ISLAMABAD: The Competition Commission of Pakistan (CCP) on Thursday said that the ongoing sugar crisis was being monitored, and if any indications of anti-competitive activities were found, the CCP would take appropriate enforcement and policy actions.

In 2021, the CCP not only carried out raids at the Pakistan Sugar Mills Association (PSMA) but had imposed penalties amounting to Rs44 billion on the PSMA and its member sugar mills for cartelisation.

However, the CCP’s decision was challenged in the high courts of Sindh and Punjab and the Competition Appellate Tribunal (CAT) and recovery of penalties has been stayed.

The Appellate Tribunal has been dysfunctional since July 14 due to the expiry of the term of its chairman while the cases of sugar mills and similar important cases are pending.

Earlier, the CAT had been dysfunctional for 7.5 years since 2010 leading to a huge backlog of cases, however, the CCP has taken proactive measures against cartelisation in the sugar sector, demonstrating its commitment to ensuring fair competition, but the delays in the appointment of the chairman Competition App­ellate Tribunal, the App­ellate Tribunal appeals were being delayed.

A senior official of the CCP said that the commission acknowledges the due legal processes associated with judicial review, and expediting the resolution of cartel cases is crucial for delivering effective relief to consumers.

The official said that the protracted delays in resolving cartel cases will negatively impact both consumers and the overall economy.

Published in Dawn, September 8th, 2023