CCP keeps price competition healthy for Pakistan’s cement producers

The effectiveness of the Competition Commission of Pakistan (CCP) has been proved by the stability in the cement prices at a lower level of Rs220 - 240 per bag.

The CCP, formed in October 2007, is a consultative group comprising businessmen, academia, civil society and media and agreed that there is a need to take action against anti-competitive practices affecting cement prices.

Over the past four years, cement prices have dropped to this level for a period of two to three weeks, but have mostly fluctuated between Rs280 - 380 per bag.

Sustained stability
This time, the stability of cement prices has lasted more than three months. So far, no members of the All Pakistan Cement Manufacturers Association have paid any fines, as the penalties to be imposed by the CCP are being challenged.

Positive action
At a recent CCP meeting, several attendees remarked that CCP’s presence has acted as a deterrent against anti-competitive behaviour. It has also been argued that the penalties levied on the cement manufacturers were unfair as better practices were now evident. Khalid Mirza, CCP Chairman, revealed that the organisation is authorised to impose penalties up to 15% of a company’s turnover if found guilty of cartelisation.

Ensuring that fair business practices are ubiquitous throughout Pakistan can only improve the nation’s economic credentials, as well as benefiting efficiencies, leading to lower production costs and ultimately, end product prices.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/09032010/ccp_keeps_price_competition_healthy_for_pakistan%E2%80%99s_cement_producers/