“Most people shrink from risk and are unable to reach firm decisions because they are

paralyzed by uncertainty.”

“I never worry about action but only inaction.”

Looming uncertainties

The transition from Ordinance to an Act of Parliament – a struggle.

Making the right choice of Leadership and selecting a ‘dream team’.

CCP to compete for its survival and for recognition of its role, since inception.

Continues fighting: powerful lobbies } resisting legislation & enforcement of law vested interests } targeting to dilute the powers and provisions of law ignorance - that is customary } challenge to explain what competition

is all about & how it benefits consumers Unexpected smooth succession and benefits thereof. Suspension of law for 2 months during transition of law. Backlog of cases – litigation challenging constitutionality since

2007.Appellate forum? Supreme Court – High Court & Competition

Appellate Tribunal. Acute financial constraints impacting autonomy.

Looming uncertainties

“Three hallmarks (do’s) of effective thinking;

Always keep the central or most important aspect of current problem in mind;

Know how to balance chances on both sides of the decision and keep these factors in

proportion; and Remain open to changing your mind in

presence of new facts.”

“Three common errors (don’ts)Trying to look too far a head;

Excessive perfection (if spelt shorter is paralysis); and

Making decision for decisions sake.”

Challenges for new leadership

Challenges for new leadership:Pursuing transition of law from Ordinance to an Act.No law for 2 months. No money. Political crisis. Economic constraints. The battle with cartels in the courts – struggling with

litigation. Pursuing tied sources for financial autonomy. Re-appointment and appointment of Members for the

second term by the Federal Government.Keeping up the morale of the employees and retaining

human resource.Pacing up enforcement and capacity building. Working towards visibility, accessibility & cost effectiveness.

“It is never possible to guarantee success; it is only possible to deserve it”

Milestones Achieved

Milestones Achieved: Enactment of Competition Act, 2010 October 13, 2010.• Re-appointment and appointment of Members by January, 2011 .• ROADMAP drawn priority areas identified.• Advocacy and outreach providing accessibility for acceptability. • Substantial saving in operational costs by 35% (excluding salaries). • Internal review and assessment of systems and performance to make CCP internally

robust.Identified as only public sector organization personifying the essence of corporate best practices and to participate in Best Practices Day November 24, 2011.

• Holding of a truly International Conference in December, 2011, ensuring participation from over 50 countries.

• Submitting to independent evaluation by Global Competition Review enforcement rating.

• Capacity building: foreign and in house trainings, foreign experts, sponsoring education.

• Building institutional memory, documenting and sharing experiences. • Accelerating pace of enforcement.• First ever Leniency Application from MNC. • Introducing Voluntary Competition Compliance Code. • Expanding Office of Fair Trading. • The fact that CCP was nominated for GCR’s agency of the year award for the Asia

Pacific Middle East and African Region, this year is reflective of its developments (out of 42 agencies nominated in top five).

Enforcement Actions:

Total 53 Orders have been passed:

Cartel: 17 Abuse of dominate position: 13 Deceptive marketing: 7 Appellate Bench: 5 Leniency: 1 Approval of mergers: 3 Miscellaneous: 7

Search and inspection total 14 Enquiries concluded total 33; Pending enquires: 13+7 (OFT) Show Cause Notices Issued total

379 : Total 386 Exemptions issued Total 293 Merger Nocs issued Total 10 Policy notes

Total Penalty Imposed: 7.342 Billion

Section 4 (Cartels) Cases – Penalty: Banks Cartel: 205 million Cement Cartel: 6.402 billion ICAP: 1 Million KSE – Floor Pricing: 6 Million Dredging Companies: 200 Million Pakistan Poultry Association: 50 Million PESCO Tendering Companies: 10

Million Pakistan Ships Agents Association: 1

Million Pakistan Vanaspati Manufacturing

Association: 1 Million DHA & Wateen: 10 Million and 5

Million Pakistan Jute Mills Association: 23

Million EVTL: 10 Million

Section 3 (Abuse of Dominance) Cases – Penalty: KSE – Abuse: 50 Million Pakistan Steel Mills: 50 Million LPGAP: 40 Million JJVL: 278 Million

“Authority must be combined with responsibility.”

“Someone has to take responsibility. I will”

Submitting to independent evaluation

Global Competition Review Featured in GCR rating enforcement,2010-2011 against all odds and constraints obtained Star

rating: Performance termed ‘impressively consistent’ “Observers see the CCP as proof that developmental and political problems need not hamper the

creation of a dynamic competition agency in developing countries, as long as they are able to secure autonomy and they are staffed by driven, independent people.” (GCR)

An international observer has been quoted to state “its reasoning in behavioural and merger cases looks to be “straight down the middle - consistent with what one would expect to see anywhere”.

“A local practitioner agrees: while not always in agreement with them, the source says its officials “know the law,” and are open to discussing cases.”

“The commission has thrown itself into its work, achieving much in a short time.” A local practitionar says : “I doubt every decision is perfect, but we are in awe of what they have done with no learning curve time at all.”

“The media has embraced the commission as a driven and effective enforcer in a country where the population feels big business and vested interests often trump ordinary peoples’ needs.”

The GCR lauded the Commission’s inclusion in the rating as a testament to the fact that ‘the Commission has established itself as a truly effective enforcer in 2010. In 2011 GCR rating, we have been termed ‘consistent’ and that ‘CCP continued to progress impressively in its second year in rating enforcement. It has been quoted that ‘they are efficient and open to reason’ ‘ for lawyers the Commission is a proof that an independent respected authority can exist in a developing country with significant economic and political challenges and they anticipate that it will go from strength to strength’.

“Step by step is valuable precept”

“Seek to proceed by design through crisis to decision”

Agency effectiveness indicators

Agency effectiveness indicators – lessons learnt: Effective legal framework. Strong Leadership. Autonomy –financial & adjudicatory. Enforcement is the best policy. Handling of conflict with sector specific regulators. Balancing law and economics – ‘seek truth from facts’. Compliance through:

Enforcement actions & Advocacy. Fair or being feared? Endorsement by the court? - protracted litigation – tedious processes and technicalities.

Non-criminalization of cartelization? Recovery of penalties? Businesses soliciting advice. Effectiveness against backlog of cases in courts. Demonstrating self restraint and focused approach brings out consistency and

transparency. Visibility - networking with the media, the consumer protection organizations and civil societies.

Remaining open to criticism and new ideas. Improving the legal framework through regulations and guidelines e.g: merger,

leniency, reward payment, VCCC, Competition Consultative Group Policy notes Sector studies and research

Judicial review: the sooner we will have pending battles concluded in the courts, the better it will be for CCP and the undertakings, and the consumer – for whose eventual benefit we strive to administer this law.

Remember “The basic axiom of synergy – the whole is

greater than the sum of the parts.”

Vision

Institution is more important than individuals – build the team ensure sustainability

T enacious team E ffective enforcement A dvocacy for acceptability and

accessibility M otivated to work for the masses

against anticompetitive practices