Financial constraints impede implementation of anti-trust law
Chairperson of CCP has said that financial constraints are hampering enforcement of anti-trust law.
ISLAMABAD:
Chairperson of the Competition Commission of Pakistan (CCP) has said that financial constraints are hampering enforcement of the anti-trust law, raising doubts about government’s seriousness in implementing a free market economy by breaking cartels.
In her first interaction with a select group of journalists on Wednesday, Rahat Kaunain Hasan, the newly appointed chairperson of the CCP, said that public sector regulators were not paying the mandatory three per cent of their fees and charges to the Commission in violation of law.
Besides, she said, the government has also allocated much less than required budget for this year. “The financial constraints are negatively affecting all three crucial areas of planning, implementation and capacity building of staff,” she added.
The CCP since its inception has been in hot waters one way or the other. Earlier, it had to fight hard to secure a state-of-the-art anti-trust law despite hectic lobbying by various cartels and barons who were well connected with politicians.
The CCP is now fighting to get financial autonomy in order to enforce the anti-trust law, which, according to experts, is a must for a smooth functioning of the free market mechanism.
Under the law, other public sector regulators including Pakistan Electronic Media Regulatory Authority, National Electric Power Regulatory Authority, Oil and Gas Regulatory Authority, Pakistan Telecommunication Authority and Securities and Exchange Commission of Pakistan are bound to pay three per cent of their fees and charges to the CCP to enable it to run its day-to-day affairs.
Hasan said that the government has allocated Rs100 million against the demand of Rs273 million. “The allocated budget too is being released in quarterly tranches whereas the Commission has demanded upfront release of the budget to make a yearly plan,” she added.
“The administrative autonomy requires financial autonomy and three per cent of the regulators fees and charges are very crucial for us,” she stated. She said the fines imposed by the CCP would go to treasury accounts and the Commission after the passage of the law from parliament has nothing to do with it.
The commission has so far imposed over Rs7 billion fines on various cartels and market manipulators. Nonetheless, cases are still pending in courts. She said there were remedies for non-payment of these charges but the CCP was preferring dialogue.
Hasan said that her top priority is enforcement of the anti-trust law. “The biggest challenge is to maintain credibility of the commission as an institution.”
She said that uncertainty over the CCP law should come to an end, adding CCP ordinance is going to lapse on August 15 and the government has assured the CCP that the bill would be passed in upcoming session of the National Assembly.
The Senate Standing Committee on Finance and Revenue has already cleared the bill, though it made certain amendments to the draft passed by the Standing Committee on Finance of the lower house. Most importantly, it proposed to set up a tribunal for hearing complaints before the appeal against the CCP decision goes to the Supreme Court.
The chairperson acknowledged the pressure being exerted by powerful lobbies but said that the autonomy of the institution would be preserved at any cost. All actions taken by former chairman Khalid Mirza would be taken to their logical conclusion, she added.
There are 175 cases of abuse of dominant position in the market, cartelisation, collusive behavior and deceptive marketing practices which are pending with the Commission. One of the most important cases is the charge of cartel-making against the All Pakistan Sugar Mills Association, which is pending with the Sindh High Court, and for which a hearing for August 17 has been fixed.
Published in The Express Tribune, August 5th, 2010.
Chairperson of the Competition Commission of Pakistan (CCP) has said that financial constraints are hampering enforcement of the anti-trust law, raising doubts about government’s seriousness in implementing a free market economy by breaking cartels.
In her first interaction with a select group of journalists on Wednesday, Rahat Kaunain Hasan, the newly appointed chairperson of the CCP, said that public sector regulators were not paying the mandatory three per cent of their fees and charges to the Commission in violation of law.
Besides, she said, the government has also allocated much less than required budget for this year. “The financial constraints are negatively affecting all three crucial areas of planning, implementation and capacity building of staff,” she added.
The CCP since its inception has been in hot waters one way or the other. Earlier, it had to fight hard to secure a state-of-the-art anti-trust law despite hectic lobbying by various cartels and barons who were well connected with politicians.
The CCP is now fighting to get financial autonomy in order to enforce the anti-trust law, which, according to experts, is a must for a smooth functioning of the free market mechanism.
Under the law, other public sector regulators including Pakistan Electronic Media Regulatory Authority, National Electric Power Regulatory Authority, Oil and Gas Regulatory Authority, Pakistan Telecommunication Authority and Securities and Exchange Commission of Pakistan are bound to pay three per cent of their fees and charges to the CCP to enable it to run its day-to-day affairs.
Hasan said that the government has allocated Rs100 million against the demand of Rs273 million. “The allocated budget too is being released in quarterly tranches whereas the Commission has demanded upfront release of the budget to make a yearly plan,” she added.
“The administrative autonomy requires financial autonomy and three per cent of the regulators fees and charges are very crucial for us,” she stated. She said the fines imposed by the CCP would go to treasury accounts and the Commission after the passage of the law from parliament has nothing to do with it.
The commission has so far imposed over Rs7 billion fines on various cartels and market manipulators. Nonetheless, cases are still pending in courts. She said there were remedies for non-payment of these charges but the CCP was preferring dialogue.
Hasan said that her top priority is enforcement of the anti-trust law. “The biggest challenge is to maintain credibility of the commission as an institution.”
She said that uncertainty over the CCP law should come to an end, adding CCP ordinance is going to lapse on August 15 and the government has assured the CCP that the bill would be passed in upcoming session of the National Assembly.
The Senate Standing Committee on Finance and Revenue has already cleared the bill, though it made certain amendments to the draft passed by the Standing Committee on Finance of the lower house. Most importantly, it proposed to set up a tribunal for hearing complaints before the appeal against the CCP decision goes to the Supreme Court.
The chairperson acknowledged the pressure being exerted by powerful lobbies but said that the autonomy of the institution would be preserved at any cost. All actions taken by former chairman Khalid Mirza would be taken to their logical conclusion, she added.
There are 175 cases of abuse of dominant position in the market, cartelisation, collusive behavior and deceptive marketing practices which are pending with the Commission. One of the most important cases is the charge of cartel-making against the All Pakistan Sugar Mills Association, which is pending with the Sindh High Court, and for which a hearing for August 17 has been fixed.
Published in The Express Tribune, August 5th, 2010.