The International Monetary Fund (IMF) has acknowledged stronger enforcement and institutional improvements at the Competition Commission of Pakistan (CCP), while also calling for more robust action to address regulatory gaps, market bottlenecks and barriers to entry across various sectors.
In its Governance and Corruption Diagnostic Report, the IMF said the CCP had taken significant steps to identify anti-competitive challenges in Pakistan’s markets and had improved its enforcement capacity in recent years. The report highlighted that the Commission had resolved more than 200 cases and recovered a record amount in fines and penalties.
Responding to the IMF’s findings, a CCP spokesperson said the Commission had reduced its backlog of court cases by nearly 70%, securing decisions in 428 out of 567 cases. He added that government support, particularly the timely appointments of the Chairman and members of the Competition Appellate Tribunal, had led to quicker disposal of litigation.
The IMF noted that the CCP’s newly created Market Intelligence Unit marked an important step toward proactive market monitoring and early detection of collusion and manipulation. It said the unit, backed by strong enforcement, could act as a deterrent against anti-competitive conduct.
The report also emphasised that Pakistan’s competition law is modern and gives the CCP adequate powers to address a wide range of anti-competitive practices. However, it said further reforms in procedures, staffing and resources were required to ensure timely implementation of CCP decisions.
In its observations, the IMF said the CCP must continue issuing policy notes and identifying barriers created by regulatory practices, enabling ministries and institutions to correct distortions that hinder competition. It stressed the need for effective remedies to ensure a level playing field.
The CCP spokesperson said the Commission had undergone “a major turnaround” during the past two years, recovering PKR 1.01 billion in penalties, far higher than the PKR 200 million collected over the previous 15 years.
He said that more than PKR 9 billion in penalties had been imposed on cartel behaviour, while action against deceptive marketing had intensified, covering sectors such as real estate, automobiles, dairy and education.
“These steps reflect a shift from a traditional regulator to a data-driven market watchdog focused on fair competition,” the spokesperson said.
