CCP Approves PIA Acquisition by Arif-Habib Consortium Under Competition Law

Approves PIA Acquisition

The (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by M/s. PIA Equity Limited. This decision follows a thorough Phase-I competition assessment under Section 11 of the Competition Act, 2010.

The transaction is part of the Government of Pakistan’s privatization initiative. The acquiring entity, M/s. PIA Equity Limited, is a Special Purpose Vehicle (SPV) established on January 9, 2026, by a consortium including M/s. Arif Habib Corporation Limited, M/s. Fatima Fertilizer Company Limited, and others.

The CCP’s assessment covered various markets such as passenger air transport, cargo services, postal carriage, and aviation-related technical services. The analysis found that Pakistan’s aviation sector remains highly competitive, particularly on international routes, with strong global carriers like Emirates, Qatar Airways, and Etihad Airways dominating the market.

In domestic markets, airlines including Air Blue, Air Sial, Fly Jinnah, and Serene Air operate across key routes, providing consumers with significant choice and demand-side substitutability. The CCP noted that PIA’s declining market share reflects sustained competitive pressures in the sector.

The transaction has been assessed as a conglomerate merger, not raising structural competition concerns due to the absence of horizontal or vertical overlaps between the acquiring consortium and PIA. After comprehensive review, the Commission concluded that the acquisition does not create or strengthen dominant positions in any relevant markets nor is likely to lessen competition.

The CCP observed that privatization of PIA could enhance operational efficiency and service quality, promote a level playing field, reduce reliance on government support, and contribute to a more competitive aviation market. The Commission emphasized that while the transaction has been approved from a competition perspective, it remains subject to all applicable laws and regulatory requirements.