The Competition Consultative Group
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 16th meeting of Competition Consultative Group (CCG) was held at the CCP Auditorium on Friday. The meeting was chaired by the CCP Chairperson. Mr. Haroon Ihsan Piracha, Director, Saudi Pak Leasing Co, Dr. Nasir Mehmood Khan Additional Registrar Pakistan Engineering Council, Mr. Junaid Khan, Chief Financial Officer, Air Blue and other important stakeholder’s participated in the meeting.
The CCP Chairperson while briefing the participants on the issue of ICH highlighted the competition concerns stating that the advances that the telecom industry has witnessed as a result of deregulation of sector; growth in volumes, low rates to consumer and more choices as well as better quality of services may stand negated. The proposed establishment of ICH, she added was not only against Telecom Deregulation Policy 2003, Competition Act, 2010 but also contravene Pakistan’s international obligation under General Agreement on Trade and Services (GATS).
The participants of the Competition Consultative Group unanimously supported CCP’s stance taken in this regard, notable among them was former PTCL’s CEO at the time of privatization Mr. Junaid Khan, (currently CFO Air blue) who stated that “the proposed ICH does not address the core issue of grey traffic. He mentioned that establishment of ICH will increase the arbitrage in the international market (especially from UK and North America, the major call termination markets) and would thus encourage the grey market and the use of VoIP. The setup may improve the revenue of the major telecom players in the short term but may not benefit industry at large and consumers in the long run. He emphasized that this allows quota system to be promoted and the casualties will be merit, entrepreneurship, quality of service and incentive to growth, whereas, this policy will help bigger telecom players more than the smaller LDIs.”
Mr. Haroon Piracha, Former Member National Assembly and Corporate Member Islamabad Stock Exchange said that as technology keeps on changing, conventional means of raising revenue appears to be a short term gain. “While a higher tariff structure might seem good for one year, web based communication solutions like VIBER available on cell phones will make conventional means of raising revenue and stifling competition redundant.”
Dr. Huma Bukhari, the Chairperson of Consumer Association of Pakistan, said that the ICH was an issue of consumers concern and CCP should be fully supported in its efforts to protect consumers’ interest. She said CCP’s mandate to promote and protect competition should be respected by all entities including the sector regulators as this practice and such policies could spill over to other sectors. She further said the ICH arrangement appeared to be a cartel, which was anti competitive and could harm consumers’ interest.
Kaukab Iqbal, President of the Consumer Association of Pakistan, said that if the decision to establish ICH was not shelved by PTA, the consumer groups would take the matter to court. He fully supported CCP’s stand on ICH.
The participants of CCG were further apprised of the upcoming peer review of the Commission by the United Nations Commission on Trade and Development (UNCTAD) to be carried out by a team led by Mr. Bill Kovacic, former Commissioner in the United States Federal Trade Commission (FTC), who is currently a professor at George Washington University. The Voluntary Peer Review is impartial and rigorous by nature and is undertaken by competition policy experts from both developed and developing countries who have practical experience in implementing competition law in consultation with UNCTAD staff.This peer review has been volunteered by CCP and the evaluation will be shared at the next meeting of UNCTAD expected to be held in July next year and to be presented before 152 countries. The UNCTAD Voluntary Peer Review on Competition Policy provides a unique opportunity to review the substantive content of national competition laws and their implementation, to assess the impact of decisions and to examine and draw lessons from concrete experiences of countries implementing competition policies.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 15th Meeting of Competition Consultative Group was held in Karachi on 26 June 2012. The meeting was attended by representatives of State Bank of Pakistan, National Electric Power Regulatory Authority, Engineering Development Board, Civil Aviation Authority, Consumer Association of Pakistan, Friedrich-Nauman-Stiftung, Institute of Chartered Accountants of Pakistan, Linde Pakistan Limited, Indus Motors Company Limited, Pakistan Business Council, Overseas Investors Chamber of Commerce & Industry, Federation of Pakistan Chambers of Commerce and Industry, Glaxo SmithKline, Pfizer Pakistan Limited, Lotte Pakistan Limited and ICI Pakistan Ltd.
