The Monopoly Control Authority (MCA) is working on a law to curb cartelising, monopolistic and restrictive trade practices for ensuring free-market economy. Official sources told Business Recorder that the MCA was drafting rules and regulations for setting up 'Competition Law' to replace 1970's Monopolies and Restrictive Ordinance (MRTPO).
They further said, in the wake of WTO regime it was needed to make a law that could safeguard consumer rights. The prevailing 35-year-old law has failed to check profiteers in different industries, they added.
However, they said, besides denting restrictive practices, the objective of the law was to augment and pave way for free-market economy.
Officials disclosed in the new law, the penalty amount, which is currently Rs 0.1 million, will be increased. They refused to indicate the increase in penalty, saying the law was in its initial stages.
It may be recalled that in 1998, the MCA tried to break collective arrangement between cement makers but with partial success due to weak enforcement of the law.
Sources were optimistic that once the law is formulated and approved by the cabinet, the authority would be empowered to take strict action against profiteers and address the menace of growing cartelising effectively.
It may be recalled that former deputy chairman of planning commission Shahid Amjad had spoken publicly of growing cartelising not only in sugar and cement but in cooking oil, steel and almost every industry.
His exit followed after some time. And the MCA continued to operate as a lame duck because it was understaffed, particularly, its research wing.
Besides, Monopoly Control Authority, the ministries of law, finance, commerce, privatisation and others are involved in the formulation of the law.
It is also learnt that high officials of the MCA would give a detailed presentation to advisor to prime minister on finance and revenue Dr Salman Shah on August 10.
Manufacturers of sugar and cement, two items on which there is a lot of public hue and cry, claim that they were not to blame but other players are involved in price spiral racket.
According to them, distributors, wholesalers and retailers, who want to mint maximum money, artificially increase prices.
Sources also disclosed that the hearing of cement manufacturers is scheduled here on Monday, which might give a better picture on the issue.
On the other hand, the Pakistan Sugar Mills Association (PSMA) claimed that in the last 10 years, the price of sugar has increased by about 69 percent while prices of several kitchen items like wheat, wheat flour and gur have increased by about 200 percent.
However, the association conveniently forgets that some influential mill-owners' are holding back their stocks in the hope of windfall profits.
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