CCP Reopens Hearing on Sugar Mills’ Alleged Cartelization

The Competition Commission of Pakistan (CCP) has summoned the Pakistan Sugar Mills Association (PSMA) and its associated sugar mills to attend a hearing. This action follows show cause notices that were initially served to the PSMA and its members in November 2020. The notices pertain to accusations of cartelization and engaging in anti-competitive practices, according to an official statement from the CCP released on Wednesday.

The hearings are planned to take place on August 4th, 5th, 6th, and 7th, 2025.

These hearing notices were triggered by a directive from the Competition Appellate Tribunal (CAT) issued on May 21, 2025. The CAT instructed that the matter be re-examined by a Chairperson or Commission Member who had not previously participated in the conflicting opinions. The Tribunal has requested that the matter be resolved, if possible, within a 90-day timeframe.

In a related development, the CCP has sanctioned 69 mergers and acquisitions in FY2024-25, representing $50 million in Foreign Direct Investment.

Back in 2021, the CCP had levied a penalty of approximately Rs44 billion on the PSMA and its affiliated mills for breaches of competition regulations. However, this decision was contested in the CAT, which questioned the legitimacy of the casting vote that the chairperson at the time had used to resolve a 2-2 tie within the original four-member panel.

The tribunal determined that the casting vote was not permissible in quasi-judicial proceedings as defined by the Competition Act of 2010, thereby nullifying the initial order.

Through these latest notices, the CCP is requiring all involved parties to designate authorized representatives who can attend the rehearing with all pertinent information and materials.

Separately, the Pakistan government is now planning to import 0.5 million tons of sugar via the public sector as a matter of urgency. This decision follows the export of 0.8 million metric tons of sugar during the last financial year, which generated just under $400 million in foreign exchange for private operators.