The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Pakistan International Airlines Corporation Limited (PIA) by PIA Equity Limited, a special purpose vehicle formed by a consortium including Arif Habib Corporation, Fatima Fertiliser, Lake City Holdings, City Schools and AKD Group, according to a statement issued on Wednesday.

The transaction is part of the government’s privatisation initiative. The consortium emerged as the successful bidder through a competitive process overseen by the Privatisation Commission.

The CCP’s assessment covered domestic and international passenger air transport, cargo services and aviation-related technical services. It found that Pakistan’s aviation sector remains highly competitive, particularly on international routes, with a strong presence of global carriers such as Emirates, Qatar Airways and Etihad Airways.

Domestic markets also exhibit active competition, with airlines including Air Blue, Air Sial, Fly Jinnah and Serene Air operating across key routes. PIA’s market share has declined over time due to operational challenges The transaction was assessed as a conglomerate merger, with no horizontal or vertical overlaps raising competition concerns. The CCP concluded that the acquisition does not create or strengthen a dominant position nor substantially lessen competition.