CCP approves PIA acquisition by Arif Habib-Led Consortium

ISLAMABAD, APRIL 29, 2026: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by M/s. PIA Equity Limited, following a detailed Phase-I competition assessment under Section 11 of the Competition Act, 2010.
The transaction forms part of the Government of Pakistan’s privatization initiative. M/s. PIA Equity Limited is a Special Purpose Vehicle (SPV), incorporated on January 9, 2026, by a consortium comprising M/s. Arif Habib Corporation Limited (AHCL), M/s. Fatima Fertilizer Company Limited (FFC), M/s. Lake City Holdings (Private) Limited (LCH), M/s. City Schools (Private) Limited (CSPL), and M/s. AKD Group Holdings (Private) Limited (AKD). The consortium emerged as the successful bidder through a competitive process overseen by the Privatization Commission.
The CCP’s assessment covered multiple relevant markets, including domestic and international 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 the strong presence of global carriers such as Emirates, Qatar Airways, and Etihad Airways.
Domestic passenger markets also exhibit active competition, with airlines such as Air Blue, Air Sial, Fly Jinnah, and Serene Air operating across key routes. Consumers benefit from significant choice and demand-side substitutability, limiting any potential market power concerns.
The Commission further noted that PIA’s market share has declined over time due to operational challenges, reflecting sustained competitive pressures in the sector.
The transaction has been assessed as a conglomerate merger, with the acquiring consortium not operating in the same relevant markets as PIA. The absence of horizontal or vertical overlaps indicates that the transaction does not raise structural competition concerns.
After a comprehensive review, the Commission concluded that the proposed acquisition does not create or strengthen a dominant position in any relevant market, nor is it likely to substantially lessen competition. Accordingly, the transaction has been authorized under the law.
The CCP observed that the privatization of PIA is expected to enhance operational efficiency and service quality, promote a level playing field in the aviation sector, reduce reliance on government support, and contribute to a more competitive and commercially driven aviation market.
The Commission clarified that, while the transaction has been approved from a competition perspective, it remains subject to all applicable laws, regulatory requirements, and oversight by relevant authorities.
The CCP remains committed to facilitating investment and privatization initiatives that promote competition, protect consumers, and support economic growth, while ensuring that markets remain fair, transparent, and competitive. Ends