December 29, 2006	Friday	Zilhaj 07, 1427

ISLAMABAD, Dec 28: The World Bank has expressed serious concern over the delay in conversion of the Monopoly Control Authority (MCA) into a competition commission aimed at creating a competitive environment and regulating business activities.

Sources in the ministry of finance told Dawn on Thursday that the World Bank had asked the government to firm up an "action plan" to be supported by the donors for the drastic restructuring of the MCA and thus having a competition commission.

The bank regretted that although Prime Minister Shaukat Aziz had approved the new draft competition law, the conversion of the MCA into a commission was being delayed and resisted.

Sources said that the draft law was lying on the table of Law Minister Wasi Zafar for the last many months and had not been cleared despite repeated requests made by the concerned officials of the ministry of finance.

The World Bank mission consisting of Eric Manes, Anjum Ahmad and Sakm Abdul Hye visited Pakistan during November 6-16, 2006 and was assured that the draft competition law would be approved by the law minister maximum by early December this year.

The mission worked closely with the MCA and the Maxwell Stamp consultants and stressed the need for early approval of the draft law with a view to ensure level-playing field to the businessmen and discourage unfair business activities including cartelisation by various business groups including that of cement, sugar and ghee industries.

The mission was informed that a summary paper proposing a new draft competition law was approved at the highest level, resulting in the submission of the law to the ministry of law for vetting, where it currently stands awaiting "final review".

Sources said that the officials of ministry of finance had informed the World Bank that they expected completion of vetting soon which would be followed by immediate submission of the law for full cabinet discussion.

Despite the substantive nature of the new law and anticipation of detailed discussion at the cabinet level, the ministry of finance said that completion of this process and submission of the law to the parliamentary process remains a priority for the "current year".

At the request of the chairman MCA, a two month activity was initiated by an international consultant to provide a design paper for the new competition agency. Maxwell Stamp Associated LLP was hired under international competitive bidding in September 2006 and the work began on October this year.

Based on a two week inception visit, the Maxwell Stamp consultant team presented to the MCA and to the mission its initial report, the key elements of which were included in the mission's presentation to the minister of finance on November 9 and 16, 2006.

The principal element of the design involved plans for restructuring the organisation and staffing its departments, including a scaling up a three year period, and operating along a three tiered system covering law enforcement, public advocacy and market research and detailed costing of start-up and recurring activities, with a view of donor funding projects to support the new agency’s launch.

The World Bank mission, sources said, would now visit in February 2007 to gauge the work so far done for having a competition authority. The bank and the Department for International Development (DFID) of England are providing necessary financial support for the restructuring of the MCA and its conversion into a competition commission.

Sources said that one of the reasons for the delay in the approval of the draft law by the law ministry was the reported strict and uncompromising attitude of MCA Chairman Khalid Mirza for promoting genuine business activities and discouraging unworthy practices.

When contacted Mr Mirza said that he was watching all businesses and was constantly in touch with the market. "I would like the industry to grow and thrive but they must conduct themselves in a non-manipulative manner", he added.

Asked about the delay in the conversion of the MCA into the competitive commission, which would also be headed by him, Mr Mirza said that competition law was currently going through various processes within the government.

"But my feeling is that the legislative process should start soon," he said adding that he was fully geared and as soon as the competition law was passed, he would make the new system operational.