The Competition Commission of Pakistan (CCP) has granted a time-bound approval to an exemption application for a technology transfer and license agreement between the Sui Southern Gas Company Limited (SSGCL) and USA-based M/s Itron Inc., with certain conditions to be met. According to a press release issued on Tuesday, the agreement between SSGCL and M/s Itron aims to facilitate the manufacturing of gas meters in Pakistan, with exclusivity clauses allowed by the Commission within its scope.
The CCP’s approval stipulates that SSGCL must achieve 100% localization of gas meters and maximize import substitution through local production to meet local demand, including that of Sui Northern Gas Pipelines Limited (SNGPL), the other gas utility company in Pakistan. The Ministry of Energy has also issued directives to SSGCL in this regard.
The granting of exemptions by CCP, pursuant to Section 9 of the Competition Act, 2010, ensures that such exemptions yield economic benefits that outweigh any anti-competitive effects of business agreements.
Additionally, the CCP’s exemption directive mandates that both parties to the agreement must actively explore the export potential of gas meters and provide annual updates to the CCP during the exemption period.
Gas meters must adhere to approved specifications by relevant regulators and international standards. These conditions, set by CCP, aim to promote localization, safeguard consumer interests, and realize economic benefits through import substitution to meet local demand for gas meters, while also exploring export opportunities.
