20 medical centers face penalties for anti-competitive practices

August 15, 2025 (MLN): The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) ruling against 20 medical centres, laboratories, and five associations for collusive price fixing, customer allocation, and other anti-competitive practices in mandatory pre-departure medical examinations for Pakistani workers bound for Gulf countries.

It confirmed that Gulf Approved Medical Centres Administrative Offices (GAMCAs) in five regions Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan  allocated customers on a rotational basis, removing competition on price and service quality.

Workers were bound to specific centres, charged uniform fees, and in some cases forced into unnecessary repeat tests for additional payments.

While CAT upheld CCP’s findings, it reduced penalties from Rs20 million to Rs2m per medical centre and from Rs10m to Rs1m per GAMCA.

The case originated from a complaint by the Pakistan Overseas Employment Promoters Association (POEPA), which cited the burden on low-income labourers heading to Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait.

CCP Chairman Dr. Kabir Sidhu warned that any business association found facilitating collusion or restricting competition would face strict action under the law. He stressed that such platforms should be used to promote sectoral growth, enhance competition, and to benefit consumers.

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