The Competition Commission of Pakistan (CCP) has delivered a landmark verdict against cartelization in the steel industry, imposing fines exceeding Rs1.5 billion on two major companies—Ayesha Steel Mills and International Steels Limited—for engaging in price fixing between 2021 and 2024.
The two-member bench, headed by Chairman Kabir Sidhu and Member Bushra Naz, concluded that the companies colluded to manipulate the prices of raw steel, distorting fair competition and inflicting heavy costs on consumers.
According to the CCP’s investigation, steel prices surged by an average of 111% over the three-year period, marking an unprecedented increase of Rs146,000 per ton.
The commission found that the price hikes were not market-driven but deliberately coordinated to secure inflated profits, which placed a significant financial burden on industries and the general public.
In its decision, the CCP imposed a fine of Rs648.3 million on Ayesha Steel Mills and Rs914.2 million on International Steels Limited, bringing the total penalties to more than Rs1.5 billion.
Both companies have been directed to deposit the fines within 60 days, with a daily penalty of Rs100,000 for non-compliance.
Following the announcement, Chairman Kabir Sidhu reaffirmed the Commission’s zero-tolerance stance toward anti-competitive practices, declaring that “the CCP will not tolerate cartel formation or artificial price manipulation in any market.”
He stressed that strict enforcement of competition laws is essential to protect consumers and promote transparency in Pakistan’s industrial sectors.
The Commission stated that the verdict should serve as a deterrent to other firms engaging in similar behavior, reinforcing its commitment to consumer protection and fair market practices.
The CCP also announced plans to enhance monitoring of the steel sector and other key industries to prevent monopolistic practices and ensure a competitive, transparent marketplace.