The Chairperson Ms. Rahat Kaunain Hassan while briefing the participants of the meeting about the recent enforcement actions, said the Commission has recently concluded two enquiries, i.e. enquiry in the matter of Unreasonable Increase in the Price of Urea Fertilizer, and enquiry against PTCL for prima facie abusing its dominant position in the market for provision of DSL services through margin squeeze. She said a policy note was also issued to the Government of Punjab for the ban it has imposed on establishment of new sugar mills and expansion of existing ones, in force since December 2006, and asked the Provincial Government to lift the ban to allow a fair competition in the sector.
She said the Commission maintained the pace of enforcement despite several challenges, particularly given the financial constraints faced by the Commission. She lamented the deduction in the budget of the Commission by 20 percent saying that financial independence was critical for the Commission’s sustainability. “The Commission is tasked to monitor the economy of the whole country, with a professional team comprising of only 46 officers in enforcement,” the Chairperson said. She hoped that the government will soon ensure recovery of 3% fee outstanding from 5 regulators as has repeatedly been assured by the government. CCP does not intend to cause any financial burden on the government and hence it is important to attain financial autonomy for its advocacy and enforcement functions.”
She stated that the Commission has been able to deliver primarily because of its professional team working in a focused manner and its hard work will eventually translate into public good. She also stated that the backlog of cases before the courts does not mean CCP should not continue with its enforcement. The impact, she added, will nonetheless be visible in the years to come.
The Chairperson said the Commission’s work was being recognized internationally as evidenced by the independent evaluation carried out by the Global Competition Review (GCR). The GCR lauded the Commission’s inclusion in the rating as a testament to the fact that ‘The Commission has established itself as a truly effective enforcer in 2010.’ In 2011, CCP has been termed ‘consistent’ and that ‘CCP continued to progress impressively in its second year in rating enforcement.’ In the Review, CCP has been termed efficient and open to reason. It has been stated that the Commission is a proof that an independent respected authority can exist in a developing country with significant economic and political challenges and they anticipate that it will go from strength to strength.
She said that during his recent visit to the Commission’s office, the U.S. Deputy Chief of Mission in Pakistan, Ambassador Richard Hoagland commended the Commission for its efforts to promote fair business competition, defend consumer rights, and push for economic reforms and complemented that: “CCP is the future of a globally competitive Pakistan.”
The Chairperson said the Commission was accessible and was always ready to reach out to the stakeholders to create awareness regarding competition law. She asked the business community and the consumer rights groups to support the Commission in creating a business environment based on healthy competition.
The participants of the meeting during the question and answers session applauded the Commission for its work and expressed their willingness to extend its support to the Commission.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The Competition Commission of Pakistan (CCP) hosted its 14th quarterly meeting of Competition Consultative Group (CCG)on 30th April 2012 at Pearl Continental Hotel Lahore.
The Chairperson while elaborating the agenda of the meeting, informed the participants that the Commission was the first regulatory authority from South Asia to be nominated by the Global Competition Review (GCR) for the Enforcement Award in the category of ‘Agency of the Year – Asia-Pacific, Middle East and Africa’ for 2012. She said the nomination shows the level of priority given to enforcement actions undertaken by the Commission in 2011. She further explained that the award is based on different factors, such as the creative, strategic and innovative aspect of enforcement techniques used by the agencies.
Talking about the 3G auction process and the reports published in some of the newspapers, she clarified that it is not in the mandate of CCP to certify auction processes; however, CCP is watchful of the provisions that may have competition concern in such matters and briefed the Standing Committee on Information Technology and Telecommunications regarding the key factors that are instrumental to promote new entry and effective competition in the telecom sector.
While discussing the issue of leniency, the Chairperson said that there are two types of tools that are used to break cartels, first is search and inspection and the other one is to offer leniency to any of the players. She explained that it is in the law that only one company in a cartel can avail the clause of leniency. CCP investigated and prepared a comprehensive report on a cartel formed by electrical power equipment manufacturers and issued a show cause notice to the companies involved. Siemens Pakistan was the first one to file for leniency, not only admitting contravention, but providing critical evidence of the alleged cartel, conduct accomplices and committing to abandon such behavior in future.
While discussing the challenges still faced by the Commission, the CCP Chairperson said that the payment of three percent of fee charges of five regulatory institutions to the CCP and the appeals against the Commission’s orders pending in different courts were among the few outstanding issues. She said, CCP is currently surviving on Rs200 million grant by the Ministry of Finance which is not enough as it is hardly one third of the actual budget proposed by CCP. The regulatory bodies owe CCP over Rs943 million as per law approved by the parliament i.e SECP according to rough estimates owes Rs109 million, PTA Rs738 million, OGRA Rs23 million and PEMRA Rs43 million.
