ISLAMABAD (APP) - The Competition Commission of Pakistan in its report has stressed the need for investment in infrastructure and public goods to reduce transaction costs and entry barriers for improving overall business profitability in the economy. The report titled State of Competition Report maintains that actions were needed for sustained macroeconomic stability in the country. An environment in which inflation remains endemic and exchange rate is unstable, the time horizon for investment decisions and business planning becomes severely curtailed and competitiveness and competition are casualties, it added. It suggest the government to give highest priority to the consolidation of its first generation reforms so that there is a stable macroeconomic environment in the country in the years ahead. It said that the system of relative prices provides reliable signals for evaluating alternative investments. The report said that Pakistan was having long history of rent-seeking behaviour by the business community which needed to be dealt with decisively sooner rather than later. It also suggested for strengthen the institutional mandates for all oversight bodies to reduce and eventuality eliminate the need for rent-seeking behaviour. It suggested for preventing the institutional capture of oversight bodies by vested interests, a phenomenon that allows cartelization and anti-competitive actions by stealth. It advocates for providing an appropriate degree of autonomy in operations to the oversight or regulatory agencies to enhance their effectiveness. If any redress or additional scrutiny of institutional decisions is needed, it should be done by the legal system and not by a government ministry, the report added. It also suggested that the government should desist from dealings with the trade associations or groups of businessmen on questions related to product costs ad pricing since this invariably encourages cartelization and other forms of collusive behaviour. The report said that the policies must be regularly re-evaluated for outcomes and results and amended when needed. The Competition Commission also needs to take effective action itself at the level of building a coalition of support for its activities. In this regard the CCP needs to continue to emphasize advocacy within a wide variety of constituencies and interest groups in the country. The commission must continue to reiterate the benefits of competition, the logic, rationale and the need for competition policy and publicize CCPs adopted approach to fulfilling its mandate, it added. The commission should also build strong in-house research and investigative capacity and earmark the needed resources for this to make itself more effective in the future. The report said that implementing competition policies and laws should be seen in both short and long term perspectives, saying that merely having a good law was unlikely to be enough.