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ISLAMABAD, Nov 25 (APP): The International Monetary Fund (IMF) has noted that the Competition Commission of Pakistan (CCP) has taken significant steps to identify market bottlenecks, entry barriers, and gaps in the legal and regulatory framework.
The Fund has further observed that the CCP has strengthened its enforcement capacity in recent years.
The IMF, in its Governance and Corruption Diagnostic Report, stated that deficiencies in business regulations at various sectoral levels require stronger and more effective intervention by the competition authorities, said a release issued here on Tuesday.
The IMF noted that the CCP has not only stepped-up enforcement but has also resolved more than 200 cases and recovered an unprecedented amount in fines and penalties. However, the CCP spokesperson clarified that the Commission has reduced its backlog of court cases by nearly 70 percent, securing decisions in 428 out of 567 cases.
The report further noted that the CCP’s newly established Market Intelligence Unit (MIU), is an important development for proactive detection of collusion and market manipulation.
According to the IMF, if backed by strong enforcement, the MIU can help eliminate anti-competitive practices quickly and create genuine deterrence.
The report highlights that, in addition to the CCP’s ongoing efforts such as issuing Policy Notes to promote a level playing field across various sectors, the Commission should also identify bottlenecks to competition and barriers to market entry created by regulatory practices.
The Commission can then provide remedies by issuing advices and policy notes to the relevant ministries and institutions.
The report states that Pakistan’s competition law is modern and provides the competition authority with the necessary powers to address a wide range of anti-competitive practices.
Continued reforms in procedures, staffing and resources are needed to ensure that CCP decisions are enforced without delay, the report added.
When asked to comment on IMF’s observations, the CCP spokesperson said the government has provided complete support to the Commission in achieving its goals. The government made appointments of Chairman and Members of the Competition Appellate Tribunal (CAT) on time that helps in swift resolution of court cases.
He said that Commission has undergone a major turnaround in the last two years. With litigation barriers removed, CCP recovered PKR 1.01 billion in penalties, compared to only PKR 200 million in the previous 15 years.
He added that more than PKR 9 billion in penalties has been imposed on cartel behavior, while CCP has also strengthened action against deceptive marketing, penalizing major firms in the real estate, automobile, dairy, and education sectors.