Arif Habib-led group cleared to proceed with PIA share acquisition
Webdesk
|
29 Apr 2026
The Competition Commission of Pakistan has approved the proposed acquisition of shares in Pakistan International Airlines by a consortium led by Arif Habib Corporation.
According to the CCP, approval was granted to M/s PIA Equity Limited under the Competition Act 2010 following a Phase-I competition review.
PIA Equity Limited is a special purpose vehicle established by a consortium comprising Arif Habib Corporation, Fatima Fertilizer, Lake City Holdings, The City School, and AKD Group.
The consortium was declared the successful bidder in a competitive process overseen by the Privatisation Commission of Pakistan.
The Commission’s review covered markets related to domestic and international passenger air travel, cargo services, mail delivery, aircraft engineering, maintenance, overhaul, and aviation training.
According to the CCP, international routes feature strong competition from global airlines such as Emirates, Qatar Airways, and Etihad Airways. Domestically, alternatives are provided by Airblue, Airsial, Fly Jinnah, and SereneAir across key routes.
The CCP noted that PIA’s market share has declined in recent years due to operational challenges, reflecting the competitive pressures within the sector.
The Commission classified the transaction as a conglomerate merger, as the acquiring consortium is not active in PIA’s relevant business segments, meaning there is no horizontal or vertical overlap.
It concluded that the acquisition will neither create nor strengthen a dominant position in any relevant market, nor will it significantly reduce competition; therefore, the transaction has been approved.
According to the CCP, the privatisation of PIA is expected to improve operational performance, service quality, and competition in the aviation sector, while also reducing the government’s financial burden.
The Commission clarified that this approval is limited to competition aspects and that the transaction remains subject to other applicable laws and regulatory requirements.
