July 16, 2003	Wednesday	Jumadi-ul-Awwal 15, 1424

ISLAMABAD, July 15: Monopoly Control Authority (MCA) has opened investigations into alleged formation of a cartel by the cement industrialists as evident from the fact that the cement price has not been reduced commensurate with the withdrawal by the government of 25 per cent excise duty, according to a reliable source.

After preliminary probe into the matter is complete, show cause notices would be issued shortly to the managements of cement units in the country, the source stated. Exorbitant prices of cement, besides being detrimental to ordinary consumers, are a major impediment in the development of construction industry.

Responding to a query by Dawn, MCA chairman Tariq Farooq said the authority was closely watching the market’s unfair trade practices.

At the same time, it was engaged in capacity building for which the federal government had, under provisions of the 2003-04 budget, sanctioned a number of technical posts.

But the authority had requested for further improvement of its technical prowess by inducting research officers with the capacity to analyze financial data of the companies from the point of monitoring the trends in different industries as these impinge upon the interests of the consumers and overall development of the economy, he added.

The MCA had also entered into a contract with a German company, Inwent, for building a management information system and to impart different skills in accounting, financial skills and safeguarding competition. Commencing in September next, it would be a three-week training part of which would be administered by experts from Germany.

Early this month, the MCA chairman represented Pakistan in the 5th session of Inter-governmental Group of Experts on Competition Law and Policy (IGE) held under auspices of United Conference on Trade and Development (UNCTAD) at Geneva.

The two key issues discussed on that occasion were: (1) the interface between competition policy and industrial policy; and (2) the optimal design and implementation of competition law in developing countries, including the desirability of a phased approach.

It is the primary responsibility of the monopoly authority in every country, particularly a developing country like Pakistan, to provide the regulatory framework from the angle of consumer’s interests against trade restrictive practices of traders and industrialists, Mr Farooq remarked.

A major impediment, however, is that the draft law to update the monopoly law in terms of the changed international and national environment has been gathering dust in the Ministry of Finance for the past couple of years. He expressed the hope that it would be finalized soon.