An independent Competition Commission vital to countrys image

The Competition Commis-sion of Pakistan (CCP) is back in the news. From the very day of its inception, the CCP has been working relentlessly to unearth malpractices in the corporate governance. However, its fate remains on thin ice, ahead of the Senate session due to begin on Friday.
CCP has been recognized in Pakistan and internationally as an effective barrier in the face of monopolization and cartelization amongst other such practices. Actions taken by CCP, like Pakistan Steel inquiry, cement cartel, PIA, banking cartel, sugar cartel, LPG & Oil cartel, stock exchanges and inquiry into TCP affairs have resulted in improving the governance perception in general.
Competition ordinance is due to lapse on the 26th of March 2010. However, approval for the bill has already been granted by the lower house of the Parliament. It now rests with the Senate Committee for Finance. This law will be a key topic of discussion when the deliberations begin.
Opposing Senators claim that the law is draconian in nature and may be misused. Interestingly enough, the same lawmakers also have business interests that may come under scrutiny if the bill becomes a law. Reportedly, there are only two votes against the law versus ten supporters, in the deciding committee.
Governance experts have indicated their reservations on the dilution of the law. Appeals must now be taken to the high courts instead of the Supreme Court of the country. Owing to the pressure on high courts, appeals will take a longer time to settle the cases.
Transparency International Pakistans Chairman Adil Gilani has remarked that if the CCP ordinance lapses, it might have a negative impact on Pakistans ranking in the corruption perceptions index published annually.
Another angle worth considering is that multilateral donors such as the World Bank and ADB have helped draft the competition ordinance. Developments on this issue are going to be closely watched by them. Observers fear that these agencies might be hesitant in doing business in Pakistan in the absence of an independent oversight mechanism.
If the lawmakers are unable to make decisions on corporate governance, perhaps the President himself would like to give the people, the gift of consumer rights in the spirit of generosity. After all, he has just recently become the first leader in the world to have offered donation of all his body organs.

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CCP Track Record

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Industry/Company             Violation                 Current Status

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Polyester Fiber Industry     Cartelization             Compliance

Mobilink                     Restrictive trade         Compliance

KSE/LSE/ISE                  Price fixing              Compliance/Appeal

APNS                         Price fixing              Compliance

SIZA Foods                   Restrictive trade        Compliance

China Mobile and Ufone       Misleading advertising    Compliance

Pakistan Banks Association   Misleading advertising    Sub-judice in Courts

ICAP                         Price floor               Sub-judice in Courts

Pakistan Steel Mills         Monopolization            Case in progress

Bahria University            Restrictive trade         Case in progress

PIA                          Monopolization            Case in progress

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