CCP approves UAE-based acquisition of Pak aircraft maintenance firm

ISLAMABAD: In a development underscoring renewed foreign investor interest in Pakistan, the Competition Commission of Pakistan (CCP) has approved the acquisition of a stake in an aviation maintenance firm by a UAE-based company, bringing fresh foreign direct investment (FDI) into the country’s services sector.

The deal, cleared under Section 11 of the Competition Act, 2010, allows M/s. International Business Company FZE — a UAE-incorporated entity — to acquire shareholding in M/s. Northern Technik (Private) Limited, a local firm engaged in aircraft line maintenance services for commercial airlines. The seller, M/s. SPARS (Private) Limited, is a diversified local entity with interests spanning real estate, aviation, telecom, pharmaceuticals, information technology, construction, and engineering services.

Official sources said the investment represents a meaningful inflow of foreign capital into a specialised and high-value segment of Pakistan’s aviation ecosystem. The entry of a foreign investor into aircraft maintenance services is being seen as particularly significant, given Pakistan’s growing reliance on aviation infrastructure and the increasing demand for cost-efficient, localised maintenance solutions. Industry sources note that such investments can help reduce reliance on overseas maintenance facilities, improve service standards, and potentially position Pakistan as a regional hub for line maintenance services.

According to the CCP officials, the transaction underwent a Phase-I competition review, focusing on whether the acquisition could distort market competition or lead to concentration of market power. The Commission identified the relevant market as aircraft line maintenance services in Pakistan and found it to be fragmented, with multiple service providers as well as airlines maintaining in-house capabilities.

Copyright Business Recorder, 2026