CCP Member-Mergers, Acquisitions and International Affairs, Dr. Joseph Wilson gave a detailed presentation on "State Owned Companies and Challenges to Competition Agencies" and Mr. Shehzad Ansar- Member, Office of Fair Trading and Budgetary Affairs gave a presentation on “Deceptive Marketing practices by Certain Educational Institutions” for Professional (non- accredited) Programs.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 13th Meeting of Competition Consultative Group was held in Marriot Hotel Islamabad on 6 February 2012.
The Chairperson CCP presided the meeting. Prominent amongst others who attended the meeting were Mr. Farooq Khan, Managing Director Policy, Engineering Development Board, Mr. Sajjad Latif Awan, Director Pakistan Telecommunication Authority, Mr. Nazir Ahmad Chaudhary, Vice President, Institute of Chartered Accountants of Pakistan & Mr. Olaf kellerhoff, Resident Representative Friedrich-Nauman-Stiftung.
The CCP Chairperson, while addressing the meeting said, the Commission, in the formulation of a Roadmap (2010-13), has emphasized its focus on certain areas, given their relatively greater impact on the economy. these areas include public procurement, concession agreements, expanding the Office of Fair Trade (OFT)’s role to curb deceptive marketing, restricting associations to their mandate, and improving the legal framework to promote the competition perspective.
The Chairperson informed the CCG meeting that there were eight search and inspections during the period under review compared to four in the preceding three years (2007-2010). The Chairperson said that search and inspections have also been conducted by the Commission in Pakistan Ship’s Agents Association, Pakistan Vanaspati Manufacturers Association, Pakistan Edible Oil and Refiners Association, Pakistan Electric Power Equipment Manufacturers Association, FICO High-Tech (Pvt.) Limited, Pak Elektron Limited, and 1Link guarantee Limited. She also gave an overview of the recent orders issued by the Commission.
About the steps to create awareness of the competition law among the undertakings, the Chairperson informed that the Commission has developed a Voluntary Competition Compliance Code to promote voluntary compliance of the law; published a booklet on ‘Protection from Anti-Competitive Practices: A Guide for Consumers and Businesses’; organized an international conference in December 2011; held 13 meetings of Competition Consultative Group to solicit feedback from key stakeholders; and issued policy notes to highlight and enhance competition to government and other regulatory bodies.
In the meeting, CCP Member Advocacy & IT Ms. Vadiyya Khalil gave a detailed presentation about the international conference organized by CCP with the collaboration of Competitiveness Support Fund/USAID on 1-2 December 2011. She said the conference was very well received locally as well as internationally.
Ms. Nadia Nabi, Senior Joint Director and a key member of the CCP’s enforcement team gave an overview of the ongoing cases which include sectors such as Banking, Telecom (CMTOs) & (LDIs), Medical Centers, Procurement, DSL services, Cement, Fertilizer, Pharmaceutical, and Cable TV services .
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 12th quarterly meeting of CCG was held in Karachi on 31 October 2011. The meeting was presided over by the Chairperson CCP, Rahat Kaunain Hassan, and attended by the Members of CCP and Representatives of the business community, the Pakistan Business Council, the American Business Council, the Overseas Investors Chamber of Commerce & Industry, the Consumers Forum, Institute of Chartered Accountants of Pakistan, State Bank of Pakistan, and the Media attended the meeting.
The CCP Chairperson, Rahat Kaunain Hassan, while sharing her vision with the CCG members, enumerated the factors leading to making CCP a robust law enforcement agency. She said the dedication and hard work of the tenacious team members of CCP have led the institution to achieve several key milestones. The international recognition being received by CCP for its enforcement actions is a proof of the excellent performance of CCP team.
She said it has been our commitment to enforcement that CCP became the first regulatory authority from South Asia – ahead of its counterparts in China, India and Singapore – to be included in the Global Competition Review’s Annual “Rating Enforcement.” Global Competition Review (GCR) is the world’s leading anti-trust and competition law journal that is chiefly consulted by lawyers, competition authorities, economists and academics to keep abreast of the latest developments in competition law.
