ISLAMABAD — The Competition Commission of Pakistan (CCP) has slapped hefty fines on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) for engaging in cartelization and price-fixing within the country’s flat steel sector. The decision marks a major crackdown on anti-competitive behavior in one of Pakistan’s most vital industries.
According to a detailed order issued on Wednesday, the CCP imposed a penalty of Rs 648.3 million on Aisha Steel Mills and Rs 914.2 million on International Steels, equivalent to 1% of their annual turnover for 2021–22. The order was finalized by a two-member bench comprising Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz, following a thorough investigation into the companies’ pricing practices.
The CCP’s inquiry concluded that both firms had colluded to fix flat steel prices, coordinated pricing strategies, and exchanged sensitive commercial information clear violations of Section 4 of the Competition Act, 2010. The report revealed that the coordinated actions led to an average 111% increase in steel prices, with rates soaring by nearly Rs 146,000 per tonne between July 2020 and December 2023.
In determining the fines, the Commission applied its Guidelines on Financial Penalties, emphasizing deterrence and accountability. The order noted that the conduct of both companies represented the “most egregious form of cartelization,” carried out over more than three years with the direct involvement of senior executives, including their chief executive officers. No mitigating circumstances were found.
The Commission also highlighted that flat steel is a key input for Pakistan’s construction, automotive, and manufacturing sectors. Manipulating its prices, the order warned, not only burdens consumers but also destabilizes industrial growth and competitiveness. Unlike jurisdictions such as the U.S., the EU, and the U.K., Pakistan’s steel sector lacks comprehensive regulation a gap that, according to the CCP, enables such collusive practices to thrive.
The investigation began in May 2021 after the CCP received complaints of parallel pricing behavior among top producers. Subsequent search and inspection operations in June 2024 at the premises of both companies uncovered evidence of identical price announcements and mutual coordination. Data analysis confirmed that ASML and ISL made simultaneous and uniform price changes for more than three years a pattern inconsistent with independent market competition.
Following the inquiry, Show Cause Notices were issued to both companies in March 2025, outlining violations under Section 4 of the Act. The latest order directs ASML and ISL to deposit the penalties within 60 days, warning that failure to comply will attract an additional fine of Rs 100,000 per day and possible criminal proceedings under Section 38 of the law.
The decision concludes one of the most closely watched cases in Pakistan’s industrial sector. The CCP reaffirmed that it remains committed to preserving fair competition, protecting consumers, and ensuring transparency across key economic segments sending a strong message that price-fixing and collusion will not be tolerated.
