ISLAMABAD, June 5: The World Bank has asked the government to frame strict laws and come down heavily on cartels and sharks in the business sector to arrest the downward economic trend.

According to informed sources, the bank has expressed serious concern over “leniency” being shown to cartels in banking, cement, sugar, wheat, automobile and pharmaceutical sectors.

“Like previous governments, the PPP-led government is also avoiding regulating businesses and the World Bank has taken up the issue with the authorities,” a source familiar with the issue said.

The bank wants the role of the Competition Commission of Pakistan (CCP) expanded to deal with hoarders and black-marketeers to check inflation, particularly food prices.

“The World Bank has stressed that recommendations of various trade bodies, including the Overseas Chamber of Commerce and Industry, Pakistan Business Council and Institute of Chartered Accountants, should be implemented to break cartels,” the source said.

It observed that cartels in Pakistan had grown stronger over the years with the connivance of bureaucracy, adding to the sufferings of the people.

The sources said that if the CCP role was not strengthened, business and industry would play havoc with the people.

The bank has expressed concern over non-implementation of competition laws and asked the government to follow the examples of China, South Korea, Hong Kong and Vietnam which had framed strict competition laws.