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Aftab Maken
ISLAMABAD: The protracted legal battle surrounding alleged cartelization within the Pakistani sugar industry has taken another turn, with the Competition Commission of Pakistan (CCP) announcing a rescheduling of the rehearing in the case against the Pakistan Sugar Mills Association–PSMA and its numerous member mills. The decision comes in response to fervent requests from the legal representatives of the implicated sugar producers, citing a confluence of ongoing legal proceedings and scheduling conflicts.
The CCP had initially earmarked August 4 to 7, 2025, for the crucial rehearing, a process mandated by the Competition Appellate Tribunal (CAT). However, this timeline has now been shifted, with the hearings slated to commence from September 22 and continue until September 25, 2025. The postponement, granted by the antitrust watchdog, underscores the complex legal landscape surrounding the allegations of anti-competitive practices within the sugar sector.
The primary grounds for seeking adjournment stemmed from the fact that a significant number, exceeding fifty, of the member sugar mills have lodged appeals with the Supreme Court of Pakistan against the CAT’s order. These appeals introduce a parallel legal avenue, potentially impacting the trajectory and outcome of the rehearing before the CCP. Legal counsels representing these mills argued that proceeding with the CCP hearing while the apex court deliberates on the appeals would be prejudicial and could lead to contradictory findings.
Adding to the scheduling complexities, other member mills cited the unavailability of their legal representatives during the originally scheduled dates. The Supreme Court’s customary summer recess was highlighted as a key factor limiting the availability of senior legal practitioners. This logistical challenge further bolstered the plea for a postponement, emphasizing the need for all parties to have adequate and effective legal representation during the crucial rehearing.
While the CCP had initially planned for day-to-day hearings, aligning with the directives issued by the Competition Appellate Tribunal (CAT), the Commission has opted to grant a one-time deferral. This decision, according to the CCP, was made in the interest of upholding principles of fairness and ensuring that all parties involved are afforded a reasonable and adequate opportunity to present their respective cases. The Commission, in its official statement, underscored its commitment to a transparent and equitable process, recognizing the genuine difficulties faced by the respondent parties.
However, the CCP has also issued a firm caveat, stating that this postponement will be the only one entertained. The Commission has made it unequivocally clear that it will not countenance any further delays in the proceedings. In the event of non-appearance by any of the parties or the submission of repeated adjournment requests without compelling justification, the CCP has warned that it reserves the right to initiate ex-parte proceedings. This assertive stance reflects the Commission’s determination to bring the long-pending matter to a conclusive resolution and to prevent undue protraction of the legal process.
The core of the proceedings revolves around show cause notices that were formally issued in November 2020 to the Pakistan Sugar Mills Association (PSMA) and its constituent member mills. These notices were triggered by allegations of cartelization and the engagement in anti-competitive conduct within the sugar industry. The CCP’s initial investigation had unearthed evidence suggesting that the PSMA and its members had colluded to manipulate sugar prices and restrict market competition, actions that are strictly prohibited under the Competition Act, 2010.
The most recent iteration of hearing notices was issued on July 9, 2025, by the CCP. This action was a direct consequence of the order passed by the Competition Appellate Tribunal (CAT) on May 21, 2025. The CAT’s order had specifically directed the Commission to conduct a rehearing of the matter. Crucially, the Tribunal mandated that this rehearing must be conducted before a member or the Chairperson of the CCP who was not part of the original bench that had previously adjudicated the case. This directive aimed to ensure impartiality and a fresh perspective on the complex allegations and evidence presented.
It is pertinent to recall the earlier stages of this significant case. In the year 2021, following its initial inquiry and deliberations, the Competition Commission of Pakistan (CCP) had reached a decisive conclusion, finding the PSMA and its member mills guilty of cartelization. As a consequence of these findings, the CCP had imposed a substantial aggregate penalty amounting to a staggering Rs. 44 billion on the implicated entities. This hefty fine underscored the gravity of the alleged anti-competitive practices and the CCP’s commitment to enforcing fair competition within the national economy.
However, the CCP’s order and the accompanying penalties were subsequently challenged before the Competition Appellate Tribunal (CAT). After a thorough review of the evidence and legal arguments presented, the Tribunal opted to set aside the CCP’s initial order. The CAT’s decision hinged on a procedural point, specifically holding that the casting vote exercised by the then Chairperson of the CCP in a 2-2 deadlock during the quasi-judicial proceedings was not permissible under the stipulations of the Competition Act, 2010. This ruling effectively vacated the CCP’s earlier decision, necessitating the ongoing rehearing process.
The rescheduling of the rehearing marks the latest chapter in a protracted legal saga that has cast a shadow over the Pakistani sugar industry for several years. The outcome of this rehearing will have significant implications for the sugar mills involved, the regulatory landscape governing competition in Pakistan, and ultimately, for consumers of sugar across the nation. The CCP’s resolve to proceed with the rehearing in September, while granting a one-time postponement, signals its intent to finally adjudicate this high-profile case despite the ongoing legal complexities and the considerable pressure from the influential sugar lobby.
