ISLAMABAD: The Competition Appellate Tribunal (CAT) has imposed a Rs10,000 penalty on cement companies for seeking an adjournment in the long-pending appeal related to a 2009 cartelization case. The Tribunal has now fixed April 24, 2025, for the next hearing of the appeals filed by various cement manufacturers challenging a decision by the Competition Commission of Pakistan (CCP).
As per details, the case pertains to a 2009 CCP ruling, which imposed a cumulative fine of Rs6.35 billion on 20 cement companies for allegedly engaging in price fixing and cartel-like behavior in violation of competition laws.
With the recent appointments of tribunal members, CAT has become fully functional and resumed hearings in the high-profile appeal. However, during a recent session, senior counsels representing several manufacturers failed to appear. The tribunal viewed this absence as a deliberate attempt to delay proceedings, prompting the imposition of the penalty.
The original CCP decision followed extensive investigations, which revealed that the cement manufacturers had allegedly coordinated to fix prices and regulate cement dispatches, thereby manipulating market supply. Key evidence included a seven-month record of dispatch data recovered from the premises of the All Pakistan Cement Manufacturers Association (APCMA), indicating coordinated activities among the companies.
Individual fines imposed by the CCP ranged from Rs12 million to Rs1.27 billion, with Lucky Cement receiving the highest penalty of Rs1.27 billion, followed by D.G. Khan Cement with Rs933 million. Other companies penalized included:
- Maple Leaf Cement – Rs586 million
- Bestway Cement – Rs562 million
- Pakistan Cement – Rs405 million
- Attock Cement – Rs374 million
- Pioneer Cement – Rs366 million
- Dewan Cement (merged entity) – Rs345 million
- Fauji Cement & Cherat Cement – Rs266 million each
- Askari Cement (Wah) – Rs233 million
- Askari Cement (Nizampur) – Rs187 million
- Fecto Cement – Rs174 million
- Kohat Cement – Rs103 million
- Al Abbas Cement – Rs87 million
- Mustehkam Cement – Rs74 million
- Dandot Cement – Rs42 million
- Gharibwal Cement – Rs39 million
- Dadabhoy Cement – Rs28 million
- Flying Cement – Rs12 million
After the CCP ruling, many companies obtained stay orders from various courts, while some approached the Supreme Court directly. In June 2017, the apex court ruled that the matter must first be heard and decided by the Competition Appellate Tribunal, as required under the law, which mandates that such cases be resolved within six months.
However, the tribunal remained largely inactive for several years due to the absence of appointed members. The situation changed on February 28, 2025, when the federal government appointed Justice (Retd.) Sajjad Ali Shah, former judge of the Supreme Court, as the Chairman of CAT. He is joined by Dr. Faiz Elahi Memon and Asim Akram as members, restoring the tribunal’s ability to resume and expedite pending cases.
The upcoming hearing on April 24 is expected to determine the future course of the long-delayed proceedings, which have significant implications for regulatory enforcement and competition in Pakistan’s industrial sectors.
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