Aisha Steel Mills to challenge CCP’s Rs648m penalty

October 09, 2025 (MLN):  Aisha Steel Mills Limited (PSX: ASL) is reviewing the recent order issued by the Competition Commission of Pakistan (CCP) and will pursue appropriate legal recourse in response to the penalty imposed on the company. Company's filing on PSX revealed today. 

On Wednesday, the CCP announced that it had imposed substantial fines on Aisha Steel Mills Limited and International Steels Limited (ISL) after finding both undertakings guilty of cartelization and price-fixing, in violation of Section 4 of the Competition Act, 2010.

According to the order, ASL faces a penalty of Rs648.3 million, while ISL has been fined Rs914.2 million.

The CCP’s Bench, headed by Chairman Dr. Kabir Ahmed Sidhu and Member Bushra Naz, found that both companies had engaged in coordinated price strategies, fixed flat steel prices, and exchanged commercially sensitive information, thereby distorting competition and harming consumers.

The Commission’s investigation revealed that the steel cartel increased prices by an average of 111% between July 2020 and December 2023, with prices rising by Rs146,000 per tonne over the period.

The CCP noted that the flat steel sector plays a crucial role in Pakistan’s economy, particularly in construction, automotive, appliances, and agriculture, and that price manipulation in this market has a direct and broad impact on consumers and industries.

The penalties, equivalent to 1% of the companies’ annual turnover for FY2021–22, must be deposited within 60 days.

Non-compliance may result in an additional daily fine of Rs100,000 and possible criminal proceedings under Section 38 of the Act.

The CCP’s order follows an extensive inquiry launched in May 2021, which included search and inspection operations in June 2024 that uncovered evidence of identical and simultaneous price changes between the two companies.

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