The National Assembly unanimously approved the Competition Act, 2010 to legalise an institution to control cartelisation of industries after a member from the opposition party Pakistan Muslim League-Nawaz (PMLN) withdrew amendments he had proposed.
The bill to make the Competition Commission of Pakistan (CCP) legal had been passed once before by the National Assembly but it was returned to the house to incorporate amendments made by the Senate.
Moved by State Finance Minister Hina Rabbani Khar, the bill was greeted by MPs with hopes that it would effectively check market manipulation by powerful industrialists.
The CCP was first established by former president General (retired) Pervez Musharraf through an ordinance in 2007.
The commission earned fame for the actions it took against powerful industrialists with close political ties, especially in poultry, cement and sugar industries. In fact, these actions were the reason the commission became controversial, resulting in the delay in the passage of the CCP bill.
The CCP ordinance lapsed on August 16 this year and since then the commission was working without legal cover.
The Supreme Court in one of its recent judgments had directed the government to enact the law as soon as possible.
According to the statement of objects and reasons, the competition ordinance was promulgated on October 2, 2007, replacing the Monopolies and Restrictive Trade Practices Ordinance of 1970.
As a result, the Monopoly Control Authority (MCA) was abolished and the Competition Commission of Pakistan was established.
The CCP has a broader, more progressive mandate.
“Instead of seeking to curtail the growth of economic activity, it endeavors to engender healthy competition amongst economic agents as well as prevent manipulative business practices and also importantly serves as an authoritative advocate on all matters pertaining to competition,” the statement said.
The passage of the bill is a major legislative step towards the realisation of a competitive and fair economy, the government said.
“It will make Pakistan’s economy more equitable and transparent,” said Rahat Kaunain Hassan, the chairperson of the CCP.
“It is also necessary to assure all stakeholders in the corporate sector and the consumers [that] we will strive to promote and create a vibrant and equitable economic playground with an emphasis on transparency and fair-play,” she added.
Published in The Express Tribune, September 24th, 2010.
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