The CCP’s appeals in the High Courts of Sindh and Punjab, and in Competition Appellate Tribunal (CAT) and recovery of penalties has been stayed. The Appellate Tribunal is dysfunctional since 14th July 2023 due to expiry of term of its Chairman whilst cases of sugar mills and similar important cases are pending.
The CCP (Competition Commission of Pakistan ) said in a press release that Rs. 44 billion’s panlanties against PSMA (Pakistan Sugar Mills Associations) and its member sugar mills for cartelization are delayed due to non renewal of CAT Chairman (Competition Appellate Tribunal).
The CCP said that it is monitoring the ongoing sugar crisis in the country. The commission indications if found any anti-competitive activity the CCP will take appropriate enforcement and policy actions. It is important to highlight that CCP carried out dawn raids on Pakistan Sugar Mills Association (PSMA) in 2021 and imposed substantial penalties of Rs. 44 billion on PSMA and its member sugar mills for cartelization.
However, 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 finalize 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 both consumers and the overall economy.
It Is important to realize that cartelization, market abuse, and abuse of dominance prevents new entrants in the industry and discourages foreign investment. The lack of competition results in higher prices for consumers.
