The Competition Appellate Tribunal (CAT) has dismissed ten long-pending appeals filed by several banks and the Pakistan Bankers Association (PBA). The tribunal upheld the decision of the Competition Commission of Pakistan (CCP), which had imposed total fines of around Rs205 million on charges of cartelization.
According to sources, the appeals challenged the Commission’s orders issued in April 2008 and June 2009, in which the PBA and seven major banks were found guilty of collusion in the launch of the Enhanced Savings Account (ESA). The Commission had concluded that this coordinated action distorted competition and created unfair conditions for small depositors, in violation of the Competition Ordinance 2007.
The CCP had imposed a fine of Rs30 million on the PBA, while Habib Bank, Allied Bank, MCB Bank, United Bank, Saudi Pak Bank, Atlas Bank, and National Bank were each fined Rs25 million. After detailed arguments, the tribunal rejected all appeals in a short order and confirmed the fines. Detailed reasons will be issued later.
Commenting on the decision, CCP Chairman Dr. Kabir Ahmed Sidhu said it reinforces the principle that justice may be delayed, but it cannot be avoided. He added that no institution can escape accountability for anti-competitive conduct forever.