The Chairperson said a strong base is very important for any institution and any change at the top tier should not affect the institution’s sustainable performance. She said it is her priority to provide a strong base to CCP and in this regard the capacity building of the officers is being carried out. Two officers of the Commission have secured Post Graduate Diploma from the King’s College, London, in “Economics for Competition Law.” Officials from the Turkish Competition Authority have trained officers of CCP on “Bid Rigging in Public Procurement.” Similarly, officers of CCP were sent to attend various international conferences and training programs on Competition Law, she informed adding that we are focusing a lot on enhancement of technical expertise.
CCP Member Dr. Shehzad Ansar briefed the CCG meeting on the actions being taken against companies violating Section 10 of the Competition Act, 2010 that deals with deceptive marketing practices. He praised the role of the Consumers Forum and other consumer protection agencies for helping CCP raise awareness about the Competition Law. He said the number of consumer complaints has increased manifolds.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 11th quarterly meeting of Competition Consultative Group was held in Lahore on 30th June 2011. The meeting was presided over by the Chairperson CCP and was attended by participants from different organizations.
The CCP Chairperson while briefing the participants about the agenda of the meeting said that the Commission’s role is not to scare businesses but to discipline them and create a fair play for all market players. She expressed the hope that business community would extend its full cooperation to the Commission in implementing the Competition Law.
A representative of the Unilever Pakistan turned the attention of Chairperson to Afghan Transit Trade (ATT) and how competition was affected by the smuggling and dumping of tea in the local market. The Chairperson asked Unilever to provide details and said that CCP would examine if there are any competition issues in ATT: If required, CCP would issue a Policy Note to the Government.
She gave an overview of the CCP’s performance during the Financial Year 2011 and discussed the challenges faced by the Commission. She said that the passage of Competition Act by the Parliament in October 2010 was the biggest triumph of the Commission as it removed all apprehensions regarding its legality. She praised the role of the Parliament in resolving this longstanding issue.
The Chairperson informed the CCG Members that the Commission had made itself more accessible and visible to the public by moving its premises from Diplomatic Enclave to Blue Area in Islamabad, a move that will also save approximately Rs. 30 million in terms of cost, rental, time, and efficiency.
At the end, CCP Member-Competition Policy and Research, Mueen Batlay gave a detailed presentation on "How Competitive is the aviation sector in Pakistan", and discussed in detail various aspects of the aviation sector from the point of the view of the Competition Law. CCP Member (Office of Fair Trading and Budgetary Affairs) Shahzad Ansar gave a presentation on the role of the Office of Fair Trading.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 10th session of Competition Consultative Group meeting was held on 9 February 2011 in Islamabad. The meeting was presided over by the Chairperson CCP and attended by the Members of CCP and representatives of different Public & Private organizations i.e. Ministry of Industries & Production, Oil & Gas Regulatory Authority, Securities & Exchange Commission of Pakistan, Lakson Tobacco & JS Private Equity.
This was the first meeting of CCG after the Chairperson (CCP), Rahat Kaunain Hassan, took the charge of her office in July last year. The CCP Chairperson gave an overview of the enforcement actions and initiatives of the Commission after her taking the charge last year. Giving a brief overview, the CCP Chairperson said that the Commission issued 36 merger approvals and granted 30 exemptions during the last six months. As part of its sectoral research program, the Commission completed five Competition Impact Assessment Studies which include study on Automobile Sector, Cooking Oil and Ghee Sector, Private Sector Healthcare Sector, Private Sector Schooling Sector and Polyester Staple Fiber Sector.
Regarding the issue of three percent of fees and charges of regulatory bodies to CCP She said that the Ministry of Finance had made some progress and hoped that the matter will be resolved soon.
The participants of CCG meeting appreciated the actions taken by CCP and gave some important suggestions vis-à-vis its enforcement and advocacy strategies. An important suggestion was to form a Regulators’ Forum to provide a platform for sharing of information and discussion on issues of mutual concern amongst the apex regulatory agencies of the country. The proposal was appreciated by all and it was decided that to take all the other regulatory bodies on board.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The meeting was presided over by Chairperson of CCP, Ms. Rahat Kaunain Hassan and attended by the following:
The 9th Meeting of Competition Consultative Group was held on 6 July 2010 at Karachi. The Chairman CCP Mr. Khaild Mirza while presiding over the meeting briefed the members on the measures taken by the Commission since the last CCG’s meeting to promote competition in the country. The Chairman apprised the CCG members of his recent high level interaction with the World Bank (WB) officials during which the Bank effectively recognized CCP as most successful project. The Chairman said that the CCP had achieved a lot during the last couple of years.
