Daily Times

KARACHI: A country-wide inquiry is needed into anti-competitive behaviour that is leading to price inflation in essential foods sector. The Competition Commission of Pakistan (CCP) has made efforts in this regard, but business people and members of civil society have noted that there is room for improvement. Firms in informal food markets are manipulating supply and prices of food products against the law and public interest. The prices of essential food commodities like milk, fruits and vegetables, pulses, and dairy products have surged across the country. The National Price Monitoring Committee (NPMC) should update the current mechanism for investigation regarding firms that manipulate prices and supply of commodities. District administrations should also take serious steps by gathering relevant information and data required to take action under the Competition Act of 2010. Anti-competitive practices such as cartelisation or abuse of power are depriving consumers of their rights. The law should take its course to protect consumers.

Public procurement of power equipment: CCP’s recommendations for promotion of competition in public procurement of power equipment can provide a level playing field. The manufacturers and suppliers of electric power equipment on exclusive and discriminatory terms and officials of the National Transmission and Dispatch Company and power distribution companies – DISCOs – can be taken into confidence over these recommendations and those still not acting on them should be held accountable. Healthy competition in this sector is essential to ensure efficient and effective use of public money. Thus, prompt actions are needed to protect and promote competition in public procurement in the best interest of all stakeholders including government, public-sector organisations, manufacturers, suppliers and consumers.

Fakes of prominent brands: Consumers have complained that the market is full of fakes of prominent brands of cotton, yarn, and leather products and garments and utensils. “The consumer is paying higher for poor quality and sub-standard product. This practice should be stopped,” they say.

They also complain that manufacturers of several food and daily-use products were running deceiving consumers through their advertisement campaigns.

Facilitating a competitive business environment would be conducive for investment in the country. All public administrators concerned including the CCP should focus on discharging their respective statutory obligations effectively.

Way forward: There is also need to review regulations and processes concerning the Competition Ordinance of 2007, Competition (Leniency) Regulations of 2013, Competition (Exemption) Regulations of 2014, and Competition (Reward Payment to Informants) Regulations of 2014, besides merger regulations. To make laws and procedure more effective, the CCP could hold parlays with the United States Agency for International Development, the US Department of Commerce’s Commercial Law Development Programme and the US Federal Trade Commission on regular intervals. The professional staff in key enforcement areas including investigating cartel agreements, abuse of authority, merger review, and deceptive marketing should be equipped with latest tools and learning based on international best practices.

Published in Daily Times, July 22^nd , 2017.