CCP Fines Two Major Steel Producers Over Rs 1.5 Billion for Price Fixing

The Competition Commission of Pakistan (CCP) has imposed fines of over 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. The Bench imposed a penalty of Rs. 648.3 million on Aisha Steel Mills and Rs. 914.2 million on International Steels Limited. A two-member CCP Bench, comprising Chairman Dr. Kabir Ahmed Sidhu and Member Ms. Bushra Naz, issued the final order after concluding that both companies colluded to fix flat steel prices and exchange sensitive commercial data. According to the CCP’s order, the two companies coordinated their pricing strategies, fixed prices, and shared confidential market information, which distorted competition and harmed consumers. The steel cartel increased prices by an average of 111%, with raw steel prices rising by Rs. 146,000 per tonne over three years. The Commission found that the cartel operated between July 2020 and December 2023, with direct involvement of senior management, including the chief executive officers of both companies. The CCP noted that no mitigating factors existed to reduce their liability. The Bench said the penalties were determined under the Commission’s Guidelines on Financial Penalties, focusing on deterrence and reflecting the seriousness of the violation. The fines represent 1% of each company’s annual turnover for FY2021–22. Both firms have been ordered to deposit the penalties within 60 days. Failure to comply will result in an additional fine of Rs. 100,000 per day, and the CCP may initiate criminal proceedings under Section 38 of the Act. The CCP underlined that flat steel is a critical input for several industries, including construction, automotive, appliances, and agriculture, and any price manipulation in this market directly affects consumers and the national economy. The Commission also noted that Pakistan’s steel sector lacks effective regulation, unlike other jurisdictions such as the United States, European Union, and United Kingdom, where oversight ensures fair competition. The CCP began investigating the steel sector in May 2021 after receiving complaints about identical pricing among producers. Following raids in June 2024, investigators found evidence of coordinated pricing and data sharing between Aisha Steel Mills and International Steels Limited. After issuing show-cause notices in March 2025, the CCP concluded both firms violated Section 4 of the Competition Act. The Commission said the ruling marks one of its most significant crackdowns on cartelization in Pakistan’s steel industry.