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Aftab Maken
The Competition Commission of Pakistan (CCP) has imposed fines exceeding Rs1.56 billion on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) for collusion, artificial price hikes, and distorting market competition in violation of national competition laws.
In a landmark ruling issued by a two-member CCP bench — Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz — both companies were found guilty of serious breaches of the Competition Act, 2010. Aisha Steel Mills has been fined Rs648.3 million, while International Steels faces a penalty of Rs 914.2 million, each representing 1% of their annual turnover.
According to the CCP, investigations confirmed that the two major steel producers engaged in coordinated price increases between July 2020 and December 2023. The companies simultaneously and repeatedly raised product prices through mutual understanding, a direct violation of Section 4(1) and Section 4(2)(a) of the Competition Act.
The inquiry revealed that during this three-year period, steel prices rose by an average of 111%, with the per-ton cost of flat steel increasing by as much as Rs146,000. The investigation determined that these hikes were not driven by supply and demand fluctuations but by deliberate coordination between the two firms.
The decision stated that both companies exchanged sensitive commercial data and synchronized pricing structures, undermining market competition and harming consumers. The bench described the conduct as a “serious offense both legally and ethically,” emphasizing that it had a direct negative impact on Pakistan’s economy.
The commission underscored the importance of the flat steel sector to the national economy, as it supplies key industries such as construction, automobiles, home appliances, agriculture, and manufacturing. Any artificial inflation of steel prices, it said, leads to higher production costs and inflationary pressure on consumers.
The ruling also highlighted Pakistan’s under-regulated steel sector, contrasting it with stricter oversight in developed economies like the United States, the United Kingdom, and the European Union. In such an environment, the CCP affirmed its responsibility to safeguard transparency, fair competition, and consumer welfare in domestic markets.
The investigation found direct involvement of senior executives and chief executive officers from both firms in maintaining the cartel. Evidence showed regular exchanges of pricing formulas and rate structures, creating an environment of “artificial pricing” across the market.
Given the deliberate and prolonged nature of the violations, the CCP ruled that neither company qualified for leniency. Both have been directed to deposit their fines into the national treasury within 60 days. Failure to comply will result in an additional daily fine of Rs100,000 until payment is made.
This decision follows an inquiry launched in May 2021 after complaints about unusual price surges and possible cartelization in the steel sector. On June 12, 2024, CCP teams conducted raids at Aisha Steel and ISL offices, seizing key evidence — including documents and communications — confirming that both firms had coordinated pricing adjustments rather than responding to independent market mechanisms.
Subsequently, in March 2025, show-cause notices were issued, and hearings were held to examine the evidence. The investigation revealed price timelines, emails, and correspondences that clearly substantiated collusion between the companies.
“This case marks a milestone in promoting competitive markets and curbing anti-transparent business practices in Pakistan,” the commission said. It stressed that cartelization and coordinated price-fixing harm not only consumers but also the wider industrial base, warning that any future attempts to manipulate markets would face severe consequences.
The CCP stated that this decision sends a strong message to other businesses that engaging in artificial pricing or collusive behavior will invite strict enforcement actions and heavy penalties. It reiterated that a free, fair, and transparent market economy is vital to Pakistan’s growth and consumer protection, urging all market participants to comply with competition laws rather than exploiting consumers through price manipulation.
Economic analysts have welcomed the decision, calling it a positive precedent for Pakistan’s steel industry. They noted that it could help curb market manipulation, foster fair competition, and protect industries and consumers from the long-term effects of artificial pricing.