The CCG members were briefed on the four new sectoral studies recently published by CCP, as part of the CCP’s on-going programme of sectoral research – titled, competition impact assessment studies on aviation, electric power, fertilisers and sugar. DG Research, CCP, Shahid Ahmed informed the CCG members that the primary purpose of CCP’s research programme is to enhance the understanding of competition issues in the economy.
The Competition Commission of Pakistan (CCP) strives to create a level playing field for all economic undertakings by promoting a healthy competition, enhancing economic efficiency by ensuring the optimal use of resources and protecting consumers from anti-competitive practices.
The Commission established an informal think tank, the Competition Consultative Group (CCG) in 2008, to solicit feedback and guidance on competition related matters from representatives of sector specific regulators, relevant professional bodies, business associations and the private sector. The CCG meeting is held quarterly in different cities for wider interaction with the stakeholders and so far fourteen meetings of CCG have been held since its establishment.
The eighth meeting of the Competition Consultative Group (CCG) was held on 24th February 2010 in Lahore.
The meeting was presided over by Mr. Khalid A. Mirza, Chairman CCP and was attended by CCP members including Mr. Abdul Ghaffar, Ms. Rahat Kaunain Hassan, Dr. Joseph Wilson and Ms. Vadiyya Khalil, besides the representatives of academia, other sector specific regulators, legal community and the private sector.
The Chairman said that the aim of the proposed South Asia Competition Network would be, among other matters, to highlight the peculiar issues and sensibilities of this region so that these aspects are duly taken into consideration in determining global standards for enforcement of competition norms. Mr. Khalid Mirza apprised the CCG members of the recent developments and initiatives undertaken to promote competition in the country’s economy. One of the important initiatives, he informed, was the holding of a national conference in Karachi in January 2010 about which he briefed the participants.
The seventh meeting of the Competition Consultative Group (CCG) was held on October 2, 2009 at Karachi. The meeting was presided over by Mr. Khalid A. Mirza, Chairman CCP and was attended by the members including Mr. Abdul Ghaffar, Ms. Maleeha Mimi Bangash, and Dr. Joseph Wilson. The attendees of the meeting who are the members of the CCG comprised of representatives from the financial sector, business sector, and academia. Some of the members who attended the meeting are Mr. Yasin Anwar, Syed Irfan Ali, Syed Yawar Ali, Mr. Kamran Y. Mirza, Mr. Bashir Jan Muhammad, Prof. M. Ashraf Janjua, Mr. Majyd Aziz, Mr. Samir S. Amir, Ms. Ameena Saiyed, Ms. Zehra Naqvi, Mr. Shamshad Nabi, Mr. Afsar Malik, Air Cdr Khalid Pervez Marwat, Mr. Farhan Bashir, Mr. Abdul Shakur, Mr. Farrukh Khan, Mr. Abdul Akhtar Hai and Mr. Khalid Hidayat Khan.
Mr. Khalid Mirza apprised the CCG members of the measures taken by the CCP recently to promote competition in the country’s economy and curb cartelization in the various key sectors, mainly the cement industry, sugar industry, Liquefied Petroleum Gas (LPG) and national airlines.
An important feature of the meeting was a presentation on the “Competition Impact Assessment on banking sector” by Dr. Agha Ghazanfer, a research Consultant hired by CCP.
The sixth meeting of the Competition Consultative Group (CCG) was held on July 20, 2009 at Karachi.
The fifth meeting of the Competition Consultative Group took place at Pearl Continental Hotel, Lahore on 21st March 2009. The Group comes under the area of Competition Advocacy, and is a feedback & idea generation forum. The CCP’s ongoing and proposed initiatives are also announced and discussed during the Group’s meetings.
