CCP reports decline in recoverable penalties, from Rs68 billion to Rs19 billion

PAC reviews Competition Commission’s performance for fiscal year 2021-22, calls for effective penalty recovery

The Competition Commission of Pakistan (CCP) has informed the subcommittee of the National Assembly’s Public Accounts Committee (PAC) that its total recoverable penalties have decreased to Rs 19 billion, down from Rs 68 billion.

A subcommittee of the PAC, chaired by Naveed Qamar, convened to review the performance of the CCP, with a focus on recovering penalties, pending litigation, and ongoing legal proceedings. The meeting reviewed two audit paras from the CCP’s accounts for the fiscal year 2021-22, one of which highlighted appeals pending in court against the Commission’s orders.

CCP Chairman Dr. Kabir Ahmed Sidhu briefed the committee, noting that reforms in the Legal Department have improved the effectiveness of litigation. As a result, the number of pending court cases was reduced from 577 to approximately 300, with 224 cases already decided, marking nearly a 50% reduction in the backlog.

Dr. Sidhu also informed the committee that the CCP issued 11 major orders in the past year. The Cartel Department completed 20 inquiries, while the Office of Fair Trade concluded 13 inquiries related to deceptive marketing practices. The Commission successfully recovered over PKR 120 million in penalties, its highest recovery to date. 

Additionally, a Research Wing was established to support evidence-based policymaking and enhance analytical capacity.

Regarding penalty recoveries, Dr. Sidhu acknowledged that despite the CCP’s efforts, delays in court proceedings and other factors led to a decline in total recoverable penalties—from PKR 68 billion to PKR 19 billion. 

He clarified that the Commission’s 2021 order imposing a PKR 44 billion penalty on the sugar industry had been remanded by the court for rehearing and thus could not be considered recoverable at this stage, leaving the current recoverable amount at Rs 1.9 billion.

Committee Chairman Naveed Qamar stressed the importance of engaging competent legal professionals to pursue litigation and ensure the enforcement of CCP’s decisions effectively. He also directed the Ministry of Finance to assist regulatory bodies, particularly the CCP, in efficiently recovering imposed penalties.

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