The recent cat and mouse game set off after the boss of Competition Commission of Pakistan slapped a heavy fine against cement makers amid the ongoing sugar crisis falls in the same context.
The investigation against the cartel made by local cement producers had long been under way. Understandably, owing to a serious lack of cohesion amongst government departments and dearth of funds at the CCP, it was only last month that the CCP finally charged cement makers with a fine of Rs 6.35 billion and advised the government not to entertain sugar mills owners if they represent themselves as a group.
Khalid A. Mirza - whose tenure wasnt due to expire until July 2010 - was axed overnight in a wave of a major shake-up in Islamabad bureaucracy. Apparently, his name was lumped with retired bureaucrats on extension under a contract. Federal Finance Minister Shaukat Tarin had to tell the President and the Prime Minister that it was a tenure appointment and the government will get castigated for this.
The old Monopoly Control Authority (MCA) was replaced with (CCP) in 2007. The MCA was found to be not meeting the expectations of business and the consumers at large. The CCPs main task is to ensure that competition is not curbed due to government action/intervention or on account of manipulation and cartelisation. Broadly speaking, the law seeks to prohibit abuse of market dominance, certain types of anti-competitive agreements, deceptive market practices and mergers of undertakings that substantially reduce competition.
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