The meeting commenced with recitation of verses from the Holy Quran followed by a welcome note by Ms. Maleeha Mimi Bangash, Member Research and Advocacy of CCP. Chairman CCP, Mr. Khalid A. Mirza delivered his opening remarks and explained that the CCP functions by two main approaches, the “soft” advocacy approach and the “strong” law enforcement approach which go hand in hand. He said that the guiding principles of the CCP are to encourage business growth, to act transparently, to facilitate and encourage compliance and to work efficiently to reduce the compliance cost for undertakings and enforcement cost for the Commission. The Chairman appreciated the Government and Mr. Shaukat Tarin Federal Minister for Finance for providing support to CCP. He updated the participants about the fact that the funding has now been allocated to CCP which provides it wherewithal to perform its duties smoothly. He elaborated that the CCP is now focusing on capacity building and training of the employees and for this purpose various workshops and training sessions with international trainers have been organized. He made the important announcement that the CCP is establishing an Acquisitions & Mergers Advisory Cell which will provide advice and facilitate the undertakings applying for merger clearance. He also told the participants about the State of Competition Report that has been completed and submitted to the Government and will soon be available on the CCP website. He said that the report maps the state of competition across various sectors of Pakistan economy. Ms. Rahat Kaunain Hassan, Member (Legal) gave a presentation about “Office of Fair Trade” which has been established under Section 10 (Deceptive Marketing Practices) of the Competition Ordinance 2007. The presentation was of great interest to participants and many questions were raised regarding the topic.
Constructive and useful discussion took place between all participants namely, Mr. Syed Irfan Ali (Director-State Bank of Pakistan), Mr. Rashid Mansoor (CEO-Escort Investment Bank), Ms. Saida Fazal (Resident Editor-Daily Business Recorder), Mr. Mohammad Riaz (Senior Reporter- Daily Business Recorder), Ms. Mahrukh Hameed (Assistant Director Law-Pakistan Telecommunication Authority), Mr. Zain ul Abideen (Executive Director-OGRA), Mr. Ali Zaman (Business Manager-ICI Limited), Ms. Saadia Naveed (Management Association of Pakistan) and Dr. Najaf Yawar Khan (Head of Management Sciences-GCU) . Mr. Syed Irfan Ali (SBP) and Mr. Zain-ul-Abideen (OGRA) especially appreciated the advocacy efforts of the CCP that are not only a source of learning but also help in identifying the potential competition issues related to various sectors of economy.
Also present from the CCP were Mr. Abdul Ghaffar-Member Cartels & Mergers & Mr. Shahid Ahmed-Director General Advocacy & Research, Ms. Shaista Bano-Joint Director and Mr. Ikram ul Haq-Joint Director.
The fourth meeting of the Competition Consultative Group took place at Pearl Continental Hotel, Karachi on 19th January 2009. The Group being an essential forum for Competition Advocacy is also a platform for seeking advice, soliciting suggestions for establishing a competition regime in Pakistan, and acting as a think-tank for the Competition Commission of Pakistan’s (CCP) ongoing activities and proposed initiatives.
The meeting was attended by eminent representatives of academia, sector specific regulators, the legal community, and the private sector. All Members of the Commission were present at the meeting namely, Mr. Khalid Mirza-Chairman, Mr. Abdul Ghaffar-Member Cartels & Mergers, Ms. Rahat Kaunain Hassan-Member Legal, Ms. Maleeha Mimi Bangash-Member Advocacy & Research and Dr. Joseph Wilson-Member Monopolies & Trading Abuses. Beginning with recitation of verses from the Holy Quran, the meeting commenced with Chairman CCP, Mr. Khalid A. Mirza, delivering his opening remarks. Ms. Maleeha Mimi Bangash, Member (Research & Advocacy) gave a presentation about “Merger Clearances”, briefing the audience about the Merger Clearance processes undertaken by CCP, followed by a presentation about “Grant of Exemptions” by Dr. Joseph Wilson (Member Monopolies & Trading Abuses) explaining the process of analyzing agreements and exemptions under Competition Ordinance 2007. Both presentations were of great interest to participants and many questions were raised regarding both the topics. The participants specifically appreciated and encouraged the consistent approach of disclosure and transparency in the working of the Commission as evidenced by the presentations made.
Constructive and useful discussion took place between all participants namely, Mr. Yaseen Anwar(Deputy Governor-State Bank of Pakistan), Mr. Ehsan Malik(Chairman-Unilever Pakistan Ltd.), Mr. Tasleemuddin Ahmed Batlay(Director-Colgate-Palmolive Pakistan Ltd.), Mr. Mir Muhammad Ali(CEO-UBL Fund Managers), Mr. Naveed Qazi(CEO-JS Bank Ltd.), Mr. Shamshad Nabi(CEO-MUFAP), Mr. Arshad Zuberi(Editor-in-chief-Daily Business Recorder), Prof. M. Ashraf Janjua(Dean-IBM), Ms. Unjela Siddiqi(Secretary General-OICCI), Mr. Asad Ali Shah(Council Member-ICAP), Dr. Abdul Jabbar(Executive Member-PEMRA), Air Cdre. Khalid Pervez Marwat(Director Economic Oversight-CAA), Mr. Afsar Malik(General Manager-CAA), Mr. Abdul Batin(Zonal Director-PTA), Mr. Zain ul Abideen(Executive Director-OGRA) and Mr. Imtiaz Shiekh(Representative from World Bank).
