ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed hefty financial penalties exceeding Rs1.56 billion on two of the country’s leading steel producers — Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) after finding both guilty of cartelization and price-fixing in violation of Section 4 of the Competition Act, 2010.
A CCP Bench comprising Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz passed the final order, imposing a penalty of Rs648.3 million on Aisha Steel Mills and Rs914.2 million on International Steels Limited.
The Commission concluded that both undertakings had engaged in one of the “most egregious forms of cartelization” by fixing prices and exchanging commercially sensitive information, which distorted market competition and hurt consumers.
According to the inquiry, the two companies coordinated pricing strategies and simultaneously increased flat steel prices a critical commodity used in construction, automotive, home appliances, and agriculture. The CCP found that the cartel had driven up prices by an average of 111%, with rates surging by Rs146,000 per tonne over three years.
In determining the penalties, the CCP applied its Guidelines on Imposition of Financial Penalties, emphasizing deterrence and reflecting the gravity of the offense. The Bench noted that the cartel operated for over three years — from July 2020 to December 2023 — and that senior management, including chief executive officers, were directly involved in the collusive conduct.
The order also pointed out that Pakistan’s steel sector remains largely unregulated, unlike in the United States, the European Union, or the United Kingdom, where oversight ensures transparency and prevents anti-competitive practices. The CCP stressed its responsibility to safeguard consumers and fair market competition in such a vital industry.
The penalties, representing 1% of each company’s annual turnover for FY 2021–22, must be paid within 60 days. Failure to comply will result in an additional fine of Rs100,000 per day and may trigger criminal proceedings under Section 38 of the Act.
The CCP launched its inquiry in May 2021 after receiving complaints about identical pricing patterns among leading flat steel producers. Search and inspection operations conducted on June 12, 2024, at both companies’ premises uncovered evidence of coordinated price revisions and information sharing.
Subsequently, Show Cause Notices were issued in March 2025, detailing violations of the Competition Act, which prohibits collusion or agreements that restrict or reduce competition.
The Commission’s final order marks the conclusion of a long-running investigation and reaffirms its commitment to curbing cartelization, promoting fair competition, and protecting consumers from exploitative market practices.
According to industry sources, the CCP’s decision does not pertain to the long steel sector, which manufactures steel bars (sarya) and billets used in construction.
