Pakistani markets festering with private and state-owned cartelisation are undermining competition
Several silent but formidable forces have been hindering market competition in Pakistan’s economic landscape: monopolies, cartels, and the dominance of state-owned enterprises (SOEs). These anti-competitive practices distort the market, exacerbate the price hike phenomenon, degrade product quality, and prevent new businesses from flourishing.
This remains a significant barrier to the country’s economic progress and the welfare of consumers. At the same time, one of the key reasons for the limited performance of the Competition Commission of Pakistan (CCP), the regulatory body in this regard, is the significant number of cases pending in the courts.
In one of the cases against a key sector of the economy, the Sindh High Court imposed a penalty of Rs50,000 on the CCP for requesting early hearings as the case was pending for almost 10 years.
A senior official of the CCP added that while cases were pending for years in the courts, the entities have had a free hand to increase prices at will or get involved in illegal business practices, leaving consumers vulnerable to price hikes and poor-quality products.
Cartels and collusions
Cartels are categorised as a threat to market health across multiple sectors as they manipulate market dynamics, controlling prices, restricting supply, and blocking the entry of new players.
Pakistani markets festering with private and state-owned cartelisation are undermining competition
The data available at the Pakistan Bureau of Statistics (PBS) shows that the price of cement increased by 190 per cent from Rs490 per bag in December 2020 to Rs1,420 per bag in December 2024. Similarly, the price of sugar, another essential commodity, has surged........
© Dawn Business
