The Competition Commission of Pakistan (CCP) has greenlit a Scheme of Arrangements enabling the acquisition of Pakistan International Airlines Corporation Limited (PIA) by PIA Holding Company Limited (Holdco), marking a significant stride in the Government of Pakistan’s privatization efforts for PIA. Holdco, a newly established public limited company under full governmental ownership, will absorb PIA’s assets, liabilities, and subsidiaries, encompassing its aviation services and related operations.
The Federal Government’s approval, based on the ‘Divestment of PIACL – Legal Segregation Plan and Transaction Structure’ proposed by the Privatisation Division on February 6, 2024, paves the way for Holdco to secure complete ownership of PIA. Notably, non-core assets and liabilities of PIA will also transition to Holdco under the approved Scheme.
While the real estate market in Pakistan, due to PIA’s nationwide property holdings, is identified as the pertinent market, Holdco’s post-transaction dominance in this domain is deemed unlikely by CCP’s assessment. The core aviation functions and allied services of PIA will remain under its purview, without transfer to Holdco.
CCP’s swift approval underscores its alignment with the Government of Pakistan’s economic rejuvenation strategy, notably through initiatives like the Special Investment Facilitation Council (SIFC), aimed at fostering investment opportunities.
