About US

Competition Commission of Pakistan (CCP) was established on 2nd October, 2007 under the Competition Ordinance, 2007. Major aim of this Ordinance is to provide for a legal framework to create a business environment based on healthy competition towards improving economic efficiency, developing competitiveness and protecting consumers from anti-competitive practices.

Prior to Competition Ordinance, 2007, Pakistan had an anti-monopoly law namely ‘Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance’ (MRTPO) 1970. The Monopoly Control Authority (MCA) was the organization to administer this Law. In the fast changing global and national economic environment, the MRTPO, 1970 was inadequate to address competition issues effectively. This was because: i) the 1970’s law was out of date for a modernizing and rapidly transforming market economy; ii) due to several limitations in the law, the MCA was not able to meet the expectations of businesses and the consumers at large; iii) the first generation reforms that liberalized the economy and unleashed the power of the private sector required a competition policy framework that could promote and protect competition and innovation.

Considering the above, Government of Pakistan launched a program to develop Competition Policy as a key “second generation reform” initiative. Towards this end, the Ministry of Finance and the MCA worked with the World Bank and the Department for International Development (DFID), UK. As a result of these efforts, Competition Ordinance, 2007 replaced the MRTPO and institutional capacity building of the newly formed Competition Commission is underway.

Competition Ordinance, 2007 considers the current economic realities as well as corrects the deficiencies of the MRTPO related to definitional aspects, coverage, penalties, and other procedural matters. The law seeks to prohibit abuse of market dominance, certain types of anti-competitive agreements, deceptive market practices, and mergers of undertakings that substantially reduce competition. This is combined with major emphasis on advocacy role of the Commission to promote voluntary compliance and to give a ‘competition face’ to micro and macro-economic policies.

In line with modern competition regimes, the law adopts a ‘carrot and stick” approach - the law provides for higher fines combined with imprisonment for non-compliance; on the other hand, the carrot is sweetened with sophisticated leniency provisions that may eventually lead to no fines and imprisonment, subject to certain conditions. To maintain high standard of evidence for unearthing secret cartels, the Competition Commission has legal powers to conduct searches and inspections’.

Promulgation of Competition Ordinance, 2007 and establishment of a credible Competition Commission will go a long way to develop competition culture and conducive environment for business activity in Pakistan.