ISLAMABAD — The Competition Commission of Pakistan (CCP) has issued fresh hearing notices to the Pakistan Sugar Mills Association (PSMA) and its member mills in connection with an alleged cartelisation case dating back to 2020. The hearings are scheduled to take place on August 4, 5, 6, and 7, 2025.
The case stems from show cause notices issued by the CCP in November 2020, alleging collusion and anti-competitive behaviour within the sugar industry. In 2021, the Commission imposed a penalty of approximately Rs44 billion on PSMA and several member mills for violating provisions of the Competition Act, 2010.
However, that penalty was set aside by the Competition Appellate Tribunal (CAT) in a May 21, 2025 decision. The Tribunal raised concerns over the original hearing process, particularly the use of a casting vote by the then Chairperson to break a 2-2 deadlock among a four-member bench — a move CAT ruled was not permissible in quasi-judicial proceedings.
In its order, the Tribunal directed the case to be reheard by a CCP Chairperson or Member who had not been part of the earlier decision-making process. It also advised that the matter be concluded preferably within 90 days.
Following the CAT’s order, the CCP has now summoned the relevant parties to appear with authorised representatives and supporting material for the upcoming hearings. The case remains one of the most high-profile competition law proceedings in recent years, with significant implications for market regulation and cartel enforcement in Pakistan’s sugar sector.
