March 18, 2001

Islamabad: In connection with the World Consumer Rights Day, Consumer Rights Commission of Pakistan (CRCP) organized a walk to create awareness about consumers' rights and to highlight the need of comprehensive consumer protection legislation in Pakistan. The consumer protection legislation should ensure the establishment of efficient redress mechanisms whereby consumers, if cheated or harmed in the market, could obtain compensations and damages.

Walk started at 11 a.m. at the Faisal Chowk and ended at the Faisal Mosque where CRCP representatives spoke about consumer problems such as rising prices, sub-standard goods, low quality services, spurious drugs, poor quality water by civic agencies and absence of any system of consumers' complaints redress. They pointed out that consumers' right are not adequately protected in Pakistan and emphasized the need of a strong consumer movement which could engage with market as well as government to promote their interests. Consumers' rights which were emphasized include: (a) right to safety; (b) right to be informed; (c) right to choose; (d) right to be heard; (e) right to redress; (f) right to consumer education; (g) right to healthy environment; and (h) right to fulfillment of basic needs.

It was pointed out that CRCP had drafted and submitted a Model Consumer Protection Act, 2000, to the Federal as well as provincial governments last year but it has not been enacted so far. Necessity of such a law can hardly be over-emphasized in view of globalization and growing emphasis on market economy. India, Sri Lanka, Thailand and Sigapore have already enacted consumer protection laws but Pakistan lags behind as the governments have remained insensitive to consumers' problems. Participants of the walk also demanded the immediate enactment of Freedom of Information Act, 2001, which CRCP submitted to the Government on March 15.

Speakers termed the recent increase in gas prices illegal as the government had bypassed the Gas Regulatory Authority (GRA) which alone had the power to approve any such proposal, after consulting all the stake-holders including consumers. They said that a better way of increasing revenues is to overcome inefficiencies, corruption, leakages and malpractices in the gas sector, instead of putting unbearable burden on domestic consumers. Subsidy up to just 100 units is insufficient as it does not take into account the social attitudes where joint families use one connection for their combined kitchen. Worst affectees of the decision are likely to be the government employees in lower grades.

Speakers demanded an immediate end of government's interference in the regulatory authorities [i.e. Gas Regulatory Authority (GRA), National Electric Power Regulatory Authority (NEPRA) and Pakistan Telecommunication Authority (PTA)]. They

underlined the need of truly independent and credible regulatory bodies which could arbiter among all the stakeholders (i.e. business, consumers and government) and protect the legitimate interests of each one of them. Decisions and attitude which undermine regulators can lead to extremely dangerous consequences for consumers in future, especially in the wake of ongoing privatization process and growing corporate power.

Furthermore, speakers criticized the Ministry of Petroleum for excluding any form of consumers' participation in the proceedings of the proposed Petroleum Regulatory Authority (PRA). They referred to the Section 13 of the proposed draft which empowers the Authority to take decisions without consulting or giving notice to consumers. "This is anti-people and anti-consumers and a deliberate attempt to avoid public scrutiny." Participants demanded amendment in the draft to make it acceptable to consumers.