti-competitive behaviour in the market. Promotion of competition culture needs a strong and independent institution capable enough to point out when and where competition is being compromised or vested interests are working against economic growth. This independence, in my view, means both political and financial independence. People should perceive the competition law as a tool for realising the full potential of the economy for their benefit, he mentioned.
Addressing the special session, Federal Minister for Finance Dr Hafeez Shaikh said that private sector is the engine of growth and government has removed entry barriers, and is trying to provide level plying field to ensure participation of private sector in country''s sustained economic growth. He said that competition in economy is essential to improve efficiency and fair play in the country.
In his address, Federal Finance Minister said Pakistan was the most business friendly country of the region offering a number of incentives to the investors. He said the government encouraged foreign investment and there were no trade barriers in the way of foreign investment. He said that private sector was the engine of growth of any country''s economy and it was government''s responsibility to ensure appropriate measures along with provision of best possible policies, services and resources to facilitate the private sector for promotion of economic growth and job creation. Dr Shaikh reiterated the government''s commitment towards strengthening the Competition Commission of Pakistan by resolving the pending issue of three percent fee. The issue of payment of 3 percent fee/charges by the regulators would be addressed to ensure smooth functioning of the commission.
Rahat Kaunain Hassan, Chairperson CCP on the occasion highlighted the achievements of the Commission for the promotion of competitive business environment for the welfare of the people. She said the Commission had a dedicated team and she had the confidence in its hard work and tenacity in encountering daunting challenges. She thanked the government for its support in the passage of Competition Law and hoped that the government will resolve all pending issues including the three percent fee and appointment of the Competition Appellate Tribunal.
Speaking on the occasion, Richard A Albright, Co-ordinator for Economic and Development Assistance Embassy of the United States, Islamabad said that fair and strong competition in business activities enhances economic strength of a country. He congratulated the Competition Commission of Pakistan and the Competitiveness Support Fund for organising a successful conference.