ISLAMABAD: The Pakistan Competition Commission (Pakistan) has authorised a plan of arrangements for the PIA Holding Company Limited (Holdco) to purchase all of the shares of Pakistan International Airlines Corporation Limited (PIA).

The Government of Pakistan is now privatising the PIA, and this approval is a part of that process.

Recently created to successor to specific assets, liabilities, and subsidiaries of PIA, including its business, property, rights, and duties, both locally and abroad, Holdco is a public limited company controlled entirely by the Government of Pakistan. Aviation and related services like engineering, handling, cargo, flight cuisine, and training are offered by PIA, a publicly traded firm.

Based on the "Divestment of PIACL - Legal segregation plan and transaction structure," which the Privatisation Division submitted on February 6, 2024, the federal government approved the deal. Holdco will purchase a hundred percent of PIA's shares in accordance with the approved Scheme, and PIA's non-core assets and liabilities will also be transferred to Holdco.

Since the PIA holds properties with uniform competitive circumstances throughout the nation, the real estate market in Pakistan has been selected as the relevant market in this case. PIA's affiliated services and core aviation operations, however, will stay with the business and not be handed to Holdco.

The CCP's evaluation came to the conclusion that, as specified by Section 2(1)(e) read with Section 3 of the Act, Holdco will not become dominant in the relevant market following the proposed acquisition. As a result, CCP has approved the merger during Phase I.

The CCP has shown that it is committed to advancing the Government of Pakistan's economic rehabilitation plan, especially in luring investment through the Special Investment Facilitation Council (SIFC), as evidenced by its swift approval of this merger.