ISLAMABAD, April 21: The World Bank (WB) has asked Pakistan to improve the quality of governance and the capacity of its corporate culture.

Urging the country to break away from past ineffective practices, the bank called for setting up an entirely new corporate culture, starting with the quality of appointments, internal and external governance and technical competence, adding that the country needed a new ‘institutional setup’.

Stressing the need for reconstituting the Monopoly Control Authority (MCA), the bank said that the country needed supporting institutional structure to take into account the dynamics of the new economy.Sources said the bank urged the government to finalise and present a draft law for converting the MCA into a competition commission before the federal cabinet for approval. “This draft law was to be presented in the last cabinet meeting but was dropped from the agenda at the eleventh hour,” a source said. He said the bank had again expressed its ‘serious concern’ over the issue and said that the issue was now expected to be discussed in the next cabinet meeting.

The bank is of the view that the organisational structure, scope and powers of the competition agency impede the successful implementation of policy and law.

The World Bank has been urging Pakistan to firm up a new competition Policy to ensure prudent and transparent business practices.

Sources said the bank had promised adequate financial and technical assistance to help finalise a new competition policy in consultations with the business community, regulatory bodies and relevant government agencies.

As soon as the federal cabinet approves the conversion of the MCA into a modern competition commission, the World Bank is expected to start lining up sizable financial and technical assistance for developing new competition laws in Pakistan.

The government, sources said, was urged by the World Bank to promote sustainable economic development and improve the well-being of all citizens by protecting and promoting competition in the economy.

The bank believes that the private and public barriers to competition need to be prevented from hindering the development path, to guarantee maximisation of consumer and producer welfare in a dynamic framework.

Sources said that the officials of ministry of finance have informed the World Bank that they expected a full cabinet discussion on the issue next week. The ministry of finance believed that the completion of the process and submission of the law to the parliamentary process remains a priority.