ISLAMABAD, Jan 8: The Competition Commission of Pakistan (CCP) has directed four leading Polyester Staple Fiber (PSF) manufacturers to file undertakings / affidavits that they have not organised themselves in any formal association in any manner and the informal association, that does exist, in no manner meets or coordinates to adopt or fix parallel pricing or level of output.

The PSF manufacturers denied that they have quoted prices in the media or provided any information in this regard.

The commission has directed them to file affidavits and undertakings by Jan 15 to verify facts.

The manufacturers are: Pakistan Synthetics Ltd, ICI Pakistan Ltd, Rupali Polyester Ltd and Ibrahim Fibers Ltd.

The hearings were held under the chairmanship of Khalid A. Mirza, chairman, CCP, and members who included Abdul Ghaffar, Rahat Kaunain Hassan and Maleeha Mimi Bangash. Senior Executive (Mergers, Cartels, Monopoly and Trading) and Registrar assisted the commission during the hearings.

The Monopoly Control Authority (MCA) had initiated an inquiry under Section 14 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 (Ordinance) against the Staple Fiber Manufacturers (PSF) for colluding in parallel pricing as reported in a Karachi-based English daily.

The manufacturers were heard by the MCA and were also served show-cause notices.

In response to the notices, the PSF manufacturers denied providing any news agency or media organisation any price quotation of their products or acting in collusion.

The cases were initiated against the undertakings by the MCA under the provisions of Section 11 of the Monopolies and Restrictive Trade Practices (Control & Prevention) Ordinance, 1970 and were heard under the same provisions, read with Section 59 of the Competition Ordinance, 2007.

A senior commission official explained to Dawn that his organisation was discharging its duties on behalf of the MCA as being its successor agency.

MCA’s pending work, he said, would have to be disposed of by the commission although MCA had now become a defunct body.

“We have to finish our pending work in MCA and these four cases belonged to former body,” he said.

In another case of Nawabsons Laboratories (Pvt) Limited, the chief executive of the undertaking, apologised for non- compliance with the MCA’s directions for registration of the undertaking.

He submitted that the undertaking has since been registered and assured compliance with the Commission’s directions in future.

He requested for condonation of the penalty imposed by the MCA.

The commission, considering the fact that the undertaking complied with its order and taking a lenient view, ordered to waive the fine.