The regulators of Pakistan: Rationalisation of institutions – XIII

Under focus in this column are the organisations entrusted with the responsibility as regulators to work in the larger interest of the nation and its institutions. These regulators are required to brook no political interference and pressure. The conduct and tenures of the heads of these bodies are provided protection under the Constitution of Pakistan.

There are about 18 regulatory bodies in the country: the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, the Competition Commission of Pakistan, the Pakistan Electronic Media Regulatory Authority, the National Electric Power Regulatory Authority, the Oil and Gas Regulatory Authority, the Drug Regulatory Authority, the Civil Aviation Authority, the Pakistan Nuclear Regulatory Authority, the Pakistan Standards and Quality Control Authority, the Public Procurement Regulatory Authority, the Private Education Regulatory Authority, the Pakistan Medical and Dental Council, the Pakistan Engineering Council, the Pakistan Nursing Council, the Pakistan Tibb Council, the Pakistan Veterinary Medical Council and the Pakistan Environmental Protection Agency. Besides, there are prime regulators such as Election Commission of Pakistan (ECP), NAB, FBR and others.

By and large, the regulators have surrendered their constitutional independence by being subservient to the dictates of the government of the day and vested interests. These regulatory bodies largely function directly under the government influence and those who man these bodies are also hired and fired by the government in one way or the other.

Let us censure the conduct of a few of these regulators. The Competition Commission of Pakistan (CCP) is deemed to be an independent quasi-regulatory and quasi-judicial body that helps promote healthy competition between companies for the benefit of the economy and the consumers. The Commission prohibits abuse of a dominant position in the market, certain types of anti-competitive agreements, and deceptive market practices. It also reviews mergers of undertakings that could result in a significant lessening of competition. Combined with its advocacy efforts, the Commission seeks to promote voluntary compliance and develop a ‘competition culture’ in the economy.

How far the commission meets its responsibility to protect the economy and the consumer interest is something which needs to be made transparent. With strong cartels operative in all fields – cement, food, milk industries and many more it appears that the commission has little control or will to manage its mandate.

The Intellectual Property Organisation of Pakistan (IPO-Pakistan) was established as an autonomous body on 8th April, 2005 under the administrative control of the Cabinet Division for integrated and efficient intellectual property management in the country. The Trade Marks Registry, Copyright Office and Patent & Design Office became part of the new Organization under a unified and integrated management system.

Pakistan is reported to have a poor track record in protecting IP rights. This has seriously undermined R & D and transfer of technology to Pakistan and also the Foreign Direct Investment. On July 25, 2016, the administrative control of IPO-Pakistan was transferred from Cabinet Division to Commerce Division further undermining the role of IPO-Pakistan.

In 1992, the government approved Wapda’s Strategic Plan for the privatisation of country’s power sector. This major decision was taken to improve the viability of Pakistan’s electric power sector which was characterised by extensive government involvement in management, political interference, and a tariff plagued by cross-subsidies. A critical element of the Strategic Plan was the creation and establishment of a regulatory authority to oversee the restructuring process and to regulate monopolistic services. For the purpose National Electric Power Regulatory Authority (Nepra) was established.

Nepra has been created to introduce transparent and judicious economic regulation, based on sound commercial principles, to the electric power sector of Pakistan. Nepra is deemed to reflect the country’s resolve to enter the new era as a nation committed to freeing enterprise and meeting its social objectives with the aim of offering people opportunities for growth and development.

Judging from the ground realities one can observe that all over the years Nepra has failed to meet its responsibilities. Today, the nation is provided with power which is unaffordable for all segments of consumers. This is one factor which has destroyed country’s industry being non-competitive. The circular debt, driven by the agreements signed with IPPs and associates, is bleeding the economy.

With the opening of our electronic media to the private sector, Pakistan Electronic Media Regulatory Authority (Pemra) was established to regulate this sector having strong influence on the political, social, security and strategic dynamics of the country. Pemra, by and large, is passive in exercising its role in times of need, leaving much for the government to influence.

The Election Commission of Pakistan (ECP) is deemed to be the most important regulator of Pakistan influencing the destiny of the nation. Its role in conducting the 2013 elections was quite questionable because of a variety of reasons. It, therefore, failed to reputation of a creditable regulator.

The Public Procurement Regulatory Authority (PPRA) is an autonomous body endowed with the responsibility of prescribing regulations and procedures for public procurements by federal government-owned public sector organisations with a view to improving governance, management, transparency, accountability and quality of public procurement of goods, works and services. It is also endowed with the responsibility of monitoring procurement by public sector agencies/organizations and has been delegated necessary powers under the Public Procurement Regulatory Authority Ordinance 2002. In most cases PPRA is ignored in public procurements and it opts to remain dormant and passive insofar as its mandate is concerned.

Consumer Rights Commission of Pakistan (CRCP) is a rights-based civil initiative registered under the Trust Act, 1882. Established in 1998, CRCP is deemed to be an independent, non-profit, and non-governmental organisation. It aims to largely work through local fund-raising and engaging volunteers. It is not supported by any industry or commercial sector. It is the first national consumer organisation in the country, which approaches the issue of consumer protection in comprehensive and holistic terms. Its vision and strategies have significant cross linkages with both market practices and issues of governance. Even this entity from the private sector does not appear to effectively represent and protect the interests of consumers in the face of strong lobbies.

In conclusion, one can see that the regulators of Pakistan are by and large passive and subservient to political and vested interests’ influence. This is the biggest ill which is causing a massive dent on the nation’s economy, social fabric, political dynamics, country’s strategic and defence interests and the interest of the people of Pakistan. To move on as a nation this segment needs to be fixed and fixed fast.