The Competition Commission of Pakistan hosted the 11th quarterly meeting of Competition Consultative Group (CCG), a body set up by CCP to solicit feedback and suggestions on competition related issues and policies from public and private sector representatives. The meeting was presided over by the Chairperson CCP, Rahat Kaunain Hassan, who was accompanied by Mr. Abdul Ghaffar, CCP Member (Cartel, Monopolies and Trade Abuses), Dr. Joseph Wilson, Member Mergers, Acquisitions, and International Affairs, Ms. Vadiyya Khalil, Member Advocacy and IT, Mr. Mueen Batlay, Member Competition Policy and Research, Dr. Shahzad Ansar, Member Office of Fair Trading and Budgetary Affairs and Mr. Ikram Ul Haq Qureshi, Director General Legal and Corporate Affairs. The participants of CCG meeting included Managing Director, Public Procurement Regulatory Authority, Mr. Hafeezur Rehman, Managing Director Lahore Stock Exchange, Mr. Aftab Ahmed Chaudhary, senior officials of SECP, State Bank of Pakistan, Civil Aviation Authority, CEO of ICI Pakistan, the CEO and representatives of Nestle, CEO of JS Private Equity, senior representatives of Unilever Pakistan, UBL Fund Managers, Pakistan Business Council, and senior journalists Mr. Mansoor Ahmed, and Mr. Muhammd Riaz. The CCP Chairperson in her opening remarks quoted Lord Goff, a former British Judge, as saying: “We are there to oil the wheels of commerce, not to put a spanner in the works.” She added 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. Rahat highlighted the competition concerns regarding exclusive and concessionary agreements that the government reaches with specific parties to bridge the infrastructure gap. She added that CCP is probing such concessions to ensure that competition law has not been compromised in such cases. 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 said. She gave an overview of the CCP’s performance during the Financial Year 2011 and discussed the challenges faced by the Commission. Although CCP remained dysfunctional for as long as 57 days from 17 August 2010 to 12 October 2010 due to lapsing of the Competition Ordinance pending legislation in the Parliament, yet its pace of enforcement and advocacy of the law did not slow down. She informed the CCG that the Commission issued 13 orders, 49 Show Cause Notices, conducted 6 search and inspections, issued 75 merger NOCs and granted 49 exemptions since 27 July 2011. As part of Competition Research and Advocacy, the Commission completed 5 Sector Studies and hosted around 24 different advocacy events to create awareness of the law.
Rahat 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. A source of encouragement for the Commission, she said, was also that the business community had started realizing the importance of compliance with the Competition Law. In the cartel case of Pakistan Jute Mills Association, the concerned parties opted to comply with the orders of the Commission and have agreed to deposit Rs. 23 Million fine in government account, with a promise to desist from anti-competitive practices.
The Chairperson also touched upon the future roadmap of the Commission saying that enforcement will remain its top priority while the Commission will continue to hold advocacy sessions with the business community. She said search and inspections have proven to be very effective in investigations, thus the Commission will continue using it as a tool of investigation. Rahat 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. While discussing the challenges still faced by the Commission, the CCP Chairperson said that the payment of 3 percent of fee charges of 5 regulatory institutions to the CCP fund and the appeals against the Commission’s orders pending in different courts were among the few outstanding issues. MD Public Procurement Regulatory Authority, Mr. Hafeezur Rehman was especially invited to attend the CCG meeting as public procurement is the Commission’s a prioritized area. He assured the Commission of his full support to CCP and building a strategic partnership for promotion of competition in public procurements.
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.
Towards the end the CCP Chairperson and Members responded to various queries of the participants of the meeting.
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