ISLAMABAD: Minister of State on Finance Hina Rabbani Khar on Wednesday informed the National Assembly that the Competition Commission of Pakistan (CCP) has issued show cause notices to the mobile phone companies for entering an agreement to revise sale price of SIMs along with missed calls charges.
Responding to a question, she informed the House that the CCP nowadays came under a lot of discussion due to its actions against the cartels in leading sectors such as banks, stock exchanges, LPG, mobile phone companies, etc. However, most of these cases are pending court decision.
The CCP is doing more than its capacity for taking action against the cartels. The commission has done a remarkable job for taking actions against cartels with limited resources. MNA Kashmala Tariq said the CCP has been given unlimited powers, which needs to be checked.
There should be check and balance while reviewing the performance of the commission. There are flaws in the competition laws, which need to be removed. The CCP should not target industrial sector that is playing key role in the growth of the economy. How many banks were shut down on the action of the commission, she asked?
Responding to these observations, Hina Rabbani Khar said the CCP has no intention to shut down the industrial sector. If change in the existing competition law is needed, it could be done after following the due consultative process with all the stakeholders.
In a written reply, the Minister for Finance said the CCP has taken action against the cartels as per Section 4 of the Competition Ordinance. It may be noted that most of the cases decided by the commission are sub judice either at the Supreme Court of Pakistan or the High Courts, therefore, no impact at this stage can be quantified.
Answering several questions on inflation, Hina said the government has been able to bring inflation down in terms of consumer price index, now it is 10.8 percent. The inflation rate in terms of consumer price index averaged at 10.8 percent during July-January 2009-10 against 23.8 percent in same period last year and 11.2 percent in July 2009.
She said the government reviews the price situation on regular basis in the country in every Economic Co-ordination Committee meeting and discusses movement of price of essential items and takes necessary steps of maintaining stability in prices. In order to offset the possible impact on price level of shortfall in production of essential food items a supply management was adopted by making timely import of sugar and pulses.
The government is providing various items at the Utility Stores Corporation at cheaper rates than open market and is also providing sugar at subsidised rate of Rs 45 per kg to the consumers to stabilise the prices of essential items in the country.
She said that Friday, Sunday and Tuesday bazaars were held in cities to supply mainly perishable commodities like vegetable, fruits as it also helped regulating the prices of these commodities. Following sound economic policies, the government has responded the problem of inflation to contain excess demand in the economy including tight monetary policy.
She added that all provincial and governments are responsible for price check and control and take appropriate measures to check overcharging, she added. In a written reply, Minister of Finance said that the inflation rate registered in the country since February 18, 2008 to February 1, 2010 is estimated at 36.3 percent.
Source: Business Recorder
Date:2/18/2010
