CCP probing price-hike in essential food items

ISLAMABAD: The Competition Commission of Pakistan (CCP) has been probing price hike in essential food items as well as transport sector.
In a bid to probe unjustified price-hike, the CCP on Tuesday issued ‘three call for information’ orders to three major transport companies for providing information and in case of failure they should be ready to face a penalty of Rs1 million against each of them.The CCP has issued orders under Section 36 of the Competition Act, 2010 to M/s Daewoo Pakistan Express Bus Service Limited, M/s Niazi Express, and M/s Kohistan Bus Service.
According to the CCP, the information has been sought as part of an inquiry being conducted by CCP regarding the possible anti-competitive activities in the inter-city bus commute service.
The orders have been passed by Ikramul Haque Qureshi, Member, Cartels & Trade Abuses and Legal, after the companies failed to respond to the CCP’s previous requests for information. The companies have been ordered to provide information regarding pricing trends of all categories of buses, on all major routes, over the last three years.
The companies have been asked to submit the required information within ten days. Failure to provide the required information may render the three bus companies liable to pay a penalty of up to rupees one million for non-compliance under Section 38 of the Competition Act, and a further penalty of up to rupees one million becomes payable for every day if the non-compliance continues beyond the prescribed deadline.
The Commission wrote letters to DCOs in all major areas of the country and sought details of prices of certain items.
The CCP has been still working on it under the instruction of Finance Ministry because inflation was coming down in the aftermath of reduced oil prices in international market but prices in domestic market had not come down proportionately.
The CCP is empowered under Section 36 of the Competition Act to call upon undertakings to furnish information concerning the activities of the undertaking, including their organisation, accounts, business, trade practices, management and connection with any other undertaking, which the CCP may consider necessary or useful for the purposes of the Act.