Pakistan competition watchdog cracks down on cartels across key sectors in 2025

Pakistan’s competition watchdog stepped up enforcement against cartelization, price fixing and other anti-competitive practices in 2025, taking action across sectors ranging from sugar and steel to poultry, fertilizer, education, transport and power supply, the regulator said.

The Competition Commission of Pakistan said its actions were aimed at protecting consumers and ensuring fair and transparent markets.

In the sugar sector, the commission issued show-cause notices to 10 sugar mills in Punjab for allegedly colluding on the start of the crushing season and fixing the sugarcane procurement price at PKR 400 per maund. The CCP said the mills jointly decided to delay crushing during a meeting on Nov. 10 in violation of Section 4 of the Competition Act, 2010.

In one of its largest enforcement actions, the commission imposed heavy penalties on Aisha Steel Mills Ltd. and International Steels Ltd. for cartelization and price fixing. Aisha Steel Mills was fined PKR 648 million, while International Steels was penalized PKR 914 million. An inquiry found coordinated pricing behavior, the exchange of sensitive information and an average increase of 111% in steel prices over three years.

In the education sector, the CCP issued show-cause notices to 17 major private school systems, accusing them of abusing their dominant position by forcing parents to buy costly, logo-branded notebooks, workbooks and uniforms from designated vendors.
The commission also imposed a collective fine of PKR 155 million on eight major poultry hatcheries for cartelization and price fixing of day-old broiler chicks, a practice it said contributed to higher poultry prices.

In the fertilizer sector, the CCP fined six major urea manufacturers PKR 50 million each and imposed a PKR 75 million penalty on a leading industry association, taking total penalties to PKR 375 million, for coordinated conduct that restricted competition.

Transport associations were also penalized. The Transporters of Goods Association and the Local Goods Transport Association were each fined PKR 5 million for fixing rates through collective decisions that restricted independent pricing by transporters.

Beyond fines, the CCP said it intensified enforcement through raids and inspections. In Lahore, the commission conducted raids on entities linked to alleged cartelization in the out-of-home advertising market over suspected price fixing and bid coordination.

Similar operations targeted suppliers involved in transformer reclamation materials for power distribution companies over suspected bid rigging.

In Gujrat, the commission carried out search and inspection operations at the premises of two electric fan manufacturers and their industry association, securing documents and digital evidence over suspected cartelization and price fixing.

The CCP also reported progress on the legal front, with the Competition Appellate Tribunal upholding key cases. The tribunal disposed of the long-pending Pakistan Poultry Association cartel case, upheld the commission’s findings and ordered recovery of a reduced penalty of PKR 25 million.

The tribunal also upheld a CCP order against the Pakistan Flour Mills Association for fixing wheat flour prices and directed payment of a PKR 35 million fine. In the poultry sector, it admitted and fixed for hearing appeals by eight hatcheries fined PKR 155 million for cartelization in day-old chick prices, while the Lahore High Court rejected attempts to stall the proceedings.

Through these actions, the CCP said it reinforced its zero-tolerance stance on cartelization and reiterated its commitment to promoting fair competition and protecting consumers across Pakistan’s economy.