Tribunal Upholds Rs. 205 Million Penalty on 7 Banks and PBA

The Competition Appellate Tribunal (CAT) on Wednesday dismissed ten long-pending appeals filed by several banks and the Pakistan Banks Association (PBA) and supported the penalties of Rs. 205 million imposed by the Competition Commission of Pakistan (CCP) for their cartel-like conduct.

According to a statement issued by the CCP, the appeals challenged the Commission’s April 2008 order and a subsequent Appellate Bench decision dated June 10, 2009.

Both rulings had found the PBA and seven major banks guilty of collusive practices related to the introduction of an Enhanced Savings Account (ESA).

The CCP had concluded that the coordinated launch of the ESA distorted competition and created unfair conditions for small depositors, in violation of Section 4 of the Competition Ordinance, 2007.

Under the original order, the CCP imposed a penalty of Rs. 30 million on the PBA, while fines of Rs. 25 million each were levied on Habib Bank Limited, Allied Bank Limited, MCB Bank Limited, United Bank Limited, Saudi Pak Bank Limited, Atlas Bank Limited, and National Bank Limited.

The tribunal, after hearing extensive arguments, dismissed all appeals through a short order, thereby affirming the penalties. CAT said that detailed reasons for the decision would be issued later.

The CCP termed the ruling a significant milestone, noting that the ESA case was its first major enforcement action following the Commission’s establishment. The Commission added that the outcome reflects its sustained follow-up of long-pending litigation amid broader legal reforms.

CCP Chairman Dr Kabir Ahmed Sidhu said the decision against all parties involved shows that no entity can indefinitely escape accountability for anti-competitive conduct.