The Competition Commission of Pakistan (CCP) has imposed financial penalties exceeding PKR 1.56 bln (USD 5.5 mln) on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) for cartelization and price-fixing.
In a final order issued by Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz, the CCP fined ASML PKR 648.3 mln (USD 2.3 mln) and ISL PKR 914.2 mln (USD 3.2 mln) after determining that both companies had coordinated prices, fixed flat steel rates, and shared commercially sensitive information, thereby distorting market competition.
The inquiry revealed that the steel cartel raised prices by an average of 111pct, with flat steel costs increasing by PKR 146,000 (USD 515) per ton between July 2020 and December 2023. The CCP found evidence that senior management, including CEOs, of both firms, were directly involved in the collusive practices.
Citing its Guidelines on Financial Penalties, the Commission said the fines, equivalent to 1pct of each company’s 2021-22 turnover, aim to deter future anti-competitive behavior and underscore the seriousness of the violation. No mitigating factors were identified.
The CCP emphasized that flat steel is a critical input for sectors including construction, automotive, appliances, and agriculture, and any price manipulation directly harms consumers and the economy. It also noted that Pakistan’s steel sector remains largely unregulated compared to other jurisdictions such as the U.S., EU, and U.K.
Both companies have 60 days to deposit the penalties. Failure to comply will incur an additional PKR 100,000 per day and may trigger criminal proceedings.
The CCP launched its investigation in May 2021 following complaints of parallel pricing behavior. Search operations in June 2024 uncovered evidence of identical and simultaneous price changes, confirming collusion. Show cause notices were issued in March 2025, leading to the final ruling.
1 USD / 283.3 PKR
