Competition policy central to industrial reforms

January 20, 2026 (MLN): The Competition Commission of Pakistan (CCP) has emphasized the central role of competition policy in driving industrial growth and economic transformation, during the sixth session of its ongoing Lecture Series on Competition Law.

The lecture, titled “Role of Industry in Promoting Market Competition,” focused on Pakistan’s industrial structure, productivity challenges, and the long-term consequences of weak competition.

Addressing officials of the CCP, Dr. Nadeem Javed, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), stressed that competition policy must be treated as a core pillar of industrial and growth strategy.

He noted that industrial policies often fail in the absence of effective competition, resulting in inefficiencies, rent-seeking, and low productivity, according to a press release issued.

Welcoming the participants, CCP Chairman Dr. Kabir Ahmed Sidhu highlighted that competition is not merely a legal or regulatory concern but a fundamental economic policy tool.

He reaffirmed the Commission’s commitment to strengthening competition enforcement to improve productivity, enhance export performance, and support sustainable industrial development.

In his presentation, Dr. Javed pointed to Pakistan’s persistent productivity gap and the prevalence of highly concentrated industries such as cement, sugar, fertilizer, steel, and automobiles.

He explained that limited competitive pressure, excessive regulatory discretion, and protection of incumbent firms have restricted innovation, firm growth, and export competitiveness.

Citing international examples from South Korea, Vietnam, Turkey, and Chile, he noted that strong competition, openness to trade and investment, and rule-based enforcement were critical in overcoming low-productivity traps.

The lecture concluded with a consensus that competition policy must be fully integrated into industrial and economic growth strategies.

Without effective competition, industrial policies risk entrenching inefficiencies and protecting rents rather than fostering productivity and economic transformation.

The CCP’s Lecture Series continues to serve as a platform for informed dialogue on competition law and policy, bringing together academics, policymakers, and practitioners to deepen understanding of competition’s role in Pakistan’s economic development.

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