KARACHI – Major update from Pakistan’s industrial sector as the country’s biggest steel companies have been fined for manipulating prices.
Competition Commission of Pakistan (CCP) slapped two of country’s largest steel companies with fines exceeding Rs1.5 billion for colluding to manipulate raw steel prices, sending shockwaves across the industrial sector.
The two-member CCP bench, chaired by Kabir Sidhu and including Member Bushra Naz, noted that these companies artificially inflated prices and ending fair competition. while consumers and industries nationwide were forced to bear the brunt of skyrocketing steel costs.
According to the CCP’s investigation, the two companies engineered a jaw-dropping average price hike of 111% over three years, translating to a record increase of Rs146,000 per ton of crude steel. This surge severely impacted industries dependent on steel and drove up costs for ordinary consumers, highlighting the massive scale of the manipulation.
The Commission noted that the coordinated price escalation restricted competition, allowing the companies to reap enormous profits at the expense of the public and downstream industries.
CCP imposed a fine of Rs648.3 million on Ayesha Steel Mills and Rs914.2 million on International Steels Limited, totaling over Rs1.5 billion. Both companies have been given 60 days to pay, with a warning that failure to comply will incur an additional daily penalty of Rs100,000.
Officials made it clear that cartelization and price-fixing will not be tolerated. CCP is determined to maintain fair market practices. Any attempt to distort competition or exploit consumers through artificial pricing will be dealt with firmly,” he said.
The ruling sends strong message to dominant market players that the CCP is vigilant in protecting consumers and ensuring transparency.
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