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In a landmark decision targeting anti-competitive behavior, the Competition Commission of Pakistan (CCP) has imposed a massive collective fine of PKR 1.50 billion on two major, publicly listed firms, Aisha Steel Mills and International Steels, after finding them guilty of price collusion and operating a steel cartel.
The ruling, issued by a bench comprising CCP Chairman Dr. Kabir Sidhu and Member Bushra Naz, concluded that the illegal price fixing
The Commission’s detailed investigation revealed that the cartel artificially inflated prices by an alarming average of 111% over three years, spanning from July 2020 to December 2023. This collusion led to a spike of PKR 146,000 per ton in the price of raw steel.
The CCP confirmed that the artificial price hike was created through a calculated act of collusion, with the management and chief executives of the steel companies found to be directly involved in the scheme.
Heavy Penalties Imposed
The fine structure reflects the severity of the violation:
- International Steels was penalized with PKR 914.2 million (91 crore 42 lakh).
- Aisha Steel Mills was fined PKR 648.3 million (64 crore 83 lakh).
Both companies, which are listed on the stock market, have been directed to pay the entire fine amount within 60 days. The CCP has attached a strict compliance warning: any delay in payment will incur an additional penalty of PKR 100,000 per day.
Investigation Timeline and Evidence
The path to this major enforcement action began in 2021 when the Competition Commission initiated an inquiry following initial complaints. The investigation intensified, and in June 2024, the CCP conducted surprise raids on the offices of both companies to collect evidence.
The subsequent price analysis of the seized data established a simultaneous increase in pricing by both firms, which the Commission deemed definitive proof of their collusive agreement. This evidence led to the issuance of show-cause notices to the companies in March 2025.
CCP Vows ‘Zero Tolerance’
Commenting on the landmark decision, CCP Chairman Dr. Kabir Sidhu issued a strong warning to the industry.
“We will not tolerate cartelization in any market,” stated Dr. Sidhu. He concluded by affirming the regulatory body’s unwavering commitment: “We have a zero-tolerance policy for cartel formation and price collusion,” ensuring that “strict action will continue against the violation of competition laws.”
