ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by M/s. PIA Equity Limited, removing a key regulatory hurdle in the government’s high-stakes privatisation of the national flag carrier.
The approval follows a Phase-I competition assessment under Section 11 of the Competition Act, 2010, with the Commission concluding that the transaction does not raise competition concerns.
The deal is part of Islamabad’s broader structural reform agenda aimed at reducing fiscal pressures from loss-making state-owned enterprises and attracting private investment into key sectors. PIA has long been a major contributor to the country’s circular debt and fiscal burden, with successive governments attempting to privatise the airline amid mounting operational and financial challenges.
M/s. PIA Equity Limited, the acquiring entity, is a Special Purpose Vehicle (SPV) incorporated on January 9, 2026, by a consortium led by Arif Habib Corporation Limited (AHCL). Other members include Fatima Fertilizer Company Limited (FFC), Lake City Holdings (Private) Limited (LCH), City Schools (Private) Limited (CSPL), and AKD Group Holdings (Private) Limited (AKD). The consortium emerged as the successful bidder through a competitive process overseen by the Privatization Commission.
Market analysts view the consortium’s entry as a significant development, given its diversified footprint across financial services, fertilizers, real estate, and education, potentially bringing managerial expertise and capital discipline to the airline’s operations.
The CCP’s review covered multiple aviation-related markets, including domestic and international passenger transport, cargo services, postal carriage, and technical aviation services. The Commission found that Pakistan’s aviation sector remains competitive, particularly on international routes dominated by Gulf carriers such as Emirates, Qatar Airways, and Etihad Airways.
At the domestic level, airlines such as Air Blue, Air Sial, Fly Jinnah, and Serene Air continue to provide competitive alternatives on key routes, ensuring consumer choice and limiting the potential for market concentration.
The Commission also noted that PIA’s market share has eroded over time due to operational inefficiencies and increasing competition, underscoring the need for structural reforms within the airline.
Importantly, the CCP categorised the transaction as a conglomerate merger, highlighting that the acquiring consortium does not operate in the same aviation markets as PIA. As a result, the deal involves no horizontal or vertical overlaps, and is unlikely to distort market dynamics.
Following a comprehensive assessment, the Commission concluded that the acquisition does not create or strengthen a dominant position, nor does it substantially lessen competition in any relevant market. The transaction has; therefore, been authorised.
Officials believe the privatisation could mark a turning point for Pakistan’s aviation sector by improving operational efficiency, enhancing service quality, and fostering a level playing field between public and private carriers.
The CCP emphasised that its approval is limited to competition considerations, and the transaction remains subject to all applicable regulatory approvals and conditions imposed by relevant authorities.
The development is being closely watched by investors and policymakers alike, as it may serve as a test case for Pakistan’s broader privatisation programme and its ability to attract credible private sector participation in strategic state-owned enterprises.
The CCP reiterated its commitment to facilitating investment and supporting economic reforms, while ensuring that markets remain competitive, transparent, and consumer-friendly.
Copyright Business Recorder, 2026
Comments