Pakistan’s CCP Approves NLC-DP World Joint Venture to Boost Logistics Sector

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the National Logistics Corporation (NLC) to acquire a 60% stake in DP World Logistics FZE (DWLF), forming a joint venture that aims to modernize Pakistan’s logistics sector.

The agreement was facilitated by the Special Investment Facilitation Council (SIFC) as part of efforts to drive economic growth. NLC, a state-owned enterprise established in 1978 and operating under the National Logistics Corporation Act 2023, provides both domestic and international freight and logistics services. With this transaction, the company is set to strengthen its presence in the road freight logistics industry, which has been defined as the “relevant market” for this deal.

CCP conducted a thorough competition assessment and concluded that the acquisition does not eliminate competition or create a dominant market position. The evaluation considered horizontal overlaps in road freight logistics and potential vertical integration effects, ultimately determining that the market remains competitive with multiple players.

Furthermore, CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, highlighting that no major competition concerns exist.

The joint venture is expected to generate synergies, improving supply chain efficiency in Pakistan’s logistics sector without raising exclusivity concerns. Additionally, CCP found no risks of post-merger coordinated effects, reducing the likelihood of market collusion.

This deal highlights Pakistan’s growing appeal for foreign investment in logistics, with expectations that it will improve infrastructure, lower transport costs, and enhance trade competitiveness in the region.

Last year, CCP facilitated investments worth $29.6 billion across various sectors, including energy, finance, telecom, and agriculture. This latest approval marks another milestone in Pakistan’s push to modernize its logistics industry and attract international investment.