Tag Archives: rule of law
Competition or Connections? Why Pakistan Needs Free Markets, Not Favored Businesses
Pakistan has faced competition concerns in several important industries. During 2025, the Competition Commission of Pakistan published market assessments covering sugar, fertilizer, steel, insurance, power, pesticides, and other sectors. Having only a few large companies in a market doesn’t automatically mean they’re breaking the law. But when the same names keep dominating year after year, it’s fair to ask why new businesses struggle to enter. Are the rules too complicated? Are policies unintentionally protecting those already at the top? These are the questions regulators should be asking.
A Glimpse into Classical Liberalism
Montesquieu argued that governmental power should be divided into three separate branches, each with distinct responsibilities. The legislative branch should make laws, the executive branch should implement and enforce them, and the judiciary should interpret and apply the law. His principal objective in advocating the separation of powers was to safeguard individual liberty by preventing the concentration of authority in a single institution. He believed that limiting the powers of each branch would reduce the risk of tyranny and ensure a balanced system of government.