Competition Commission Approves Technology Transfer Agreement to Boost Local Gas Meter Manufacturing

Islamabad, The Competition Commission of Pakistan (CCP) has conditionally approved a technology transfer and license agreement between Sui Southern Gas Company Limited (SSGCL) and the USA-based M/s Itron Inc. The approval is time-bound and comes with certain conditions intended to enhance the local manufacturing of gas meters and support import substitution.

According to Competition Commission of Pakistan, the scope of the agreement, which includes exclusivity clauses, aims to facilitate the production of gas meters in Pakistan. As part of the approval, CCP has directed SSGCL to achieve 100% localization of gas meters through this agreement and to maximize import substitution through adequate local production to meet domestic demand, including that of Sui Northern Gas Pipelines Limited (SNGPL), another major gas utility company in Pakistan. The Ministry of Energy has issued directives to SSGCL in this regard.

CCP considers and grants exemptions under Section 9 of the Competition Act, 2010, ensuring that such exemptions offer economic benefits that outweigh the anti-competitive effects of business agreements. In this case, the agreement is expected to boost local manufacturing and contribute to Pakistan’s economy.

CCP’s conditional approval also requires both parties to the agreement to make concrete efforts to explore the export potential of the gas meters and to report annually to CCP during the exemption period. Furthermore, the gas meters must be manufactured as per the specifications approved or allowed by relevant regulators and meet international standards.

The conditions set by CCP are designed to encourage localization, promote consumer interests in the market, and bring economic benefits through import substitution while also facilitating export opportunities for locally manufactured gas meters.