Issues raised during the meeting were regarding distributorship agreements of vertical nature (fixing of prices by the distributors rather than the manufactures), retail prices being printed on cigarette packs and entry barriers for new companies especially in markets such as cell phones. Further participants discussed leniency provision in the law (Competition Ordinance 2007) which enables the Commission to exempt that undertaking providing information about a cartel from penalties even if it is an active participant of the cartel. Further the “whistle blower” or Informant Reward Scheme of CCP was also discussed. Other topics were duration of exemptions for prohibited agreements, domain of the CCP vis a vis sector specific regulators, comparison of dominance created by organic growth versus mergers and the functions Office of Fair Trade under Section 10 of the Ordinance namely deceptive marketing practices. The meeting ended with lunch and a vote of thanks to the Chairman.
The third meeting of the Competition Consultative Group (CCG) took place at Serena Hotel, Islamabad on 19 November 2008. The Group has been set up by the Competition Commission of Pakistan (CCP) to provide a platform for seeking advice, soliciting suggestions for better promotion of the competition regime in Pakistan, and acting as a think-tank for the CCP’s ongoing activities and proposed initiatives. The meeting commenced with recitation of verses from the Holy Quran and a short welcome note by Member A & R, Ms. Maleeha Bangash, followed by opening remarks from Mr. Khalid A. Mirza, Chairman- CCP. Ms. Bangash gave a presentation, briefing the audience about the activities, role and structure of the Commission.
The discussion was based on “The Supportive Role of CCP in Promoting Business Enterprise”. Following are the highlights of the discussion:
1. Ms. Unjela Siddiqi, Secretary General of Overseas Investors Chamber of Commerce &
Industry (OICCI) appreciated the interactive session held by CCP in Karachi and
suggested that CCP should have such a session at least once a year with OICCI.
2. Mr. Tasleemuddin Batlay President, American Business Council, complimented the CCP
for being highly professional and dealing with all matters efficiently. Mr. Batlay
appreciated the Supreme Court of Pakistan and Sindh High Court’s decision in favour of
the Commission in Pakistan Banking Association’s Case and stated that this was a very
positive step.
3. Prof. Ashraf Janjua Dean, Institute of Business Management (IBM) (Ex-Deputy
Governor-State Bank) intervened by giving examples of State Bank of Pakistan’s Law and
its various implications with reference to competition & deceptive marketing
practices.
4. Mr. M.H. Asif, Member Finance, Oil & Gas Regulatory Authority (OGRA) highlighted the
fact that an effective regulator can play a pivotal role in saving the businesses from
financial disasters.
5. Mr. Saleem Asghar Mian, Former Chairman, Monopoly Control Authority (MCA) spoke of
Hajj package & other price fixing activities of a major airline.
6. Mr. Khalid Pervez Marwat, Director Economic Oversight, Civil Aviation Authority (CAA)
discussed the matter in detail explaining various steps taken by CAA to improve
competition in the airline industry, including the instructions to Travel Agents
Association of Pakistan (TAAP) not to charge compulsory insurance to the
consumers.
7. Mr. Mir Muhammad Ali CEO, United Bank Limited FundManagers spoke about deceptive
marketing practices.
8. Mr. Hussain Babur, Director General, National Electric Power Regulatory Authority
(NEPRA), Mr. Ashfak Jumani, Director General, Pakistan Electronic Media Regulatory
Authority (PEMRA) and Mr. Khurram Siddiqi, Deputy Director-Law, Pakistan
Telecommunication Authority (PTA) also contributed positively in the meeting and
discussed the competition related issues in their specific sectors.
The 2nd meeting of the Competition Consultative Group (CCG) for Consultations on Competition related issues, Lahore , August 27, 2008.
Inaugural meeting of the Competition Consultative Group (CCG) for Consultations on competition related issues, May 06, 2008, Karachi ;
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