ISLAMABAD, August 15, 2025 — The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) order against 20 medical centers and laboratories, along with their five associations, for engaging in collusive price fixing and territorial allocation of customers in mandatory pre-departure medical examinations for Pakistani workers bound for Gulf countries.
While confirming the CCP’s findings of violations under competition law, the Tribunal reduced the penalties imposed on the medical centers from PKR 20 million per center to PKR 2 million per center, and from PKR 10 million per GCC Medical Centers Association (GAMCA) to PKR 1 million per GAMCA.
The case revolves around a captive market of low-income Pakistani laborers seeking manual jobs in Gulf countries such as Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait. These workers must undergo medical tests at GCC-approved centers as part of their employment process.
The CCP’s inquiry revealed that GAMCAs in five regions—Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan—had allocated customers on a rotational basis. This practice effectively eliminated competition on both price and service quality, as workers were bound to specific centers with uniform fees and were sometimes subjected to unnecessary repeat tests for additional payments.
The CCP launched its investigation based on a complaint from the Pakistan Overseas Employment Promoters Association (POEPA). The Commission concluded that fee fixing, territorial allocation, and equal customer allocation by GAMCAs violated Section 4 of the Competition Act, 2010.
Dr. Kabir Sidhu, Chairman of CCP, warned business associations to refrain from facilitating anti-competitive practices such as collusion, price fixing, or business allocation. He emphasized that business associations should foster sectoral growth, promote competition, and ultimately benefit consumers. The CCP vowed to continue taking strict action against any violations under competition law.
