ISLAMABAD: The Competition Commission of Pakistan (CCP) is monitoring the ongoing sugar crisis in the country and will take appropriate enforcement and policy actions if any indications of anti-competitive activities are found.
It is important to highlight that CCP carried out dawn raids on the Pakistan Sugar Mills Association (PSMA) in 2021 and imposed substantial penalties of Rs 44 billion on PSMA and its member sugar mills for cartelization, said a press release issued here on Thursday.
However, CCP’s decision was appealed against in the High Courts of Sindh and Punjab, and in the Competition Appellate Tribunal (CAT) and the recovery of penalties has been stayed.
The Appellate Tribunal is dysfunctional since 14th July 2023 due to the expiry of term of its Chairman whilst cases of sugar mills and similar important cases are pending.
It is important to note that CAT has been dysfunctional for 7.5 years since 2010 leading to a huge backlog of cases.
The sooner the Government appoints its Chairman, the quicker the Appellate Tribunal can finalise the appeals.
CCP has taken proactive measures against cartelization in the sugar sector, demonstrating its commitment to ensuring fair competition.
Whilst CCP acknowledges the due legal processes associated with judicial review, expediting the resolution of cartel cases is crucial for delivering effective relief to consumers.
Protracted delays in resolving cartel cases will negatively impact consumers and the economy.
It is important to mention here that cartelization, market abuse, and abuse of dominance prevent new entrants in the industry and discourage foreign investment.
The lack of competition results in higher prices for consumers.
The CCP is fully cognisant and vigilant in safeguarding consumers and promoting fair competition.