The Competition Commission of Pakistan (CCP) has imposed fines exceeding Rs 1.5 billion on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) for operating a price-fixing cartel in violation of the Competition Act, 2010.
In its final order, the CCP stated that Aisha Steel Mills was fined Rs 648.3 million, while International Steels Limited faced a penalty of Rs 914.2 million. The decision was announced by a two-member bench led by Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz.
The CCP’s investigation revealed that both companies colluded to fix prices of flat steel products and exchanged sensitive commercial data, restricting fair market competition. The commission found that between July 2020 and December 2023, the two companies coordinated their pricing strategies, resulting in a 111% price hike and an increase of Rs 146,000 per tonne in raw steel prices.
According to the report, senior management, including the chief executive officers of both companies, were directly involved in the cartel’s operations. The CCP emphasized that the penalties were calculated under its Guidelines on Financial Penalties to ensure deterrence and reflect the severity of the violation.
The fines represent 1% of each company’s annual turnover for FY2021–22. Both firms are required to pay within 60 days, failing which they will face an additional Rs 100,000 per day fine and possible criminal proceedings under Section 38 of the Act.
The CCP highlighted that flat steel is a critical material for industries like construction, automotive, and appliances, and price manipulation directly impacts consumers and the economy. The commission noted that Pakistan’s steel sector lacks strict regulation compared to countries such as the United States and the European Union.
The investigation began in May 2021 after complaints of identical pricing patterns among steel manufacturers. Following raids in June 2024, the CCP obtained evidence of coordinated price-setting and data sharing. After issuing show-cause notices in March 2025, the commission concluded that both companies had violated Section 4 of the Competition Act.
This ruling marks one of the CCP’s most significant crackdowns on cartelization in Pakistan’s steel industry, reaffirming its commitment to promoting fair competition and protecting consumers.
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