ISLAMABAD: Dr Kabir Ahmed Sidhu, Chairman of the Competition Commission of Pakistan (CCP), commended the steadfast commitment and significant support extended by the Federal Minister for Finance and Revenue towards promoting fair competition, regulating markets, and fostering best practices.
Dr Sidhu was speaking at a workshop hosted by the CCP to celebrate World Competition Day, observed annually on December 5th. He highlighted that the Federal Finance Minister, Senator Muhammad Aurangzeb, assured the CCP of the government’s full backing in its efforts to strengthen market integrity and create a level playing field for businesses.
This reflects a shared commitment to drive sustainable economic growth and protect consumer interests. Sidhu emphasized that with strong government support and a commitment to improving its capabilities, the CCP is on track to becoming a more effective force in ensuring fair competition and curbing market abuse.
Dr Sidhu also discussed the importance of fostering competition and creating a level playing field across various sectors of the economy. He underscored the need to curb market abuse and manipulation, pointing out that healthy competition leads to more equitable wealth distribution. He explained that cartels exploit the market, concentrating wealth in the hands of a few.
The Chairman stressed that the CCP plays a crucial role in guiding government policies to steer the economy in the right direction. "The only sources of revenue are exports, taxes, and remittances. If businesses can't compete domestically, how can they compete internationally?" he said. He also noted that competition drives innovation and efficiency, leading to better services, products, and more exportable goods. To further this goal, the CCP is focusing on reviewing the legal and regulatory frameworks in the energy and services sectors to remove entry barriers and protectionist policies.
Dr Sidhu referred to global examples from the UK and the US, where market developments took considerable time to unfold. “Similarly, Pakistan is at a developmental stage, and it will take time and effort to fully implement effective competition policies,” he remarked, adding that the Constitutional Bench could help expedite the legal process.
Dr Sidhu also emphasized the need for collaboration between the media, government, and public to fulfill the CCP’s mandate against anti-competitive conduct. He acknowledged that while Pakistan’s competition landscape is evolving, continued support from all stakeholders is crucial in fostering a healthy competition regime.
During the workshop, CCP officials provided a detailed briefing on ongoing inquiries and shared case studies from the sugar, automobile, and cement sectors. They also highlighted encouraging updates on Foreign Direct Investment (FDI) attracted through merger clearances and acknowledged the significant support extended by the Ministry of Law, Ministry of Finance, and the Supreme and High Courts. Journalists raised pertinent questions regarding the CCP’s challenges in enforcing Competition Law, particularly the persistent backlog of cases in higher courts, to which CCP officials provided comprehensive responses.
A key development discussed was the establishment of the Market Intelligence Unit (MIU), which has already identified over 150 instances of anti-competitive practices using advanced data collection and analysis techniques. The MIU leverages cutting-edge analytical tools and technologies to enhance the detection of anti-competitive behavior and improve investigative efficiency. Some of the key findings include 25 cases in financial services, 16 in FMCG, 10 in cosmetics, 14 in real estate, 7 in health, 5 in pharmaceuticals, 6 in power, 6 in poultry, 6 in textile, 8 in electronics, and 5 in agriculture. These findings highlight the MIU's crucial role in identifying and addressing anti-competitive practices across various industries in Pakistan.
The workshop was attended by key CCP officials, including Shahzad Hissain (Director General), Noman Laiq (Director General), Ahmed Qadir (Director General), Dr Ikramul Haq (Director General), Ambreen Abassi (Senior Legal Advisor), Hafiz Naeem (Senior Legal Advisor), and other CCP staff.
Copyright Business Recorder, 2024