However, one has to wonder if a financial penalty is enough. It is unlikely that the fines, which amount to Rs50 million on each of the founding banks, Rs10 million on the other member banks and Rs50 million on One-Link Guarantee Limited, are stiffer than the amount of money they earned through this scheme. To truly be a deterrent, fines have to be punitive in nature. In addition, the government should consider pursuing criminal charges against those responsible for profiting through these means. In the US, banks that flirted with illegality continued with the same irresponsible behaviour that brought the economy to its knees until they were punished strongly enough.
The CCP, too, needs to be beefed up. The existence of cartels in Pakistan is an open secret and they are often formed with government connivance. During the last decade, a cement cartel existed that was believed to have the blessing of the Musharraf government and which deliberately increased prices by limiting supply. It was only when demand for cement had increased to the point where there was no longer any need for a cartel that the CCP took notice of the matter. The CCP must be more proactive rather than acting against cartels long after.
Published in The Express Tribune, July 4th, 2012.
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This is written in such a patronizing behaviour.
Capitalism breeds greed. Look at the West it is the greed that is undoing them. Barclay's CEO and Chairman both has resigned.
Pakistan need an Islamic economic system under the Khilafah.