ISLAMABAD, Sept 8: President Pervez Musharraf is expected to promulgate an ordinance this month to convert the Monopoly Control Authority (MCA) into Competition Commission with "increased powers" for which Rs400 million has initially been earmarked. "The draft law is now lying with the prime minister and as soon he approves it, the president is likely to promulgate an ordinance to get this Competition Commission established," says its chairman Khalid A. Mirza.
He told Dawn that the draft law was fairly a "modern law" which would discourage bad business conducts by proposing prosecution through courts and heavy penalties against the violators.
The Competition Commission will be functional from October 1 this year for which a complete roadmap has been given, he added.
"The MCA is a dead horse and you have to make it alive by taking urgent and necessary steps favouring businesses as well as protecting the rights of the consumers," he assured.
One of the very important features of the commission, he pointed out, will be the introduction of "public hearing system" to develop and promote good competition and competitive behaviour of the business organisations.
Talking about the salient features of the proposed commission, the ex-chairman of the Securities and Exchange Commission of Pakistan (SECP) and a retired senior World Bank official said that there would be complete shift from previous practices of the MCA to intrinsically discourage "bad trade practices".
But he made it clear that it did not mean that there would be injustice against anyone. All the decisions, he said, will be taken by taking into confidence all the stakeholders including the consumers.
While, he pointed out, there would be a level-playing field for the business organisations the commission would ensure at the same time that there was no "manipulation" by the industrial houses and companies.
"Our job in the Commission will be to ensure rational commercial conduct", Mr Mirza said, adding that action would be taken against manipulation.
Responding to a question, Mr Mirza said, who was also currently the chairman of Monopoly Control Authority, said that the job of the proposed commission would be to discourage cartelisation and monopolisation by business organisations and companies.However, he said that the commission would not be ignoring global business practices which allow profit making.
"But I want to make it clear here that prices will not be the function of the commission", Mr Mirza said, adding that the government believed in demand and supply situation and would not be unnecessarily creating problems for the business organisation and companies.
"The commission will certainly take steps to disincentive cartels rather than taking a punitive action. I will be taking a liberal and progressive approach not to penalise people without substantial evidence," the chairman of the commission said.
In the new law a very important function which has been enshrined was that of effective advocacy by holding public hearing against any complaint, he added.
Although the role of the commission was that of an advisory nature, its decisions were expected to be accepted by the government. "We are not here to cut businesses down but we would make sure that nobody acts exploitatively", he asserted.
He also informed that the World Bank had agreed to develop the capacity of the commission which was not there in MCA.
He said that technical skills of the commission were needed to be largely developed to ensure its improved functioning aimed at encouraging businesses and at the same time looking after the interest of the consumers.
He said a bigger research capacity will be developed through out-sourcing in the Commission for which, "we would appoint good forensic accountants, micro economists and prominent lawyers who would form a team".
"The proposed Competition Commission will have to develop its moral authority to deliver", Mr Mirza said.
Replying a question he said that the proposed commission was not likely to appeal in the Supreme Court against the decision of the High Court which gave a decision in favour of cement manufacturers.
"I do not believe in naming and shaming," he said adding that necessary functions will be developed to promote best practices by the business organizations and other companies.
The commission, he said, will have to be made a credible body and that it will have to see that everybody acts maturely.
