IMF stresses competition to boost investment, exports

ISLAMABAD: Esther Perez Ruiz, the IMF’s Resident Chief in Pakistan, has emphasized the significance of competition in driving exports and attracting foreign direct investment.

The IMF representative further pledged support to the Competition Commission of Pakistan (CCP) for capacity building to facilitate economic growth.

Esther Pérez Ruiz visited the Competition Commission of Pakistan on Thursday and held discussions with CCP Chairman Dr Kabir Ahmed Sidhu on matters of mutual interest. During the meeting, Dr. Sidhu briefed Ms. Ruiz on CCP’s ongoing initiatives aimed at policing cartels to enhance competition, aligning with the government’s policies for sustainable economic growth. The CCP chairman emphasized the critical role of taxation, remittances, and exports in attracting foreign direct investment, noting that market competition plays a vital role in this regard. He pointed out that for Pakistani products and services to effectively compete in international markets, a competitive environment is essential.

The chairman also highlighted that inefficiencies arise when there is a mismatch between demand and supply, and it is society that ultimately bears the cost of such inefficiencies.

The CCP plays a major role in curbing cartels and concerted, collusive practices to increase efficiency. In this regard, one of the recent initiatives includes the establishment of a Market Intelligence Unit (MIU), marking a transition from reactive to proactive enforcement. Simultaneously, reviewing legal and regulatory frameworks in various sectors of the economy is another priority area for the CCP to promote competition, said Dr. Sidhu. Ms. Ruiz reiterated the significance of competition in driving exports and attracting foreign direct investment (FDI). The IMF representative further assured support for capacity building to enable economic growth. The meeting between Ms. Ruiz and Dr. Sidhu signifies a continued dialogue between international organisations and Pakistani authorities to promote economic stability and growth through fair competition practices.