The Competition Commission of Pakistan (CCP) has formally approved the sale of the national airline, PIA, to a private consortium under the ongoing government-led privatisation programme.
The buyer, PIA Equity Limited, is a Special Purpose Vehicle incorporated on January 9, 2026, by five Pakistani business groups working together.
The five consortium members are Arif Habib Corporation, Fatima Fertilizer Company, Lake City Holdings, City Schools Private Limited, and AKD Group Holdings.
The Privatisation Commission of Pakistan oversaw a competitive bidding process, through which PIA Equity Limited formally emerged as the successful bidder for PIA.
Scope of the Review
The Competition Commission assessed multiple markets during its review, covering domestic and international air travel, cargo services, postal carriage, and aviation technical services.
The Commission found the international aviation market to be highly competitive, noting strong participation from Emirates, Qatar Airways, and Etihad Airways across key international routes.
On domestic routes, Air Blue, Air Sial, Fly Jinnah, and Serene Air were identified as active competitors offering passengers considerable choice across Pakistan.
PIA’s own market share has declined steadily over recent years due to persistent operational challenges, reflecting sustained competitive pressure from rival carriers throughout the sector.
Why the Deal Was Cleared
The Commission classified the transaction as a conglomerate merger, as the acquiring consortium currently does not operate in the same markets as Pakistan International Airlines.
No horizontal or vertical overlaps were found between the two parties, meaning the deal does not raise any structural concerns about market concentration.
The Commission concluded that the acquisition will neither create nor strengthen a dominant position in any relevant aviation market across Pakistan’s air transport sector.
Conditions and Outlook
The Commission clarified that its approval covers only the competition dimension of the transaction, and all other applicable laws and regulatory requirements still apply.
The Commission also noted that the privatisation is expected to improve PIA’s operational efficiency, service quality, and long-term commercial performance within Pakistan’s aviation market.
The Competition Commission of Pakistan stated that it remains committed to supporting investment and privatisation efforts that protect consumers and promote fair, transparent market competition.
