The Competition Commission of Pakistan (CCP) has recently consented to the 100% shareholding acquisition of Pakistan International Airlines Corporation Limited (PIACL) by PIA Holding Company Limited (HOLDCO). This endorsement is a critical stride in the privatization initiative directed by the government of Pakistan. HOLDCO, a wholly government-owned public limited company, will inherit PIACL’s shareholdings and specified assets, liabilities, and affiliates, which encompasses certain real estate assets. The divestment proposal received federal government approval, and the transaction is in motion through a Scheme of Arrangement filed with the Securities and Exchange Commission of Pakistan (SECP). While PIACL will retain core aviation operations and related services, its non-core assets, such as real estate, are being transferred to HOLDCO. However, these assets are deemed an insignificant fraction of Pakistan’s total real estate market. Post-transaction, HOLDCO is not predicted to dominate the relevant market, according to the CCP’s analysis, thus the transaction is granted consent under specific sections of the Competition Act. Pertinent legal matters beyond the Commission’s purview must adhere to other applicable legislations. This development is viewed as an essential component of the restructure of Pakistan’s aviation sector.

Aviation, Government and Public Administration, Real Estate,Pakistan