Competition watchdog earns PM's ire over wheat fiasco.

ISLAMABAD -- Prime Minister Imran Khan on Monday expressed his displeasure over Competition Commission of Pakistan's (CCP) unsatisfactory performance to check cartelisation of flour millers.

The prime minister further directed the Finance Division to review CCP's performance against prescribed benchmarks.

The direction came from the premier at a time when the CCP has already imposed a penalty of Rs75 million on Pakistan Flour Mills Association for fixing the price and quantity of wheat flour in violation of Section 4 of the Competition Act 2010. The said section prohibits associations from entering into any agreement or making any decision in respect of the production, supply, distribution, acquisition or control of goods or the provision of services, which have the object or effect of preventing, restricting, reducing, or distorting competition within the relevant market.

Chairing a meeting to review the performance of CCP in terms of checking cartelisation and other malpractices in the country, the premier seemed unhappy and noted that the commission was only imposing fines.

Premier notes a potent organisation is being rendered ineffective

An official source privy to meeting told Dawn that the CCP has imposed more than Rs26 billion fine since 2009, however, all these are sub judice.

The challenge is not the imposition of huge fines but rather the implementation and collection from sectors which have violated different section of the Competition Act.

In December 2019, the premier held four meetings on CCP's mandate, policy note on essential commodities, sugar and wheat.

According to the official, the premier was also unhappy with the explanation submitted by the CCP.

The CCP official explained the challenges referring to 18th Amendment which came in the way of implementation of orders.

According to the official source, the premier has directed the Finance Division for a comprehensive report on CCP during the last 4-5 years which has to be submitted to the Prime Minister's Secretariat.

The report should cover surveillance mechanism to reckon anti-competitive practices, decisions on cartels and abuse of dominant position, enquiries conducted and their results, search and inspections with tangible outcomes in each sector, recoveries and penalties imposed.

PM Khan also took up the issue of Chairman CCP Vadiya Khalil and members Dr Shahzad Ansar and Dr Mohammad Saleem who have already obtained stay order from court against the federal...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT