Tribunal slashes fines on GCC approved medical centres in price-fixing scandal
- By Web Desk -
- Aug 15, 2025
ISLAMABAD: The Competition Appellate Tribunal (CAT) on Friday significantly reduced the penalties imposed on 20 medical centres, laboratories, and their five associations involved in collusive price fixing for mandatory pre-departure medical examinations of Pakistani workers bound for Gulf countries.
The Tribunal upheld the Competition Commission of Pakistan’s (CCP) findings that the centres and their associations engaged in anti-competitive practices, including price fixing, territorial allocation of customers, and collusion. However, it reduced the penalties from Rs20 million per medical centre and Rs10 million per GCC Approved Medical Centres Association (GAMCA) to Rs2 million per centre and Rs1 million per association.
The case relates to a captive market of low-income Pakistani labourers, many of whom seek employment in Saudi Arabia, Qatar, Oman, Bahrain, and Kuwait, and are required to undergo medical tests at GCC-approved centres before departure.
The CCP’s inquiry found that GAMCAs in five regions — Islamabad/Rawalpindi, Lahore, Peshawar, Karachi, and Multan — allocated customers on a rotational basis.
This eliminated competition on price and service quality, as workers were bound to designated centres, charged uniform fees, and in some cases subjected to unnecessary repeat tests for additional payments.
The inquiry was initiated following a complaint by the Pakistan Overseas Employment Promoters Association (POEPA). The CCP concluded that fee fixation, territorial division, and equal customer allocation by GAMCAs violated Section 4 of the Competition Act, 2010.
CCP Chairman Dr. Kabir Sidhu, while commenting on the case, warned business associations against engaging in collusive practices, price fixing, or quota allocations. He emphasised that such platforms should be used to promote sectoral growth, enhance competition, and benefit consumers, stressing that any anti-competitive conduct will be dealt with strictly under competition law.