Competition Policy Key to Industrial Growth, Say Economic Experts

ISLAMABAD (News Desk):  Economic policy experts have emphasized that competition policy is essential for industrial growth and economic transformation and must be treated as a central pillar of industrial and growth strategy.

These views were highlighted by Dr. Nadeem Javed, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), during his lecture to officials of the Competition Commission of Pakistan (CCP). He stressed that without effective competition, industrial policies often fail to deliver their intended outcomes, leading to inefficiencies and weak productivity.

The Competition Commission of Pakistan hosted the sixth lecture of its ongoing Lecture Series on Competition Law on the topic “Role of Industry in Promoting Market Competition.” The session examined Pakistan’s industrial structure, productivity challenges, and the impact of weak competition on long-term economic growth.

Welcoming the participants, Chairman CCP Dr. Kabir Ahmed Sidhu underscored that competition is not merely a legal or regulatory concept but a core economic policy tool. He reaffirmed CCP’s commitment to strengthening competition enforcement as a means to enhance productivity, boost exports, and promote sustainable industrial growth.

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In his presentation, Dr. Nadeem Javed highlighted Pakistan’s persistent productivity gap and the dominance of highly concentrated industries, including cement, sugar, fertilizer, steel, and automobiles. He explained that weak competitive pressures, regulatory discretion, and protection of incumbents have constrained firm growth, innovation, and export competitiveness. Drawing on international experience from countries such as South Korea, Vietnam, Turkey, and Chile, he noted that disciplined competition, openness to trade and investment, and strong rule-based enforcement were key to escaping low-productivity traps.
The lecture concluded that competition policy must be integrated into industrial and growth strategies. Without effective competition, industrial policies risk reinforcing inefficiencies and protecting rents rather than promoting productivity and economic transformation.

The CCP’s Lecture Series aims to promote informed debate on competition law and policy by engaging leading academics, policymakers, and practitioners, and to strengthen understanding of competition’s role in Pakistan’s economic development.