ISLAMABAD: The Federal Cabinet, in its meeting on 24 November 2020, demonstrated its unequivocal support to the CCP by approving the issuance of a statutory regulatory order (SRO), prescribing 3 percent and charges levied by SECP, OGRA, PTA, NEPRA and PEMRA from the financial year 2009-10 and onwards to meet charges in connection with the functioning of the CCP.
Accordingly, the Ministry of Finance has issued the SRO on 27 November, 2020 for gazette notification. Necessary action has also been requested including standing instructions to their bankers for transfer of the prescribed percentage of their total fee and charges collected during each quarter, for credit to the account of the Commission, by the tenth of the month following the relevant quarter and before surrendering the surplus to the Federal Consolidated Fund, under intimation to the Commission.
The Commission duly acknowledges the support and efforts of the Ministry of Finance and also Ministry of Law in the entire process and views it as a stepping stone towards making the Competition Commission of Pakistan a truly independent and robust organization. It also speaks about the commitment of the Federal Government by resolving the decade-old issue of payment of the said funding, thus providing due support in making CCP a sustainable and more effective organization.
On 23 December 2008, the Federal Government named the five regulatory bodies and fixed the said 3 percent of fee and charges levied by them as the amount to form part of the CCP Fund. Despite numerous correspondence with all those involved, full support of the Ministry of Finance, favourable opinions of the Law & Justice Division, objections of the Auditor General of Pakistan on the chosen regulators for non-payment, and the support of the Senate's Standing Committee on Finance and Revenue and strong recommendations from Public Accounts Committee on numerous occasions, the Commission was not able to tap into this source of envisaged funding. Since its inception, the Commission had been operating under severe resource constraints with a fixed annual grant.
All penalties the Commission imposes are deposited in the Federal Consolidated Fund, thus the Commission is also shielded from any conflict of interest, perceived or real, as the quantum of penalties Commission imposes are not to be used for its operational budget.
The Commission is hopeful that the five regulatory bodies would now be supportive and play their due role in strengthening of the competition regime in Pakistan. This three percent source of funding is appropriate and necessary, given the circumstances of the Commission.-PR
Copyright Business Recorder, 2020
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