Islamabad:
The Supreme Court has reserved a fine of RS44 billion, the Pakistan Competition Commission (CCP) had imposed on sugar factories in the country, ruling that both the original decision and a subsequent appeal order were illegal.
A division bank comprised of Judge Shakeel Ahmed and Judge Aamer Faooq left aside the order of the Court of Appeal of the Competition on May 21, 2025 and the decision of the “Vote Voting” of August 13, 2021 of the PCCH.
The dispute began in November 2020 when the PCCH issued identical notices of the cause of exhibition to the Association of Moletas Sugar de Pakistan (PSMA) and Mills throughout the country, accusing them of violating section 4 of the Law of Competition of 2010, which prohibits the behavior similar to the poster.
A four -member PCCH panel heard the case, but separated evenly in August 2021. Two members, including the then president Rahat Kaunain Hassan, found the guilty Mills, while two others asked for a new investigation.
Rahat then issued a decisive vote in favor of his own opinion, an unusual step that triggered the multimillionaire fine of rupees.
Sugar Mills challenged that movement before the Court of Appeals, which in May 2025 ordered a new hearing of a member who had not signed either of the two previous opinions. The Mills argued before the Supreme Court that the Court’s Directive violated the Competition Law and its own rules.
The bank agreed, hitting both the order of the court and the PCCH casting vote decision. The fine was annulled, but left the free CCP to launch new procedures based on the original 2020 notices.
Counsels Abdul Sattar Pirzada, Shehzad Atta Elahi and Sikandar Bashir Mohmand represented the sugar factories, while the PCCH was represented by Astma Hamid.
The PCCH is an independent regulatory body established in 2007 under the Competition Law. Its main role is to guarantee a leveling playing field in the country’s markets by preventing anticompetitive practices such as posters, mastery abuse, deceptive marketing and mergers that can damage competition. The CCP aims to protect consumers from exploitation and promote efficiency, innovation and economic growth.
Over the years, the PCCH has made consultations and imposed sanctions on the companies involved in collusion, pricing and other unfair commercial practices. He also issues political advice for the Government on matters of competence, creating awareness between companies and consumers on the fair conduct of the market. Despite the challenges in the application and resistance of the powerful sectors, the PCCH plays a vital role in making Pakistan markets more transparent and competitive.
The PSMA is the representative body of sugar factories throughout the country. It plays an influential role in the discussions of policies related to the prices of sugarcane, production, importation and export of sugar.
He often negotiates with the government on matters such as support prices for sugarcane, fiscal policies and subsidies to safeguard the interests of the sugar industry.
However, PSMA has often been under public and regulatory scrutiny. The PCCH has accused it of cartelization, price manipulation and artificially controlling sugar supply to maximize profits.
