CCP members’ salaries proposed to be on a par with those in State Bank, SECP

ISLAMABAD: While showing satisfaction on the overall performance of the Competition Commission of Pakistan (CCP) in its evaluation report tabled by Dr Ishrat Hussain before the cabinet, the report recommended no major structural changes into the fold of the anti-monopoly watchdog.

In the detailed report tabled in a cabinet meeting chaired by Prime Minister Imran Khan on Tuesday, the way forward for the agency’s effectiveness, structural, financial sustainability, remuneration capacity and presence was elaborated. However, it propped to bring salaries of CCP members at par with the State Bank of Pakistan and SECP. The World Bank/DFID framework delineates the work of the commission into enforcement, advocacy and policy supported by following departments, including administration, information technology, and legal department. By and large, the commission has followed the recommendations of the framework, which has served the purpose of work quite well. As the commission focuses on upcoming challenges, e.g., bid rigging in public procurement, abuse of dominance in tech sector, etc., new sections within the existing departments may be proposed.

Bid rigging in public procurement is a cartel offence and will be part of the enforcement department, while addressing the abuse of dominance by big tech companies resulted in establishment of a digital unit in the commission. “The commission is, thus, not proposing any major structural changes at this point,” the report said. The commission was established as a specialised body to analyse and address violations of the law and to facilitate sector specific regulators on issues pertaining to competition in the economy; it requires telling public and private sectors, where competition is being compromised or the vested interests damages economy.

The report said the commission could not be effective without financial autonomy, because the economic sectors overseen by regulatory agencies require a large infusion of capital and the investors who might provide the capital are highly sensitive regarding investment environment. And it needs competent professionals to regulate things reasonably, transparently and predictably, as the decisions are made a basis of substantive merit by most of the investors. To provide the assurance, regulatory agencies are typically given a degree of independence in carrying out their responsibilities that other organs of the government do not enjoy.

The critical issue for the government, legislators, and regulators themselves is the necessity of recognition of those regulatory agencies, as often requires more flexibility than might ordinarily be accorded. The matter of a percentage of the fees and charges collected by other regulatory bodies was defined as one of the sources of funding for the commission in 2010 Act. The sooner this matter reaches a resolution, the better the ability of the commission to take decisive steps to increase the agency’s effectiveness in terms of devising salary structures for members and employees.