ISLAMABAD, July 9: The Competition Commission of Pakistan (CCP) has issued notices to the Pakistan Sugar Mills Association (PSMA) and its member sugar mills to appear for a hearing in the matter of show cause notices issued to PSMA and member mills in November 2020 for alleged cartelization and anti-competitive conduct. The proceedings are scheduled for August 4th, 5th, 6th and 7th August 2025.
The hearing notices have been issued in compliance with the 21 May 2025 order of the Competition Appellate Tribunal (CAT), which directed the matter to be reheard by the Chairperson or Member of the Commission who was not part of the earlier conflicting opinions. The Tribunal further directed that the matter be decided preferably within 90 days.
In 2021, the CCP had imposed a penalty of nearly Rs 44 billion on PSMA and its member mills for violating competition laws. The order, however, was challenged in CAT, which questioned the legality of the casting vote exercised by the then Chairperson to break a 2-2 deadlock in the original four-member bench.
The Tribunal held that no casting vote could be exercised in quasi-judicial proceedings under the Competition Act, 2010, and set aside the resulting order.
Through the current notices, CCP has directed all concerned parties to nominate authorized representatives and appear with all relevant facts and material for the rehearing.
PSMA denies allegations of cartelisation and its office bearers claim that the commission imposed heavy penalty of Rs 44 billion without any logic and ground. PSMA former chairman , Islander M Khan , in his reaction to CCP ‘s notices in Rs 44 billion penality case said ‘ Sugar industry is facing multi-faceted crisis. On one hand its facing unwarranted pressure from the authorities for selling sugar at lower price than its cost of production and on the other hand its being penalised by the regulator for alleged cartelisation “. He added that CCP must understand that sugar industry is Pakistan’s leading industry and it provide jobs to millions of Pakistani besides paying taxes in billions of rupees every month. Islander M Khan argues that the authorities must change their mind and stop presenting the sugar industry of Pakistan as a rogue industry. Islander M Khan strongly argues that honest handling can strengthen sugar industry and help it need local commodity need besides producing surplus sugar to export every year and earn much needed foreign exchange for Pakistan.
