ISLAMABAD:
The Supreme Court has set aside a Rs44 billion fine the Competition Commission of Pakistan (CCP) had imposed on the country’s sugar mills, ruling that both the original decision and a later appellate order were unlawful.
A division bench comprising Justice Shakeel Ahmed and Justice Aamer Farooq set aside the Competition Appellate Tribunal’s May 21, 2025 order and the CCP’s August 13, 2021 “casting vote” decision.
The dispute began in November 2020 when the CCP issued identical show-cause notices to the Pakistan Sugar Mills Association (PSMA) and mills nationwide, accusing them of violating Section 4 of the Competition Act, 2010, which bans cartel-like behaviour.
A four-member CCP panel heard the case but split evenly in August 2021. Two members, including then chairperson Rahat Kaunain Hassan, found the mills guilty, while two others called for a fresh inquiry.
Rahat then cast a deciding vote in favour of her own opinionan unusual step that triggered the multibillion-rupee fine.
The sugar mills challenged that move before the appellate tribunal, which in May 2025 ordered a new hearing by a member who had not signed either of the two earlier opinions. The mills argued before the Supreme Court that the tribunal’s directive violated the Competition Act and its own rules.
The bench agreed, striking down both the tribunal’s order and the CCP’s casting-vote decision. It annulled the fine but left the CCP free to launch fresh proceedings based on the original 2020 notices.
Counsels Abdul Sattar Pirzada, Shehzad Atta Elahi and Sikandar Bashir Mohmand represented the sugar mills, while the CCP was represented by Asma Hamid.
The CCP is an independent regulatory body established in 2007 under the Competition Act. Its main role is to ensure a level playing field in the country’s markets by preventing anti-competitive practices such as cartels, abuse of dominance, deceptive marketing, and mergers that may harm competition. The CCP aims to protect consumers from exploitation and promote efficiency, innovation, and economic growth.
Over the years, the CCP has conducted inquiries and imposed penalties on businesses involved in collusion, price fixing, and other unfair trade practices. It also issues policy advice to the government on competition matters, raising awareness among businesses and consumers about fair market conduct. Despite challenges in enforcement and resistance from powerful sectors, the CCP plays a vital role in making Pakistan’s markets more transparent and competitive.
The PSMA is the representative body of sugar mill owners across the country. It plays an influential role in policy discussions related to sugarcane pricing, production, import, and export of sugar.
It often negotiates with the government on matters like support prices for sugarcane, taxation policies, and subsidies to safeguard the interests of the sugar industry.
However, the PSMA has frequently come under public and regulatory scrutiny. The CCP has accused it of cartelization, price manipulation, and artificially controlling sugar supply to maximize profits.
