The Competition Commission of Pakistan (CCP) has approved the acquisition of Pakistan International Airlines Corporation Limited (PIA) by M/s PIA Equity Limited after completing a detailed Phase-I competition review under Section 11 of the Competition Act, 2010. The transaction is part of the Government of Pakistan’s privatization program. M/s PIA Equity Limited is a Special Purpose Vehicle (SPV) incorporated on January 9, 2026, by a consortium.

The transaction is part of the Government of Pakistan’s privatization program. M/s PIA Equity Limited is a Special Purpose Vehicle (SPV) incorporated on January 9, 2026, by a consortium.

The transaction comprises M/s Arif Habib Corporation Limited (AHCL), M/s Fatima Fertilizer Company Limited (FFC), M/s Lake City Holdings (Private) Limited (LCH), M/s City Schools (Private) Limited (CSPL), and M/s AKD Group Holdings (Private) Limited (AKD).

The consortium emerged as the successful bidder through a competitive process conducted by the Privatization Commission.

The CCP’s review covered multiple relevant markets, including domestic and international passenger air transport, cargo services, postal carriage, and aviation-related technical services.

The assessment found the aviation sector to be highly competitive, particularly on international routes, with strong participation from global airlines such as Emirates, Qatar Airways, and Etihad Airways.

In the domestic market, competition remains active with carriers such as Airblue, AirSial, Fly Jinnah, and Serene Air operating across key routes. The Commission noted that consumers have multiple options, limiting any concerns regarding market dominance.

The CCP further observed that PIA’s market share has declined over time due to operational challenges, reflecting sustained competitive pressure within the industry.

The transaction was classified as a conglomerate merger, as the acquiring consortium does not operate in the same relevant markets as PIA. The absence of horizontal or vertical overlaps meant no structural competition concerns were identified.

After review, the Commission concluded that the acquisition does not create or strengthen a dominant position in any relevant market and is unlikely to substantially reduce competition. The transaction has therefore been authorized under the law.

The CCP noted that PIA’s privatization is expected to improve operational efficiency, enhance service quality, reduce reliance on government support, and strengthen competition in the aviation sector.

It clarified that while the transaction has been approved from a competition standpoint, it remains subject to all other applicable regulatory and legal approvals.

The CCP reiterated its commitment to supporting investment and privatization initiatives that promote fair competition, protect consumers, and strengthen economic growth.

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