Supreme Court urges policies to cut business costs, prices

Dawn reported that the Supreme Court has urged authorities to adopt incentive-based policies that bring down operating expenses for firms and the cost of making and delivering products, aimed at easing prices for consumers. Citing Article 38 of the Constitution, Justice Jamal Khan Mandokhail said the state has a duty to advance the economic and social welfare of citizens.

The two-judge bench, which also included Justice Salahuddin Panwhar, heard an appeal against the Competition Commission of Pakistan and the Competition Appellate Tribunal's April 24, 2025 decisions. The tribunal had held that the Pakistan Vanaspati Manufacturers Association engaged in prohibited price-fixing. The apex court upheld the finding that the association collectively set ghee and cooking oil prices, but lowered the penalty from Rs50 million to Rs30m.

According to the judgment, the government urged manufacturers between 2007 and 2009 to pass on falling palm oil prices, and the subsequent price cuts followed a series of exchanges with the association. The court stressed that competing firms must set prices independently, and that collective pricing undermines competition. It also said the CCP must promote competition awareness before violations occur, with penalties a measure of last resort.