Key Points
• Legal backlog reduced by 70%, enabling faster enforcement
• Major cartels dismantled and deceptive marketing penalised across multiple sectors
• Data-driven market oversight and merger review strengthened to support investment and consumer protection
ISLAMABAD: Pakistan’s competition regulator has completed a two-year overhaul of its enforcement machinery, clearing long-standing legal bottlenecks and stepping up action against cartels and deceptive practices through successful reforms aimed at boosting market transparency and investor confidence.
The Competition Commission of Pakistan (CCP) is the federal authority responsible for enforcing competition law, preventing monopolistic behaviour, and protecting consumers. Established in 2007, the Commission launched its reform programme in August 2023 following the appointment of new leadership, prioritising the institutional credibility, legal authority, and market impact.
At the outset, the regulator faced a pressing challenge: 567 competition cases were stuck in courts. By restructuring legal and prosecution divisions and implementing stricter follow-up mechanisms, the Commission resolved over 220 cases, reducing the backlog by roughly 70 per cent. This allowed the recovery of nearly Rs 1.36 billion in penalties, surpassing the total recovered over the previous 16 years.
Enforcement activity was ramped up across key sectors, including poultry, edible oil, telecommunications, and medical services. Stalled investigations into cartels and abuse-of-dominance cases were revived, resulting in penalties exceeding Rs 9 billion and recoveries of over Rs 600 million, backed by judicial validation from appellate courts and the Supreme Court.
Consumer protection has also been a major focus. The Office of Fair Trade expanded scrutiny of deceptive marketing in real estate, cosmetics, pharmaceuticals, automobiles, and education, imposing substantial penalties on firms that misled consumers and distorted competition.
A significant shift towards intelligence-led regulation was achieved with the October 2023 launch of the Market Intelligence Unit, introducing data-driven surveillance to competition enforcement. The unit analysed over 38,000 tender documents, flagged procurement worth around Rs 13 billion for suspected collusion, and generated more than 200 enforcement leads, spanning cartel activity, mergers, and deceptive marketing.
Merger and acquisition oversight was reinforced with 139 transactions reviewed across 34 sectors, including key deals in telecommunications, energy, logistics, and digital payments. These reviews aimed to promote investment-driven consolidation without leading to excessive market concentration. Institutional capacity has been strengthened through the creation of the Centre of Excellence in Competition Law, which has produced market studies on power, fertiliser, LNG, steel, insurance, and gold sectors.
Strategic partnerships with other public bodies improved data sharing and enabled coordinated enforcement efforts nationwide. According to the Competition Commission of Pakistan, the two-year reform effort has transformed it from a reactive watchdog into a proactive regulator focused on ensuring fair competition, protecting consumers, and supporting innovation-led growth.
Looking ahead, the regulator plans to expand its regional presence, deepen digital enforcement, and enhance stakeholder engagement across Pakistan. For international investors and development partners, the reform trajectory signals a commitment to strengthening rule-based competition oversight and improving economic governance.
