Islamabad, October 8, 2025 — The Competition Commission of Pakistan (CCP) has imposed monetary penalties totaling Rs1.5 billion on Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) after finding both companies guilty of cartelization and price-fixing in violation of Section 4 of the Competition Act, 2010.
According to a statement issued on Wednesday, the CCP Bench—comprising Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz—ordered fines of Rs648.3 million for ASML and Rs914.2 million for ISL. The decision followed a detailed inquiry confirming that both undertakings engaged in coordinated pricing and exchange of sensitive commercial information, practices that constitute serious forms of cartelization.
The CCP’s findings revealed that the two companies jointly fixed flat steel prices and manipulated market conditions, causing a surge in steel rates by nearly 111% over three years. This cartelization severely harmed consumers and disrupted fair competition within Pakistan’s vital steel sector.
The order noted that flat steel is an essential material for key industries such as construction, automotive, appliances, and agriculture. Any manipulation in its pricing directly affects national economic stability. The CCP emphasized that the steel sector remains less regulated than in countries like the United States or those in the European Union, where oversight mechanisms ensure market transparency.
In assessing penalties, the Commission applied its guidelines to ensure the punishment both deters future cartelization and reflects the gravity of the violation. The fines amount to 1% of each company’s annual turnover for the 2021–2022 financial year. Both companies must deposit the penalties within 60 days; failure to comply may result in an additional daily fine of Rs100,000 and potential criminal action under Section 38 of the Act.
The CCP investigation began in May 2021 after complaints of identical pricing patterns among top steel manufacturers. During search and inspection operations in June 2024, investigators found concrete evidence—such as matching price lists and synchronized revisions—proving collusion between ASML and ISL from July 2020 to December 2023.
Show-cause notices were issued in March 2025, and the final order confirmed that senior management, including CEOs, were directly involved in the misconduct. No mitigating factors were found to justify leniency.
By finalizing this case, the CCP reaffirmed its commitment to promoting healthy competition and protecting consumers from anti-competitive practices that undermine Pakistan’s industrial and economic growth.