The Competition Commission of Pakistan (CCP) carried out raids on July 18, 2025, targeting four transformer material suppliers suspected of forming a cartel to manipulate public sector tenders. The probe was launched after Lahore Electric Supply Company (LESCO) raised concerns about possible collusive practices during procurement.
According to the CCP, the suppliers are suspected of engaging in bid rigging tactics such as submitting identical bids and rotating tender awards—classic signs of a coordinated cartel. These actions violate Section 4(2)(e) of the Competition Act, 2010, and are believed to have inflated costs, causing significant financial losses to the public sector.
This crackdown comes as part of the CCP’s broader push to eliminate anti-competitive behavior. In FY2024–25, the agency imposed over Rs1 billion in penalties on various cartels. On social media platform X (formerly Twitter), public frustration has been vocal, with many users criticizing how such schemes drive up electricity prices and erode trust in public procurement systems.
If the CCP’s investigation confirms collusion, show-cause notices will be issued to the firms involved, possibly leading to heavy fines. The agency’s efforts are being supported by the National Accountability Bureau (NAB) under a 2025 Memorandum of Understanding (MoU) aimed at enhancing transparency and accountability in public contracts.
Published in SouthAsianDesk, July 18th, 2025
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