2 min read
The Competition Appellate Tribunal (CAT) has upheld penalties worth Rs. 205 million imposed on seven major banks and the Pakistan Banks Association (PBA), dismissing their long-pending appeals and endorsing the Competition Commission of Pakistan’s (CCP) findings of cartel-like conduct in the launch of the Enhanced Savings Account (ESA).
In a short order issued on Wednesday, the CAT rejected ten appeals filed against CCP’s April 2008 order and the Appellate Bench ruling of June 2009. The tribunal confirmed that the coordinated introduction of the ESA by PBA and leading banks violated Section 4 of the Competition Ordinance, 2007, as it distorted market competition and disadvantaged small depositors. Detailed reasons for the decision will be issued later.
This case dates back to the early years of the CCP and is regarded as its first major enforcement action. The Commission had found that PBA, along with Habib Bank Limited, Allied Bank Limited, MCB Bank Limited, United Bank Limited, Saudi Pak Bank Limited, Atlas Bank Limited, and National Bank Limited, acted in concert rather than competing independently. Penalties included Rs. 30 million on PBA and Rs. 25 million on each bank.
The CCP termed the ruling a significant milestone, highlighting its persistence in pursuing long-standing litigation despite systemic legal delays. CCP Chairman Dr. Kabir Ahmed Sidhu stated that the decision “reinforces the principle that no institution, regardless of size or influence, can indefinitely avoid accountability for anti-competitive behavior.” The verdict strengthens regulatory oversight in Pakistan’s banking sector and sends a clear signal against collusion.
