The Competition Commission of Pakistan (CCP) has imposed more than Rs 1.5 billion for running a competitive act on Asha Steel Mills Limited (ASML) and International Stells Limited (ISL), in violation of 2010. 648.3 million on Esha Steel Mills and RS. 914.2 million on International Stells Limited.
A two -member CCP bench, comprising Chairman Dr Kabir Ahmed Sudhu and Ms Bashara Naz, issued a final order after concluding that the two companies united to fix steel prices and exchange sensitive trade data.
According to the CCP order, the two companies jointly integrated their pricing strategies, fixed prices, and market confidential information, which distorted the competition and damaged consumers. Steel cartel increased prices on average 111 %, with raw steel prices. 146,000 per tonne of over three years.
The commission found that the cartel runs between July 2020 and December 2023, with the direct involvement of senior management, including the chief executive officers of the two companies. The CCP noted that there are no reducing factors to reduce their responsibility.
The bench said that the penalty was determined under the guidelines of the Commission for Financial Penalty, which is focusing on prevention and reflects the seriousness of the violation.
Financial support represents 1 % of the annual business for the EAC Company for the financial year 2021-22. Both firms have been ordered to collect fines within 60 days. The failure to comply will result in an additional fine of Rs 500. 100,000 daily, and the CCP Act can launch a criminal proceedings under Section 38.
The CCP pointed out that flat steel is an important input for multiple industries, which directly affect consumers and the national economy directly affecting consumers and the national economy of construction, automotive, equipment and agricultural, and in this market. The Commission also noted that Pakistan’s theft sector lacks effective regulation, unlike other jurisdiction powers, such as the United States, the European Union, and the UK, where a fair competition is ensured with the help of surveillance.
In May 2021, the CCP launched a steel sector investigation after receiving complaints about the same prices among the producers. Following the raids in June 2024, investigators found evidence of integrated prices and data sharing between Aisha Steel Mills and International Stells Limited.
After issuing a showcasal notice in March 2025, the CCP concluded that the two firms violated Section 4 of the Competition Act. The commission said that the decision has identified its most important crackdown on cartilage in Pakistan’s steel industry.