Sources said on Wednesday the organisational structure, scope, and powers of the competition agency are essential determinants for the successful implementation of the new policy. An independent and efficacious agency, with strict accountability safeguards is the key factor for the effective implementation of the new policy.
Specific provisions in the new law will include a collegial body of leaders with integrity, stature and ability-each with substantial experience and collectively with a range of relevant expertise. It would be a well-funded organisation with security of tenure among the executives and a high-level of technical skills among the staff.
It would ensure transparency and speedy investigation of serious infractions without undue burden on individuals and business firms.
Sources said the autonomy to the competition agency in its day to day work would ensure that powers are exercised within legal limits in a transparent way.
According to sources, new competition will be empowered with the human, technical, informational and legal backing to carry out its functions. Its institutional setup needs a modern, robust structure, which can uphold judicial and corporate challenges.
The reconstitution of the MCA and supporting institutional structure is badly needed to take into account the dynamic factors of the new economy and the requisite human, technical, informational and capacity backing to carry out its functions.
The new law will be implemented based on 'rules of analysis and reason' by an institution that is autonomous but accountable. The key principles, which will be followed in application of the new competition policy framework included the law's non-discriminatory approach.
The assessment of competition will be tolerant of single firm growth on the basis that competition law should not punish those who have gained dominance through efficient use of resources and innovation without resorting to exclusionary and anti-competitive tactics.
The competition law needs to be viewed as supportive to private business not additional hindrance. The principle in implementing competition policy would promote consumer welfare without hampering the day-to-day activities of the business. The vast majority of day-to-day transactions that take place in markets across Pakistan will not be affected by the new law.
The implementation of an explicit competition policy will avoid procedures that may pose unnecessary transaction or compliance costs on firms; becoming an obstacle to beneficial mergers and acquisitions, and unnecessary restrictions on innovative horizontal and vertical arrangements among firms, the sources added.