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Aftab Maken
ISLAMABAD: The Competition Appellate Tribunal (CAT) has dismissed a set of long-pending appeals filed by several leading banks and the Pakistan Banks Association (PBA), thereby upholding penalties of approximately Rs 205 million imposed by the Competition Commission of Pakistan (CCP) in the Enhanced Savings Account (ESA) cartel case.
Through a short order issued after extensive hearings, the Tribunal rejected ten appeals challenging the CCP’s original order of April 2008 as well as the Commission’s Appellate Bench decision dated June 10, 2009. The CCP had found the PBA and seven major banks guilty of engaging in collusive practices while introducing the Enhanced Savings Account, a move that the regulator concluded had distorted competition in the banking sector.
According to the CCP, the coordinated introduction of the ESA involved uniform terms and conditions adopted collectively by the banks, which effectively eliminated competition and created unfair market conditions, particularly to the detriment of smaller banks and depositors. The conduct was held to be in violation of Section 4 of the Competition Ordinance, 2007, which prohibits agreements and practices that restrict, reduce or distort competition.
Under the penalties upheld by the Tribunal, the Pakistan Banks Association was fined Rs 30 million, while Rs 25 million each was imposed on Habib Bank Limited, Allied Bank Limited, MCB Bank Limited, United Bank Limited, Saudi Pak Bank Limited, Atlas Bank Limited and National Bank Limited. Together, the fines amount to around Rs 205 million.
The Tribunal’s decision brings to a close litigation that had remained pending for more than a decade and a half, marking a significant moment for competition enforcement in Pakistan. While detailed reasons for the dismissal of the appeals are expected to be issued separately, the short order confirms the validity of the CCP’s findings and penalties.
The ESA case holds particular importance for the Competition Commission of Pakistan, as it was the first major enforcement action taken by the Commission after its establishment. At the time, the case was seen as a test of the country’s newly introduced competition law framework and the CCP’s resolve to regulate powerful sectors of the economy.
Officials at the Commission view the ruling as a reflection of improved legal follow-up and institutional reforms undertaken in recent years. As part of a broader strategy to address prolonged litigation, the CCP has strengthened its legal wing and adopted proactive case management practices. These efforts have resulted in the resolution of more than 70 percent of the Commission’s previously pending court cases.
Commenting on the Tribunal’s verdict, Dr Kabir Ahmed Sidhu said the decision reinforces the fundamental principle that accountability cannot be avoided indefinitely. He noted that while justice may at times be delayed due to prolonged legal processes, it ultimately prevails, and no entity—regardless of its size or influence—can remain beyond the reach of competition law for anti-competitive conduct.
The CAT’s ruling is expected to serve as an important precedent, underscoring the enforceability of competition regulations in Pakistan’s financial sector and reaffirming the CCP’s mandate to ensure fair and competitive markets.
