ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the acquisition of Pakistan International Airlines Corporation Limited (PIA) by a consortium led by Arif Habib Corporation Limited, marking a major step in the government’s privatization drive.
The approval follows a detailed Phase-I competition assessment conducted under Section 11 of the Competition Act, 2010. The acquiring entity, M/s. PIA Equity Limited, is a Special Purpose Vehicle (SPV) incorporated in January 2026 by a consortium that includes Fatima Fertilizer Company Limited, Lake City Holdings (Private) Limited, City Schools (Private) Limited, and AKD Group Holdings (Private) Limited.
The consortium emerged as the successful bidder through a competitive process overseen by the Privatization Commission of Pakistan.
Competition Analysis and Market Impact
The CCP’s review covered key aviation segments, including domestic and international passenger air transport, cargo services, postal carriage, and technical aviation services. The Commission concluded that Pakistan’s aviation market remains competitive, especially on international routes dominated by global airlines such as Emirates, Qatar Airways, and Etihad Airways.
Domestically, competition continues among carriers like Airblue, AirSial, Fly Jinnah, and Serene Air, ensuring consumer choice and limiting market dominance.
The regulator noted that PIA’s market share has declined over time due to operational challenges, further reflecting strong competitive pressures.
No Competition Concerns Identified
According to the CCP, the transaction qualifies as a conglomerate merger, as the acquiring parties do not operate in the same markets as PIA. This absence of horizontal or vertical overlaps means the deal does not pose structural competition risks.
The Commission concluded that the acquisition neither creates nor strengthens a dominant market position, nor does it substantially lessen competition. As a result, the transaction has been formally authorized.
Boost to Privatization and Aviation Sector
The approval is expected to support Pakistan’s broader privatization agenda by improving operational efficiency, enhancing service quality, and reducing reliance on government subsidies.
The CCP emphasized that the privatization of PIA could contribute to a more competitive and commercially driven aviation sector while ensuring a level playing field for all market participants.
However, the regulator clarified that the approval is limited to competition aspects and remains subject to compliance with all applicable laws and regulatory requirements.