REGULATORS are not popular anywhere. The nature of their job is bound to create animosity among people it intends to discipline but this, by no means, undermines their relevance and need. Unregulated, the free market cannot deliver.

A close look at the making of the current financial crisis demonstrates that the private sector cannot be left unsupervised, for the profit motivation (read greed) is too strong an instinct to allow an exercise in self-discipline. While the free market orthodoxy was celebrating the final victory of unbridled capitalism, a chain of events took air out of its wings, forcing crash landing.

Modernisation has led to complexities that demand continuous innovation in governance to protect the market from misadventures. With bailouts and monetary injections to save businesses, the days of stronger and bigger government have arrived again for now.

If the Competition Commi-ssion does not invoke sentiments of admiration in local businesses, it is obligated to discipline, it must not surprise anyone. However, if the government functionaries spit venom the moment the name of the institution crops up in conversation, it leaves one wondering whether they are supposed to protect and promote the interests of the majority in the private sector, denied avenues of business by cartels, monopolies and oligopolies.

The fact is that the one-year-old organisation, set up in 2007 to provide a legal framework for creating a business environment based on healthy competition to improve economic efficiency, and protect consumers from anti-competitive practices, is on the verge of financial collapse. Our sources confirmed that the funds available with the body are barely enough to cover its expenses that include salaries of its staff, for hardly a month.

One year into existence and the financial structure of the organisation has yet to be finalised. The sources in the ministry confirmed that the summary was on the desk of the minister for finance Shaukat Tarin. It will go to the law ministry after his approval for wetting before getting final sanction by the prime minister. Later it would be notified by the ministry of finance and that would actually complete the process of creation of the organisation.

The question was who supported CCP if the government did not. The sources in the CCP said that the seed money of Rs50 million was used for keeping the body functional over the past one year.

The future of the regularity body, however, depends on the Pakistan Peoples’ Party government that has so far dragged its foot on this issue. Some believe that the powerful corporates have joined hands with the backing of multinational companies to shoot down the initiative that, they believe, could challenge their positioning in the domestic market.

“It is not fair to doubt the intentions of the government. The government has not settled as yet. Over the past one year, four different people occupied the office of finance minister and the average tenure of the federal secretary of finance was two months as the title changed hands six times. Salman Shah, Ishaque Dar, Naveed Qamar occupied the ministers office before Shaukat Tarin. While Tanvir Agha, Ahmed Mukhtar, Waqar Masood, Farrukh Qayum headed the mother of all ministries before Dr Waqar Masood was re-inducted at the powerful position”, said a senior source in the government.

“The government took the decision to create the organisation after due diligence because there was a need for it. I do not think that the current government wants to kill it. It has just been preoccupied with other more urgent issues”, said a senior officer who admitted not to be in the loop currently.

“I am for CCP but its aim is not to harass business but to discourage unethical business practices. I feel it has been too harsh on cement and banks and went for overkill. It has to work with the private sector and should try to take all stakeholders on board”, said another officer.

“Cartelisation and unethical practices do not serve businesses or the private sector and must be checked. Citibank that was perceived to be symbol of success would have collapsed had the US government not bailed it out. The government must act not only to save, but do all in its means to strengthen the CCP,” Zubair Tufail, Vice-President, Federation of Pakistan Chamber of Commerce and Industry, told Dawn over telephone from Dubai.

“Not withstanding all difficulties and hurdles we have faced, the CCP made tremendous progress which is globally recognised as indicated by the evaluation of the International Competition Network. I am happy to say that anti-trust era has arrived in Pakistan”, said Khalid Mirza Chairman CCP when contacted for his input on the issue. The head of CCP dismissed the allegations of being heavy handed. He said that he respects law of the land and has no intention of overstepping his mandate. Mirza warned all those out there misusing free market space when he said, “I mean business”.