Tribunal Fines Flour Mills Association Rs35m for Price-Fixing
ISLAMABAD — The Competition Appellate Tribunal has ordered the Pakistan Flour Mills Association (PFMA) to pay an Rs35 million fine to the national exchequer, following findings of anti-competitive practices.
The penalty, announced in a press release on Tuesday, comes after the Competition Commission of Pakistan (CCP) investigated unusual increases in wheat flour prices across the country. The inquiry revealed that the PFMA repeatedly issued structured price instructions to its members, undermining the commercial independence of individual mills.
According to the CCP, such actions amounted to a horizontal agreement aimed at fixing prices, which is prohibited under Sections 4(1) and 4(2)(a) of the Competition Act. The PFMA had challenged the CCP’s decision before the Tribunal but failed to have the charges overturned.
While the Tribunal upheld the CCP’s findings, it reduced the original penalty to Rs35 million.
Reiterating the Commission’s stance on fair market competition, CCP Chairman Dr Kabir Ahmed Sidhu cautioned business associations against sharing sensitive pricing data or engaging in collusive tactics for profit.
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