CCP Develops AI System to Detect Bid-Rigging and Collusion in Public Procurement

ISLAMABAD: The Competition Commission of Pakistan (CCP) has developed an artificial intelligence (AI)-based system to detect bid-rigging and potential collusion in government procurement, aiming to promote fair competition and improve the use of public funds.

CCP Chairman Farid Ahmad Tarar said Pakistan spends approximately $60 billion annually on public procurement, equivalent to around 15 to 20 per cent of the country’s gross domestic product (GDP).

He said monitoring government procurement worth trillions of rupees solely through complaints and manual scrutiny was not feasible. The AI-based system would help investigators focus their resources on high-risk cases and identify potential irregularities more efficiently.

The CCP clarified that alerts generated by the system would not constitute a final determination of a violation or the existence of a cartel. Each alert would require independent verification, evidence gathering and legal scrutiny before any action could be taken.

The commission said its Bid-Rigging Detection System was at an advanced stage of pre-implementation arrangements. The initiative has also been featured in Stanford’s Global Antitrust Report, which presents the experiences of 30 competition authorities worldwide.

To facilitate the implementation of the system, institutional memorandums of understanding have been agreed upon with federal and provincial procurement authorities and the Securities and Exchange Commission of Pakistan (SECP).

The CCP expects the initiative to strengthen oversight of public procurement, encourage fair competition among bidders, help identify potential collusive practices and ensure more efficient utilisation of public resources.