January 26, 2007	Friday	Muharram 06, 1428

ISLAMABAD, Jan 25: The ministry of law and justice has at last approved the draft law to convert the much-delayed Monopoly Control Authority into a Competition Commission for ensuring transparent and prudent business practices in the country.

Official sources told Dawn that Law Minister Wasi Zafar, who kept the file with him for well over one year, has ultimately cleared it earlier this week after having received repeated requests made by the concerned officials of the ministry of finance.The vested interests had remained active against the proposed commission. Some of the influential ruling party legislators were reportedly supporting a group of businessmen against the idea of having any Competition Commission or an authority to strictly deal with unscrupulous businessmen and investors.

Prime Minister Shaukat Aziz had already approved, in principle, the conversion of MCA into a Competition Commission by also appointing the present chairman of MCA Khalid Mirza as the head of the commission last year.

The World Bank had been expressing serious concern over the delay in converting the MCA into a Competition Commission with a view to creating a competitive environment and regulating business activities in the country.

The WB is believed to have 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 World Bank mission consisting of Mr Eric Manes, Mr Anjum Ahmad and Mr Sakm Abdul Hye visited Pakistan during November 6-16, 2006 and was assured that the draft competition law will be approved by the law minister maximum by early December last 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.

Sources said that officials of ministry of finance have informed the World Bank that now the draft law will be submitted to the federal cabinet for approval. Despite the substantive nature of the new law and in 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 body. Maxwell Stamp Associated LLP was hired under international competitive bidding in September 2006 and the work began in October last year.

Based on a two weeks inception visit, the Maxwell Stamp consultant’s team presented to the MCA and to the mission its initial report, the key elements, 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-tier 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, will now visit in February 2007 to gauge the work so far done for having a competition authority. The WB and the Department for International Development (DFID) of England are providing necessary financial support for the restructuring of MCA and its conversion into a 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.

Mr Mirza informed the higher authorities that he was watching all businesses and was constantly in touch with the market. He had said that he would like the industry to grow and thrive but they must conduct themselves in a non-manipulative manner.

The new proposed law, it is said, would protect obligations and that the capacity of the businesses needed to be strengthened.

"Our job is take action against unnecessary restricted trade practices, which means we should not allow collusion so that public interest is effectively safeguarded," a concerned official said.